Uber Technologies (UBER:NYE) Fundamental Analysis is very bearish

Uber stock is currently rated with a fundamental score of 1.1 out of 10, where 0 is very bad and 10 is very good.

UBER Stock Analysis:

25 analysts have provided stock projections for Uber Technologies Inc., and the average analyst target for the company over the next 12 months is USD 45.44. Strong Buy is the current consensus analyst recommendation for the stock. Uber stock analysis by Stock Target Advisor is Bearish and is based on 1 positive and 8 negative signals. The stock price of Uber Technologies Inc. was USD 26.57 at the most recent closing. The stock price of Uber stock has changed by -3.91% over the previous week, +0.26% over the previous month, and -39.37% over the previous year.  The Crowd target for the stock is $34 share, with a consensus Crowd Hold rating on the company’s stock.

About Uber:

Uber Technologies, Inc. creates and manages unique technological applications in the Americas, Europe, the Middle East, Asia Pacific, Latin America, and Africa. It links users and other customers to independent transportation service providers for ridesharing services, as well as to restaurants, grocers, and other retailers with delivery service providers for services like meal preparation, grocery delivery, and other delivery services. Mobility, Delivery, and Freight are the three business divisions that make up the organization. The Mobility section offers services that link customers with mobility drivers that offer rides in a variety of vehicles, including cars, auto rickshaws, motorcycles, minibuses, and taxis. Additionally, it provides collaborations in finance, transit, and automobile solutions. The Delivery category offers grocery, alcohol, and convenience store delivery in addition to a limited selection of other products. Customers can use this segment to find local restaurants, place orders, and either pick up their meals from the restaurant or have them delivered. The company’s platform is used by the freight segment to link carriers and shippers and give them access to transportation management, other logistics services, upfront, transparent pricing, and the ability to schedule shipments. In February 2011, the business, which was formerly known as Ubercab, Inc., changed its name to Uber Technologies, Inc. San Francisco, California serves as the company’s headquarters. Uber Technologies, Inc. was established in 2009.

News:

Uber Technologies Inc. just released their earnings report, and the stock jumped on the news after the company reported that it’sthird-quarter revenue exceeded the expectated forecasts, regardless of the fact that its loss was four times higher than analysts had previous suggested it would be.

In comparison to forecasts for a 21-cent loss, the company lost 61 cents per share, 40 cents about estimates. This loss included nearly $1 billion in revaluations of the company’s equity assets and stock-based compensation costs. Surpassing expectations, revenue increased 72% to $8.3 billion thanks to Uber Freight’s acquisition of Transplace and modifications to the company’s UK Mobility business model. Additionally, the company’s ride-hailing growth picked up.

After experiencing a rise in online purchase volumes during the pandemic, Uber’s delivery division is now experiencing slower sales growth. The company stated that daily journeys increased by nearly 21 million or 19% during the third quarter. Growth was driven by mobility gross bookings, which increased by 38% compared to 7% for delivery gross bookings. Gross bookings are an indicator of how much money was made overall by the combined ride-hailing, delivery, and freight-shipping operations of Uber.

Uber executives stated that despite a 7 percent currency headwind, the company is anticipating fourth-quarter gross bookings to increase by 23% to 27% to between $30.0 billion and $31.0 billion, and earnings in the range for adjusted EBITDA  from about $600 million to $630 million.

 

Fundamental Stock Analysis:

Positive Fundamentals:

High market capitalization: This organization is among the top quartile and is one of the biggest in its industry. These businesses are typically more reliable.

Negative Fundamentals:

Low Returns:  In comparison to its rivals, this company’s risk-adjusted return performance is below average. The returns are unpredictable, even if it is outperforming in terms of returns. Be careful as you go.

High Volatility:  Over the past five years, this company’s total returns have been erratic and higher above the industry average. If you plan to invest in such a stock, be sure your risk tolerance is adequate.

Lower than average dividend returns:  In comparison to its competitors, the company’s average income yield during the past five years has been low. If you are not seeking for work, it is not an issue.

Excessive in comparison to wages:  The stock is trading above the sector median and at a premium to its peers in terms of price to earnings.

Compared to book value, it is overpriced: On a price to book value basis, the stock is selling at a premium to the median of its peer group.

Extremely leveraged:  In terms of debt to equity, the company is heavily leveraged and in the bottom half of its sector rivals. Check the news, though, and study the sector and management remarks. This can be high at times since the business is attempting to grow quickly.

Poor cash flow:  The last four quarters saw a negative total cash flow for the organization.

Free cash flow that is negative:  In the last four quarters, the company’s overall free cash flow was negative.

Uber stock is currently rated with a fundamental score of 1.1 out of 10, where 0 is very bad and 10 is very good.