| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 2/6 |
| Past Performance | 0/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
PATH Overview
UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, and Japan.
UiPath Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$53.80 |
| 52 Week High | US$51.01 |
| 52 Week Low | US$90.00 |
| Beta | 0 |
| 1 Month Change | -13.31% |
| 3 Month Change | -22.89% |
| 1 Year Change | n/a |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | -22.03% |
Recent News & Updates
UiPath: The Journey Towards Full Automation
UiPath is redefining the world's workforce, deploying the most sophisticated and easy-to-deploy RPA arsenal on the market. In stark contrast to other software businesses, the ROI for clients is both measurable and tangible. The stock has taken a beating in recent months, presenting an optimal entry point for long-term investors. Near-sighted valuation concerns aside, UiPath possesses a unique, sticky product that is revolutionizing the role of all knowledge workers.
Taking a Look at the Intrinsic Value of UiPath Inc. (NYSE:PATH)
When it comes to unprofitable companies, guidance and ARR matter to investors more than short-term earnings surprises. A few days ago this proved true once again, as UiPath Inc. (NYSE:PATH) sank to a new low following the positive surprise on the earnings. In this article, we will examine its current intrinsic value based on the Discounted Cash Flow (DCF) model.
UiPath: Results Not Good Enough To Sustain High Valuation; Sell Now
UiPath reported F2Q22 results that were ahead of estimates on revenue, EPS, and ARR. The company also guided revenue and ARR ahead of estimates. For the second consecutive quarter, UiPath growth continues to slow. Both revenues from on-prem and the cloud slowed significantly. ARR, UiPath-favored metric, also continues to slow. While UiPath is not overly expensive, it is not cheap either. While the company beat results, The reported results are not good enough to sustain a high valuation. The company would need to invest aggressively in quota-carrying sales headcount to keep the growth going. UiPath guided a significant increase in its opex for F3Q, disappointing investors. Investors should sell UiPath shares now ahead of lockup expiration in October. We expect shares to remain under pressure due to slowing growth, increasing competition, and revenue volatility.
Shareholder Returns
| PATH | US Software | US Market | |
|---|---|---|---|
| 7D | -0.2% | -0.7% | -0.5% |
| 1Y | n/a | 42.4% | 37.5% |
Return vs Industry: Insufficient data to determine how PATH performed against the US Software industry.
Return vs Market: Insufficient data to determine how PATH performed against the US Market.
Price Volatility
| PATH volatility | |
|---|---|
| PATH Beta | 0 |
| Industry Beta | 0.95 |
| Market Beta | 1 |
Stable Share Price: PATH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: Insufficient data to determine PATH's volatility change over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2005 | 2,863 | Daniel Dines | https://www.uipath.com |
UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, and Japan. It develops UiPath Studio, a platform designed for RPA developers looking to build complex process automations with built-in governance capabilities, such as robust debugging tools, application programming interface automation, wizards to automate desktop or web applications, leverage custom code, and to integrate machine learning models into production workflows. The company also offers UiPath Robots, which emulates human behavior to execute the processes built in UiPath Studio; and UiPath Orchestrator that tracks and logs robot activity, along with what people do in tandem to maintain strict compliance and governance through dashboards and visualization tools.
UiPath Fundamentals Summary
| PATH fundamental statistics | |
|---|---|
| Market Cap | US$27.22b |
| Earnings (TTM) | -US$384.23m |
| Revenue (TTM) | US$736.90m |
37.5x
P/S Ratio-71.9x
P/E RatioIs PATH overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PATH income statement (TTM) | |
|---|---|
| Revenue | US$736.90m |
| Cost of Revenue | US$122.13m |
| Gross Profit | US$614.78m |
| Expenses | US$999.01m |
| Earnings | -US$384.23m |
Last Reported Earnings
Jul 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | -1.40 |
| Gross Margin | 83.43% |
| Net Profit Margin | -52.14% |
| Debt/Equity Ratio | 0% |
How did PATH perform over the long term?
See historical performance and comparisonValuation
Is UiPath undervalued compared to its fair value and its price relative to the market?
14.55x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: PATH ($53.8) is trading above our estimate of fair value ($34.17)
Significantly Below Fair Value: PATH is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: PATH is unprofitable, so we can't compare its PE Ratio to the US Software industry average.
PE vs Market: PATH is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate PATH's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: PATH is overvalued based on its PB Ratio (14.5x) compared to the US Software industry average (7.7x).
Future Growth
How is UiPath forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
40.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PATH is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: PATH is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: PATH is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: PATH's revenue (26.7% per year) is forecast to grow faster than the US market (9.8% per year).
High Growth Revenue: PATH's revenue (26.7% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PATH is forecast to be unprofitable in 3 years.
Past Performance
How has UiPath performed over the past 5 years?
-25.0%
Last years earnings growth
Earnings and Revenue History
Quality Earnings: PATH is currently unprofitable.
Growing Profit Margin: PATH is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: Unable to establish if PATH's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.
Accelerating Growth: Unable to compare PATH's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: PATH is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (22.1%).
Return on Equity
High ROE: PATH has a negative Return on Equity (-20.23%), as it is currently unprofitable.
Financial Health
How is UiPath's financial position?
Financial Position Analysis
Short Term Liabilities: PATH's short term assets ($2.2B) exceed its short term liabilities ($374.5M).
Long Term Liabilities: PATH's short term assets ($2.2B) exceed its long term liabilities ($74.4M).
Debt to Equity History and Analysis
Debt Level: PATH is debt free.
Reducing Debt: PATH has not had any debt for past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: PATH has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if PATH has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Dividend
What is UiPath current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate PATH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate PATH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if PATH's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if PATH's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of PATH's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
Daniel Dines (49 yo)
15.92yrs
Tenure
US$216,076
Compensation
Mr. Daniel Solomon Dines Co-Founded UiPath Inc in 2005 and serves as its Chief Executive Officer and Chairman of the Board since October 2005. Before founding UiPath, Mr. Dines was a software development e...
CEO Compensation Analysis
Compensation vs Market: Daniel's total compensation ($USD216.08K) is below average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: Insufficient data to compare Daniel's compensation with company performance.
Leadership Team
Experienced Management: PATH's management team is considered experienced (2 years average tenure).
Board Members
Experienced Board: PATH's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PATH insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: PATH only recently listed within the past 12 months.
Top Shareholders
Company Information
UiPath Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: UiPath Inc.
- Ticker: PATH
- Exchange: NYSE
- Founded: 2005
- Industry: Systems Software
- Sector: Software
- Market Cap: US$27.217b
- Shares outstanding: 513.54m
- Website: https://www.uipath.com
Number of Employees
Location
- UiPath Inc.
- 90 Park Avenue
- 20th Floor
- New York
- New York
- 10016
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/23 23:08 |
| End of Day Share Price | 2021/09/23 00:00 |
| Earnings | 2021/07/31 |
| Annual Earnings | 2021/01/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.