Should you buy Uber stock? (Feb 2023)
- 7 months ago
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Uber reported fourth quarter earnings last week and the stock jumped around 7%. Based on the latest share price the company now has a market cap of 71 billion dollars. With 4.2 billion of cash and 10 billion of debt the enterprise value is roughly 77 billion.
Revenue over the last 12 months was 31.9 billion, and the company reported 1.7 billion in adjusted ebitda and 390 million in free cash flow. However, net income was negative 9.1 billion which was impacted by a fall in Uber’s equity investments.
As a result, Uber is now valued at 2.4 times annual revenue, 45 times ebitda and almost 200 times free cash flow.
Uber’s financials are complicated by its investments in startups such as Didi,Grab, Joby, Lime and Aurora, as well as its many business segments. But these assets also give the company strong optionality.
Its mobility segment grew 31% last year and that growth is expected to continue into 2023.
Its delivery segment grew 6%, (with more than a 50% impact from currency headwinds) and its freight segment grew 42%.
Intertwined in all this Uber is making progress with advertising, subscriptions, its travel app and car sharing. As well, Uber is partnering with Hertz to help grow its fleet of electric vehicles and the company wants to be emission free in big cities by 2030.
All in all, Uber is growing fast and has numerous levers to pull. Its success is in stark contrast to the performance of rival Lyft whose stock collapsed more than 30%.
#stocks #investing #overlookedalpha #finance #uberstock
Uber reported fourth quarter earnings last week and the stock jumped around 7%. Based on the latest share price the company now has a market cap of 71 billion dollars. With 4.2 billion of cash and 10 billion of debt the enterprise value is roughly 77 billion.
Revenue over the last 12 months was 31.9 billion, and the company reported 1.7 billion in adjusted ebitda and 390 million in free cash flow. However, net income was negative 9.1 billion which was impacted by a fall in Uber’s equity investments.
As a result, Uber is now valued at 2.4 times annual revenue, 45 times ebitda and almost 200 times free cash flow.
Uber’s financials are complicated by its investments in startups such as Didi,Grab, Joby, Lime and Aurora, as well as its many business segments. But these assets also give the company strong optionality.
Its mobility segment grew 31% last year and that growth is expected to continue into 2023.
Its delivery segment grew 6%, (with more than a 50% impact from currency headwinds) and its freight segment grew 42%.
Intertwined in all this Uber is making progress with advertising, subscriptions, its travel app and car sharing. As well, Uber is partnering with Hertz to help grow its fleet of electric vehicles and the company wants to be emission free in big cities by 2030.
All in all, Uber is growing fast and has numerous levers to pull. Its success is in stark contrast to the performance of rival Lyft whose stock collapsed more than 30%.
#stocks #investing #overlookedalpha #finance #uberstock