Aurora Innovation, Inc. (NASDAQ: AUR)

Sector: Technology Industry: Information Technology Services CIK: 0001828108
Market Cap 6.92 Bn
P/B 3.02
P/E -8.62
P/S 3,461.82
ROIC (Qtr) -38.31
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 107.00 Mn
Debt/Equity (Qtr) 0.05

About

Aurora Innovation, Inc., often referred to as Aurora, operates in the self-driving technology industry. The company was established in 2017 by Chris Urmson, Sterling Anderson, and Drew Bagnell, all of whom are recognized leaders in the field of self-driving technology. Aurora's mission is to deliver the benefits of self-driving technology safely, quickly, and broadly. Aurora's primary business activities revolve around the development of self-driving technology. The company's main product is the Aurora Driver, a self-driving system that can be...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 87M provide 7.25x coverage of short-term debt 12M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.89B provides 17.69x coverage of total debt 107M, indicating robust asset backing and low credit risk.
  • Short-term investments of 1.16B provide solid 16.11x coverage of other current liabilities 72M, indicating strong liquidity.
  • Long-term investments of 357M provide solid 3.76x coverage of long-term debt 95M, indicating strategic financial planning.
  • Tangible assets of 1.89B provide robust 26.29x coverage of other current liabilities 72M, indicating strong asset backing.

Bear case

  • Investment activities of (445M) provide weak support for R&D spending of 722M, which is -0.62x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 1.16B significantly exceed cash reserves of 87M, which is 13.33x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (577M) shows concerning coverage of stock compensation expenses of 175M, with a -3.30 ratio indicating potential earnings quality issues.
  • Free cash flow of (608M) provides weak coverage of capital expenditures of 31M, with a -19.61 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (803M) show weak coverage of depreciation charges of 51M, with a -15.75 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Information Technology Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 IBM International Business Machines Corp 279.99 Bn 35.41 4.28 66.57 Bn
2 ACN Accenture plc 168.17 Bn 22.09 2.38 8.20 Bn
3 INFY Infosys Ltd 74.96 Bn 23.74 3.89 -
4 CTSH Cognizant Technology Solutions Corp 41.45 Bn 19.48 1.99 1.17 Bn
5 FIS Fidelity National Information Services, Inc. 35.21 Bn 231.62 3.36 13.00 Bn
6 WIT Wipro Ltd 29.93 Bn 19.70 2.97 1.95 Bn
7 BR Broadridge Financial Solutions, Inc. 26.38 Bn 28.51 3.74 3.28 Bn
8 LDOS Leidos Holdings, Inc. 23.72 Bn 16.88 1.37 5.23 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.72 1.44
EV to Cash from Ops. EV/CFO -11.83 5.63
EV to Debt EV to Debt 63.82 8.06
EV to EBIT EV/EBIT -8.50 -4.05
EV to EBITDA EV/EBITDA -8.42 -0.52
EV to Free Cash Flow [EV/FCF] EV/FCF -11.23 -1.66
EV to Market Cap EV to Market Cap 0.99 1.35
EV to Revenue EV/Rev 3,414.32 57.14
Price to Book Value [P/B] P/B 3.02 3.34
Price to Earnings [P/E] P/E -8.62 -5.47
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.83
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.66
Dividend per Basic Share Div per Share (Qtr) 0.00 0.47
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.24
Interest Coverage Interest Coverage 0.00 -319.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -3.33 -253.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -66.92 114.15
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 35.23
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -7.50 -22.49
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -10.04 -25.03
EBIT Growth (1y) % EBIT 1y % (Qtr) -7.50 -82.44
EBT Growth (1y) % EBT 1y % (Qtr) -7.50 97.07
EPS Growth (1y) % EPS 1y % (Qtr) 6.25 147.29
FCF Growth (1y) % FCF 1y % (Qtr) 3.80 -8,638.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 -8.24
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.78
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 1.04 0.66
Current Ratio Curr Ratio (Qtr) 15.29 2.12
Debt to Equity Ratio Debt/Equity (Qtr) 0.05 0.88
Interest Cover Ratio Interest Cover Ratio 0.00 -319.17
Times Interest Earned Times Interest Earned 0.00 -319.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -37,600.00 -550.76
EBIT Margin % EBIT Margin % (Qtr) -40,150.00 -775.74
EBT Margin % EBT Margin % (Qtr) -40,150.00 -827.89
Gross Margin % Gross Margin % (Qtr) -450.00 24.07
Net Profit Margin % Net Margin % (Qtr) -40,150.00 -830.34