UiPath, Inc. (PATH) Stock Analysis and Metrics

Sector: Technology Industry: Software - Infrastructure CIK: 0001734722

P/B 4.57

P/E 38.31

P/S 5.66

Market Cap 8.80 Bn

ROIC (Qtr) 4.37

Div Yield % 0.00

Rev 1y % (Qtr) 15.92

Total Debt (Qtr) 72.02 Mn

Debt/Equity (Qtr) 0.04

About

UiPath, Inc., often recognized by its stock symbol UIP, operates in the realm of artificial intelligence (AI) and robotic process automation (RPA) software. The company's primary business activities encompass building and managing automations, developing computer vision technology, and expanding its global footprint. UiPath's mission is to enable automation across all knowledge work to accelerate human achievement, a goal that is reflected in its responsive and adaptable platform. UiPath's platform is built to address the diverse challenges faced...

UiPath, Inc., often recognized by its stock symbol UIP, operates in the realm of artificial intelligence (AI) and robotic process automation (RPA) software. The company's primary business activities encompass building and managing automations, developing computer vision technology, and expanding its global footprint. UiPath's mission is to enable automation across all knowledge work to accelerate human achievement, a goal that is reflected in its responsive and adaptable platform.

UiPath's platform is built to address the diverse challenges faced by businesses in the digital landscape. It offers software robots that emulate human behavior, enabling organizations to tackle a wide range of use cases, from simple to complex, across various levels and departments. The platform's design allows users to seamlessly integrate UI automations, API integrations, and AI-based document understanding within a single workflow.

The company's revenue is primarily generated through its Business Automation Platform and Automation Cloud. The Business Automation Platform is a comprehensive solution designed to span the full automation spectrum, while the Automation Cloud enables customers to begin automating without the need for additional infrastructure, application installations, or configurations. UiPath's platform is built for enterprise deployment, with security and governance at its core, and can be deployed in a variety of environments, including on-premises, public or private clouds, or in a hybrid setup.

UiPath competes in a rapidly growing market for automation software, facing competition from enterprise platform vendors, RPA software providers, and adjacent automation and integration platform companies. However, UiPath distinguishes itself through its end-to-end platform, AI-powered capabilities, and its ability to provide a seamless user experience. The company's key competitors include enterprise platform vendors that are acquiring, building, or investing in automation and AI functionality or partnering with automation and AI providers. Additionally, RPA software providers that lack end-to-end automation capabilities and adjacent automation and integration platform companies pose competition.

UiPath's customer base is extensive and diverse, spanning industries such as financial services, healthcare, manufacturing, and the public sector. The company boasts a large and growing customer base, with approximately 10,830 and approximately 10,800 customers as of January 31, 2024 and 2023, respectively.

UiPath's platform includes various brand names and tools, such as its software robots, which can mimic human behavior to address a multitude of use cases. The Automation Cloud is another significant segment of UiPath's business, providing a scalable, secure, and highly available option for businesses looking to automate their processes.

Stock Price Chart

Analysis

Pros

Strong operating cash flow of 334.94M provides robust 4.65x coverage of total debt 72.02M, indicating excellent debt servicing capability and financial flexibility.
Strong tangible asset base of 2.75B provides 38.24x coverage of total debt 72.02M, indicating robust asset backing and low credit risk.
Robust free cash flow of 311.55M exceeds capital expenditure of 23.39M by 13.32x, indicating strong organic growth funding capability.
Long-term investments of 121.61M provide solid 1.69x coverage of long-term debt 72.02M, indicating strategic financial planning.
Cash reserves of 744.10M provide robust 0.94x coverage of current liabilities 788.70M, indicating strong short-term solvency.

Cons

Investment activities of 3.49M provide weak support for R&D spending of 389.72M, which is 0.01x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Cash reserves of 744.10M provide limited coverage of acquisition spending of (24.82M), which is -29.98x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
Operating cash flow of 334.94M provides insufficient coverage of deferred revenue obligations of 633.15M, which is 0.53x, raising concerns about future service delivery capabilities.
The company's operating cash flow of 334.94M shows concerning coverage of stock compensation expenses of 313.47M, with a 1.07 ratio indicating potential earnings quality issues.
Operating cash flow of 334.94M provides minimal -2.01x coverage of tax expenses of (166.85M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer Comparison

Companies in the Software - Infrastructure

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	MSFT	Microsoft Corp	3,542.10 Bn	33.76	12.06	60.56 Bn
2	ORCL	Oracle Corp	533.93 Bn	34.61	8.75	124.39 Bn
3	PLTR	Palantir Technologies Inc.	437.56 Bn	399.47	112.31	0.24 Bn
4	PANW	Palo Alto Networks Inc	125.16 Bn	112.03	13.10	0.35 Bn
5	CRWD	CrowdStrike Holdings, Inc.	120.85 Bn	-384.67	26.47	0.82 Bn
6	SNPS	Synopsys Inc	71.69 Bn	35.89	11.14	15.14 Bn
7	NET	Cloudflare, Inc.	67.84 Bn	-658.43	33.70	3.50 Bn
8	FTNT	Fortinet, Inc.	63.33 Bn	33.80	9.66	1.00 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	2.85	2.56
EV to Cash from Ops.	24.61	38.32
EV to Debt	114.44	-11.37
EV to EBIT	131.21	-12.79
EV to EBITDA	194.68	7.72
EV to Free Cash Flow [EV/FCF]	26.45	24.22
EV to Market Cap	0.94	0.58
EV to Revenue	5.31	-35.00
Price to Book Value [P/B]	4.57	3.74
Price to Earnings [P/E]	38.31	-18.61

Dividend Metrics

Metric	Value	Industry	Percentile
Dividend Coverage Ratio	0.00	-0.30
Dividend Payout Ratio %	0.00	2.69
Dividend per Basic Share	0.00	0.10
FCF Dividend Payout Ratio %	0.00	1.67
Interest Coverage	0.00	-13.15

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-106.70	-404.11
Cash and Equivalents Growth (1y) %	-3.87	226.02
Dividend Growth (1y) %	0.00	-0.27
EBIAT Growth (1y) %	350.80	31.15
EBITDA Growth (1y) %	129.02	49.02
EBIT Growth (1y) %	165.35	25.85
EBT Growth (1y) %	165.35	17.82
EPS Growth (1y) %	362.50	70.69
FCF Growth (1y) %	0.90	295.45
Gross Profit Growth (1y) %	9.87	49.96

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.54	0.68
Cash Payout Ratio	0.00	0.02
Cash Ratio	0.94	1.21
Current Ratio	2.65	2.57
Debt to Equity Ratio	0.04	-0.93
Interest Cover Ratio	0.00	-13.15
Times Interest Earned	0.00	-13.15

Profitability

Metric	Value	Industry
EBITDA Margin %	6.10	-544.82
EBIT Margin %	4.04	-197.78
EBT Margin %	4.04	-602.74
Gross Margin %	83.20	52.06
Net Profit Margin %	14.80	-605.52

UiPath, Inc. (NYSE: PATH)