Upland Software, Inc. (NASDAQ: UPLD)

Sector: Technology Industry: Software - Application CIK: 0001505155
Market Cap 41.38 Mn
P/B -0.88
P/E -0.84
P/S 0.18
ROIC (Qtr) -1.89
Div Yield % 0.00
Rev 1y % (Qtr) -24.24
Total Debt (Qtr) 236.78 Mn
Debt/Equity (Qtr) -5.01

About

Upland Software, Inc. (UPLD) operates in the enterprise software industry, providing cloud-based solutions that enable digital transformation across various business functions. The company's offerings cater to marketing, sales, contact center, knowledge management, project management, information technology, business operations, and human resources and legal departments. Upland's primary business activities involve offering a diverse range of cloud applications designed to assist organizations in optimizing their operations. These applications...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 23.38M provide 4.16x coverage of short-term debt 5.63M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 26.24M exceeds capital expenditure of 1.58M by 16.55x, indicating strong organic growth funding capability.
  • Retained earnings of (641.60M) represent substantial 13.58x of equity (47.25M), indicating strong internal capital generation.
  • R&D investment of 40.49M represents healthy 0.57x of deferred revenue 71.62M, indicating strong future innovation pipeline.
  • Strong free cash flow of 26.24M provides 2.90x coverage of acquisition spending 9.06M, indicating disciplined M&A strategy.

Bear case

  • Investment activities of 7.64M provide weak support for R&D spending of 40.49M, which is 0.19x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 27.82M provides insufficient coverage of deferred revenue obligations of 71.62M, which is 0.39x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 27.82M shows concerning coverage of stock compensation expenses of 11.26M, with a 2.47 ratio indicating potential earnings quality issues.
  • Operating cash flow of 27.82M provides minimal -84.83x coverage of tax expenses of (328000), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (31.71M) show weak coverage of depreciation charges of 38.95M, with a -0.81 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.63 2.65
EV to Cash from Ops. EV/CFO 9.29 13.37
EV to Debt EV to Debt 1.09 57.69
EV to EBIT EV/EBIT -8.15 19.12
EV to EBITDA EV/EBITDA 7.55 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 9.85 14.69
EV to Market Cap EV to Market Cap 6.24 -92.28
EV to Revenue EV/Rev 1.10 4.60
Price to Book Value [P/B] P/B -0.88 4.26
Price to Earnings [P/E] P/E -0.84 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -8.51 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) -2.63 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -111.90 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -60.86 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 71.93 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 167.41 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 71.30 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 64.57 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 61.40 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 14.38 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -11.05 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.58 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.28 3.75
Current Ratio Curr Ratio (Qtr) 0.78 8.16
Debt to Equity Ratio Debt/Equity (Qtr) -5.01 0.17
Interest Cover Ratio Int Coverage (Qtr) -2.63 -52.32
Times Interest Earned Times Interest Earned (Qtr) -2.63 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 3.10 -100.06
EBIT Margin % EBIT Margin % (Qtr) -13.46 -164.24
EBT Margin % EBT Margin % (Qtr) -18.57 -116.94
Gross Margin % Gross Margin % (Qtr) 73.20 58.20
Net Profit Margin % Net Margin % (Qtr) -20.90 -121.65