馃殩 UBER: FINANCIAL ANALYSIS 馃殩
Uber is an example of an inefficient company. In general terms, the main problems are the fight against local taxis in some countries, security problems in their units and government pressure for drivers to be part of their employees. This platform is a great idea; however, it could not go further in some years.
The best advantage is the "ilegal" regimen it operates without big responsibilities. Despite this, its gross profits have stagnated due to the increase in its Costs vs. Sales. In fact, your cost of goods sold accounts for 70% of total revenue and selling general and administrative expenses always exceed 100% of its operating income (for example, in 4Q 22 they were 14x times higher). At this point, is better do not talk about the net debt.
The situation is complex. Since 2018, Uber has not had a net income positive. Analyzing the stock price with this context is hard. It is necessary to use Price/Sales ratio, but it could be another zombie company as many others. Based on 11/02/2023 financial data, a P/S 1 sets a price target in ± $15 USD, and a P/S 1.2 in ± $19 USD. A ratio between 1 and 1.2 could give a minimum-security zone in order to acquire some shares and to wait for big changes.
The best analysis is yours!
Uber is an example of an inefficient company. In general terms, the main problems are the fight against local taxis in some countries, security problems in their units and government pressure for drivers to be part of their employees. This platform is a great idea; however, it could not go further in some years.
The best advantage is the "ilegal" regimen it operates without big responsibilities. Despite this, its gross profits have stagnated due to the increase in its Costs vs. Sales. In fact, your cost of goods sold accounts for 70% of total revenue and selling general and administrative expenses always exceed 100% of its operating income (for example, in 4Q 22 they were 14x times higher). At this point, is better do not talk about the net debt.
The situation is complex. Since 2018, Uber has not had a net income positive. Analyzing the stock price with this context is hard. It is necessary to use Price/Sales ratio, but it could be another zombie company as many others. Based on 11/02/2023 financial data, a P/S 1 sets a price target in ± $15 USD, and a P/S 1.2 in ± $19 USD. A ratio between 1 and 1.2 could give a minimum-security zone in order to acquire some shares and to wait for big changes.
The best analysis is yours!
Copyright: Joel Padilla 2023
Comentarios