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UiPath Inc Class A PATH

Morningstar Rating
$12.70 +0.23 (1.84%)
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Company Report

UiPath: Initiating Coverage With Narrow Moat Rating and $16.50 Fair Value Estimate

We have launched coverage of UiPath with a $16.50 fair value estimate and narrow moat rating. UiPath offers end-to-end cross-application process automation software that delivers meaningful cost savings, efficiency, and risk-management benefits to customers looking to automate repetitive processes traditionally executed by humans. UiPath shares cratered following the most recent quarterly results as near-term guidance fell below consensus estimates on macroeconomic pressures and internal execution issues, as well as the sudden departure of CEO Rob Enslin after a short tenure. Nonetheless, we view these issues as transitory, and at current prices, the shares screen attractive on a risk-adjusted basis.

Price vs Fair Value

PATH is trading at a 188% premium.
Price
$12.70
Fair Value
$22.80
Uncertainty
Very High
1-Star Price
$41.54
5-Star Price
$9.99
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

UiPath enjoys best-of-breed dollar-based gross retention indicative of a sticky offering.

Bears

UiPath operates in a competitive market, with major enterprise software providers offering RPA and automation tools.

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News

Trading Information

Previous Close Price
$12.47
Day Range
$12.5312.84
52-Week Range
$11.0727.87
Bid/Ask
$12.70 / $12.75
Market Cap
$7.27 Bil
Volume/Avg
8.0 Mil / 11.0 Mil

Key Statistics

Price/Earnings (Normalized)
33.71
Price/Sales
5.32
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
1.41%

Company Profile

UiPath offers an end-to-end cross-application enterprise automation platform. The platform leverages a range of automation technologies including robotic process automation, application programming interface, and artificial intelligence. UiPath’s solution can automate a broad range of repetitive tasks across industries including claims processing, employee onboarding, invoice to cash, loan applications, and customer service.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Small Growth
Total Number of Employees
4,035

Competitors

Valuation

Metric
PATH
APPN
MSFT
Price/Earnings (Normalized)
33.7138.92
Price/Book Value
3.5913.20
Price/Sales
5.324.6414.19
Price/Cash Flow
19.2830.17
Price/Earnings
PATH
APPN
MSFT

Financial Strength

Metric
PATH
APPN
MSFT
Quick Ratio
3.841.021.05
Current Ratio
4.131.331.24
Interest Coverage
−4.1938.50
Quick Ratio
PATH
APPN
MSFT

Profitability

Metric
PATH
APPN
MSFT
Return on Assets (Normalized)
11.50%−9.09%19.65%
Return on Equity (Normalized)
16.08%−90.87%38.71%
Return on Invested Capital (Normalized)
13.37%−11.44%28.79%
Return on Assets
PATH
APPN
MSFT
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