10Y annualized return is
positive but below market average
at 7.0% per year
UBER has met or exceeded earnings expectations in
the majority of
recent quarters (7/10)
Attractive P/E Ratio
Reasonable Price-to-Sales Ratio
Strong Net Profit Margin
High Return on Equity
Low Debt-to-Equity Ratio
Strong Interest Coverage
🚀 Strong Growth Metrics
🛡️ Membership Growth
🔗 Strategic Positioning in AVs
🌍 Expansion into Less Dense Areas
🔧 Continued Product Innovation
High EV/EBITDA Ratio
Low Operating Profit Margin
Moderate Liquidity Ratios
⚠️ Dependency on External Conditions
⏳ AV Commercialization Challenges
📉 Pricing Pressures
Overall, Uber demonstrates strong business quality driven by robust growth metrics and strategic positioning in emerging markets like AVs. However, it faces challenges from external conditions and potential pricing pressures that could impact its profitability. The future prospects look promising with expansion strategies and ongoing innovation, though the timeline for AV commercialization poses risks.
Analysis Date: February 5, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Uber Technologies, Inc. is a company that helps people get rides and food delivered using a smartphone app. When you need a ride, you can request a driver through the app, and they will pick you up and take you to your destination. Uber also allows you to order food from local restaurants and have it delivered to your home. Additionally, they connect businesses that need to ship goods with truck drivers, making it easier for companies to transport their products.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Mixed Business Model
Competitive Advantages
Key Business Risks
Latest News
The agency accuses the ridesharing company of charging customers without consent and making it hard to cancel the service.
LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, today announced that it has commenced an in...
NEW YORK, NY / ACCESS Newswire / April 22, 2025 / Levi & Korsinsky notifies investors that it has commenced an investigation of Uber Technologies, Inc...
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$58.50
Current Market Price: $64.17
IV/P Ratio: 0.91x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-10.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for UBER
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (13.81)
P/B ratio ≤ 1.5 (6.31)
Current ratio ≥ 2.0 (1.07x)
Long-term debt < Net current assets (12.75x)
Margin of safety (-10.0%)
UBER does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
65.99%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
37.46%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
22.41%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
Uber's net profit margin of 22.41% demonstrates a strong ability to convert revenue into actual profit, indicating high operational efficiency.
With a return on equity (ROE) of 65.99%, Uber exhibits exceptional profitability from its equity capital, well above average benchmarks.
The operating profit margin of 6.70% indicates limited profitability on operations, suggesting that Uber may need to improve cost management or revenue generation strategies.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.44x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.07x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
A debt-to-equity ratio of 0.46 indicates that Uber maintains a conservative approach to leveraging, which bodes well for financial stability.
With an interest coverage ratio of 7.25, Uber has a healthy ability to meet interest obligations, indicating robust earnings relative to its debt costs.
Current and quick ratios of 1.07 suggest that Uber has just enough liquidity to cover short-term obligations, which may raise concerns in times of financial stress.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Uber reported gross bookings growth above its own expectations, achieving 21% growth on a constant currency basis in Q4 2024. This was driven by a significant increase in multi-product use, which reached an all-time high of 37% of consumers. Additionally, adjusted EBITDA grew by 60% year-on-year, exceeding their commitment of high thirties to forty percent CAGR.
The Uber One membership program saw significant growth, adding five million members in the last quarter, bringing the total to 30 million, which is a 60% increase year-on-year. This indicates strong customer loyalty and engagement with Uber's offerings.
Uber is positioning itself as a key partner for autonomous vehicle (AV) firms. They are investing in building out supply and partnerships with OEMs, which could provide a competitive moat as AV technology matures. This strategic focus on AVs is seen as a top priority, indicating long-term vision.
The business faces challenges from external factors, such as foreign exchange (FX) headwinds, which are expected to impact gross bookings growth in Q1. Additionally, natural disasters and adverse weather conditions have also affected operations in key markets.
Uber is focusing on expanding its services into less densely populated areas, where they have observed higher growth rates. This expansion strategy is expected to drive continued growth as it targets new markets that were previously underserved.
Uber continues to innovate its product offerings, such as enhancing user experience in the delivery segment and expanding the availability of Uber Teens and Uber One. This commitment to innovation is critical for maintaining user engagement and driving revenue.
While Uber is optimistic about its role in the AV market, the CEO highlighted that AV technology commercialization is expected to take significantly longer than anticipated. This uncertainty could impact future growth projections.
The company is facing potential headwinds as they push towards affordability, which could impact profit margins. There are concerns about reaching a ceiling on pricing as consumer preferences shift towards lower-cost options.