Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In today's rapidly changing and highly competitive business world, it is imperative for investors and industry observers to carefully assess companies before making investment choices. In this article, we will undertake a comprehensive industry comparison, evaluating Uber Technologies (NYSE:UBER) vis-à-vis its key competitors in the Ground Transportation industry. Through a detailed analysis of important financial indicators, market standing, and growth potential, our goal is to provide valuable insights and highlight company's performance in the industry.
Uber Technologies Background Uber Technologies is a technology provider that matches riders with drivers, hungry people with restaurants and food delivery service providers, and shippers with carriers. The firm's on-demand technology platform could eventually be used for additional products and services, such as autonomous vehicles, delivery via drones, and Uber Elevate, which, as the firm refers to it, provides "aerial ride-sharing." Uber Technologies is headquartered in San Francisco and operates in over 63 countries with over 150 million users who order rides or food at least once a month.
CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue Growth| Uber Technologies Inc | 85.21 | 13.72 | 4.16 | 13.87% | $2.19 | $3.88 | 15.44% |
| Hertz Global Holdings Inc | 4.72 | 0.65 | 0.23 | -10.74% | $0.71 | $0.07 | 7.32% |
| Average | 4.72 | 0.65 | 0.23 | -10.74% | $0.71 | $0.07 | 7.32% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } Through an analysis of Uber Technologies, we can infer the following trends:
- Notably, the current Price to Earnings ratio for this stock, 85.21, is 18.05x above the industry norm, reflecting a higher valuation relative to the industry.
- The elevated Price to Book ratio of 13.72 relative to the industry average by 21.11x suggests company might be overvalued based on its book value.
- The Price to Sales ratio of 4.16, which is 18.09x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
- With a Return on Equity (ROE) of 13.87% that is 24.61% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
- The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $2.19 Billion, which is 3.08x above the industry average, indicating stronger profitability and robust cash flow generation.
- With higher gross profit of $3.88 Billion, which indicates 55.43x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
- With a revenue growth of 15.44%, which surpasses the industry average of 7.32%, the company is demonstrating robust sales expansion and gaining market share.
The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When examining Uber Technologies in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:
- Among its top 4 peers, Uber Technologies is placed in the middle with a moderate debt-to-equity ratio of 1.0.
- This implies a balanced financial structure, with a reasonable proportion of debt and equity.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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