Yahoo Finance UiPath Inc. (NYSE:PATH): Are Analysts Optimistic?
We feel now is a pretty good time to analyse UiPath Inc.'s (NYSE:PATH) business as it appears the company may be on the cusp of a considerable accomplishment. UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. On 31 January 2024, the US$11b market-cap company posted a loss of US$90m for its most recent financial year. The most pressing concern for investors is UiPath's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for UiPath
UiPath is bordering on breakeven, according to the 22 American Software analysts. They expect the company to post a final loss in 2026, before turning a profit of US$37m in 2027. The company is therefore projected to breakeven around 3 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 72% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for UiPath given that this is a high-level summary, but, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that UiPath has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of UiPath which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at UiPath, take a look at UiPath's company page on Simply Wall St. We've also compiled a list of key aspects you should further examine:
Valuation: What is UiPath worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether UiPath is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on UiPath’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
