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HyreCar: Gross Profit Margin Of 49% And Undervalued At 2.6x Sales

Feb. 10, 2019 5:37 PM ETHyreCar Inc. (HYREQ)CAR, HTZ64 Comments


  • HyreCar runs a web-based marketplace that facilitates car sharing. The company’s platform helps owners rent their cars to Uber and Lyft.
  • In the nine months ended September 30, 2018, revenues were equal to $6.67 million, 240% more than that in the nine months ended September 30, 2017.
  • The company expects a gross profit increase of 1,500% y/y and revenue growth of 209% for the fiscal year 2018.
  • It is also quite beneficial that the company is working on operating efficiencies and expects to obtain positive CFO by mid-2019.
  • The shares seem undervalued at 2.6x forward sales. Avis and Hertz, which compete with HyreCar, are trading at 0.9x-1.8x sales and are reporting revenue growth below 10%.

With an interesting car sharing business model, HyreCar (HYRE) recently surprised the market by releasing revenue growth of 209% and gross profit margin of 49%. Growth investors should study this name closely as the numbers to be released in 2019 are expected to be much better than those in 2017. Value investors should also appreciate this name, as efforts are being made to report positive CFO by mid-2019. Finally, HyreCar seems undervalued at 2.6x sales, as there are peers that are trading at 1.8x with revenue growth below 10%.


Incorporated on November 24, 2014, and headquartered in Los Angeles, California, HyreCar runs a web-based marketplace that facilitates car sharing. The company’s platform helps owners rent their cars to Uber (UBER) and Lyft (LYFT). HyreCar presents its business with the image below on its website:

(Source: Company Website)

The business seems very interesting for both drivers and car owners. According to HyreCar, drivers are making on the average $1,000 per week and owners can earn about $14,000 per year. The image below provides further details on these matters:

(Source: Company Website)

While obtaining insurance for all drivers seems quite complicated, HyreCar notes that car drivers don’t need to worry. The company provides insurance for them. In addition, the company says that finding cars, making transactions and managing private information is very easy. The lines below were taken from the HyreCar website:

(Source: Company Website)

The platform seems quite intuitive. Users can select cars and drivers using a map, sort cars by price, and get location, among other options. Investors should perform further due diligence by registering on the company’s website. Additionally, drivers and car owners can exchange messages. The image below provides further details on this matter:

(Source: Company Website)

It is also quite interesting that car drivers and owners

This article was written by

I am hedge fund analyst having over 20 years of investment experience in individual stocks. I have expertise of working with small to mid-size companies. I focus on value, growth at reasonable price, and M&A investing. My clients are based in the US and Europe. Email: mcafe88@protonmail.comhttps://www.tipranks.com/bloggers/bilbao-asset-management+20% Stock ReturnsDisclaimer: The Author is not a CPA, CFA and explicitly denies that his opinions are expert in any way. The reader is encouraged to review publicly available information and perform other research before determining whether they agree with the opinions of the Author.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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