UiPath: A Work In Progress

Sep. 06, 2024 2:02 PM ETUiPath Inc. (PATH) StockPATH19 Comments
Ricardo Fernandez
2.68K Followers

Summary

  • UiPath's growth slowed due to AI integration, but RPA demand may accelerate; the founder returned as CEO to drive growth.
  • Fiscal 2Q25 results showed 10% revenue growth, declining margins, and flat cash flow; AI and RPA confusion is dissipating.
  • Stock valuation reset from 45x to 25x cash earnings; potential 63% upside if top-line growth hits 15% for 2026.
  • Long-term risk includes AI replacing RPA, and midterm competition from IT service providers.

AI chatbot - Artificial Intelligence digital concept

Vertigo3d

Summary

In May, I analyzed UiPath Inc. (NYSE:PATH) and concluded that while the company's growth had slowed as customers reorganized IT strategy and budgets to incorporate AI, RPA (robotic process automation) could see an acceleration in demand and is a tool

This article was written by

2.68K Followers
Experience is difficult to learn. After 30 plus years of critically analyzing the nuts and bolts of businesses as diverse as airlines, oil, retail, mining to fintech and ecommerce plus the macro, monetary and political drivers. I continue to immensely enjoy learning and applying my experience to unravel, comprehend and benefit from new ideas, technology, innovation and business models. In addition, living through multiple crises, tequila, Asia, dotcom, 9/11, the great recession and the Covid19 pandemia, plus a stint at entrepreneurialism (Export, Factoring and Printing) provides for an extraordinary base of experience to be applied across multiple disciplines.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PATH either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About PATH Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on PATH

Related Stocks

SymbolLast Price% Chg
PATH
--