UBER

We rate Uber Technologies, Inc (UBER) as a Hold with a composite score of 52.2/100 at a current price of $71.51. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.

The rating is primarily driven by strength in stability (76th percentile) and momentum (57th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (25th percentile) and quality (49th percentile) tempers our overall conviction. We assign a Wide Moat rating (70/100), Low uncertainty, and Exemplary capital allocation.

Key items to watch: sustainability of the current growth rate. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

Uber Technologies, Inc holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 52.2/100 places it at rank #1663 in our full 7,333-stock universe. As a mega-cap company with a $204.3B market capitalization, Uber Technologies, Inc benefits from significant scale, distribution networks, and brand recognition that smaller competitors cannot easily replicate.

Revenue is growing at 26%, though momentum at the 57th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.

The margin cascade tells an important story: gross margins of 40% (-19.6pp vs sector) narrow to operating margins of 10% (+6.5pp vs sector) and net margins of 24.7%, yielding a gross-to-net conversion rate of 62%. This efficient conversion suggests well-controlled operating costs and limited margin leakage between the gross and net levels.

At a current price of $71.51, Uber Technologies, Inc is trading near fair value based on current fundamentals. Our value factor score of 53/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.

The stock currently trades at a P/E of 12.3x (a 48% discount to the sector median of 23.7x), EV/EBITDA of 33.5x (at a premium), P/B of 5.4x, P/S of 3.1x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.

We assign a Low uncertainty rating to Uber Technologies, Inc. The company exhibits strong financial stability with a beta of 1.12, conservative leverage (38% D/E), and a stability factor in the 76th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.

We identify no major risk factors at this time. The company's stability factor sits at the 76th percentile with quality at the 49th percentile, both of which support our low-risk assessment. The absence of material leverage, profitability, or volatility concerns reduces the likelihood of a permanent capital loss scenario.

Key risk mitigants include: above-average stability (76th percentile) suggests predictable business dynamics; large-cap scale ($204.3B) provides resilience. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.

We rate Uber Technologies, Inc's capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by returns on equity of 44.3%, disciplined leverage (38% D/E), best-in-class net margins of 24.7%. Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — Uber Technologies, Inc meets this high bar.

The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. We note that the combination of 20.0% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.

In summary, Uber Technologies, Inc receives a Hold rating with a composite score of 52.2/100 (rank #1663 of 7,333). Our quantitative framework assigns a Wide Moat (70/100, trend: stable), Low uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 52/100.

Our analysis supports a neutral stance on Uber Technologies, Inc. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.