UiPath $PATH (+1,63 %) is currently trading well below previous highs - most recently around € 9 (approx. USD 10.50). For investors with a long-term horizon, this could represent an interesting opportunity to invest in a leading provider in the field of robotic process automation (RPA).
Fundamental classification
- Sales growth: In the last financial year, UiPath generated sales of around USD 1.3 billion, an increase of around 19% on the previous year.
- Gross margin: Around 85%, which is very high for a software company
- Profitability: Not yet profitable, net loss in 2024 at around USD 320 million - potential for improvement.
- Cash on hand: Over USD 1.7 billion in cash and cash equivalents - provides financial scope for growth and research
Market potential
According to forecasts, the global RPA market will grow from its current level of around USD 3 billion to over USD 25 billion by 2030. UiPath is one of the market leaders here and is increasingly expanding its offering with AI integration and cloud-based solutions. Customers come from a wide range of industries: Financial services, healthcare, logistics and public administration.
Risks
- Strong competition from companies such as Microsoft and Automation Anywhere.
- Lack of profitability could put further pressure on the share price if the tech market remains weak.
- High expectations for future growth - if these are not met, there is a risk of share price setbacks.
Chart overview (technical)
- Long-term trend: Falling sharply since the IPO, currently in a bottoming-out phase.
- Support: Area around € 9 could serve as a short-term holding point.
- Resistance: First zone at € 12-13, above which the chart would brighten.
- Setup idea: For long-term investors, a staggered positioning may make sense in order to take advantage of any further setbacks.
Conclusion:
UiPath $PATH (+1,63 %) is not a sure-fire success, but at the current valuation level it offers the opportunity for above-average returns - provided the company can maintain its leading market position and become profitable in the coming years. Anyone who believes in the long-term trend towards automation and can withstand short-term fluctuations may find an exciting entry point here.