UiPath The underestimated winner of AI automation

🔎 Brief overview:

UiPath is one of the leading providers of *Robotic Process Automation (RPA)* and is one of the most exciting players in the field of *AI-supported automation*. The company benefits greatly from the trend towards increasing efficiency through artificial intelligence - in particular through strategic partnerships with NVIDIA, Google, OpenAI and Snowflake. Nevertheless, the market remains highly competitive.

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🏢 Company profile:

UiPath offers an end-to-end platform for the automation of repetitive business processes. The combination of *RPA*, *Machine Learning* and *Natural Language Processing* allows companies to digitize workflows and make them more efficient. With over 3,800 employees UiPath is globally active - its main markets are the USA and Europe.

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📈 Share performance:

- Current share price: USD 15.58 (+5,1 %)

- After-hours: USD 15.80 (+1,4 %)

- Market capitalization: USD 8.27 bn

- YTD: +22,6 %, 1J: +28 %

- 5J: -76 % (IPO over USD 80)

The share is showing momentum thanks to AI news, but remains well below the IPO level historically. The recent rise (+14%) following NVIDIA and Google partnerships signals increasing interest from institutional investors.

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💰 Fundamental data (TTM):

- Turnover: USD 1.5 billion (+14.6% YoY)

- Net profit: USD 20m (1.35 % margin)

- Free cash flow: USD 449 million

- P/E ratio (forward): 16,9PEG: 0,48 *Undervalued with growth*

- Debt ratio: 4,8 %, Cash position: USD 1.45 bn

UiPath is profitable again, but margins remain thin. The balance sheet is strong, cash flow solid - enough scope for acquisitions or R&D.

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🧠 Analysts & sentiment:

- Consensus: Hold (2.06)

- 18 Analysts: 2 Buy | 12 Hold | 3 Sell

- Average price target: USD 13-13.5 (slight downside)

- Positive: Strong earnings beats, AI integration, high cash reserves

- Negative: Limited margin potential, intense competition

- X-Sentiment: Mixed-bullish, focus on AI opportunities

Institutional participation: 62,5 %Insider: 23 % (recent sales, no purchases).

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⚖️ Opportunities & risks:

Opportunities:

- AI boom drives demand for automation

- Generative AI focus can bring differentiation

- Strong balance sheet for strategic growth

Risks:

- High valuation (trailing P/E > 500)

- Increasing competition (Microsoft, Blue Prism, Automation Anywhere)

- Macro risks: Cost pressure, budget cuts

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📊 Conclusion:

UiPath is a structural beneficiary of the AI automation wavebut not a sure-fire winner. The share has clearly recovered in 2025, but remains a turnaround play. The valuation based on future earnings looks attractive again, especially for long-term investors with a risk appetite. The next earnings on 04.12.2025 will be decisive.

9090nopnop@9090nopnop

Thank you ChatGPT!

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Olli@Olli68

Where does the analysis come from? A bit of contradictory data, isn't it?

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Aktien Stammtisch@Aktien_Stammtisch

@Olli68 I compiled the information myself from various sources and then summarized it with AI. What exactly do you find contradictory?

@Aktien_Stammtisch Once you write P/E ratio ... "undervalued" and later under risks "p/e ... high valuation". It really looks like it was put together. Shouldn't rely too much on AI, but read through it once.

Thanks for the feedback. The issue is the current P/E ratio, which is high, but the forward P/E ratio suggests an undervaluation if growth materializes as forecast. Whether this will actually happen is of course written in the stars. But you're right, it could have been written more clearly and unambiguously.

Tenbagger2024@Tenbagger2024

Unfortunately, the very high rating bothers me here.

📊 UiPath - The underestimated winner of AI automation?