An interesting company to watch out for UiPATH $PATH

 Interesting company to watch out for - $PATH

$PATH 1D chart as per 27 Mar 2022

Another company of interest is UiPath $PATH which was recently recognised as a leader in the IDC (market intelligence).  From the 1D chart, the company hit a high of $90 and has since been on a decline.  From the MACD & Stochastic, the downtrend may continue this week though the coming earnings may detract its movement.

Here is the news extract dated 23rd March 2022:

News article from Yahoo Finance dated 23 Mar 2022

"a leading enterprise automation software company, today announced that it has been named a Leader in the IDC MarketScape: Worldwide Cloud Testing 2022 Vendor Assessment – Empowering Business Velocity.* The report, which includes UiPath for the first time among traditional software quality tools, examines cloud testing adoption trends and their influence on organizational success through the development of secure, high-quality software."

Market intelligence is one of the frontiers in our data-centric world. Hopefully, their future earnings will be able to support their claims.

Summary of $PATH

Statistics about $PATH

Some interesting info about this stock:

• 27.54% held by insiders
• almost 60% held by institutions
• Currently still running at a loss

Financials of $PATH

• only 2 years of financial statements, increasing revenue but still in the red.  
• EPS result is getting worse - latest TTM EPS is -$1.91, the highest in 3 years.
• The balance sheet looks to be weak though total assets increased from $508M (2020) to $866M (2021).  The liabilities increased from $1,308M (2020) to $1,670M (2021).  Shareholders' equities went from -$800M (2020) to -$804M (2021).  This does not paint a good picture especially when the current liabilities are more than the cash and cash equivalent on hand.  This implies concerns about paying the short term liabilities and likely additional loans or fundraising will be required.
• Cash flow from operations and investing are both negative as of 2021.  Some funds from financing tied them through in the last 12 months through the issue of common and preferred stocks. This implies stock dilution - a concern for investors.

Though $PATH shows potential, I will remain a "spectator" and not an "investor" till they are able to improve their financial fundamentals.