LYFT - Embedded Expectations Analysis - 2020 08 10
Lyft, Inc. (LYFT:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 31.5x Uniform P/E. At these levels, the market is pricing in expectations for Uniform ROA to inflect positively, but management may be concerned about costs, volumes, and coronavirus mitigation strategiesSpecifically, management may lack confidence in their ability to continue improving their adjusted EBITDA and contribution margins, and reduce their G&A expense. Furthermore, they may be overstating the efficiency potential of their multiple modes approach, and they may be downplaying concerns about the decline in new riders' activations. Management may also lack confidence in their ability to improve rideshare volume, maintain their liquidity position, and sustain year-over-year growth. Moreover, they may lack confidence in their ability to continue being the lowest cost operator in the industry, and may have concerns about the pandemic's impact on their business and the dollar investments on their AV program. Finally, management may lack confidence in their ability to continue serving millions of users and improve their unit economics
Lyft operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. The company provides Ridesharing Marketplace, which facilitates lead generation, billing and settlement, support, and related activities to enable drivers to provide their transportation services to riders. The company also offers a network of shared bikes and scooters in various cities to address the needs of riders for shorter routes; Express Drive program, a flexible car rentals program which connects drivers who need access to a car with third-party rental car companies; and concierge for organizations to manage the transportation needs of their customers and employees.
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