UBER - Valens Credit Report - 2020 06 24
Credit markets are grossly overstating credit risk with a cash bond YTW of 6.904% relative to an Intrinsic YTW of 0.984% and an Intrinsic CDS of 64bps. Meanwhile, Moody's is materially overstating UBER's fundamental credit risk with its highly speculative B2 credit rating five notches below Valens' XO (Baa3) credit ratingIncentives Dictate Behaviorâ„¢ analysis highlights mostly positive signals for investors. UBER's compensation framework should drive management to focus largely on margin expansion and top-line growth, which should lead to Uniform ROA improvement. Meanwhile, management members hold material amounts of UBER equity relative to their annual compensation, indicating that they are likely well-aligned with shareholders for long-term value creation
Earnings Call Forensicsâ„¢ analysis of the firm's Q1 2020 earnings call (5/7) highlights
that management is confident their actions have resulted in a $1bn+ reduction in annualized fixed costs, that their Eats business should continue to grow due to the coronavirus pandemic, and that they put transit options on their app
Uber Technologies provides ride hailing services. The company develops application for road transportation, navigation, ride sharing, and payment processing solutions. The company serves customers in the United States and Canada, Latin America, Europe, Middle East, and Asia Pacific markets, excluding its discontinued China operations.
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