Wework Inc Intrinsic Value – WEWORK INC Reports 36.5% Year-Over-Year Increase in Q4 Revenue of -454.0 Million
March 20, 2023
Earnings Overview
WEWORK INC ($NYSE:WE) reported total revenue of USD -454.0 million for the fourth quarter of 2022 ending December 31, which was a year-over-year increase of 36.5%. The company also announced that their net income for the same period had increased by 18.1% to USD 848.0 million, reported on February 16, 2023.
Transcripts Simplified
WeWork’s market share continues to increase, occupancy continues to rise, and fourth quarter building margin was $144 million, up $153 million year-over-year. Memberships rose to 547,000, a 17% increase year-over-year. We leased approximately 10 million square feet in the fourth quarter, including renewals.
The ARPM for desk space was $481 in the fourth quarter and ARPM for All Access was approximately $240. We have 290 companies and 51,000 licenses for our Workplace product and the estimated TAM for Workplace is $3 billion just in the USA.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Wework Inc. More…
| Total Revenues | Net Income | Net Margin |
| 3.25k | -2.03k | -51.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Wework Inc. More…
| Operations | Investing | Financing |
| -733 | -294 | 397 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Wework Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 17.86k | 21.32k | -5.18 |
Key Ratios Snapshot
Some of the financial key ratios for Wework Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -2.1% | – | -54.6% |
| FCF Margin | ROE | ROA |
| -33.0% | 33.1% | -6.2% |
Price History
This resulted in WEWORK INC stock opening at $1.7 and closing at the same price, which was a 2.3% decrease from its previous closing price of $1.7. Despite the decrease in share price, the year-over-year increase in the fourth quarter revenue was a positive sign for WEWORK INC. Overall, the reports from WEWORK INC were positive.
Despite some small decreases in stock prices and operating losses, the company reported a large increase in its fourth quarter revenue, as well as an increase in total cash equivalents. This indicates that WEWORK INC is continuing to grow and move towards profitability. Live Quote…
Analysis – Wework Inc Intrinsic Value
At GoodWhale, we have done an analysis of WEWORK INC‘s financials and calculated its intrinsic value to be around $8.2. We have used our proprietary Valuation Line to make this estimation. Now, the current market value of WEWORK INC stock is trading at $1.7, which is significantly lower than the estimated intrinsic value – implying an undervaluation of 79.3%. This presents a great opportunity for investors to get into this stock at a good price. More…
Peers
The company has a network of over 200 physical locations in more than 50 cities around the world. WeWork Inc. has raised over $10 billion from investors including SoftBank, Benchmark, and T. Rowe Price. The company’s main competitors are Doma Holdings Inc, Eik fasteignafelag hf, Elkop SA.
– Doma Holdings Inc ($NYSE:DOMA)
Doma Holdings Inc is a real estate investment trust that primarily focuses on the ownership and management of multifamily properties. As of 2022, the company has a market capitalization of 165.34 million and a return on equity of -36.57%. The company’s portfolio consists of properties in the United States and Canada.
– Eik fasteignafelag hf ($LTS:0R70)
Eik fasteignafelag hf is a publicly traded real estate company based in Iceland. The company’s primary business is the development, ownership, and operation of commercial real estate properties in Iceland. As of December 31, 2020, the company’s portfolio consisted of office buildings, retail properties, and industrial warehouses.
Eik fasteignafelag hf has a market cap of 42.01B as of 2022. The company has a Return on Equity of 19.8%. Eik fasteignafelag hf is a publicly traded real estate company based in Iceland. The company’s primary business is the development, ownership, and operation of commercial real estate properties in Iceland. As of December 31, 2020, the company’s portfolio consisted of office buildings, retail properties, and industrial warehouses.
– Elkop SA ($LTS:0LT6)
Elkop SA is a Polish company that specializes in the manufacture of electrical equipment. The company has a market cap of 18.33M as of 2022 and a Return on Equity of 6.08%. Elkop SA’s products include switches, sockets, and other electrical accessories. The company has been in business since 1967 and employs over 500 people.
Summary
WEWORK INC reported strong financial results for the fourth quarter ended December 31, 2022, with total revenue of USD -454.0 million, a 36.5% year-over-year increase and net income of USD 848.0 million, an 18.1% growth from the previous year. Investing in WEWORK INC for the long-term looks promising as the company continues to execute its strategy and shows signs of continued growth.
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