Investment Thesis
Maplebear demonstrates fortress-like financial health with zero debt, strong 72.4% gross margins, and exceptional free cash flow conversion (24.7% FCF margin). Fundamentals reflect a capital-efficient business generating $252M annual free cash flow despite modest revenue growth, though low ROE suggests untapped capital deployment potential.
Strengths
- Exceptional gross margin of 72.4% indicates strong competitive positioning or high-margin service model
- Outstanding free cash flow generation of $252M with 24.7% FCF margin on $1B revenue
- Zero long-term debt with $631M cash reserves and 2.36x current ratio provides financial flexibility
- Strong operating cash flow of $268M with minimal capital requirements ($16M CapEx)
Risks
- Low return on equity (6.0%) and return on assets (4.1%) indicate inefficient capital deployment despite profitability
- Modest revenue growth of 10.8% YoY and minimal EPS growth of 1.3% suggest limited expansion trajectory
- Diluted EPS growing slower than revenue implies share dilution or margin compression headwinds
Key Metrics to Watch
- Return on Equity trajectory and capital allocation decisions
- Revenue growth rate sustainability and margin maintenance
- Operating cash flow to net income ratio for earnings quality
Financial Metrics
Revenue
1.0B
Net Income
144.0M
EPS (Diluted)
$0.57
Free Cash Flow
252.0M
Total Assets
3.5B
Cash
631.0M
Profitability Ratios
Gross Margin
72.4%
Operating Margin
17.9%
Net Margin
14.1%
ROE
6.0%
ROA
4.1%
FCF Margin
24.7%
Balance Sheet & Liquidity
Current Ratio
2.36x
Quick Ratio
2.36x
Debt/Equity
0.00x
Debt/Assets
26.6%
Interest Coverage
N/A
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-08T09:30:10.735611 |
Data as of: 2026-03-31 |
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