One-glance verdict
Undervalued
$135.67 our estimate vs market $49.89
Wall Street consensus: $57.90 (-57.3% lower than our fair-value estimate)
63% below our estimate, below the bear case
Fundamentals snapshot
Maplebear Inc.
CART · NMS · Consumer Cyclical · Internet Retail
Current price
$49.89
52-week range
$32.73 - $52.68
Market cap
$11.84B
Balance sheet
Healthy
8.74x Adequate
Net cash $816.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 6.7% last year.
- Reward Returns 16.0% on equity, ahead of 25% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Stock trades 0.4% above its 5-year average P/E.
What this company does
Maplebear Inc.
Maplebear Inc., also known as Instacart, helps grocery stores and brands sell more products online and in their stores. Their main money comes from the fees grocery stores pay them and from advertising sales to brands who want to show their products to Instacart shoppers. This matters because it shows how much Instacart is helping the grocery world move online, which can lead to more stable earnings (money a company makes from its business activities, like selling things).
How the company got here
Maplebear Inc., which operates as Instacart, was founded in 2012 with the goal of bringing grocery shopping online at a time when most people were accustomed to buying groceries in person. The company recognized the growing consumer desire for convenience, similar to how other goods like music and clothing were becoming easily accessible online. Instacart aimed to bridge the gap for grocery shopping, which was lagging in digital adoption compared to other industries. Over the years, it has evolved from a simple delivery service into a comprehensive marketplace, leveraging technology to connect consumers, retailers, and shoppers.
What it actually does
Instacart operates a technology platform that connects people who want groceries with grocery stores and other merchants. Customers use Instacart's app or website to order items for delivery or pickup. The company then uses a network of independent contractors, known as shoppers, to pick and deliver these orders. For retailers, Instacart provides services that help them reach more customers, manage online orders, and offer delivery and pickup options without needing to build their own complex technology infrastructure. Essentially, Instacart makes online grocery shopping convenient for consumers and expands the digital reach for businesses.
Instacart Marketplace
The Instacart Marketplace is the core of the company's business, acting as a digital storefront where customers can browse and purchase groceries from various retailers. It allows users to select items from their preferred supermarkets, choose delivery or pickup options, and pay through the platform. For retailers, this marketplace provides a way to offer their products to a wider online audience and manage the logistics of fulfilling these digital orders. This segment is the primary way Instacart generates revenue through customer fees and commissions from retailers.
Instacart Enterprise
Instacart Enterprise offers technology solutions to retailers, helping them manage various aspects of their business beyond just online orders. This includes building their own e-commerce websites and apps, improving in-store shopping experiences with smart technology, and utilizing data for better business decisions. Essentially, it's a suite of tools that allows grocery businesses to modernize their operations and better serve their customers, both online and in physical stores. This segment represents Instacart's effort to provide comprehensive technological support to the grocery industry.
Instacart Ads
Instacart Ads is the advertising arm of Instacart, allowing brands to promote their products directly to consumers while they are actively shopping on the platform. Brands can pay to have their products featured in search results, on product pages, or in other prominent areas within the app and website. This provides an opportunity for consumer-packaged goods (CPG) companies to increase visibility and drive sales by reaching shoppers at the crucial moment of purchase intent. This segment generates revenue by selling advertising space to brands looking to reach Instacart's user base.
What management is betting on now
Instacart's management is focused on expanding its reach and deepening its value proposition for all sides of its marketplace. This includes enhancing the Instacart Enterprise platform to offer more comprehensive technology solutions for retailers, aiming to become an indispensable partner in their digital transformation. They are also investing in Instacart Ads to provide more sophisticated advertising tools for brands, recognizing the growing importance of retail media networks. The company is also looking to broaden its services beyond just groceries, exploring opportunities in other retail sectors to capture a larger share of consumer spending and further solidify its position as a leading technology and fulfillment partner.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$171.00M
FY2024 Q4
$141.00M
FY2025 Q1
$280.00M
FY2025 Q2
$187.00M
FY2025 Q3
$272.00M
FY2025 Q4
$171.00M
FY2026 Q1
$252.00M
FY2026 Q2
$481.00M
Revenue
$1.04B
Net income
$111.00M
Diluted EPS
0.45
Operating cash flow
$494.00M
Free cash flow
$481.00M
Fetching…
Sources
Revenue
$1.02B
Net income
$144.00M
Diluted EPS
0.57
Operating cash flow
$268.00M
Free cash flow
$252.00M
Fetching…
Sources
Revenue
$992.00M
Net income
$81.00M
Diluted EPS
0.31
Operating cash flow
$183.00M
Free cash flow
$171.00M
Fetching…
Sources
Revenue
$939.00M
Net income
$144.00M
Diluted EPS
0.51
Operating cash flow
$287.00M
Free cash flow
$272.00M
Fetching…
Sources
Revenue
$914.00M
Net income
$116.00M
Diluted EPS
0.41
Operating cash flow
$203.00M
Free cash flow
$187.00M
Fetching…
Sources
Revenue
$897.00M
Net income
$106.00M
Diluted EPS
0.37
Operating cash flow
$298.00M
Free cash flow
$280.00M
Fetching…
Sources
Revenue
$883.00M
Net income
$148.00M
Diluted EPS
0.53
Operating cash flow
$153.00M
Free cash flow
$141.00M
Fetching…
Sources
Revenue
$852.00M
Net income
$118.00M
Diluted EPS
0.42
Operating cash flow
$185.00M
Free cash flow
$171.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $135.67 vs current price $49.89
Wall Street consensus is the average analyst price target: $57.90 (-57.3% lower than our fair-value estimate).
Our most-likely fair value is $135.67 a share — about 171.9% above today's price of $49.89, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $816.0M - more cash than debt. Interest coverage 8.7x.
Net debt
$-816.00M
Interest coverage
8.74x
Maplebear Inc.'s profit covers its interest bill about 8.7 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
CART
BASELINE
Maplebear Inc.
Total debt $34.00M Interest coverage 8.74x This is the baseline the peer rows are being compared against.
Total debt $3.30B Interest coverage 362.50x +4,049% vs CART Carries about 41.5x more debt cushion than CART.
Total debt $14.73B Interest coverage 12.65x +45% vs CART Carries about 1.4x more debt cushion than CART.
Total debt $3.52B Interest coverage 0.78x -91% vs CART Carries about 11.2x less debt cushion than CART.
Total debt $1.16B Interest coverage 55.28x +533% vs CART Carries about 6.3x more debt cushion than CART.
Total debt $3.08B Interest coverage 19.88x +128% vs CART Carries about 2.3x more debt cushion than CART.
What you should know
The case for and against CART
3 Rewards
1 Risk
Rewards
-
Revenue grew 6.7% last year.
-
Returns 16.0% on equity, ahead of 25% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 0.4% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
27.26x
Forward P/E
10.19x
P/B
5.01x
P/S
2.97x
EV/EBITDA
17.47x
PEG ratio
2.01x
Profitability
How much profit each dollar creates
Gross margin
72.6%
Operating margin
14.1%
Net margin
12.0%
ROE
16.0%
ROA
9.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
2.28x
Quick ratio
1.97x
Total debt
$34.00M
Total cash
$850.00M
Growth
How the business has been compounding
Revenue TTM
$3.99B
Revenue 5Y CAGR
19.5%
EPS TTM
1.83
EPS 5Y CAGR
79.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.23B
Free CF TTM
$910.00M
FCF margin
22.8%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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