NYSE:UTI is showing decent growth, but is still valued reasonably.

Our stock screener has singled out UNIVERSAL TECHNICAL INSTITUT (NYSE:UTI) as an attractive growth opportunity. NYSE:UTI is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Deciphering NYSE:UTI's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:UTI has received a 7 out of 10:

• The Earnings Per Share has grown by an impressive 273.08% over the past year.
• Measured over the past years, UTI shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.35% on average per year.
• Looking at the last year, UTI shows a quite strong growth in Revenue. The Revenue has grown by 14.70% in the last year.
• The Revenue has been growing by 17.19% on average over the past years. This is quite good.
• UTI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.55% yearly.
• UTI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.47% yearly.

Evaluating Valuation: NYSE:UTI

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:UTI has earned a 5 for valuation:

• The average S&P500 Price/Forward Earnings ratio is at 96.73. UTI is valued rather cheaply when compared to this.
• 70.31% of the companies in the same industry are more expensive than UTI, based on the Price/Free Cash Flow ratio.
• UTI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of UTI may justify a higher PE ratio.
• UTI's earnings are expected to grow with 17.55% in the coming years. This may justify a more expensive valuation.

Health Examination for NYSE:UTI

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:UTI has earned a 5 out of 10:

• An Altman-Z score of 3.35 indicates that UTI is not in any danger for bankruptcy at the moment.
• UTI has a better Altman-Z score (3.35) than 79.69% of its industry peers.
• The Debt to FCF ratio of UTI is 1.62, which is an excellent value as it means it would take UTI, only 1.62 years of fcf income to pay off all of its debts.
• UTI's Debt to FCF ratio of 1.62 is fine compared to the rest of the industry. UTI outperforms 78.13% of its industry peers.
• A Debt/Equity ratio of 0.42 indicates that UTI is not too dependend on debt financing.

Profitability Insights: NYSE:UTI

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:UTI, the assigned 7 is noteworthy for profitability:

• UTI's Return On Assets of 7.13% is amongst the best of the industry. UTI outperforms 82.81% of its industry peers.
• The Return On Equity of UTI (19.20%) is better than 79.69% of its industry peers.
• UTI has a better Return On Invested Capital (9.34%) than 81.25% of its industry peers.
• The last Return On Invested Capital (9.34%) for UTI is above the 3 year average (5.11%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 7.08%, UTI is in the better half of the industry, outperforming 67.19% of the companies in the same industry.
• UTI's Profit Margin has improved in the last couple of years.
• UTI has a Operating Margin of 9.50%. This is in the better half of the industry: UTI outperforms 68.75% of its industry peers.
• UTI's Operating Margin has improved in the last couple of years.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Our latest full fundamental report of UTI contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.