Despite its growth, UNIVERSAL TECHNICAL INSTITUT (NYSE:UTI) remains within the realm of affordability.

Take a closer look at UNIVERSAL TECHNICAL INSTITUT (NYSE:UTI), an affordable growth stock uncovered by our stock screener. NYSE:UTI boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Unpacking NYSE:UTI's Growth Rating

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:UTI, the assigned 7 reflects its growth potential:

• UTI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 273.08%, which is quite impressive.
• The Earnings Per Share has been growing by 28.35% on average over the past years. This is a very strong growth
• The Revenue has grown by 14.70% in the past year. This is quite good.
• 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 9.14% yearly.

A Closer Look at Valuation for 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:

• 60.56% of the companies in the same industry are more expensive than UTI, based on the Price/Forward Earnings ratio.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UTI indicates a somewhat cheap valuation: UTI is cheaper than 63.38% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of UTI indicates a somewhat cheap valuation: UTI is cheaper than 71.83% of the companies listed in the same industry.
• The 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.
• A more expensive valuation may be justified as UTI's earnings are expected to grow with 17.55% in the coming years.

Evaluating Health: NYSE:UTI

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:UTI, the assigned 6 reflects its health status:

• An Altman-Z score of 3.29 indicates that UTI is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 3.29, UTI belongs to the best of the industry, outperforming 81.69% of the companies in the same industry.
• 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 has a Debt to FCF ratio of 1.62. This is amongst the best in the industry. UTI outperforms 80.28% of its industry peers.
• UTI has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.

Profitability Examination for NYSE:UTI

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:UTI, the assigned 7 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 7.13%, UTI belongs to the top of the industry, outperforming 81.69% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 19.20%, UTI belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 9.34%, UTI belongs to the best of the industry, outperforming 83.10% of the companies in the same industry.
• The 3 year average ROIC (5.11%) for UTI is below the current ROIC(9.34%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 7.08%, UTI is in the better half of the industry, outperforming 67.61% of the companies in the same industry.
• UTI's Profit Margin has improved in the last couple of years.
• UTI has a better Operating Margin (9.50%) than 71.83% of its industry peers.
• In the last couple of years the Operating Margin of UTI has grown nicely.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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.