For those who appreciate growth without the sticker shock, UNIVERSAL TECHNICAL INSTITUT (NYSE:UTI) is worth considering.

Last update: Apr 1, 2025

Consider UNIVERSAL TECHNICAL INSTITUT (NYSE:UTI) as an affordable growth stock, identified by our stock screening tool. UTI is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Growth Assessment of UTI

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 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.
UTI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.35% yearly.
The Revenue has grown by 14.70% in the past year. This is quite good.
Measured over the past years, UTI shows a quite strong growth in Revenue. The Revenue has been growing by 17.19% on average per year.
Based on estimates for the next years, UTI will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.55% on average per year.
UTI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.14% yearly.

Valuation Analysis for UTI

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. UTI has received a 5 out of 10:

Based on the Enterprise Value to EBITDA ratio, UTI is valued a bit cheaper than 61.97% of the companies in the same industry.
71.83% 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.
UTI has a very decent profitability rating, which 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: UTI

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. UTI was assigned a score of 6 for health:

An Altman-Z score of 3.25 indicates that UTI is not in any danger for bankruptcy at the moment.
UTI has a better Altman-Z score (3.25) than 81.69% 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 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.

Understanding UTI's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, UTI has achieved a 7:

UTI has a Return On Assets of 7.13%. This is amongst the best in the industry. UTI outperforms 81.69% of its industry peers.
Looking at the Return On Equity, with a value of 19.20%, UTI belongs to the top of the industry, outperforming 84.51% 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 last Return On Invested Capital (9.34%) for UTI is above the 3 year average (5.11%), which is a sign of increasing profitability.
With a decent Profit Margin value of 7.08%, UTI is doing good in the industry, outperforming 67.61% of the companies in the same industry.
UTI's Profit Margin has improved in the last couple of years.
The Operating Margin of UTI (9.50%) is better than 71.83% of its industry peers.
In the last couple of years the Operating Margin of UTI has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.