UL SOLUTIONS INC - CLASS A (ULS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ULS - US9037311076 - Common Stock
72.16 USD
-0.25 (-0.35%)
72.16 USD
0 (0%)
Overall ULS gets a fundamental rating of 6 out of 10. We evaluated ULS against 87 industry peers in the Professional Services industry. ULS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, ULS is valued expensive at the moment. This makes ULS very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year ULS was profitable.
- ULS had a positive operating cash flow in the past year.
1.2 Ratios
- The Return On Assets of ULS (11.70%) is better than 86.21% of its industry peers.
- The Return On Equity of ULS (28.42%) is better than 85.06% of its industry peers.
- ULS has a Return On Invested Capital of 19.67%. This is amongst the best in the industry. ULS outperforms 91.95% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ULS is significantly above the industry average of 11.85%.
- The last Return On Invested Capital (19.67%) for ULS is above the 3 year average (17.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.7% | ||
| ROE | 28.42% | ||
| ROIC | 19.67% |
ROA(3y)10.64%
ROA(5y)N/A
ROE(3y)34.54%
ROE(5y)N/A
ROIC(3y)17.03%
ROIC(5y)N/A
1.3 Margins
- ULS has a better Profit Margin (11.29%) than 80.46% of its industry peers.
- In the last couple of years the Profit Margin of ULS has grown nicely.
- The Operating Margin of ULS (17.28%) is better than 82.76% of its industry peers.
- ULS's Operating Margin has improved in the last couple of years.
- ULS has a better Gross Margin (48.88%) than 65.52% of its industry peers.
- In the last couple of years the Gross Margin of ULS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.28% | ||
| PM (TTM) | 11.29% | ||
| GM | 48.88% |
OM growth 3Y12.18%
OM growth 5YN/A
PM growth 3Y8.47%
PM growth 5YN/A
GM growth 3Y1.19%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ULS is creating value.
- Compared to 1 year ago, ULS has about the same amount of shares outstanding.
- The debt/assets ratio for ULS has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.04 indicates that ULS is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 7.04, ULS belongs to the best of the industry, outperforming 91.95% of the companies in the same industry.
- The Debt to FCF ratio of ULS is 1.40, which is an excellent value as it means it would take ULS, only 1.40 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 1.40, ULS is doing good in the industry, outperforming 75.86% of the companies in the same industry.
- A Debt/Equity ratio of 0.46 indicates that ULS is not too dependend on debt financing.
- ULS has a Debt to Equity ratio (0.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 7.04 |
ROIC/WACC2.26
WACC8.71%
2.3 Liquidity
- A Current Ratio of 1.33 indicates that ULS should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.33, ULS is in line with its industry, outperforming 45.98% of the companies in the same industry.
- ULS has a Quick Ratio of 1.33. This is a normal value and indicates that ULS is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.33, ULS is in line with its industry, outperforming 45.98% of the companies in the same industry.
- The current and quick ratio evaluation for ULS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
- ULS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.00%, which is quite good.
- ULS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.14% yearly.
- Looking at the last year, ULS shows a small growth in Revenue. The Revenue has grown by 6.68% in the last year.
- Measured over the past years, ULS shows a small growth in Revenue. The Revenue has been growing by 4.47% on average per year.
EPS 1Y (TTM)11%
EPS 3Y13.14%
EPS 5YN/A
EPS Q2Q%27.27%
Revenue 1Y (TTM)6.68%
Revenue growth 3Y4.47%
Revenue growth 5YN/A
Sales Q2Q%7.11%
3.2 Future
- The Earnings Per Share is expected to grow by 15.45% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.95% on average over the next years.
EPS Next Y15.88%
EPS Next 2Y13.15%
EPS Next 3Y13.75%
EPS Next 5Y15.45%
Revenue Next Year6.58%
Revenue Next 2Y6.07%
Revenue Next 3Y6.01%
Revenue Next 5Y5.95%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 41.47, ULS can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of ULS indicates a slightly more expensive valuation: ULS is more expensive than 62.07% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, ULS is valued a bit more expensive.
- With a Price/Forward Earnings ratio of 34.79, ULS can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, ULS is valued a bit more expensive than the industry average as 62.07% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. ULS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.47 | ||
| Fwd PE | 34.79 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ULS is on the same level as its industry peers.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ULS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.26 | ||
| EV/EBITDA | 21.03 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ULS does not grow enough to justify the current Price/Earnings ratio.
- ULS has an outstanding profitability rating, which may justify a higher PE ratio.
- ULS's earnings are expected to grow with 13.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.61
PEG (5Y)N/A
EPS Next 2Y13.15%
EPS Next 3Y13.75%
5. Dividend
5.1 Amount
- ULS has a yearly dividend return of 0.72%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.44, ULS pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.72, ULS pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
- ULS is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- ULS pays out 30.38% of its income as dividend. This is a sustainable payout ratio.
DP30.38%
EPS Next 2Y13.15%
EPS Next 3Y13.75%
UL SOLUTIONS INC - CLASS A / ULS FAQ
What is the ChartMill fundamental rating of UL SOLUTIONS INC - CLASS A (ULS) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ULS.
What is the valuation status for ULS stock?
ChartMill assigns a valuation rating of 2 / 10 to UL SOLUTIONS INC - CLASS A (ULS). This can be considered as Overvalued.
What is the profitability of ULS stock?
UL SOLUTIONS INC - CLASS A (ULS) has a profitability rating of 8 / 10.
How financially healthy is UL SOLUTIONS INC - CLASS A?
The financial health rating of UL SOLUTIONS INC - CLASS A (ULS) is 7 / 10.
Is the dividend of UL SOLUTIONS INC - CLASS A sustainable?
The dividend rating of UL SOLUTIONS INC - CLASS A (ULS) is 2 / 10 and the dividend payout ratio is 30.38%.