UL SOLUTIONS INC - CLASS A (ULS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ULS - US9037311076 - Common Stock
91.21 USD
+1.05 (+1.16%)
91.21 USD
0 (0%)
Overall ULS gets a fundamental rating of 5 out of 10. We evaluated ULS against 87 industry peers in the Professional Services industry. ULS gets an excellent profitability rating and is at the same time showing great financial health properties. 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
ULS's Return On Assets of 11.19% is amongst the best of the industry. ULS outperforms 86.21% of its industry peers.
ULS has a better Return On Equity (29.92%) than 85.06% of its industry peers.
ULS has a better Return On Invested Capital (18.62%) than 87.36% of its industry peers.
ULS had an Average Return On Invested Capital over the past 3 years of 17.03%. This is above the industry average of 12.15%.
The 3 year average ROIC (17.03%) for ULS is below the current ROIC(18.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.19% | ||
| ROE | 29.92% | ||
| ROIC | 18.62% |
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
Looking at the Profit Margin, with a value of 11.08%, ULS is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
ULS's Profit Margin has improved in the last couple of years.
ULS has a better Operating Margin (16.71%) than 81.61% of its industry peers.
In the last couple of years the Operating Margin of ULS has grown nicely.
ULS's Gross Margin of 48.53% is fine compared to the rest of the industry. ULS outperforms 64.37% 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 | 16.71% | ||
| PM (TTM) | 11.08% | ||
| GM | 48.53% |
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.
The number of shares outstanding for ULS remains at a similar level compared to 1 year ago.
Compared to 1 year ago, ULS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.85 indicates that ULS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.85, ULS belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
ULS has a debt to FCF ratio of 1.67. This is a very positive value and a sign of high solvency as it would only need 1.67 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.67, ULS is in the better half of the industry, outperforming 71.26% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that ULS is somewhat dependend on debt financing.
ULS has a Debt to Equity ratio (0.56) which is in line with its industry peers.
Even though the debt/equity ratio score it not favorable for ULS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 7.85 |
ROIC/WACC2.18
WACC8.53%
2.3 Liquidity
ULS has a Current Ratio of 1.32. 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 Current ratio, with a value of 1.32, ULS is in line with its industry, outperforming 42.53% of the companies in the same industry.
ULS has a Quick Ratio of 1.32. This is a normal value and indicates that ULS is financially healthy and should not expect problems in meeting its short term obligations.
ULS has a Quick ratio (1.32) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
ULS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.76%, which is quite impressive.
Measured over the past years, ULS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.14% on average per year.
The Revenue has been growing slightly by 7.17% in the past year.
The Revenue has been growing slightly by 4.47% on average over the past years.
EPS 1Y (TTM)24.76%
EPS 3Y13.14%
EPS 5YN/A
EPS Q2Q%27.27%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y4.47%
Revenue growth 5YN/A
Sales Q2Q%7.11%
3.2 Future
Based on estimates for the next years, ULS will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.45% on average per year.
The Revenue is expected to grow by 5.95% on average over the next years.
EPS Next Y9.83%
EPS Next 2Y10.8%
EPS Next 3Y11.64%
EPS Next 5Y15.45%
Revenue Next Year6.17%
Revenue Next 2Y6.2%
Revenue Next 3Y6.19%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 52.42, which means the current valuation is very expensive for ULS.
ULS's Price/Earnings ratio is a bit more expensive when compared to the industry. ULS is more expensive than 64.37% of the companies in the same industry.
ULS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.31.
A Price/Forward Earnings ratio of 45.86 indicates a quite expensive valuation of ULS.
64.37% of the companies in the same industry are cheaper than ULS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.56. ULS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.42 | ||
| Fwd PE | 45.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ULS is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
ULS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.34 | ||
| EV/EBITDA | 27.68 |
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.
The decent profitability rating of ULS may justify a higher PE ratio.
PEG (NY)5.33
PEG (5Y)N/A
EPS Next 2Y10.8%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
With a yearly dividend of 0.58%, ULS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.07, ULS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, ULS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
ULS does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
31.19% of the earnings are spent on dividend by ULS. This is a low number and sustainable payout ratio.
DP31.19%
EPS Next 2Y10.8%
EPS Next 3Y11.64%
91.21
+1.05 (+1.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners106.13%
Inst Owner Change5.72%
Ins Owners0.87%
Ins Owner Change0%
Market Cap18.32B
Revenue(TTM)2.87B
Net Income(TTM)327.00M
Analysts77.33
Price Target92.16 (1.04%)
Short Float %6.14%
Short Ratio6.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP31.19%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.15%
Min EPS beat(2)-4.89%
Max EPS beat(2)5.18%
EPS beat(4)3
Avg EPS beat(4)4.44%
Min EPS beat(4)-4.89%
Max EPS beat(4)11.81%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.65%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)-0.42%
Revenue beat(4)2
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)2.13%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)26.05%
PT rev (3m)26.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.06%
EPS NY rev (1m)0%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.42 | ||
| Fwd PE | 45.86 | ||
| P/S | 6.21 | ||
| P/FCF | 50.34 | ||
| P/OCF | 31.54 | ||
| P/B | 16.76 | ||
| P/tB | 69.67 | ||
| EV/EBITDA | 27.68 |
EPS(TTM)1.74
EY1.91%
EPS(NY)1.99
Fwd EY2.18%
FCF(TTM)1.81
FCFY1.99%
OCF(TTM)2.89
OCFY3.17%
SpS14.69
BVpS5.44
TBVpS1.31
PEG (NY)5.33
PEG (5Y)N/A
Graham Number14.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.19% | ||
| ROE | 29.92% | ||
| ROCE | 22.86% | ||
| ROIC | 18.62% | ||
| ROICexc | 21.3% | ||
| ROICexgc | 38.06% | ||
| OM | 16.71% | ||
| PM (TTM) | 11.08% | ||
| GM | 48.53% | ||
| FCFM | 12.33% |
ROA(3y)10.64%
ROA(5y)N/A
ROE(3y)34.54%
ROE(5y)N/A
ROIC(3y)17.03%
ROIC(5y)N/A
ROICexc(3y)20.31%
ROICexc(5y)N/A
ROICexgc(3y)39.69%
ROICexgc(5y)N/A
ROCE(3y)20.91%
ROCE(5y)N/A
ROICexgc growth 3Y4.96%
ROICexgc growth 5YN/A
ROICexc growth 3Y10.95%
ROICexc growth 5YN/A
OM growth 3Y12.18%
OM growth 5YN/A
PM growth 3Y8.47%
PM growth 5YN/A
GM growth 3Y1.19%
GM growth 5YN/A
F-Score8
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.67 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 119.89% | ||
| Cap/Sales | 7.35% | ||
| Interest Coverage | 9.86 | ||
| Cash Conversion | 86.2% | ||
| Profit Quality | 111.32% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 7.85 |
F-Score8
WACC8.53%
ROIC/WACC2.18
Cap/Depr(3y)132.96%
Cap/Depr(5y)N/A
Cap/Sales(3y)7.6%
Cap/Sales(5y)N/A
Profit Quality(3y)85.32%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)24.76%
EPS 3Y13.14%
EPS 5YN/A
EPS Q2Q%27.27%
EPS Next Y9.83%
EPS Next 2Y10.8%
EPS Next 3Y11.64%
EPS Next 5Y15.45%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y4.47%
Revenue growth 5YN/A
Sales Q2Q%7.11%
Revenue Next Year6.17%
Revenue Next 2Y6.2%
Revenue Next 3Y6.19%
Revenue Next 5Y5.95%
EBIT growth 1Y14.65%
EBIT growth 3Y17.2%
EBIT growth 5YN/A
EBIT Next Year58.51%
EBIT Next 3Y23.82%
EBIT Next 5Y20.45%
FCF growth 1Y13.89%
FCF growth 3Y-2.95%
FCF growth 5YN/A
OCF growth 1Y12.21%
OCF growth 3Y7.57%
OCF growth 5YN/A
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 5 / 10 to ULS.
What is the valuation status of UL SOLUTIONS INC - CLASS A (ULS) stock?
ChartMill assigns a valuation rating of 1 / 10 to UL SOLUTIONS INC - CLASS A (ULS). This can be considered as Overvalued.
How profitable is UL SOLUTIONS INC - CLASS A (ULS) stock?
UL SOLUTIONS INC - CLASS A (ULS) has a profitability rating of 7 / 10.
What is the financial health of UL SOLUTIONS INC - CLASS A (ULS) stock?
The financial health rating of UL SOLUTIONS INC - CLASS A (ULS) is 7 / 10.
How sustainable is the dividend of UL SOLUTIONS INC - CLASS A (ULS) stock?
The dividend rating of UL SOLUTIONS INC - CLASS A (ULS) is 2 / 10 and the dividend payout ratio is 31.19%.