UL SOLUTIONS INC - CLASS A (ULS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ULS - US9037311076 - Common Stock
84.38 USD
+1.39 (+1.67%)
84.38 USD
0 (0%)
ULS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 86 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. ULS is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make ULS suitable 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 has a better Return On Assets (11.70%) than 87.21% of its industry peers.
ULS has a Return On Equity of 28.42%. This is amongst the best in the industry. ULS outperforms 84.88% of its industry peers.
With an excellent Return On Invested Capital value of 19.67%, ULS belongs to the best of the industry, outperforming 91.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ULS is significantly above the industry average of 11.86%.
The 3 year average ROIC (17.03%) for ULS is below the current ROIC(19.67%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 11.29%, ULS belongs to the top of the industry, outperforming 80.23% of the companies in the same industry.
In the last couple of years the Profit Margin of ULS has grown nicely.
With an excellent Operating Margin value of 17.28%, ULS belongs to the best of the industry, outperforming 82.56% of the companies in the same industry.
In the last couple of years the Operating Margin of ULS has grown nicely.
ULS's Gross Margin of 48.88% is fine compared to the rest of the industry. ULS outperforms 63.95% of its industry peers.
ULS's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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 7.80 indicates that ULS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.80, ULS belongs to the best of the industry, outperforming 91.86% of the companies in the same industry.
ULS has a debt to FCF ratio of 1.40. This is a very positive value and a sign of high solvency as it would only need 1.40 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.40, ULS is doing good in the industry, outperforming 75.58% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that ULS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, ULS is in line with its industry, outperforming 48.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 7.8 |
ROIC/WACC2.27
WACC8.67%
2.3 Liquidity
ULS has a Current 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.
The Current ratio of ULS (1.33) is comparable to the rest of the 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.
ULS's Quick ratio of 1.33 is in line compared to the rest of the industry. ULS outperforms 44.19% of its industry peers.
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.
The Earnings Per Share has been growing by 13.14% on average over the past years. This is quite good.
Looking at the last year, ULS shows a small growth in Revenue. The Revenue has grown by 6.68% in the last year.
ULS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.47% yearly.
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
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.
ULS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.95% yearly.
EPS Next Y17.25%
EPS Next 2Y13.4%
EPS Next 3Y13.87%
EPS Next 5Y15.45%
Revenue Next Year6.55%
Revenue Next 2Y6.05%
Revenue Next 3Y6%
Revenue Next 5Y5.95%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
Based on the Price/Earnings ratio of 48.49, the valuation of ULS can be described as expensive.
ULS's Price/Earnings ratio is a bit more expensive when compared to the industry. ULS is more expensive than 62.79% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, ULS is valued quite expensively.
ULS is valuated quite expensively with a Price/Forward Earnings ratio of 40.50.
ULS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ULS is more expensive than 62.79% of the companies in the same industry.
ULS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.49 | ||
| Fwd PE | 40.5 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ULS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.57 | ||
| EV/EBITDA | 24.13 |
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 13.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.81
PEG (5Y)N/A
EPS Next 2Y13.4%
EPS Next 3Y13.87%
5. Dividend
5.1 Amount
ULS has a yearly dividend return of 0.63%, which is pretty low.
Compared to an average industry Dividend Yield of 1.54, ULS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.63, ULS pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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 2Y13.4%
EPS Next 3Y13.87%
84.38
+1.39 (+1.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change0%
Ins Owners0.71%
Ins Owner Change0%
Market Cap16.95B
Revenue(TTM)3.00B
Net Income(TTM)339.00M
Analysts78.67
Price Target92.16 (9.22%)
Short Float %5.5%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP30.38%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.86%
Min EPS beat(2)-4.89%
Max EPS beat(2)18.6%
EPS beat(4)3
Avg EPS beat(4)6.14%
Min EPS beat(4)-4.89%
Max EPS beat(4)18.6%
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)1
Avg Revenue beat(2)0.07%
Min Revenue beat(2)-0.42%
Max Revenue beat(2)0.56%
Revenue beat(4)2
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)0.71%
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)0%
PT rev (3m)26.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.23%
EPS NY rev (1m)0%
EPS NY rev (3m)6.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.49 | ||
| Fwd PE | 40.5 | ||
| P/S | 5.64 | ||
| P/FCF | 43.57 | ||
| P/OCF | 28.93 | ||
| P/B | 14.21 | ||
| P/tB | 45.2 | ||
| EV/EBITDA | 24.13 |
EPS(TTM)1.74
EY2.06%
EPS(NY)2.08
Fwd EY2.47%
FCF(TTM)1.94
FCFY2.29%
OCF(TTM)2.92
OCFY3.46%
SpS14.95
BVpS5.94
TBVpS1.87
PEG (NY)2.81
PEG (5Y)N/A
Graham Number15.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.7% | ||
| ROE | 28.42% | ||
| ROCE | 24.15% | ||
| ROIC | 19.67% | ||
| ROICexc | 22.32% | ||
| ROICexgc | 39.29% | ||
| OM | 17.28% | ||
| PM (TTM) | 11.29% | ||
| GM | 48.88% | ||
| FCFM | 12.95% |
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 Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.4 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 107.07% | ||
| Cap/Sales | 6.56% | ||
| Interest Coverage | 11.8 | ||
| Cash Conversion | 83.36% | ||
| Profit Quality | 114.75% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 7.8 |
F-Score8
WACC8.67%
ROIC/WACC2.27
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)11%
EPS 3Y13.14%
EPS 5YN/A
EPS Q2Q%27.27%
EPS Next Y17.25%
EPS Next 2Y13.4%
EPS Next 3Y13.87%
EPS Next 5Y15.45%
Revenue 1Y (TTM)6.68%
Revenue growth 3Y4.47%
Revenue growth 5YN/A
Sales Q2Q%7.11%
Revenue Next Year6.55%
Revenue Next 2Y6.05%
Revenue Next 3Y6%
Revenue Next 5Y5.95%
EBIT growth 1Y19.86%
EBIT growth 3Y17.2%
EBIT growth 5YN/A
EBIT Next Year63.46%
EBIT Next 3Y25.19%
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 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%.