UL SOLUTIONS INC - CLASS A (ULS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ULS - US9037311076 - Common Stock
85.7 USD
-0.13 (-0.15%)
85.7 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ULS. ULS was compared to 87 industry peers in the Professional Services industry. Both the health and profitability get an excellent rating, making ULS a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, ULS is valued expensive at the moment. 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 (11.19%) than 86.21% of its industry peers.
ULS has a Return On Equity of 29.92%. This is amongst the best in the industry. ULS outperforms 85.06% of its industry peers.
ULS's Return On Invested Capital of 18.62% is amongst the best of the industry. ULS outperforms 87.36% of its industry peers.
ULS had an Average Return On Invested Capital over the past 3 years of 17.03%. This is significantly below the industry average of 22.56%.
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 Operating Margin of 16.71%. This is amongst the best in the industry. ULS outperforms 81.61% of its industry peers.
ULS's Operating Margin has improved in the last couple of years.
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.
ULS has about the same amout of shares outstanding than it did 1 year ago.
ULS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.48 indicates that ULS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.48, ULS belongs to the top of the industry, outperforming 91.95% 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.
ULS has a better Debt to FCF ratio (1.67) than 71.26% of its industry peers.
ULS has a Debt/Equity ratio of 0.56. This is a neutral value indicating ULS is somewhat dependend on debt financing.
The Debt to Equity ratio of ULS (0.56) is comparable to the rest of the industry.
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 | 7.48 |
ROIC/WACC2.17
WACC8.56%
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.
ULS has a Current ratio (1.32) which is comparable to the rest of the 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.
Looking at the Quick ratio, with a value of 1.32, ULS is in line with its industry, outperforming 41.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.76% over the past year.
The Earnings Per Share has been growing by 13.14% on average over the past years. This is quite good.
ULS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.17%.
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 12.73% on average per year.
The Revenue is expected to grow by 6.10% on average over the next years.
EPS Next Y9.83%
EPS Next 2Y10.8%
EPS Next 3Y11.64%
EPS Next 5Y12.73%
Revenue Next Year6.17%
Revenue Next 2Y6.2%
Revenue Next 3Y6.19%
Revenue Next 5Y6.1%
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
Based on the Price/Earnings ratio of 49.25, the valuation of ULS can be described as expensive.
Based on the Price/Earnings ratio, ULS is valued a bit more expensive than the industry average as 63.22% of the companies are valued more cheaply.
ULS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.45.
ULS is valuated quite expensively with a Price/Forward Earnings ratio of 43.09.
ULS's Price/Forward 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 is valuated rather expensively when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.25 | ||
| Fwd PE | 43.09 |
4.2 Price Multiples
ULS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ULS is more expensive than 65.52% of the companies in the same industry.
ULS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.3 | ||
| EV/EBITDA | 26.04 |
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)5.01
PEG (5Y)N/A
EPS Next 2Y10.8%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
With a yearly dividend of 0.61%, ULS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.41, ULS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.61, ULS pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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
ULS pays out 31.19% of its income as dividend. This is a sustainable payout ratio.
DP31.19%
EPS Next 2Y10.8%
EPS Next 3Y11.64%
85.7
-0.13 (-0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners106.13%
Inst Owner Change-71.51%
Ins Owners0.87%
Ins Owner Change0%
Market Cap17.22B
Revenue(TTM)2.87B
Net Income(TTM)327.00M
Analysts77.33
Price Target92.16 (7.54%)
Short Float %6.14%
Short Ratio6.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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 | 49.25 | ||
| Fwd PE | 43.09 | ||
| P/S | 5.83 | ||
| P/FCF | 47.3 | ||
| P/OCF | 29.63 | ||
| P/B | 15.75 | ||
| P/tB | 65.46 | ||
| EV/EBITDA | 26.04 |
EPS(TTM)1.74
EY2.03%
EPS(NY)1.99
Fwd EY2.32%
FCF(TTM)1.81
FCFY2.11%
OCF(TTM)2.89
OCFY3.37%
SpS14.69
BVpS5.44
TBVpS1.31
PEG (NY)5.01
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 | 7.48 |
F-Score8
WACC8.56%
ROIC/WACC2.17
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 5Y12.73%
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 5Y6.1%
EBIT growth 1Y14.65%
EBIT growth 3Y17.2%
EBIT growth 5YN/A
EBIT Next Year58.51%
EBIT Next 3Y23.82%
EBIT Next 5Y18.12%
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%.