UL SOLUTIONS INC - CLASS A (ULS) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:ULS • US9037311076

70.23 USD
-0.96 (-1.35%)
At close: Jan 30, 2026
70.23 USD
0 (0%)
After Hours: 1/30/2026, 8:22:35 PM
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to ULS. ULS was compared to 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!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year ULS was profitable.
  • In the past year ULS had a positive cash flow from operations.
ULS Yearly Net Income VS EBIT VS OCF VS FCFULS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2021 2022 2023 2024 100M 200M 300M 400M 500M

1.2 Ratios

  • ULS has a Return On Assets of 11.70%. This is amongst the best in the industry. ULS outperforms 86.21% of its industry peers.
  • Looking at the Return On Equity, with a value of 28.42%, ULS belongs to the top of the industry, outperforming 85.06% of the companies in the same industry.
  • ULS's Return On Invested Capital of 19.67% is amongst the best of the industry. ULS outperforms 91.95% of its industry peers.
  • ULS had an Average Return On Invested Capital over the past 3 years of 17.03%. This is significantly above the industry average of 12.02%.
  • 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 RankSector 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
ULS Yearly ROA, ROE, ROICULS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2021 2022 2023 2024 10 20 30

1.3 Margins

  • The Profit Margin of ULS (11.29%) is better 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 Gross Margin of 48.88%. This is in the better half of the industry: ULS outperforms 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 RankSector 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
ULS Yearly Profit, Operating, Gross MarginsULS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2021 2022 2023 2024 10 20 30 40

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7

2. Health

2.1 Basic Checks

  • ULS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
ULS Yearly Shares OutstandingULS Yearly Shares OutstandingYearly Shares Outstanding 2021 2022 2023 2024 50M 100M 150M
ULS Yearly Total Debt VS Total AssetsULS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 6.97 indicates that ULS is not in any danger for bankruptcy at the moment.
  • ULS has a better Altman-Z score (6.97) than 91.95% of its industry peers.
  • 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.
  • ULS has a Debt to FCF ratio of 1.40. This is in the better half of the industry: ULS outperforms 74.71% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0.46
Debt/FCF 1.4
Altman-Z 6.97
ROIC/WACC2.26
WACC8.72%
ULS Yearly LT Debt VS Equity VS FCFULS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2021 2022 2023 2024 500M 1B 1.5B 2B

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.
  • ULS has a Current ratio (1.33) which is in line with its industry peers.
  • A Quick Ratio of 1.33 indicates that ULS should not have too much problems paying its short term obligations.
  • ULS has a Quick ratio (1.33) which is in line with 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 RankSector Rank
Current Ratio 1.33
Quick Ratio 1.33
ULS Yearly Current Assets VS Current LiabilitesULS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2021 2022 2023 2024 500M 1B 1.5B

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5

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.
  • ULS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.68%.
  • 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

  • ULS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.45% yearly.
  • 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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ULS Yearly Revenue VS EstimatesULS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B
ULS Yearly EPS VS EstimatesULS Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 2028 2029 1 2 3

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2

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 40.36, ULS can be considered very expensive at the moment.
  • ULS's Price/Earnings ratio is a bit more expensive when compared to the industry. ULS is more expensive than 62.07% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 28.30. ULS is valued slightly more expensive when compared to this.
  • Based on the Price/Forward Earnings ratio of 33.86, the valuation of ULS can be described as expensive.
  • Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio of 25.57, ULS is valued a bit more expensive.
Industry RankSector Rank
PE 40.36
Fwd PE 33.86
ULS Price Earnings VS Forward Price EarningsULS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • ULS's Enterprise Value to EBITDA is on the same level as the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as ULS.
Industry RankSector Rank
P/FCF 36.27
EV/EBITDA 20.75
ULS Per share dataULS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10

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)2.54
PEG (5Y)N/A
EPS Next 2Y13.15%
EPS Next 3Y13.75%

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2

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.73%, ULS is not a good candidate for dividend investing.
  • ULS's Dividend Yield is a higher than the industry average which is at 1.46.
  • With a Dividend Yield of 0.73, ULS pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.73%

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
ULS Yearly Dividends per shareULS Yearly Dividends per shareYearly Dividends per share 2024 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

  • 30.38% of the earnings are spent on dividend by ULS. This is a low number and sustainable payout ratio.
DP30.38%
EPS Next 2Y13.15%
EPS Next 3Y13.75%
ULS Yearly Income VS Free CF VS DividendULS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2021 2022 2023 2024 100M 200M 300M
ULS Dividend Payout.ULS Dividend Payout, showing the Payout Ratio.ULS Dividend Payout.PayoutRetained Earnings

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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%.