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

NYSE:ULS - New York Stock Exchange, Inc. - US9037311076 - Common Stock

51.95  +0.02 (+0.04%)

After market: 51.95 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to ULS. ULS was compared to 82 industry peers in the Professional Services industry. Both the profitability and the financial health of ULS get a neutral evaluation. Nothing too spectacular is happening here. ULS is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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6

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 100M 200M 300M 400M

1.2 Ratios

The Return On Assets of ULS (10.53%) is better than 81.01% of its industry peers.
With an excellent Return On Equity value of 34.75%, ULS belongs to the best of the industry, outperforming 84.81% of the companies in the same industry.
ULS has a Return On Invested Capital of 16.29%. This is amongst the best in the industry. ULS outperforms 81.01% of its industry peers.
ULS had an Average Return On Invested Capital over the past 3 years of 13.46%. This is in line with the industry average of 13.48%.
The last Return On Invested Capital (16.29%) for ULS is above the 3 year average (13.46%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 10.53%
ROE 34.75%
ROIC 16.29%
ROA(3y)8.8%
ROA(5y)N/A
ROE(3y)25.75%
ROE(5y)N/A
ROIC(3y)13.46%
ROIC(5y)N/A
ULS Yearly ROA, ROE, ROICULS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2021 2022 2023 10 20 30

1.3 Margins

ULS has a Profit Margin of 10.76%. This is amongst the best in the industry. ULS outperforms 83.54% of its industry peers.
The Operating Margin of ULS (15.38%) is better than 82.28% of its industry peers.
ULS's Gross Margin of 48.31% is in line compared to the rest of the industry. ULS outperforms 56.96% of its industry peers.
Industry RankSector Rank
OM 15.38%
PM (TTM) 10.76%
GM 48.31%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
ULS Yearly Profit, Operating, Gross MarginsULS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2021 2022 2023 10 20 30 40

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5

2. Health

2.1 Basic Checks

ULS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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 a worse debt to assets ratio.
ULS Yearly Shares OutstandingULS Yearly Shares OutstandingYearly Shares Outstanding 2021 2022 2023 50M 100M 150M
ULS Yearly Total Debt VS Total AssetsULS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2021 2022 2023 1B 2B 3B

2.2 Solvency

ULS has an Altman-Z score of 4.78. This indicates that ULS is financially healthy and has little risk of bankruptcy at the moment.
ULS has a Altman-Z score of 4.78. This is amongst the best in the industry. ULS outperforms 81.01% of its industry peers.
The Debt to FCF ratio of ULS is 2.83, which is a good value as it means it would take ULS, 2.83 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.83, ULS is doing good in the industry, outperforming 65.82% of the companies in the same industry.
ULS has a Debt/Equity ratio of 0.87. This is a neutral value indicating ULS is somewhat dependend on debt financing.
ULS has a Debt to Equity ratio of 0.87. This is in the lower half of the industry: ULS underperforms 67.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.87
Debt/FCF 2.83
Altman-Z 4.78
ROIC/WACC1.79
WACC9.08%
ULS Yearly LT Debt VS Equity VS FCFULS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2021 2022 2023 500M 1B 1.5B 2B

2.3 Liquidity

ULS has a Current Ratio of 1.31. 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 (1.31) which is in line with its industry peers.
A Quick Ratio of 1.31 indicates that ULS should not have too much problems paying its short term obligations.
ULS has a Quick ratio (1.31) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.31
Quick Ratio 1.31
ULS Yearly Current Assets VS Current LiabilitesULS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2021 2022 2023 500M 1B 1.5B

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2

3. Growth

3.1 Past

The earnings per share for ULS have decreased strongly by -11.26% in the last year.
ULS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.27%.
EPS 1Y (TTM)-11.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%64.39%
Revenue 1Y (TTM)6.27%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.14%

3.2 Future

The Earnings Per Share is expected to grow by 13.18% on average over the next years. This is quite good.
ULS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.56% yearly.
EPS Next Y23.92%
EPS Next 2Y15.05%
EPS Next 3Y13.18%
EPS Next 5YN/A
Revenue Next Year7.8%
Revenue Next 2Y6.89%
Revenue Next 3Y6.56%
Revenue Next 5YN/A

3.3 Evolution

ULS Yearly Revenue VS EstimatesULS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2021 2022 2023 2024 2025 2026 1B 2B 3B
ULS Yearly EPS VS EstimatesULS Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 0.5 1 1.5

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2

4. Valuation

4.1 Price/Earnings Ratio

ULS is valuated quite expensively with a Price/Earnings ratio of 34.40.
65.82% of the companies in the same industry are cheaper than ULS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.96. ULS is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 30.19 indicates a quite expensive valuation of ULS.
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 64.56% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.11, ULS is valued a bit more expensive.
Industry RankSector Rank
PE 34.4
Fwd PE 30.19
ULS Price Earnings VS Forward Price EarningsULS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 36.87
EV/EBITDA 18.08
ULS Per share dataULS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10

4.3 Compensation for Growth

ULS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ULS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ULS's earnings are expected to grow with 13.18% in the coming years.
PEG (NY)1.44
PEG (5Y)N/A
EPS Next 2Y15.05%
EPS Next 3Y13.18%

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1

5. Dividend

5.1 Amount

ULS has a yearly dividend return of 0.96%, which is pretty low.
ULS's Dividend Yield is a higher than the industry average which is at 1.82.
With a Dividend Yield of 0.96, ULS pays less dividend than the S&P500 average, which is at 2.29.
Industry RankSector Rank
Dividend Yield 0.96%

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
ULS Yearly Dividends per shareULS Yearly Dividends per shareYearly Dividends per share 2024 0.1 0.2 0.3

5.3 Sustainability

DPN/A
EPS Next 2Y15.05%
EPS Next 3Y13.18%
ULS Yearly Income VS Free CF VS DividendULS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2021 2022 2023 100M 200M 300M

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UL SOLUTIONS INC - CLASS A

NYSE:ULS (1/17/2025, 8:04:00 PM)

After market: 51.95 0 (0%)

51.95

+0.02 (+0.04%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)11-05 2024-11-05/bmo
Earnings (Next)N/A N/A
Inst Owners118%
Inst Owner Change0%
Ins Owners1.37%
Ins Owner Change-0.82%
Market Cap10.40B
Analysts81.43
Price Target58.59 (12.78%)
Short Float %3.96%
Short Ratio3.47
Dividend
Industry RankSector Rank
Dividend Yield 0.96%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.86%
Min EPS beat(2)11.81%
Max EPS beat(2)27.92%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)2
Avg Revenue beat(2)1.34%
Min Revenue beat(2)0.56%
Max Revenue beat(2)2.13%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)7.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.37%
EPS NY rev (1m)0%
EPS NY rev (3m)8.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.26%
Valuation
Industry RankSector Rank
PE 34.4
Fwd PE 30.19
P/S 3.69
P/FCF 36.87
P/OCF 19.99
P/B 11.92
P/tB 385.05
EV/EBITDA 18.08
EPS(TTM)1.51
EY2.91%
EPS(NY)1.72
Fwd EY3.31%
FCF(TTM)1.41
FCFY2.71%
OCF(TTM)2.6
OCFY5%
SpS14.07
BVpS4.36
TBVpS0.13
PEG (NY)1.44
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 10.53%
ROE 34.75%
ROCE 20.31%
ROIC 16.29%
ROICexc 19.24%
ROICexgc 36.18%
OM 15.38%
PM (TTM) 10.76%
GM 48.31%
FCFM 10.02%
ROA(3y)8.8%
ROA(5y)N/A
ROE(3y)25.75%
ROE(5y)N/A
ROIC(3y)13.46%
ROIC(5y)N/A
ROICexc(3y)18.12%
ROICexc(5y)N/A
ROICexgc(3y)37.32%
ROICexgc(5y)N/A
ROCE(3y)16.77%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.98
Health
Industry RankSector Rank
Debt/Equity 0.87
Debt/FCF 2.83
Debt/EBITDA 1.26
Cap/Depr 141.67%
Cap/Sales 8.45%
Interest Coverage 9.21
Cash Conversion 86.52%
Profit Quality 93.07%
Current Ratio 1.31
Quick Ratio 1.31
Altman-Z 4.78
F-Score6
WACC9.08%
ROIC/WACC1.79
Cap/Depr(3y)112.15%
Cap/Depr(5y)N/A
Cap/Sales(3y)6.26%
Cap/Sales(5y)N/A
Profit Quality(3y)102.7%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%64.39%
EPS Next Y23.92%
EPS Next 2Y15.05%
EPS Next 3Y13.18%
EPS Next 5YN/A
Revenue 1Y (TTM)6.27%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.14%
Revenue Next Year7.8%
Revenue Next 2Y6.89%
Revenue Next 3Y6.56%
Revenue Next 5YN/A
EBIT growth 1Y-1.7%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year62%
EBIT Next 3Y25.29%
EBIT Next 5YN/A
FCF growth 1Y21.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.54%
OCF growth 3YN/A
OCF growth 5YN/A