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

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

53.01  -1 (-1.85%)

After market: 53.01 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.
ULS had a positive operating cash flow in the past year.
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 83.54% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.29%, ULS belongs to the best of the industry, outperforming 83.54% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ULS is in line with the industry average of 13.65%.
The 3 year average ROIC (13.46%) for ULS is below the current ROIC(16.29%), indicating increased profibility in the last year.
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

The Profit Margin of ULS (10.76%) is better than 83.54% of its industry peers.
The Operating Margin of ULS (15.38%) is better than 82.28% of its industry peers.
The Gross Margin of ULS (48.31%) is comparable to the rest of the industry.
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 well above the Cost of Capital (WACC), which means it is creating value.
ULS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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 4.90. This indicates that ULS is financially healthy and has little risk of bankruptcy at the moment.
ULS has a better Altman-Z score (4.90) than 81.01% of its industry peers.
ULS has a debt to FCF ratio of 2.83. This is a good value and a sign of high solvency as ULS would need 2.83 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.83, ULS is in the better half of the industry, outperforming 63.29% of the companies in the same industry.
A Debt/Equity ratio of 0.87 indicates that ULS is somewhat dependend on debt financing.
ULS has a worse Debt to Equity ratio (0.87) than 67.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.87
Debt/FCF 2.83
Altman-Z 4.9
ROIC/WACC1.8
WACC9.03%
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

A Current Ratio of 1.31 indicates that ULS should not have too much problems paying its short term obligations.
The Current ratio of ULS (1.31) is comparable to the rest of the industry.
ULS has a Quick 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 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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1

3. Growth

3.1 Past

EPS 1Y (TTM)N/A
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.04%

3.2 Future

ULS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.98% yearly.
The Revenue is expected to grow by 5.94% on average over the next years.
EPS Next Y0.62%
EPS Next 2Y4.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.99%
Revenue Next 2Y5.94%
Revenue Next 3YN/A
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 31.00.
ULS's Price/Earnings ratio is a bit more expensive when compared to the industry. ULS is more expensive than 62.03% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. ULS is around the same levels.
A Price/Forward Earnings ratio of 30.81 indicates a quite expensive valuation of ULS.
ULS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ULS is more expensive than 65.82% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. ULS is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 31
Fwd PE 30.81
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

ULS's Enterprise Value to EBITDA ratio is in line with the industry average.
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 RankSector Rank
P/FCF 37.62
EV/EBITDA 18.77
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 an expensive valuation of the company.
ULS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)49.84
PEG (5Y)N/A
EPS Next 2Y4.98%
EPS Next 3YN/A

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1

5. Dividend

5.1 Amount

With a yearly dividend of 0.91%, ULS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.93, ULS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.91, ULS pays less dividend than the S&P500 average, which is at 2.29.
Industry RankSector Rank
Dividend Yield 0.91%

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 2025 0.1 0.2 0.3

5.3 Sustainability

DPN/A
EPS Next 2Y4.98%
EPS Next 3YN/A
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 (2/21/2025, 8:04:00 PM)

After market: 53.01 0 (0%)

53.01

-1 (-1.85%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-20 2025-02-20/bmo
Earnings (Next)N/A N/A
Inst Owners118%
Inst Owner Change6.8%
Ins Owners1.37%
Ins Owner Change-0.82%
Market Cap10.61B
Analysts81.43
Price Target58.59 (10.53%)
Short Float %2.47%
Short Ratio2.73
Dividend
Industry RankSector Rank
Dividend Yield 0.91%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date02-28 2025-02-28 (0.13)
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)6.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.33%
EPS NY rev (1m)0%
EPS NY rev (3m)2.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
Industry RankSector Rank
PE 31
Fwd PE 30.81
P/S 3.77
P/FCF 37.62
P/OCF 20.4
P/B 12.17
P/tB 392.9
EV/EBITDA 18.77
EPS(TTM)1.71
EY3.23%
EPS(NY)1.72
Fwd EY3.25%
FCF(TTM)1.41
FCFY2.66%
OCF(TTM)2.6
OCFY4.9%
SpS14.07
BVpS4.36
TBVpS0.13
PEG (NY)49.84
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 4.9
F-Score6
WACC9.03%
ROIC/WACC1.8
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)N/A
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y0.62%
EPS Next 2Y4.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.04%
Revenue Next Year5.99%
Revenue Next 2Y5.94%
Revenue Next 3YN/A
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