UL SOLUTIONS INC - CLASS A (ULS) Stock Fundamental Analysis
USA - NYSE:ULS - US9037311076 - Common Stock
66.75 USD
-1.59 (-2.33%)
66.75 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ULS. ULS was compared to 82 industry peers in the Professional Services industry. ULS gets an excellent profitability rating and is at the same time showing great financial health properties. ULS is valied quite expensively at the moment, while it does show a decent growth rate. This makes ULS very considerable for quality investing!
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.
1.2 Ratios
The Return On Assets of ULS (11.19%) is better than 86.59% of its industry peers.
ULS has a Return On Equity of 29.92%. This is amongst the best in the industry. ULS outperforms 82.93% of its industry peers.
ULS has a better Return On Invested Capital (18.62%) than 89.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ULS is above the industry average of 12.76%.
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
The Profit Margin of ULS (11.08%) is better than 84.15% of its industry peers.
In the last couple of years the Profit Margin of ULS has grown nicely.
ULS's Operating Margin of 16.71% is amongst the best of the industry. ULS outperforms 81.71% of its industry peers.
In the last couple of years the Operating Margin of ULS has grown nicely.
ULS has a Gross Margin of 48.53%. This is in the better half of the industry: ULS outperforms 62.20% of its industry peers.
ULS's Gross Margin has been stable in the last couple of years.
| 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
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.
ULS has a better debt/assets ratio than last year.
2.2 Solvency
ULS has an Altman-Z score of 6.34. This indicates that ULS is financially healthy and has little risk of bankruptcy at the moment.
ULS has a better Altman-Z score (6.34) than 89.02% of its industry peers.
The Debt to FCF ratio of ULS is 1.67, which is an excellent value as it means it would take ULS, only 1.67 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.67, ULS is doing good in the industry, outperforming 68.29% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that ULS is somewhat dependend on debt financing.
ULS has a Debt to Equity ratio (0.56) which 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 | 6.34 |
ROIC/WACC2.19
WACC8.52%
2.3 Liquidity
A Current Ratio of 1.32 indicates that ULS should not have too much problems paying its short term obligations.
The Current ratio of ULS (1.32) 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.
ULS has a Quick ratio of 1.32. This is comparable to the rest of the industry: ULS outperforms 46.34% of its industry peers.
| 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 20.90% over the past year.
ULS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.14% yearly.
The Revenue has been growing slightly by 6.92% in the past 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)20.9%
EPS 3Y13.14%
EPS 5YN/A
EPS Q2Q%-10%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y4.47%
Revenue growth 5YN/A
Sales Q2Q%6.3%
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 11.53% yearly.
Based on estimates for the next years, ULS will show a small growth in Revenue. The Revenue will grow by 6.12% on average per year.
EPS Next Y9.08%
EPS Next 2Y10.55%
EPS Next 3Y11.53%
EPS Next 5YN/A
Revenue Next Year6.06%
Revenue Next 2Y6.15%
Revenue Next 3Y6.12%
Revenue Next 5YN/A
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.
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 41.20, 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 65.85% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.30, ULS is valued quite expensively.
Based on the Price/Forward Earnings ratio of 33.72, the valuation of ULS can be described as expensive.
64.63% of the companies in the same industry are cheaper than ULS, based on the Price/Forward Earnings ratio.
ULS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.2 | ||
| Fwd PE | 33.72 |
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 | 36.84 | ||
| EV/EBITDA | 20.87 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.54
PEG (5Y)N/A
EPS Next 2Y10.55%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
ULS has a yearly dividend return of 0.75%, which is pretty low.
ULS's Dividend Yield is a higher than the industry average which is at 2.18.
Compared to an average S&P500 Dividend Yield of 2.45, ULS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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 2Y10.55%
EPS Next 3Y11.53%
66.75
-1.59 (-2.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners117.24%
Inst Owner Change0.82%
Ins Owners0.95%
Ins Owner Change19.81%
Market Cap13.41B
Analysts77.33
Price Target73.11 (9.53%)
Short Float %5.34%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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)0.11%
PT rev (3m)-1.64%
EPS NQ rev (1m)-1.7%
EPS NQ rev (3m)-1.1%
EPS NY rev (1m)1.49%
EPS NY rev (3m)2.12%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.2 | ||
| Fwd PE | 33.72 | ||
| P/S | 4.54 | ||
| P/FCF | 36.84 | ||
| P/OCF | 23.08 | ||
| P/B | 12.27 | ||
| P/tB | 50.98 | ||
| EV/EBITDA | 20.87 |
EPS(TTM)1.62
EY2.43%
EPS(NY)1.98
Fwd EY2.97%
FCF(TTM)1.81
FCFY2.71%
OCF(TTM)2.89
OCFY4.33%
SpS14.69
BVpS5.44
TBVpS1.31
PEG (NY)4.54
PEG (5Y)N/A
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
ROICexcg growth 3Y4.96%
ROICexcg 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 | 6.34 |
F-Score8
WACC8.52%
ROIC/WACC2.19
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)20.9%
EPS 3Y13.14%
EPS 5YN/A
EPS Q2Q%-10%
EPS Next Y9.08%
EPS Next 2Y10.55%
EPS Next 3Y11.53%
EPS Next 5YN/A
Revenue 1Y (TTM)6.92%
Revenue growth 3Y4.47%
Revenue growth 5YN/A
Sales Q2Q%6.3%
Revenue Next Year6.06%
Revenue Next 2Y6.15%
Revenue Next 3Y6.12%
Revenue Next 5YN/A
EBIT growth 1Y14.65%
EBIT growth 3Y17.2%
EBIT growth 5YN/A
EBIT Next Year58.22%
EBIT Next 3Y22.49%
EBIT Next 5YN/A
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