UL SOLUTIONS INC - CLASS A (ULS) Stock Fundamental Analysis
USA - NYSE:ULS - US9037311076 - Common Stock
85.65 USD
-0.03 (-0.04%)
85.65 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ULS. ULS was compared to 86 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. ULS is quite expensive at the moment. It does show a decent growth rate. With these ratings, ULS could be worth investigating further 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
With an excellent Return On Assets value of 11.19%, ULS belongs to the best of the industry, outperforming 87.36% of the companies in the same industry.
Looking at the Return On Equity, with a value of 29.92%, ULS belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
The Return On Invested Capital of ULS (18.62%) is better than 88.51% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ULS is above the industry average of 13.43%.
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
ULS has a better Profit Margin (11.08%) than 82.76% of its industry peers.
ULS's Profit Margin has improved in the last couple of years.
ULS's Operating Margin of 16.71% is amongst the best of the industry. ULS outperforms 82.76% of its industry peers.
In the last couple of years the Operating Margin of ULS has grown nicely.
With a decent Gross Margin value of 48.53%, ULS is doing good in the industry, outperforming 64.37% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ULS is creating value.
Compared to 1 year ago, ULS has about the same amount of shares outstanding.
Compared to 1 year ago, ULS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.48 indicates that ULS is not in any danger for bankruptcy at the moment.
ULS has a Altman-Z score of 7.48. This is amongst the best in the industry. ULS outperforms 91.95% of its industry peers.
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's Debt to FCF ratio of 1.67 is fine compared to the rest of the industry. ULS outperforms 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.
Looking at the Debt to Equity ratio, with a value of 0.56, ULS is in line with its industry, outperforming 45.98% of the companies in the same industry.
Although ULS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 7.48 |
ROIC/WACC2.16
WACC8.61%
2.3 Liquidity
A Current Ratio of 1.32 indicates that ULS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.32, ULS perfoms like the industry average, outperforming 48.28% of the companies in the same 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 48.28% 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.
Measured over the past years, ULS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.14% on average per year.
The Revenue has been growing slightly by 7.17% in the past year.
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
The Earnings Per Share is expected to grow by 12.73% 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 6.10% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 49.22, 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 63.22% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.06. ULS is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 43.07, which means the current valuation is very expensive for ULS.
Based on the Price/Forward Earnings ratio, ULS is valued a bit more expensive than 63.22% of the companies in the same industry.
ULS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.22 | ||
| Fwd PE | 43.07 |
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 64.37% of the companies in the same industry.
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 | 47.27 | ||
| EV/EBITDA | 26.03 |
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)5.01
PEG (5Y)N/A
EPS Next 2Y10.8%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, ULS is not a good candidate for dividend investing.
ULS's Dividend Yield is a higher than the industry average which is at 4.51.
Compared to an average S&P500 Dividend Yield of 2.37, ULS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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%
85.65
-0.03 (-0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners106.13%
Inst Owner Change2.86%
Ins Owners0.87%
Ins Owner Change0%
Market Cap17.21B
Revenue(TTM)2.87B
Net Income(TTM)327.00M
Analysts77.33
Price Target73.68 (-13.98%)
Short Float %6.09%
Short Ratio5.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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)0.78%
PT rev (3m)0.88%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-1.43%
EPS NY rev (1m)0.11%
EPS NY rev (3m)2.19%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.22 | ||
| Fwd PE | 43.07 | ||
| P/S | 5.83 | ||
| P/FCF | 47.27 | ||
| P/OCF | 29.61 | ||
| P/B | 15.74 | ||
| P/tB | 65.42 | ||
| EV/EBITDA | 26.03 |
EPS(TTM)1.74
EY2.03%
EPS(NY)1.99
Fwd EY2.32%
FCF(TTM)1.81
FCFY2.12%
OCF(TTM)2.89
OCFY3.38%
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
WACC8.61%
ROIC/WACC2.16
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%.