UL SOLUTIONS INC - CLASS A (ULS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ULS - US9037311076 - Common Stock
76.95 USD
-1.77 (-2.25%)
76.95 USD
0 (0%)
Overall ULS gets a fundamental rating of 5 out of 10. We evaluated ULS against 86 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!
1. Profitability
1.1 Basic Checks
In the past year ULS was profitable.
ULS had a positive operating cash flow in the past year.
1.2 Ratios
The Return On Assets of ULS (11.19%) is better than 86.21% of its industry peers.
The Return On Equity of ULS (29.92%) is better than 85.06% of its industry peers.
ULS has a Return On Invested Capital of 18.62%. This is amongst the best in the industry. ULS outperforms 87.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ULS is significantly above the industry average of 12.03%.
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's Profit Margin of 11.08% is fine compared to the rest of the industry. ULS outperforms 79.31% of its industry peers.
In the last couple of years the Profit Margin of ULS has grown nicely.
ULS has a Operating Margin of 16.71%. This is amongst the best in the industry. ULS outperforms 81.61% of its industry peers.
ULS's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 48.53%, ULS is doing good in the industry, outperforming 62.07% of the companies in the same industry.
In the last couple of years the Gross Margin of ULS has remained more or less at the same level.
| 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 6.91 indicates that ULS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.91, ULS belongs to the best of the industry, outperforming 90.80% of the companies in the same industry.
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 has a Debt to FCF ratio of 1.67. This is in the better half of the industry: ULS outperforms 73.56% 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 43.68% 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 | 6.91 |
ROIC/WACC2.15
WACC8.64%
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 42.53% 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.
ULS's Quick ratio of 1.32 is in line compared to the rest of the industry. ULS outperforms 42.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
ULS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.76%, which is quite impressive.
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.
ULS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.17%.
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
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.
Based on estimates for the next years, ULS will show a small growth in Revenue. The Revenue will grow by 5.95% on average per year.
EPS Next Y17.25%
EPS Next 2Y13.4%
EPS Next 3Y13.87%
EPS Next 5Y15.45%
Revenue Next Year6.55%
Revenue Next 2Y6.05%
Revenue Next 3Y6%
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.
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
A Price/Earnings ratio of 44.22 indicates a quite expensive valuation of ULS.
62.07% of the companies in the same industry are cheaper than ULS, based on the Price/Earnings ratio.
ULS is valuated expensively when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 36.93 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 63.22% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.84. ULS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.22 | ||
| Fwd PE | 36.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ULS is valued a bit more expensive than 60.92% 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 | 42.47 | ||
| EV/EBITDA | 23.43 |
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.
ULS's earnings are expected to grow with 13.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.56
PEG (5Y)N/A
EPS Next 2Y13.4%
EPS Next 3Y13.87%
5. Dividend
5.1 Amount
ULS has a yearly dividend return of 0.66%, which is pretty low.
ULS's Dividend Yield is a higher than the industry average which is at 1.52.
Compared to an average S&P500 Dividend Yield of 1.87, ULS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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
5.3 Sustainability
ULS pays out 31.19% of its income as dividend. This is a sustainable payout ratio.
DP31.19%
EPS Next 2Y13.4%
EPS Next 3Y13.87%
76.95
-1.77 (-2.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners111.05%
Inst Owner Change5.75%
Ins Owners0.87%
Ins Owner Change0%
Market Cap15.46B
Revenue(TTM)2.87B
Net Income(TTM)327.00M
Analysts76
Price Target92.16 (19.77%)
Short Float %5.43%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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)25.08%
PT rev (3m)26.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)6.76%
EPS NY rev (3m)7.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.22 | ||
| Fwd PE | 36.93 | ||
| P/S | 5.24 | ||
| P/FCF | 42.47 | ||
| P/OCF | 26.61 | ||
| P/B | 14.14 | ||
| P/tB | 58.77 | ||
| EV/EBITDA | 23.43 |
EPS(TTM)1.74
EY2.26%
EPS(NY)2.08
Fwd EY2.71%
FCF(TTM)1.81
FCFY2.35%
OCF(TTM)2.89
OCFY3.76%
SpS14.69
BVpS5.44
TBVpS1.31
PEG (NY)2.56
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 | 6.91 |
F-Score8
WACC8.64%
ROIC/WACC2.15
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 Y17.25%
EPS Next 2Y13.4%
EPS Next 3Y13.87%
EPS Next 5Y15.45%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y4.47%
Revenue growth 5YN/A
Sales Q2Q%7.11%
Revenue Next Year6.55%
Revenue Next 2Y6.05%
Revenue Next 3Y6%
Revenue Next 5Y5.95%
EBIT growth 1Y14.65%
EBIT growth 3Y17.2%
EBIT growth 5YN/A
EBIT Next Year63.46%
EBIT Next 3Y25.19%
EBIT Next 5Y20.45%
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%.