UL SOLUTIONS INC - CLASS A (ULS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ULS - US9037311076 - Common Stock
77.88 USD
-0.12 (-0.15%)
77.88 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ULS. ULS was compared to 87 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. 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
ULS had positive earnings in the past year.
ULS had a positive operating cash flow in the past year.
1.2 Ratios
ULS has a better Return On Assets (11.19%) than 86.21% of its industry peers.
Looking at the Return On Equity, with a value of 29.92%, ULS belongs to the top of the industry, outperforming 85.06% of the companies in the same industry.
ULS's Return On Invested Capital of 18.62% is amongst the best of the industry. ULS outperforms 87.36% of its industry peers.
ULS had an Average Return On Invested Capital over the past 3 years of 17.03%. This is above the industry average of 12.13%.
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 79.31% 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 81.61% 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 62.07% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ULS is creating value.
ULS has about the same amout of shares outstanding than it did 1 year ago.
The debt/assets ratio for ULS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.98 indicates that ULS is not in any danger for bankruptcy at the moment.
ULS has a Altman-Z score of 6.98. This is amongst the best in the industry. ULS outperforms 89.66% 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.
Looking at the Debt to FCF ratio, with a value of 1.67, ULS is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
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 42.53% 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 | 6.98 |
ROIC/WACC2.15
WACC8.67%
2.3 Liquidity
ULS has a Current 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.
The Current ratio of ULS (1.32) is comparable to the rest of the industry.
A Quick Ratio of 1.32 indicates that ULS should not have too much problems paying its short term obligations.
The Quick ratio of ULS (1.32) is comparable to the rest of the industry.
| 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.
Looking at the last year, ULS shows a small growth in Revenue. The Revenue has grown by 7.17% in the last year.
Measured over the past years, ULS shows a small growth in Revenue. The Revenue has been growing by 4.47% on average per year.
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.
The Revenue is expected to grow by 5.95% on average over the next years.
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
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
The Price/Earnings ratio is 44.76, which means the current valuation is very expensive for 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 26.54, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 37.38, which means the current valuation is very expensive for 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.
ULS is valuated expensively when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.76 | ||
| Fwd PE | 37.38 |
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 60.92% of the companies in the same industry.
ULS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.98 | ||
| EV/EBITDA | 23.75 |
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.
The decent profitability rating of ULS 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)2.6
PEG (5Y)N/A
EPS Next 2Y13.4%
EPS Next 3Y13.87%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, ULS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.84, ULS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.67, ULS pays less dividend than the S&P500 average, which is at 1.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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%
77.88
-0.12 (-0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners111.05%
Inst Owner Change5.72%
Ins Owners0.87%
Ins Owner Change0%
Market Cap15.64B
Revenue(TTM)2.87B
Net Income(TTM)327.00M
Analysts76
Price Target92.16 (18.34%)
Short Float %5.6%
Short Ratio6.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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 | 44.76 | ||
| Fwd PE | 37.38 | ||
| P/S | 5.3 | ||
| P/FCF | 42.98 | ||
| P/OCF | 26.93 | ||
| P/B | 14.31 | ||
| P/tB | 59.48 | ||
| EV/EBITDA | 23.75 |
EPS(TTM)1.74
EY2.23%
EPS(NY)2.08
Fwd EY2.68%
FCF(TTM)1.81
FCFY2.33%
OCF(TTM)2.89
OCFY3.71%
SpS14.69
BVpS5.44
TBVpS1.31
PEG (NY)2.6
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 | 6.98 |
F-Score8
WACC8.67%
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%.