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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

53.09  -2.59 (-4.65%)

After market: 53.09 0 (0%)

Fundamental Rating

4

Overall ULS gets a fundamental rating of 4 out of 10. We evaluated ULS against 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 has a expensive valuation and it also scores bad on growth.


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 81.71% of its industry peers.
ULS's Return On Equity of 34.75% is amongst the best of the industry. ULS outperforms 84.15% of its industry peers.
ULS has a Return On Invested Capital of 16.29%. This is amongst the best in the industry. ULS outperforms 84.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ULS is in line with the industry average of 13.58%.
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

ULS has a Profit Margin of 10.76%. This is amongst the best in the industry. ULS outperforms 82.93% of its industry peers.
ULS has a better Operating Margin (15.38%) than 82.93% of its industry peers.
Looking at the Gross Margin, with a value of 48.31%, ULS is in the better half of the industry, outperforming 60.98% of the companies in the same 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

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ULS 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

An Altman-Z score of 4.85 indicates that ULS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.85, ULS belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
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.
The Debt to FCF ratio of ULS (2.83) is better than 65.85% of its industry peers.
ULS has a Debt/Equity ratio of 0.87. This is a neutral value indicating ULS is somewhat dependend on debt financing.
ULS's Debt to Equity ratio of 0.87 is on the low side compared to the rest of the industry. ULS is outperformed by 64.63% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.87
Debt/FCF 2.83
Altman-Z 4.85
ROIC/WACC1.88
WACC8.65%
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.
ULS has a Current ratio (1.31) which is comparable to the rest of the industry.
A Quick Ratio of 1.31 indicates that ULS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.31, ULS perfoms like the industry average, outperforming 52.44% of the companies in the same industry.
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

Based on estimates for the next years, ULS will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.25% on average per year.
Based on estimates for the next years, ULS will show a small growth in Revenue. The Revenue will grow by 6.26% on average per year.
EPS Next Y3.87%
EPS Next 2Y8.15%
EPS Next 3Y11.25%
EPS Next 5YN/A
Revenue Next Year5.89%
Revenue Next 2Y5.95%
Revenue Next 3Y6.26%
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 2027 1B 2B 3B
ULS Yearly EPS VS EstimatesULS Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 0.5 1 1.5 2

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 32.77 indicates a quite expensive valuation of ULS.
Compared to the rest of the industry, the Price/Earnings ratio of ULS indicates a slightly more expensive valuation: ULS is more expensive than 65.85% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ULS to the average of the S&P500 Index (27.63), we can say ULS is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 31.55, the valuation of ULS can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as ULS.
The average S&P500 Price/Forward Earnings ratio is at 20.85. ULS is valued rather expensively when compared to this.
Industry RankSector Rank
PE 32.77
Fwd PE 31.55
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

The rest of the industry has a similar Enterprise Value to EBITDA ratio as ULS.
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 37.69
EV/EBITDA 18.47
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.
The decent profitability rating of ULS may justify a higher PE ratio.
PEG (NY)8.46
PEG (5Y)N/A
EPS Next 2Y8.15%
EPS Next 3Y11.25%

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1

5. Dividend

5.1 Amount

ULS has a yearly dividend return of 0.91%, which is pretty low.
Compared to an average industry Dividend Yield of 2.42, 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 2.51.
Industry RankSector Rank
Dividend Yield 0.91%

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
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 2Y8.15%
EPS Next 3Y11.25%
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 (4/21/2025, 8:04:00 PM)

After market: 53.09 0 (0%)

53.09

-2.59 (-4.65%)

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 Owners115.91%
Inst Owner Change0.08%
Ins Owners0.73%
Ins Owner Change7.54%
Market Cap10.63B
Analysts81.43
Price Target61.39 (15.63%)
Short Float %2.51%
Short Ratio3.01
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)4.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 32.77
Fwd PE 31.55
P/S 3.78
P/FCF 37.69
P/OCF 20.44
P/B 12.19
P/tB 393.61
EV/EBITDA 18.47
EPS(TTM)1.62
EY3.05%
EPS(NY)1.68
Fwd EY3.17%
FCF(TTM)1.41
FCFY2.65%
OCF(TTM)2.6
OCFY4.89%
SpS14.06
BVpS4.36
TBVpS0.13
PEG (NY)8.46
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 4.85
F-Score6
WACC8.65%
ROIC/WACC1.88
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 Y3.87%
EPS Next 2Y8.15%
EPS Next 3Y11.25%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.04%
Revenue Next Year5.89%
Revenue Next 2Y5.95%
Revenue Next 3Y6.26%
Revenue Next 5YN/A
EBIT growth 1Y-1.7%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year62%
EBIT Next 3Y25.71%
EBIT Next 5Y21.88%
FCF growth 1Y21.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.54%
OCF growth 3YN/A
OCF growth 5YN/A