UL SOLUTIONS INC - CLASS A (ULS) Stock Fundamental Analysis
USA - NYSE:ULS - US9037311076 - Common Stock
72.36 USD
+0.2 (+0.28%)
72.36 USD
0 (0%)
Overall ULS gets a fundamental rating of 5 out of 10. We evaluated ULS against 82 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 valied quite expensively at the moment, while 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
ULS had positive earnings in the past year.
ULS had a positive operating cash flow in the past year.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.19%, ULS belongs to the top of the industry, outperforming 85.37% 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 81.71% of the companies in the same industry.
ULS has a better Return On Invested Capital (18.62%) than 86.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ULS is above the industry average of 13.18%.
The last Return On Invested Capital (18.62%) for ULS is above the 3 year average (17.03%), which is a sign of increasing profitability.
| 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 amongst the best of the industry. ULS outperforms 82.93% of its industry peers.
ULS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.71%, ULS belongs to the top of the industry, outperforming 81.71% of the companies in the same industry.
In the last couple of years the Operating Margin of ULS has grown nicely.
Looking at the Gross Margin, with a value of 48.53%, ULS is in the better half of the industry, outperforming 62.20% 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
ULS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ULS has about the same amount of shares outstanding.
ULS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.59 indicates that ULS is not in any danger for bankruptcy at the moment.
ULS has a better Altman-Z score (6.59) 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 70.73% 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 | 6.59 |
ROIC/WACC2.18
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.32 indicates that ULS should not have too much problems paying its short term obligations.
ULS has a Current ratio of 1.32. This is comparable to the rest of the industry: ULS outperforms 46.34% of its industry peers.
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 (1.32) which 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 20.90%, which is quite impressive.
ULS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.14% yearly.
ULS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.92%.
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)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.
ULS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.12% yearly.
EPS Next Y9.7%
EPS Next 2Y10.15%
EPS Next 3Y11.53%
EPS Next 5YN/A
Revenue Next Year6.06%
Revenue Next 2Y6.13%
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.
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
ULS is valuated quite expensively with a Price/Earnings ratio of 44.67.
ULS's Price/Earnings ratio is a bit more expensive when compared to the industry. ULS is more expensive than 68.29% of the companies in the same industry.
ULS is valuated expensively when we compare the Price/Earnings ratio to 27.02, which is the current average of the S&P500 Index.
ULS is valuated quite expensively with a Price/Forward Earnings ratio of 36.81.
Based on the Price/Forward Earnings ratio, ULS is valued a bit more expensive than the industry average as 63.41% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of ULS to the average of the S&P500 Index (22.57), we can say ULS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.67 | ||
| Fwd PE | 36.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ULS is valued a bit more expensive than the industry average as 60.98% of the companies are valued more cheaply.
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 | 39.93 | ||
| EV/EBITDA | 22.01 |
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.
PEG (NY)4.6
PEG (5Y)N/A
EPS Next 2Y10.15%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, ULS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.89, ULS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.70, ULS pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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
31.19% of the earnings are spent on dividend by ULS. This is a low number and sustainable payout ratio.
DP31.19%
EPS Next 2Y10.15%
EPS Next 3Y11.53%
72.36
+0.2 (+0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners106.13%
Inst Owner Change0.54%
Ins Owners0.87%
Ins Owner Change1.36%
Market Cap14.54B
Analysts77.33
Price Target73.11 (1.04%)
Short Float %5.71%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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%
PT rev (3m)-1.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)0.57%
EPS NY rev (3m)2.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.67 | ||
| Fwd PE | 36.81 | ||
| P/S | 4.93 | ||
| P/FCF | 39.93 | ||
| P/OCF | 25.02 | ||
| P/B | 13.3 | ||
| P/tB | 55.27 | ||
| EV/EBITDA | 22.01 |
EPS(TTM)1.62
EY2.24%
EPS(NY)1.97
Fwd EY2.72%
FCF(TTM)1.81
FCFY2.5%
OCF(TTM)2.89
OCFY4%
SpS14.69
BVpS5.44
TBVpS1.31
PEG (NY)4.6
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 | 6.59 |
F-Score8
WACC8.53%
ROIC/WACC2.18
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 Y9.7%
EPS Next 2Y10.15%
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 2Y6.13%
Revenue Next 3Y6.12%
Revenue Next 5YN/A
EBIT growth 1Y14.65%
EBIT growth 3Y17.2%
EBIT growth 5YN/A
EBIT Next Year58.51%
EBIT Next 3Y23.82%
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