UNIVERSAL TECHNICAL INSTITUT (UTI) Stock Fundamental Analysis
NYSE:UTI - New York Stock Exchange, Inc. - US9139151040 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to UTI. UTI was compared to 71 industry peers in the Diversified Consumer Services industry. UTI has an excellent profitability rating, but there are some minor concerns on its financial health. UTI is not overvalued while it is showing excellent growth. This is an interesting combination. This makes UTI very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year UTI was profitable.
In the past year UTI had a positive cash flow from operations.
Each year in the past 5 years UTI has been profitable.
In the past 5 years UTI always reported a positive cash flow from operatings.
1.2 Ratios
UTI has a Return On Assets of 7.97%. This is in the better half of the industry: UTI outperforms 77.46% of its industry peers.
With an excellent Return On Equity value of 19.54%, UTI belongs to the best of the industry, outperforming 85.92% of the companies in the same industry.
UTI's Return On Invested Capital of 10.38% is amongst the best of the industry. UTI outperforms 84.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UTI is significantly below the industry average of 10.64%.
The 3 year average ROIC (5.11%) for UTI is below the current ROIC(10.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.97% | ||
| ROE | 19.54% | ||
| ROIC | 10.38% |
ROA(3y)2.68%
ROA(5y)2.09%
ROE(3y)7.52%
ROE(5y)5.81%
ROIC(3y)5.11%
ROIC(5y)N/A
1.3 Margins
UTI has a Profit Margin of 7.34%. This is in the better half of the industry: UTI outperforms 64.79% of its industry peers.
In the last couple of years the Profit Margin of UTI has grown nicely.
UTI's Operating Margin of 9.94% is fine compared to the rest of the industry. UTI outperforms 71.83% of its industry peers.
UTI's Operating Margin has improved in the last couple of years.
UTI has a Gross Margin (49.24%) which is in line with its industry peers.
In the last couple of years the Gross Margin of UTI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.94% | ||
| PM (TTM) | 7.34% | ||
| GM | 49.24% |
OM growth 3Y21.82%
OM growth 5YN/A
PM growth 3Y23.23%
PM growth 5YN/A
GM growth 3Y-14.8%
GM growth 5Y-8.67%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UTI is creating some value.
UTI has more shares outstanding than it did 1 year ago.
UTI has more shares outstanding than it did 5 years ago.
UTI has a better debt/assets ratio than last year.
2.2 Solvency
UTI has an Altman-Z score of 4.01. This indicates that UTI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.01, UTI is in the better half of the industry, outperforming 77.46% of the companies in the same industry.
The Debt to FCF ratio of UTI is 1.33, which is an excellent value as it means it would take UTI, only 1.33 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.33, UTI belongs to the top of the industry, outperforming 85.92% of the companies in the same industry.
UTI has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
UTI has a Debt to Equity ratio of 0.31. This is comparable to the rest of the industry: UTI outperforms 46.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 4.01 |
ROIC/WACC1.18
WACC8.76%
2.3 Liquidity
UTI has a Current Ratio of 1.07. This is a normal value and indicates that UTI is financially healthy and should not expect problems in meeting its short term obligations.
UTI has a Current ratio (1.07) which is in line with its industry peers.
UTI has a Quick Ratio of 1.07. This is a normal value and indicates that UTI is financially healthy and should not expect problems in meeting its short term obligations.
UTI has a Quick ratio of 1.07. This is comparable to the rest of the industry: UTI outperforms 46.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
UTI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 188.89%, which is quite impressive.
Measured over the past years, UTI shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.35% on average per year.
Looking at the last year, UTI shows a quite strong growth in Revenue. The Revenue has grown by 14.69% in the last year.
Measured over the past years, UTI shows a quite strong growth in Revenue. The Revenue has been growing by 17.19% on average per year.
EPS 1Y (TTM)188.89%
EPS 3Y28.35%
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)14.69%
Revenue growth 3Y29.79%
Revenue growth 5Y17.19%
Sales Q2Q%12.64%
3.2 Future
UTI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.88% yearly.
UTI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.69% yearly.
EPS Next Y42.73%
EPS Next 2Y20.94%
EPS Next 3Y17.88%
EPS Next 5YN/A
Revenue Next Year14.01%
Revenue Next 2Y10.98%
Revenue Next 3Y9.69%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
UTI is valuated quite expensively with a Price/Earnings ratio of 30.06.
The rest of the industry has a similar Price/Earnings ratio as UTI.
Compared to an average S&P500 Price/Earnings ratio of 27.30, UTI is valued at the same level.
UTI is valuated quite expensively with a Price/Forward Earnings ratio of 28.88.
UTI's Price/Forward Earnings is on the same level as the industry average.
UTI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.06 | ||
| Fwd PE | 28.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UTI is valued a bit cheaper than the industry average as 69.01% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, UTI is valued a bit cheaper than the industry average as 69.01% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.99 | ||
| EV/EBITDA | 11.46 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
UTI has a very decent profitability rating, which may justify a higher PE ratio.
UTI's earnings are expected to grow with 17.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)N/A
EPS Next 2Y20.94%
EPS Next 3Y17.88%
5. Dividend
5.1 Amount
UTI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.26
-0.19 (-0.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners88.4%
Inst Owner Change0%
Ins Owners2.22%
Ins Owner Change-2.3%
Market Cap1.70B
Analysts81.82
Price Target38.18 (22.14%)
Short Float %4.4%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.03
Dividend Growth(5Y)-34.43%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)98.19%
Min EPS beat(2)73.27%
Max EPS beat(2)123.12%
EPS beat(4)4
Avg EPS beat(4)57.53%
Min EPS beat(4)12.21%
Max EPS beat(4)123.12%
EPS beat(8)7
Avg EPS beat(8)77.89%
EPS beat(12)10
Avg EPS beat(12)160.39%
EPS beat(16)14
Avg EPS beat(16)218.71%
Revenue beat(2)2
Avg Revenue beat(2)3.67%
Min Revenue beat(2)2.83%
Max Revenue beat(2)4.51%
Revenue beat(4)4
Avg Revenue beat(4)2.68%
Min Revenue beat(4)1.67%
Max Revenue beat(4)4.51%
Revenue beat(8)8
Avg Revenue beat(8)2.54%
Revenue beat(12)11
Avg Revenue beat(12)3.22%
Revenue beat(16)15
Avg Revenue beat(16)3.46%
PT rev (1m)12.85%
PT rev (3m)12.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)0.23%
EPS NY rev (3m)4.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.06 | ||
| Fwd PE | 28.88 | ||
| P/S | 2.17 | ||
| P/FCF | 23.99 | ||
| P/OCF | 17.06 | ||
| P/B | 5.79 | ||
| P/tB | 6.87 | ||
| EV/EBITDA | 11.46 |
EPS(TTM)1.04
EY3.33%
EPS(NY)1.08
Fwd EY3.46%
FCF(TTM)1.3
FCFY4.17%
OCF(TTM)1.83
OCFY5.86%
SpS14.39
BVpS5.4
TBVpS4.55
PEG (NY)0.7
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.97% | ||
| ROE | 19.54% | ||
| ROCE | 14.53% | ||
| ROIC | 10.38% | ||
| ROICexc | 13.9% | ||
| ROICexgc | 15.72% | ||
| OM | 9.94% | ||
| PM (TTM) | 7.34% | ||
| GM | 49.24% | ||
| FCFM | 9.06% |
ROA(3y)2.68%
ROA(5y)2.09%
ROE(3y)7.52%
ROE(5y)5.81%
ROIC(3y)5.11%
ROIC(5y)N/A
ROICexc(3y)7.05%
ROICexc(5y)N/A
ROICexgc(3y)7.97%
ROICexgc(5y)N/A
ROCE(3y)7.15%
ROCE(5y)N/A
ROICexcg growth 3Y41.64%
ROICexcg growth 5YN/A
ROICexc growth 3Y37.09%
ROICexc growth 5YN/A
OM growth 3Y21.82%
OM growth 5YN/A
PM growth 3Y23.23%
PM growth 5YN/A
GM growth 3Y-14.8%
GM growth 5Y-8.67%
F-Score7
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.33 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 44.73% | ||
| Cap/Sales | 3.68% | ||
| Interest Coverage | 9.25 | ||
| Cash Conversion | 70.1% | ||
| Profit Quality | 123.45% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 4.01 |
F-Score7
WACC8.76%
ROIC/WACC1.18
Cap/Depr(3y)213.97%
Cap/Depr(5y)231.88%
Cap/Sales(3y)10.54%
Cap/Sales(5y)10.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)188.89%
EPS 3Y28.35%
EPS 5YN/A
EPS Q2Q%50%
EPS Next Y42.73%
EPS Next 2Y20.94%
EPS Next 3Y17.88%
EPS Next 5YN/A
Revenue 1Y (TTM)14.69%
Revenue growth 3Y29.79%
Revenue growth 5Y17.19%
Sales Q2Q%12.64%
Revenue Next Year14.01%
Revenue Next 2Y10.98%
Revenue Next 3Y9.69%
Revenue Next 5YN/A
EBIT growth 1Y99.68%
EBIT growth 3Y58.11%
EBIT growth 5YN/A
EBIT Next Year116.85%
EBIT Next 3Y34.92%
EBIT Next 5YN/A
FCF growth 1Y310.74%
FCF growth 3YN/A
FCF growth 5Y32.12%
OCF growth 1Y218.5%
OCF growth 3Y15.89%
OCF growth 5Y31.61%