UNIVERSAL TECHNICAL INSTITUT (UTI) Stock Fundamental Analysis
NYSE:UTI - New York Stock Exchange, Inc. - US9139151040 - Common Stock - Currency: USD
Overall UTI gets a fundamental rating of 6 out of 10. We evaluated UTI against 71 industry peers in the Diversified Consumer Services industry. While UTI belongs to the best of the industry regarding profitability, 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.
UTI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.13%, UTI belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.20%, UTI is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
With an excellent Return On Invested Capital value of 9.34%, UTI belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for UTI is significantly below the industry average of 12.02%.
The last Return On Invested Capital (9.34%) for UTI is above the 3 year average (5.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.13% | ||
| ROE | 19.2% | ||
| ROIC | 9.34% |
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
With a decent Profit Margin value of 7.08%, UTI is doing good in the industry, outperforming 67.19% of the companies in the same industry.
UTI's Profit Margin has improved in the last couple of years.
UTI's Operating Margin of 9.50% is fine compared to the rest of the industry. UTI outperforms 68.75% of its industry peers.
In the last couple of years the Operating Margin of UTI has grown nicely.
UTI's Gross Margin of 48.35% is in line compared to the rest of the industry. UTI outperforms 53.13% of its industry peers.
In the last couple of years the Gross Margin of UTI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.5% | ||
| PM (TTM) | 7.08% | ||
| GM | 48.35% |
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
UTI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for UTI has been increased compared to 1 year ago.
UTI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, UTI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.47 indicates that UTI is not in any danger for bankruptcy at the moment.
UTI has a better Altman-Z score (3.47) than 81.25% of its industry peers.
The Debt to FCF ratio of UTI is 1.62, which is an excellent value as it means it would take UTI, only 1.62 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of UTI (1.62) is better than 79.69% of its industry peers.
UTI has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
UTI has a Debt to Equity ratio (0.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 3.47 |
ROIC/WACC0.89
WACC10.45%
2.3 Liquidity
UTI has a Current Ratio of 1.14. This is a normal value and indicates that UTI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.14, UTI is in line with its industry, outperforming 40.63% of the companies in the same industry.
A Quick Ratio of 1.14 indicates that UTI should not have too much problems paying its short term obligations.
UTI's Quick ratio of 1.14 is in line compared to the rest of the industry. UTI outperforms 45.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 273.08% over the past year.
The Earnings Per Share has been growing by 28.35% on average over the past years. This is a very strong growth
Looking at the last year, UTI shows a quite strong growth in Revenue. The Revenue has grown by 14.70% 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)273.08%
EPS 3Y28.35%
EPS 5YN/A
EPS Q2Q%135.29%
Revenue 1Y (TTM)14.7%
Revenue growth 3Y29.79%
Revenue growth 5Y17.19%
Sales Q2Q%15.3%
3.2 Future
Based on estimates for the next years, UTI will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.55% on average per year.
UTI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.47% yearly.
EPS Next Y36.49%
EPS Next 2Y20.85%
EPS Next 3Y17.55%
EPS Next 5YN/A
Revenue Next Year10.67%
Revenue Next 2Y9.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
With a Price/Earnings ratio of 27.32, UTI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of UTI is on the same level as its industry peers.
UTI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 24.52, the valuation of UTI can be described as rather expensive.
UTI's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, UTI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.32 | ||
| Fwd PE | 24.52 |
4.2 Price Multiples
UTI's Enterprise Value to EBITDA is on the same level as the industry average.
68.75% of the companies in the same industry are more expensive than UTI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.41 | ||
| EV/EBITDA | 14.79 |
4.3 Compensation for Growth
UTI's 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.
A more expensive valuation may be justified as UTI's earnings are expected to grow with 17.55% in the coming years.
PEG (NY)0.75
PEG (5Y)N/A
EPS Next 2Y20.85%
EPS Next 3Y17.55%
5. Dividend
5.1 Amount
UTI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.5
-2.34 (-8.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners86.03%
Inst Owner Change2.62%
Ins Owners2.54%
Ins Owner Change1.41%
Market Cap1.44B
Analysts82.22
Price Target34.27 (29.32%)
Short Float %2.82%
Short Ratio2.52
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)67.67%
Min EPS beat(2)12.21%
Max EPS beat(2)123.12%
EPS beat(4)3
Avg EPS beat(4)37.95%
Min EPS beat(4)-5.06%
Max EPS beat(4)123.12%
EPS beat(8)7
Avg EPS beat(8)99.23%
EPS beat(12)10
Avg EPS beat(12)224.34%
EPS beat(16)13
Avg EPS beat(16)208%
Revenue beat(2)2
Avg Revenue beat(2)2.25%
Min Revenue beat(2)1.67%
Max Revenue beat(2)2.83%
Revenue beat(4)4
Avg Revenue beat(4)2.28%
Min Revenue beat(4)1.67%
Max Revenue beat(4)2.93%
Revenue beat(8)8
Avg Revenue beat(8)2.66%
Revenue beat(12)11
Avg Revenue beat(12)3.29%
Revenue beat(16)14
Avg Revenue beat(16)3.08%
PT rev (1m)4.81%
PT rev (3m)30.39%
EPS NQ rev (1m)-32.58%
EPS NQ rev (3m)-41.46%
EPS NY rev (1m)2.74%
EPS NY rev (3m)6.95%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)-3.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.32 | ||
| Fwd PE | 24.52 | ||
| P/S | 1.9 | ||
| P/FCF | 19.41 | ||
| P/OCF | 14.7 | ||
| P/B | 5.15 | ||
| P/tB | 6.17 | ||
| EV/EBITDA | 14.79 |
EPS(TTM)0.97
EY3.66%
EPS(NY)1.08
Fwd EY4.08%
FCF(TTM)1.37
FCFY5.15%
OCF(TTM)1.8
OCFY6.8%
SpS13.97
BVpS5.15
TBVpS4.29
PEG (NY)0.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.13% | ||
| ROE | 19.2% | ||
| ROCE | 13.08% | ||
| ROIC | 9.34% | ||
| ROICexc | 13.58% | ||
| ROICexgc | 15.47% | ||
| OM | 9.5% | ||
| PM (TTM) | 7.08% | ||
| GM | 48.35% | ||
| FCFM | 9.77% |
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 Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.62 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 78.43% | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 7.74 | ||
| Cash Conversion | 95.65% | ||
| Profit Quality | 138.06% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 3.47 |
F-Score7
WACC10.45%
ROIC/WACC0.89
Cap/Depr(3y)259.47%
Cap/Depr(5y)259.17%
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)273.08%
EPS 3Y28.35%
EPS 5YN/A
EPS Q2Q%135.29%
EPS Next Y36.49%
EPS Next 2Y20.85%
EPS Next 3Y17.55%
EPS Next 5YN/A
Revenue 1Y (TTM)14.7%
Revenue growth 3Y29.79%
Revenue growth 5Y17.19%
Sales Q2Q%15.3%
Revenue Next Year10.67%
Revenue Next 2Y9.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y106.29%
EBIT growth 3Y58.11%
EBIT growth 5YN/A
EBIT Next Year109.36%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y355.34%
FCF growth 3YN/A
FCF growth 5Y32.12%
OCF growth 1Y111.34%
OCF growth 3Y15.89%
OCF growth 5Y31.61%