UNIVERSAL TECHNICAL INSTITUT (UTI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UTI - US9139151040 - Common Stock
28.34 USD
-0.57 (-1.97%)
28 USD
-0.34 (-1.2%)
UTI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 76 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year UTI was profitable.
- UTI had a positive operating cash flow in the past year.
- In the past 5 years UTI has always been profitable.
- UTI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 7.63%, UTI is doing good in the industry, outperforming 72.37% of the companies in the same industry.
- UTI has a better Return On Equity (19.21%) than 82.89% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 10.46%, UTI belongs to the top of the industry, outperforming 82.89% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for UTI is below the industry average of 10.15%.
- The last Return On Invested Capital (10.46%) for UTI is above the 3 year average (7.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.63% | ||
| ROE | 19.21% | ||
| ROIC | 10.46% |
ROA(3y)4.45%
ROA(5y)3.5%
ROE(3y)11.95%
ROE(5y)9.34%
ROIC(3y)7.27%
ROIC(5y)5.89%
1.3 Margins
- Looking at the Profit Margin, with a value of 7.54%, UTI is in the better half of the industry, outperforming 67.11% of the companies in the same industry.
- In the last couple of years the Profit Margin of UTI has grown nicely.
- UTI has a Operating Margin of 9.99%. This is in the better half of the industry: UTI outperforms 65.79% of its industry peers.
- In the last couple of years the Operating Margin of UTI has grown nicely.
- UTI has a Gross Margin (49.68%) which is comparable to the rest of the industry.
- UTI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.99% | ||
| PM (TTM) | 7.54% | ||
| GM | 49.68% |
OM growth 3Y17.03%
OM growth 5YN/A
PM growth 3Y35.13%
PM growth 5Y53.06%
GM growth 3Y-13.36%
GM growth 5Y-8.21%
2. Health
2.1 Basic Checks
- UTI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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 3.40 indicates that UTI is not in any danger for bankruptcy at the moment.
- UTI has a Altman-Z score of 3.40. This is in the better half of the industry: UTI outperforms 76.32% of its industry peers.
- UTI has a debt to FCF ratio of 1.57. This is a very positive value and a sign of high solvency as it would only need 1.57 years to pay back of all of its debts.
- UTI has a better Debt to FCF ratio (1.57) than 85.53% of its industry peers.
- A Debt/Equity ratio of 0.26 indicates that UTI is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.26, UTI perfoms like the industry average, outperforming 53.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | 3.4 |
ROIC/WACC1.22
WACC8.57%
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.
- A Quick Ratio of 1.07 indicates that UTI should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.07, UTI is in line with its industry, outperforming 50.00% of the companies in the same industry.
| 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 54.05%, which is quite impressive.
- The Earnings Per Share has been growing by 65.96% on average over the past years. This is a very strong growth
- UTI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.05%.
- Measured over the past years, UTI shows a very strong growth in Revenue. The Revenue has been growing by 22.67% on average per year.
EPS 1Y (TTM)54.05%
EPS 3Y3.11%
EPS 5Y65.96%
EPS Q2Q%0%
Revenue 1Y (TTM)14.05%
Revenue growth 3Y25.89%
Revenue growth 5Y22.67%
Sales Q2Q%13.28%
3.2 Future
- UTI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -11.51% yearly.
- UTI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.99% yearly.
EPS Next Y-31.68%
EPS Next 2Y-11.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.25%
Revenue Next 2Y8.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 24.86, the valuation of UTI can be described as rather expensive.
- UTI's Price/Earnings is on the same level as the industry average.
- UTI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 36.39, UTI can be considered very expensive at the moment.
- UTI's Price/Forward Earnings is on the same level as the industry average.
- UTI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.86 | ||
| Fwd PE | 36.39 |
4.2 Price Multiples
- UTI's Enterprise Value to EBITDA is on the same level as the industry average.
- UTI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. UTI is cheaper than 64.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.87 | ||
| EV/EBITDA | 12.19 |
4.3 Compensation for Growth
- UTI has a very decent profitability rating, which may justify a higher PE ratio.
- UTI's earnings are expected to decrease with -11.51% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y-11.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for UTI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
UNIVERSAL TECHNICAL INSTITUT / UTI FAQ
What is the fundamental rating for UTI stock?
ChartMill assigns a fundamental rating of 5 / 10 to UTI.
What is the valuation status for UTI stock?
ChartMill assigns a valuation rating of 3 / 10 to UNIVERSAL TECHNICAL INSTITUT (UTI). This can be considered as Overvalued.
Can you provide the profitability details for UNIVERSAL TECHNICAL INSTITUT?
UNIVERSAL TECHNICAL INSTITUT (UTI) has a profitability rating of 7 / 10.
Can you provide the financial health for UTI stock?
The financial health rating of UNIVERSAL TECHNICAL INSTITUT (UTI) is 6 / 10.
What is the earnings growth outlook for UNIVERSAL TECHNICAL INSTITUT?
The Earnings per Share (EPS) of UNIVERSAL TECHNICAL INSTITUT (UTI) is expected to decline by -31.68% in the next year.