UNIVERSAL TECHNICAL INSTITUT (UTI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UTI - US9139151040 - Common Stock
27.5 USD
-0.48 (-1.72%)
26.95 USD
-0.55 (-2%)
We assign a fundamental rating of 5 out of 10 to UTI. UTI was compared to 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.
In the past year UTI had a positive cash flow from operations.
In the past 5 years UTI has always been profitable.
Each year in the past 5 years UTI had a positive operating cash flow.
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's Return On Equity of 19.21% is amongst the best of the industry. UTI outperforms 82.89% of its industry peers.
UTI has a Return On Invested Capital of 10.46%. This is amongst the best in the industry. UTI outperforms 82.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UTI is below the industry average of 10.30%.
The 3 year average ROIC (7.27%) for UTI is below the current ROIC(10.46%), indicating increased profibility in the last year.
| 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
UTI has a better Profit Margin (7.54%) than 67.11% of its industry peers.
UTI's Profit Margin has improved in the last couple of years.
UTI's Operating Margin of 9.99% is fine compared to the rest of the industry. UTI outperforms 65.79% of its industry peers.
UTI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 49.68%, UTI is in line with its industry, outperforming 55.26% of the companies in the same 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
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.
The debt/assets ratio for UTI has been reduced compared to a year ago.
2.2 Solvency
UTI has an Altman-Z score of 3.34. This indicates that UTI is financially healthy and has little risk of bankruptcy at the moment.
UTI has a better Altman-Z score (3.34) than 78.95% 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.
Looking at the Debt to FCF ratio, with a value of 1.57, UTI belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
A Debt/Equity ratio of 0.26 indicates that UTI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.26, UTI is in line with its industry, outperforming 53.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | 3.34 |
ROIC/WACC1.23
WACC8.51%
2.3 Liquidity
A Current Ratio of 1.07 indicates that UTI should not have too much problems paying its short term obligations.
UTI's Current ratio of 1.07 is in line compared to the rest of the industry. UTI outperforms 47.37% of its industry peers.
A Quick Ratio of 1.07 indicates that UTI should not have too much problems paying its short term obligations.
UTI has a Quick ratio (1.07) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.05% over the past year.
Measured over the past years, UTI shows a very strong growth in Earnings Per Share. The EPS has been growing by 65.96% on average per year.
Looking at the last year, UTI shows a quite strong growth in Revenue. The Revenue has grown by 14.05% in the last year.
The Revenue has been growing by 22.67% on average over the past years. This is a very strong growth!
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.
Based on estimates for the next years, UTI will show a quite strong growth in Revenue. The Revenue will grow by 8.99% on average per year.
EPS Next Y-31.68%
EPS Next 2Y-11.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.23%
Revenue Next 2Y8.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 24.12 indicates a rather expensive valuation of UTI.
The rest of the industry has a similar Price/Earnings ratio as UTI.
The average S&P500 Price/Earnings ratio is at 27.19. UTI is around the same levels.
A Price/Forward Earnings ratio of 35.31 indicates a quite expensive valuation of UTI.
UTI's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of UTI to the average of the S&P500 Index (23.92), we can say UTI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.12 | ||
| Fwd PE | 35.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UTI indicates a somewhat cheap valuation: UTI is cheaper than 63.16% of the companies listed in the same industry.
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 | 27.04 | ||
| EV/EBITDA | 11.79 |
4.3 Compensation for Growth
The decent profitability rating of UTI may justify a higher PE ratio.
A cheap valuation may be justified as UTI's earnings are expected to decrease with -11.51% in the coming years.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-11.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UTI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
27.5
-0.48 (-1.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners97.52%
Inst Owner Change3.35%
Ins Owners2.78%
Ins Owner Change5.07%
Market Cap1.50B
Revenue(TTM)835.62M
Net Income(TTM)63.02M
Analysts81.82
Price Target38.18 (38.84%)
Short Float %4.93%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)49.09%
Min EPS beat(2)28.91%
Max EPS beat(2)69.26%
EPS beat(4)4
Avg EPS beat(4)73.64%
Min EPS beat(4)28.91%
Max EPS beat(4)123.12%
EPS beat(8)7
Avg EPS beat(8)75.72%
EPS beat(12)10
Avg EPS beat(12)77.26%
EPS beat(16)14
Avg EPS beat(16)214.91%
Revenue beat(2)2
Avg Revenue beat(2)0.81%
Min Revenue beat(2)0.47%
Max Revenue beat(2)1.15%
Revenue beat(4)4
Avg Revenue beat(4)2.24%
Min Revenue beat(4)0.47%
Max Revenue beat(4)4.51%
Revenue beat(8)8
Avg Revenue beat(8)2.25%
Revenue beat(12)12
Avg Revenue beat(12)3.17%
Revenue beat(16)15
Avg Revenue beat(16)3.41%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)1.61%
EPS NQ rev (3m)-43.81%
EPS NY rev (1m)-2.53%
EPS NY rev (3m)-21.31%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.12 | ||
| Fwd PE | 35.31 | ||
| P/S | 1.79 | ||
| P/FCF | 27.04 | ||
| P/OCF | 15.38 | ||
| P/B | 4.56 | ||
| P/tB | 5.3 | ||
| EV/EBITDA | 11.79 |
EPS(TTM)1.14
EY4.15%
EPS(NY)0.78
Fwd EY2.83%
FCF(TTM)1.02
FCFY3.7%
OCF(TTM)1.79
OCFY6.5%
SpS15.35
BVpS6.03
TBVpS5.19
PEG (NY)N/A
PEG (5Y)0.37
Graham Number12.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.63% | ||
| ROE | 19.21% | ||
| ROCE | 13.99% | ||
| ROIC | 10.46% | ||
| ROICexc | 14.6% | ||
| ROICexgc | 16.35% | ||
| OM | 9.99% | ||
| PM (TTM) | 7.54% | ||
| GM | 49.68% | ||
| FCFM | 6.62% |
ROA(3y)4.45%
ROA(5y)3.5%
ROE(3y)11.95%
ROE(5y)9.34%
ROIC(3y)7.27%
ROIC(5y)5.89%
ROICexc(3y)10.21%
ROICexc(5y)8.25%
ROICexgc(3y)11.54%
ROICexgc(5y)9.21%
ROCE(3y)9.72%
ROCE(5y)7.88%
ROICexgc growth 3Y34.26%
ROICexgc growth 5YN/A
ROICexc growth 3Y33.76%
ROICexc growth 5YN/A
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%
F-Score6
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.57 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 127.37% | ||
| Cap/Sales | 5.02% | ||
| Interest Coverage | 14.13 | ||
| Cash Conversion | 83.6% | ||
| Profit Quality | 87.84% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 3.34 |
F-Score6
WACC8.51%
ROIC/WACC1.23
Cap/Depr(3y)145.01%
Cap/Depr(5y)268.95%
Cap/Sales(3y)5.89%
Cap/Sales(5y)11.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)54.05%
EPS 3Y3.11%
EPS 5Y65.96%
EPS Q2Q%0%
EPS Next Y-31.68%
EPS Next 2Y-11.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.05%
Revenue growth 3Y25.89%
Revenue growth 5Y22.67%
Sales Q2Q%13.28%
Revenue Next Year9.23%
Revenue Next 2Y8.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y36.41%
EBIT growth 3Y47.33%
EBIT growth 5YN/A
EBIT Next Year46.16%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-10.14%
FCF growth 3YN/A
FCF growth 5Y99.08%
OCF growth 1Y13.31%
OCF growth 3Y28.35%
OCF growth 5Y54.57%
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.