UNIVERSAL TECHNICAL INSTITUT (NYSE:UTI) - A Promising Affordable Growth Stock

UNIVERSAL TECHNICAL INSTITUT (NYSE:UTI) was identified as an affordable growth candidate by our stock screener. The company, which provides transportation and technical training programs, shows strong growth potential while maintaining reasonable valuation metrics. Its financial health and profitability further support its appeal for investors seeking growth at a reasonable price.

Growth Prospects

• Earnings Per Share (EPS) surged by 188.89% over the past year, with an average annual growth rate of 28.35% in recent years.
• Revenue increased by 14.69% in the last year and has grown at an average annual rate of 17.19%.
• Future EPS is expected to grow by 17.88%, while revenue is projected to expand by 9.69% annually.

Valuation Considerations

• The stock trades at a P/E ratio of 31.29, slightly above the industry average but justified by its strong growth trajectory.
• The PEG ratio, which accounts for growth, suggests the stock is reasonably priced.
• 68.06% of industry peers are more expensive based on Price/Free Cash Flow.

Profitability & Financial Health

• Profitability Score: 7/10 – Strong margins, with a Return on Equity of 19.54%, outperforming 86% of industry peers.
• Health Score: 6/10 – Solid solvency metrics, including a low Debt/Equity ratio of 0.31 and a healthy Altman-Z score of 4.10.

For a deeper look, review the full fundamental report for UTI.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.

##Disclaimer
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.