UNIVERSAL TECHNICAL INSTITUTE (NYSE:UTI) stands out as an affordable growth candidate based on our stock screener. The company combines strong growth metrics with reasonable valuation, solid profitability, and acceptable financial health. Here’s why UTI may be worth a closer look for investors seeking growth at a reasonable price.
Growth Prospects
UTI demonstrates impressive growth, scoring a 7 out of 10 in our growth rating. Key highlights include:
- Earnings Per Share (EPS) surged by 188.89% over the past year.
- Revenue increased by 14.69% year-over-year, with a 5-year average growth rate of 17.19%.
- Future EPS is expected to grow at 17.88% annually, while revenue is projected to expand by 9.69% per year.
These figures suggest sustained momentum, making UTI an attractive option for growth-oriented investors.
Valuation
With a valuation score of 5, UTI is not excessively priced relative to its growth potential:
- The P/E ratio of 30.06 is in line with industry averages.
- The PEG ratio (accounting for growth) indicates a reasonable valuation.
- The Enterprise Value/EBITDA ratio is favorable compared to 68% of industry peers.
While not deeply undervalued, UTI’s growth trajectory helps justify its current pricing.
Profitability & Financial Health
Profitability is a strength, earning a score of 7:
- Return on Equity (19.54%) and Return on Assets (7.97%) outperform most competitors.
- Operating Margin (9.94%) and Profit Margin (7.34%) have shown improvement.
Financial health is stable (score of 6), though there are minor concerns:
- Debt levels are manageable, with a Debt/Equity ratio of 0.31.
- Liquidity metrics (Current Ratio of 1.07) are adequate but not exceptional.
Conclusion
UTI presents a balanced profile—strong growth, reasonable valuation, and solid profitability—making it a candidate for investors seeking affordable growth opportunities.
For more details, review the full fundamental analysis of UTI.
Our Affordable Growth screener lists additional stocks meeting these criteria and is updated daily.
Disclaimer
This is not investment advice. Conduct your own research before making any investment decisions.
