UL SOLUTIONS INC - CLASS A (ULS) Stock Fundamental Analysis
USA - NYSE:ULS - US9037311076 - Common Stock
68.83 USD
+0.3 (+0.44%)
68.35 USD
-0.48 (-0.7%)
Overall ULS gets a fundamental rating of 5 out of 10. We evaluated ULS against 81 industry peers in the Professional Services industry. ULS gets an excellent profitability rating and is at the same time showing great financial health properties. ULS is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, ULS could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
ULS had positive earnings in the past year.
In the past year ULS had a positive cash flow from operations.
1.2 Ratios
ULS has a Return On Assets of 11.19%. This is amongst the best in the industry. ULS outperforms 86.42% of its industry peers.
The Return On Equity of ULS (29.92%) is better than 82.72% of its industry peers.
ULS has a Return On Invested Capital of 18.62%. This is amongst the best in the industry. ULS outperforms 88.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ULS is above the industry average of 12.93%.
The last Return On Invested Capital (18.62%) for ULS is above the 3 year average (17.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.19% | ||
| ROE | 29.92% | ||
| ROIC | 18.62% |
ROA(3y)10.64%
ROA(5y)N/A
ROE(3y)34.54%
ROE(5y)N/A
ROIC(3y)17.03%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of ULS (11.08%) is better than 83.95% of its industry peers.
In the last couple of years the Profit Margin of ULS has grown nicely.
ULS has a Operating Margin of 16.71%. This is amongst the best in the industry. ULS outperforms 81.48% of its industry peers.
ULS's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 48.53%, ULS is doing good in the industry, outperforming 62.96% of the companies in the same industry.
In the last couple of years the Gross Margin of ULS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.71% | ||
| PM (TTM) | 11.08% | ||
| GM | 48.53% |
OM growth 3Y12.18%
OM growth 5YN/A
PM growth 3Y8.47%
PM growth 5YN/A
GM growth 3Y1.19%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ULS is creating value.
The number of shares outstanding for ULS remains at a similar level compared to 1 year ago.
The debt/assets ratio for ULS has been reduced compared to a year ago.
2.2 Solvency
ULS has an Altman-Z score of 6.37. This indicates that ULS is financially healthy and has little risk of bankruptcy at the moment.
ULS has a better Altman-Z score (6.37) than 88.89% of its industry peers.
The Debt to FCF ratio of ULS is 1.67, which is an excellent value as it means it would take ULS, only 1.67 years of fcf income to pay off all of its debts.
ULS has a better Debt to FCF ratio (1.67) than 70.37% of its industry peers.
ULS has a Debt/Equity ratio of 0.56. This is a neutral value indicating ULS is somewhat dependend on debt financing.
ULS's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. ULS outperforms 45.68% of its industry peers.
Even though the debt/equity ratio score it not favorable for ULS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 6.37 |
ROIC/WACC2.16
WACC8.61%
2.3 Liquidity
ULS has a Current Ratio of 1.32. This is a normal value and indicates that ULS is financially healthy and should not expect problems in meeting its short term obligations.
ULS has a Current ratio (1.32) which is comparable to the rest of the industry.
ULS has a Quick Ratio of 1.32. This is a normal value and indicates that ULS is financially healthy and should not expect problems in meeting its short term obligations.
ULS has a Quick ratio (1.32) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
ULS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.90%, which is quite impressive.
Measured over the past years, ULS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.14% on average per year.
The Revenue has been growing slightly by 6.92% in the past year.
The Revenue has been growing slightly by 4.47% on average over the past years.
EPS 1Y (TTM)20.9%
EPS 3Y13.14%
EPS 5YN/A
EPS Q2Q%-10%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y4.47%
Revenue growth 5YN/A
Sales Q2Q%6.3%
3.2 Future
Based on estimates for the next years, ULS will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.53% on average per year.
The Revenue is expected to grow by 6.12% on average over the next years.
EPS Next Y9.08%
EPS Next 2Y10.55%
EPS Next 3Y11.53%
EPS Next 5YN/A
Revenue Next Year6.06%
Revenue Next 2Y6.13%
Revenue Next 3Y6.12%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 42.49, ULS can be considered very expensive at the moment.
66.67% of the companies in the same industry are cheaper than ULS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.41. ULS is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 34.77, which means the current valuation is very expensive for ULS.
ULS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ULS is more expensive than 62.96% of the companies in the same industry.
ULS is valuated expensively when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.49 | ||
| Fwd PE | 34.77 |
4.2 Price Multiples
ULS's Enterprise Value to EBITDA is on the same level as the industry average.
ULS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.99 | ||
| EV/EBITDA | 21.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ULS does not grow enough to justify the current Price/Earnings ratio.
ULS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.68
PEG (5Y)N/A
EPS Next 2Y10.55%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, ULS is not a good candidate for dividend investing.
ULS's Dividend Yield is a higher than the industry average which is at 3.09.
With a Dividend Yield of 0.76, ULS pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
ULS is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ULS pays out 31.19% of its income as dividend. This is a sustainable payout ratio.
DP31.19%
EPS Next 2Y10.55%
EPS Next 3Y11.53%
68.83
+0.3 (+0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners117.24%
Inst Owner Change0.82%
Ins Owners0.95%
Ins Owner Change19.81%
Market Cap13.83B
Analysts77.33
Price Target73.11 (6.22%)
Short Float %5.49%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP31.19%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.15%
Min EPS beat(2)-4.89%
Max EPS beat(2)5.18%
EPS beat(4)3
Avg EPS beat(4)4.44%
Min EPS beat(4)-4.89%
Max EPS beat(4)11.81%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.65%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)-0.42%
Revenue beat(4)2
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)2.13%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.11%
PT rev (3m)-1.64%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)0%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.49 | ||
| Fwd PE | 34.77 | ||
| P/S | 4.69 | ||
| P/FCF | 37.99 | ||
| P/OCF | 23.8 | ||
| P/B | 12.65 | ||
| P/tB | 52.57 | ||
| EV/EBITDA | 21.01 |
EPS(TTM)1.62
EY2.35%
EPS(NY)1.98
Fwd EY2.88%
FCF(TTM)1.81
FCFY2.63%
OCF(TTM)2.89
OCFY4.2%
SpS14.69
BVpS5.44
TBVpS1.31
PEG (NY)4.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.19% | ||
| ROE | 29.92% | ||
| ROCE | 22.86% | ||
| ROIC | 18.62% | ||
| ROICexc | 21.3% | ||
| ROICexgc | 38.06% | ||
| OM | 16.71% | ||
| PM (TTM) | 11.08% | ||
| GM | 48.53% | ||
| FCFM | 12.33% |
ROA(3y)10.64%
ROA(5y)N/A
ROE(3y)34.54%
ROE(5y)N/A
ROIC(3y)17.03%
ROIC(5y)N/A
ROICexc(3y)20.31%
ROICexc(5y)N/A
ROICexgc(3y)39.69%
ROICexgc(5y)N/A
ROCE(3y)20.91%
ROCE(5y)N/A
ROICexcg growth 3Y4.96%
ROICexcg growth 5YN/A
ROICexc growth 3Y10.95%
ROICexc growth 5YN/A
OM growth 3Y12.18%
OM growth 5YN/A
PM growth 3Y8.47%
PM growth 5YN/A
GM growth 3Y1.19%
GM growth 5YN/A
F-Score8
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.67 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 119.89% | ||
| Cap/Sales | 7.35% | ||
| Interest Coverage | 9.86 | ||
| Cash Conversion | 86.2% | ||
| Profit Quality | 111.32% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 6.37 |
F-Score8
WACC8.61%
ROIC/WACC2.16
Cap/Depr(3y)132.96%
Cap/Depr(5y)N/A
Cap/Sales(3y)7.6%
Cap/Sales(5y)N/A
Profit Quality(3y)85.32%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.9%
EPS 3Y13.14%
EPS 5YN/A
EPS Q2Q%-10%
EPS Next Y9.08%
EPS Next 2Y10.55%
EPS Next 3Y11.53%
EPS Next 5YN/A
Revenue 1Y (TTM)6.92%
Revenue growth 3Y4.47%
Revenue growth 5YN/A
Sales Q2Q%6.3%
Revenue Next Year6.06%
Revenue Next 2Y6.13%
Revenue Next 3Y6.12%
Revenue Next 5YN/A
EBIT growth 1Y14.65%
EBIT growth 3Y17.2%
EBIT growth 5YN/A
EBIT Next Year58.22%
EBIT Next 3Y22.49%
EBIT Next 5YN/A
FCF growth 1Y13.89%
FCF growth 3Y-2.95%
FCF growth 5YN/A
OCF growth 1Y12.21%
OCF growth 3Y7.57%
OCF growth 5YN/A