UL SOLUTIONS INC - CLASS A (ULS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ULS - US9037311076 - Common Stock
77.88 USD
-0.12 (-0.15%)
77.88 USD
0 (0%)
Overall ULS gets a fundamental rating of 5 out of 10. We evaluated ULS against 87 industry peers in the Professional Services industry. ULS gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, ULS is valued expensive at the moment. This makes ULS very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ULS was profitable.
ULS had a positive operating cash flow in the past year.
1.2 Ratios
The Return On Assets of ULS (11.19%) is better than 86.21% of its industry peers.
ULS has a Return On Equity of 29.92%. This is amongst the best in the industry. ULS outperforms 85.06% of its industry peers.
ULS has a Return On Invested Capital of 18.62%. This is amongst the best in the industry. ULS outperforms 87.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ULS is significantly above the industry average of 11.98%.
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
Looking at the Profit Margin, with a value of 11.08%, ULS is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
In the last couple of years the Profit Margin of ULS has grown nicely.
ULS has a better Operating Margin (16.71%) than 81.61% of its industry peers.
ULS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 48.53%, ULS is in the better half of the industry, outperforming 62.07% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ULS is creating value.
Compared to 1 year ago, ULS has about the same amount of shares outstanding.
Compared to 1 year ago, ULS has an improved debt to assets ratio.
2.2 Solvency
ULS has an Altman-Z score of 6.97. This indicates that ULS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.97, ULS belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
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.
The Debt to FCF ratio of ULS (1.67) is better than 72.41% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that ULS is somewhat dependend on debt financing.
ULS has a Debt to Equity ratio (0.56) which is comparable to the rest of the industry.
Although ULS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 6.97 |
ROIC/WACC2.15
WACC8.67%
2.3 Liquidity
A Current Ratio of 1.32 indicates that ULS should not have too much problems paying its short term obligations.
ULS has a Current ratio (1.32) which is comparable to the rest of the industry.
A Quick Ratio of 1.32 indicates that ULS should not have too much problems paying its short term obligations.
The Quick ratio of ULS (1.32) 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
The Earnings Per Share has grown by an impressive 24.76% over the past year.
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.
ULS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.17%.
ULS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.47% yearly.
EPS 1Y (TTM)24.76%
EPS 3Y13.14%
EPS 5YN/A
EPS Q2Q%27.27%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y4.47%
Revenue growth 5YN/A
Sales Q2Q%7.11%
3.2 Future
The Earnings Per Share is expected to grow by 15.45% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.95% on average over the next years.
EPS Next Y17.25%
EPS Next 2Y13.4%
EPS Next 3Y13.87%
EPS Next 5Y15.45%
Revenue Next Year6.55%
Revenue Next 2Y6.05%
Revenue Next 3Y6%
Revenue Next 5Y5.95%
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 stable.
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
ULS is valuated quite expensively with a Price/Earnings ratio of 44.76.
ULS's Price/Earnings ratio is a bit more expensive when compared to the industry. ULS is more expensive than 62.07% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.56, ULS is valued quite expensively.
Based on the Price/Forward Earnings ratio of 37.38, the valuation of ULS can be described as expensive.
63.22% of the companies in the same industry are cheaper than ULS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.79. ULS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.76 | ||
| Fwd PE | 37.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ULS indicates a slightly more expensive valuation: ULS is more expensive than 60.92% of the companies listed in the same industry.
ULS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.98 | ||
| EV/EBITDA | 23.71 |
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.
The decent profitability rating of ULS may justify a higher PE ratio.
ULS's earnings are expected to grow with 13.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.6
PEG (5Y)N/A
EPS Next 2Y13.4%
EPS Next 3Y13.87%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, ULS is not a good candidate for dividend investing.
ULS's Dividend Yield is a higher than the industry average which is at 1.55.
Compared to an average S&P500 Dividend Yield of 1.87, ULS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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 2Y13.4%
EPS Next 3Y13.87%
77.88
-0.12 (-0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners111.05%
Inst Owner Change5.72%
Ins Owners0.87%
Ins Owner Change0%
Market Cap15.64B
Revenue(TTM)2.87B
Net Income(TTM)327.00M
Analysts76
Price Target92.16 (18.34%)
Short Float %5.6%
Short Ratio6.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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)25.08%
PT rev (3m)26.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)6.76%
EPS NY rev (3m)7.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.76 | ||
| Fwd PE | 37.38 | ||
| P/S | 5.3 | ||
| P/FCF | 42.98 | ||
| P/OCF | 26.93 | ||
| P/B | 14.31 | ||
| P/tB | 59.48 | ||
| EV/EBITDA | 23.71 |
EPS(TTM)1.74
EY2.23%
EPS(NY)2.08
Fwd EY2.68%
FCF(TTM)1.81
FCFY2.33%
OCF(TTM)2.89
OCFY3.71%
SpS14.69
BVpS5.44
TBVpS1.31
PEG (NY)2.6
PEG (5Y)N/A
Graham Number14.6
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
ROICexgc growth 3Y4.96%
ROICexgc 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 | 6.97 |
F-Score8
WACC8.67%
ROIC/WACC2.15
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)24.76%
EPS 3Y13.14%
EPS 5YN/A
EPS Q2Q%27.27%
EPS Next Y17.25%
EPS Next 2Y13.4%
EPS Next 3Y13.87%
EPS Next 5Y15.45%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y4.47%
Revenue growth 5YN/A
Sales Q2Q%7.11%
Revenue Next Year6.55%
Revenue Next 2Y6.05%
Revenue Next 3Y6%
Revenue Next 5Y5.95%
EBIT growth 1Y14.65%
EBIT growth 3Y17.2%
EBIT growth 5YN/A
EBIT Next Year63.46%
EBIT Next 3Y25.19%
EBIT Next 5Y20.45%
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
UL SOLUTIONS INC - CLASS A / ULS FAQ
What is the ChartMill fundamental rating of UL SOLUTIONS INC - CLASS A (ULS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ULS.
What is the valuation status of UL SOLUTIONS INC - CLASS A (ULS) stock?
ChartMill assigns a valuation rating of 1 / 10 to UL SOLUTIONS INC - CLASS A (ULS). This can be considered as Overvalued.
How profitable is UL SOLUTIONS INC - CLASS A (ULS) stock?
UL SOLUTIONS INC - CLASS A (ULS) has a profitability rating of 7 / 10.
What is the financial health of UL SOLUTIONS INC - CLASS A (ULS) stock?
The financial health rating of UL SOLUTIONS INC - CLASS A (ULS) is 7 / 10.
How sustainable is the dividend of UL SOLUTIONS INC - CLASS A (ULS) stock?
The dividend rating of UL SOLUTIONS INC - CLASS A (ULS) is 2 / 10 and the dividend payout ratio is 31.19%.