UL SOLUTIONS INC - CLASS A (ULS) Stock Fundamental Analysis
NYSE:ULS - US9037311076 - Common Stock
63.17 USD
-0.16 (-0.25%)
63.17 USD
0 (0%)
Overall ULS gets a fundamental rating of 5 out of 10. We evaluated ULS against 83 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 quite expensive at the moment. It does show a decent growth rate. These ratings would make ULS suitable 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
ULS has a Return On Assets of 11.19%. This is amongst the best in the industry. ULS outperforms 86.75% of its industry peers.
The Return On Equity of ULS (29.92%) is better than 83.13% of its industry peers.
ULS's Return On Invested Capital of 18.62% is amongst the best of the industry. ULS outperforms 89.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ULS is above the industry average of 12.57%.
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
ULS has a Profit Margin of 11.08%. This is amongst the best in the industry. ULS outperforms 84.34% of its industry peers.
ULS's Profit Margin has improved in the last couple of years.
ULS has a better Operating Margin (16.71%) than 81.93% of its industry peers.
In the last couple of years the Operating Margin of ULS has grown nicely.
ULS has a better Gross Margin (48.53%) than 61.45% of its industry peers.
ULS's Gross Margin has been stable in the last couple of years.
| 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
An Altman-Z score of 6.00 indicates that ULS is not in any danger for bankruptcy at the moment.
ULS's Altman-Z score of 6.00 is amongst the best of the industry. ULS outperforms 87.95% 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's Debt to FCF ratio of 1.67 is fine compared to the rest of the industry. ULS outperforms 69.88% 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 in line with its industry peers.
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 |
ROIC/WACC2.15
WACC8.67%
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 in line with its industry peers.
| 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 20.90% 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.
Looking at the last year, ULS shows a small growth in Revenue. The Revenue has grown by 6.92% in the last year.
Measured over the past years, ULS shows a small growth in Revenue. The Revenue has been growing by 4.47% on average per year.
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.
Based on estimates for the next years, ULS will show a small growth in Revenue. The Revenue will grow by 6.12% on average per year.
EPS Next Y9.08%
EPS Next 2Y10.55%
EPS Next 3Y11.53%
EPS Next 5YN/A
Revenue Next Year6.06%
Revenue Next 2Y6.15%
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
A Price/Earnings ratio of 38.99 indicates a quite expensive valuation of ULS.
Based on the Price/Earnings ratio, ULS is valued a bit more expensive than 68.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of ULS to the average of the S&P500 Index (27.13), we can say ULS is valued slightly more expensively.
With a Price/Forward Earnings ratio of 31.91, ULS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ULS indicates a slightly more expensive valuation: ULS is more expensive than 62.65% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ULS to the average of the S&P500 Index (22.76), we can say ULS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.99 | ||
| Fwd PE | 31.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ULS is on the same level as its industry peers.
ULS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.86 | ||
| EV/EBITDA | 19.33 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ULS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.29
PEG (5Y)N/A
EPS Next 2Y10.55%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
With a yearly dividend of 0.81%, ULS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.17, ULS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, ULS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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%
63.17
-0.16 (-0.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners117.24%
Inst Owner Change0.7%
Ins Owners0.95%
Ins Owner Change19.55%
Market Cap12.69B
Analysts77.33
Price Target73.11 (15.74%)
Short Float %3.77%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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)20.25%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)1.49%
EPS NY rev (3m)2.12%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.99 | ||
| Fwd PE | 31.91 | ||
| P/S | 4.3 | ||
| P/FCF | 34.86 | ||
| P/OCF | 21.84 | ||
| P/B | 11.61 | ||
| P/tB | 48.25 | ||
| EV/EBITDA | 19.33 |
EPS(TTM)1.62
EY2.56%
EPS(NY)1.98
Fwd EY3.13%
FCF(TTM)1.81
FCFY2.87%
OCF(TTM)2.89
OCFY4.58%
SpS14.69
BVpS5.44
TBVpS1.31
PEG (NY)4.29
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 |
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)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 2Y6.15%
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