UL SOLUTIONS INC - CLASS A (ULS) Stock Fundamental Analysis
USA - NYSE:ULS - US9037311076 - Common Stock
75.4 USD
-1.03 (-1.35%)
75.4 USD
0 (0%)
Overall ULS gets a fundamental rating of 5 out of 10. We evaluated ULS against 82 industry peers in the Professional Services industry. ULS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, ULS is valued expensive at the moment. These ratings would make ULS suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ULS was profitable.
In the past year ULS had a positive cash flow from operations.
1.2 Ratios
ULS has a better Return On Assets (11.19%) than 85.37% of its industry peers.
With an excellent Return On Equity value of 29.92%, ULS belongs to the best of the industry, outperforming 81.71% of the companies in the same industry.
ULS has a Return On Invested Capital of 18.62%. This is amongst the best in the industry. ULS outperforms 86.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ULS is above the industry average of 13.40%.
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 82.93% of its industry peers.
In the last couple of years the Profit Margin of ULS has grown nicely.
ULS has a better Operating Margin (16.71%) than 81.71% of its industry peers.
In the last couple of years the Operating Margin of ULS has grown nicely.
Looking at the Gross Margin, with a value of 48.53%, ULS is in the better half of the industry, outperforming 62.20% 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
ULS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ULS has about the same amount of shares outstanding.
ULS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.87 indicates that ULS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.87, ULS belongs to the best of the industry, outperforming 87.80% 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.
With a decent Debt to FCF ratio value of 1.67, ULS is doing good in the industry, outperforming 70.73% of the companies in the same industry.
ULS has a Debt/Equity ratio of 0.56. This is a neutral value indicating 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 | 6.87 |
ROIC/WACC2.2
WACC8.48%
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 of 1.32. This is comparable to the rest of the industry: ULS outperforms 46.34% of its industry peers.
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.
ULS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.14% yearly.
Looking at the last year, ULS shows a small growth in Revenue. The Revenue has grown by 6.92% in the last year.
ULS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.47% yearly.
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
The Earnings Per Share is expected to grow by 11.53% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.12% on average over the next years.
EPS Next Y9.7%
EPS Next 2Y10.15%
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
Based on the Price/Earnings ratio of 46.54, the valuation of ULS can be described as expensive.
ULS's Price/Earnings ratio is a bit more expensive when compared to the industry. ULS is more expensive than 68.29% of the companies in the same industry.
ULS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.29.
A Price/Forward Earnings ratio of 38.36 indicates a quite expensive valuation of ULS.
63.41% of the companies in the same industry are cheaper than ULS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ULS to the average of the S&P500 Index (22.85), we can say ULS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.54 | ||
| Fwd PE | 38.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ULS.
ULS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.61 | ||
| EV/EBITDA | 23.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ULS may justify a higher PE ratio.
PEG (NY)4.8
PEG (5Y)N/A
EPS Next 2Y10.15%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, ULS is not a good candidate for dividend investing.
ULS's Dividend Yield is a higher than the industry average which is at 3.90.
Compared to an average S&P500 Dividend Yield of 2.38, ULS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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 2Y10.15%
EPS Next 3Y11.53%
75.4
-1.03 (-1.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners106.13%
Inst Owner Change0.54%
Ins Owners0.87%
Ins Owner Change1.36%
Market Cap15.15B
Analysts77.33
Price Target73.11 (-3.04%)
Short Float %5.71%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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%
PT rev (3m)-1.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)0.57%
EPS NY rev (3m)2.07%
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 | 46.54 | ||
| Fwd PE | 38.36 | ||
| P/S | 5.13 | ||
| P/FCF | 41.61 | ||
| P/OCF | 26.07 | ||
| P/B | 13.86 | ||
| P/tB | 57.59 | ||
| EV/EBITDA | 23.28 |
EPS(TTM)1.62
EY2.15%
EPS(NY)1.97
Fwd EY2.61%
FCF(TTM)1.81
FCFY2.4%
OCF(TTM)2.89
OCFY3.84%
SpS14.69
BVpS5.44
TBVpS1.31
PEG (NY)4.8
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 | 6.87 |
F-Score8
WACC8.48%
ROIC/WACC2.2
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 Y9.7%
EPS Next 2Y10.15%
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 Year58.51%
EBIT Next 3Y23.82%
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