UL SOLUTIONS INC - CLASS A (ULS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ULS - US9037311076 - Common Stock
85.7 USD
-0.13 (-0.15%)
85.7 USD
0 (0%)
Taking everything into account, ULS scores 5 out of 10 in our fundamental rating. ULS was compared to 87 industry peers in the Professional Services industry. ULS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ULS is quite expensive at the moment. It does show a decent growth rate. This makes ULS very considerable 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
Looking at the Return On Assets, with a value of 11.19%, ULS belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
The Return On Equity of ULS (29.92%) is better than 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.
Measured over the past 3 years, the Average Return On Invested Capital for ULS is above the industry average of 12.14%.
The 3 year average ROIC (17.03%) for ULS is below the current ROIC(18.62%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 11.08%, ULS is doing good in the industry, outperforming 79.31% of the companies in the same industry.
ULS's Profit Margin has improved in the last couple of years.
The Operating Margin of ULS (16.71%) is better than 81.61% of its industry peers.
ULS's Operating Margin has improved in the last couple of years.
ULS has a better Gross Margin (48.53%) than 64.37% 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
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 7.48 indicates that ULS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.48, ULS belongs to the best of the industry, outperforming 91.95% of the companies in the same industry.
ULS has a debt to FCF ratio of 1.67. This is a very positive value and a sign of high solvency as it would only need 1.67 years to pay back of all of its debts.
ULS has a Debt to FCF ratio of 1.67. This is in the better half of the industry: ULS outperforms 71.26% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that ULS is somewhat dependend on debt financing.
The Debt to Equity ratio of ULS (0.56) is comparable to the rest of the industry.
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 | 7.48 |
ROIC/WACC2.17
WACC8.56%
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.
Looking at the Current ratio, with a value of 1.32, ULS is in line with its industry, outperforming 41.38% of the companies in the same industry.
A Quick Ratio of 1.32 indicates that ULS should not have too much problems paying its short term obligations.
ULS's Quick ratio of 1.32 is in line compared to the rest of the industry. ULS outperforms 41.38% of its industry peers.
| 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 24.76%, 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 7.17% 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)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
Based on estimates for the next years, ULS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.73% on average per year.
ULS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.10% yearly.
EPS Next Y9.83%
EPS Next 2Y10.8%
EPS Next 3Y11.64%
EPS Next 5Y12.73%
Revenue Next Year6.17%
Revenue Next 2Y6.2%
Revenue Next 3Y6.19%
Revenue Next 5Y6.1%
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
Based on the Price/Earnings ratio of 49.25, 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/Earnings ratio.
When comparing the Price/Earnings ratio of ULS to the average of the S&P500 Index (25.47), we can say ULS is valued expensively.
Based on the Price/Forward Earnings ratio of 43.09, the valuation of ULS can be described as expensive.
Based on the Price/Forward Earnings ratio, ULS is valued a bit more expensive than the industry average as 64.37% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of ULS to the average of the S&P500 Index (34.42), we can say ULS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.25 | ||
| Fwd PE | 43.09 |
4.2 Price Multiples
ULS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ULS is more expensive than 65.52% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ULS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.3 | ||
| EV/EBITDA | 26.04 |
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)5.01
PEG (5Y)N/A
EPS Next 2Y10.8%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
ULS has a yearly dividend return of 0.61%, which is pretty low.
Compared to an average industry Dividend Yield of 4.43, ULS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, ULS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
ULS does not have a reliable dividend history as it only pays dividend since a couple or years.
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 2Y10.8%
EPS Next 3Y11.64%
85.7
-0.13 (-0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners106.13%
Inst Owner Change5.72%
Ins Owners0.87%
Ins Owner Change0%
Market Cap17.22B
Revenue(TTM)2.87B
Net Income(TTM)327.00M
Analysts77.33
Price Target92.16 (7.54%)
Short Float %6.14%
Short Ratio6.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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)26.05%
PT rev (3m)26.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.06%
EPS NY rev (1m)0%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.25 | ||
| Fwd PE | 43.09 | ||
| P/S | 5.83 | ||
| P/FCF | 47.3 | ||
| P/OCF | 29.63 | ||
| P/B | 15.75 | ||
| P/tB | 65.46 | ||
| EV/EBITDA | 26.04 |
EPS(TTM)1.74
EY2.03%
EPS(NY)1.99
Fwd EY2.32%
FCF(TTM)1.81
FCFY2.11%
OCF(TTM)2.89
OCFY3.37%
SpS14.69
BVpS5.44
TBVpS1.31
PEG (NY)5.01
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 | 7.48 |
F-Score8
WACC8.56%
ROIC/WACC2.17
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 Y9.83%
EPS Next 2Y10.8%
EPS Next 3Y11.64%
EPS Next 5Y12.73%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y4.47%
Revenue growth 5YN/A
Sales Q2Q%7.11%
Revenue Next Year6.17%
Revenue Next 2Y6.2%
Revenue Next 3Y6.19%
Revenue Next 5Y6.1%
EBIT growth 1Y14.65%
EBIT growth 3Y17.2%
EBIT growth 5YN/A
EBIT Next Year58.51%
EBIT Next 3Y23.82%
EBIT Next 5Y18.12%
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%.