UL SOLUTIONS INC - CLASS A (ULS) Stock Fundamental Analysis
USA - NYSE:ULS - US9037311076 - Common Stock
86.64 USD
+1.29 (+1.51%)
86.64 USD
0 (0%)
ULS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 86 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
ULS had positive earnings in the past year.
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 86.05% of the companies in the same industry.
ULS has a Return On Equity of 29.92%. This is amongst the best in the industry. ULS outperforms 83.72% of its industry peers.
ULS has a Return On Invested Capital of 18.62%. This is amongst the best in the industry. ULS outperforms 87.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ULS is significantly below the industry average of 22.51%.
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
ULS has a Profit Margin of 11.08%. This is amongst the best in the industry. ULS outperforms 81.40% 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 82.56% of its industry peers.
ULS's Operating Margin has improved in the last couple of years.
ULS has a Gross Margin of 48.53%. This is in the better half of the industry: ULS outperforms 63.95% 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.
The number of shares outstanding for ULS remains at a similar level compared to 1 year ago.
ULS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.46 indicates that ULS is not in any danger for bankruptcy at the moment.
ULS's Altman-Z score of 7.46 is amongst the best of the industry. ULS outperforms 90.70% 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 69.77% 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.
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 | 7.46 |
ROIC/WACC2.16
WACC8.61%
2.3 Liquidity
A Current Ratio of 1.32 indicates that ULS should not have too much problems paying its short term obligations.
ULS's Current ratio of 1.32 is in line compared to the rest of the industry. ULS outperforms 47.67% 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.
Looking at the Quick ratio, with a value of 1.32, ULS is in line with its industry, outperforming 47.67% of the companies in the same 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 24.76%, which is quite impressive.
The Earnings Per Share has been growing by 13.14% on average over the past years. This is quite good.
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
ULS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.73% yearly.
Based on estimates for the next years, ULS will show a small growth in Revenue. The Revenue will grow by 6.10% on average per year.
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
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 49.79, ULS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ULS indicates a slightly more expensive valuation: ULS is more expensive than 63.95% of the companies listed in the same industry.
ULS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.89.
A Price/Forward Earnings ratio of 43.56 indicates a quite expensive valuation of ULS.
62.79% of the companies in the same industry are cheaper than ULS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, ULS is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.79 | ||
| Fwd PE | 43.56 |
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 61.63% of the companies in the same industry.
ULS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.81 | ||
| EV/EBITDA | 25.94 |
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)5.07
PEG (5Y)N/A
EPS Next 2Y10.8%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, ULS is not a good candidate for dividend investing.
ULS's Dividend Yield is a higher than the industry average which is at 4.30.
Compared to an average S&P500 Dividend Yield of 2.36, ULS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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%
86.64
+1.29 (+1.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners106.13%
Inst Owner Change2.86%
Ins Owners0.87%
Ins Owner Change0%
Market Cap17.40B
Revenue(TTM)2.87B
Net Income(TTM)327.00M
Analysts77.33
Price Target73.68 (-14.96%)
Short Float %6.09%
Short Ratio5.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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)0.78%
PT rev (3m)0.88%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-1.43%
EPS NY rev (1m)0.11%
EPS NY rev (3m)2.19%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.79 | ||
| Fwd PE | 43.56 | ||
| P/S | 5.9 | ||
| P/FCF | 47.81 | ||
| P/OCF | 29.96 | ||
| P/B | 15.92 | ||
| P/tB | 66.18 | ||
| EV/EBITDA | 25.94 |
EPS(TTM)1.74
EY2.01%
EPS(NY)1.99
Fwd EY2.3%
FCF(TTM)1.81
FCFY2.09%
OCF(TTM)2.89
OCFY3.34%
SpS14.69
BVpS5.44
TBVpS1.31
PEG (NY)5.07
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 | 7.46 |
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)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%.