UL SOLUTIONS INC - CLASS A (ULS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ULS - US9037311076 - Common Stock
84.4 USD
-0.12 (-0.14%)
84.4 USD
0 (0%)
Overall ULS gets a fundamental rating of 6 out of 10. We evaluated ULS against 86 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. These ratings could make ULS a good candidate 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 11.70%, ULS belongs to the top of the industry, outperforming 87.21% of the companies in the same industry.
Looking at the Return On Equity, with a value of 28.42%, ULS belongs to the top of the industry, outperforming 84.88% of the companies in the same industry.
ULS's Return On Invested Capital of 19.67% is amongst the best of the industry. ULS outperforms 91.86% of its industry peers.
ULS had an Average Return On Invested Capital over the past 3 years of 17.03%. This is significantly above the industry average of 11.86%.
The last Return On Invested Capital (19.67%) for ULS is above the 3 year average (17.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.7% | ||
| ROE | 28.42% | ||
| ROIC | 19.67% |
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 better Profit Margin (11.29%) than 80.23% of its industry peers.
ULS's Profit Margin has improved in the last couple of years.
ULS has a Operating Margin of 17.28%. This is amongst the best in the industry. ULS outperforms 82.56% of its industry peers.
ULS's Operating Margin has improved in the last couple of years.
ULS has a Gross Margin of 48.88%. This is in the better half of the industry: ULS outperforms 63.95% of its industry peers.
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 | 17.28% | ||
| PM (TTM) | 11.29% | ||
| GM | 48.88% |
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.
ULS has about the same amout of shares outstanding than it did 1 year ago.
The debt/assets ratio for ULS has been reduced compared to a year ago.
2.2 Solvency
ULS has an Altman-Z score of 7.91. This indicates that ULS is financially healthy and has little risk of bankruptcy at the moment.
ULS's Altman-Z score of 7.91 is amongst the best of the industry. ULS outperforms 91.86% of its industry peers.
ULS has a debt to FCF ratio of 1.40. This is a very positive value and a sign of high solvency as it would only need 1.40 years to pay back of all of its debts.
ULS's Debt to FCF ratio of 1.40 is fine compared to the rest of the industry. ULS outperforms 75.58% of its industry peers.
ULS has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
ULS has a Debt to Equity ratio of 0.46. This is comparable to the rest of the industry: ULS outperforms 48.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 7.91 |
ROIC/WACC2.27
WACC8.67%
2.3 Liquidity
ULS has a Current Ratio of 1.33. This is a normal value and indicates that ULS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.33, ULS perfoms like the industry average, outperforming 44.19% of the companies in the same industry.
A Quick Ratio of 1.33 indicates that ULS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.33, ULS perfoms like the industry average, outperforming 44.19% of the companies in the same industry.
The current and quick ratio evaluation for ULS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
ULS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.00%, which is quite good.
The Earnings Per Share has been growing by 13.14% on average over the past years. This is quite good.
ULS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.68%.
ULS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.47% yearly.
EPS 1Y (TTM)11%
EPS 3Y13.14%
EPS 5YN/A
EPS Q2Q%27.27%
Revenue 1Y (TTM)6.68%
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 15.45% on average per year.
ULS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.95% yearly.
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
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 48.51, 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 62.79% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ULS to the average of the S&P500 Index (26.92), we can say ULS is valued expensively.
The Price/Forward Earnings ratio is 40.51, which means the current valuation is very expensive for ULS.
Based on the Price/Forward Earnings ratio, ULS is valued a bit more expensive than 62.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.57, ULS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.51 | ||
| Fwd PE | 40.51 |
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 60.47% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ULS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.58 | ||
| EV/EBITDA | 24.56 |
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 excellent profitability rating of ULS may justify a higher PE ratio.
A more expensive valuation may be justified as ULS's earnings are expected to grow with 13.87% in the coming years.
PEG (NY)2.81
PEG (5Y)N/A
EPS Next 2Y13.4%
EPS Next 3Y13.87%
5. Dividend
5.1 Amount
ULS has a yearly dividend return of 0.66%, which is pretty low.
Compared to an average industry Dividend Yield of 1.54, ULS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.66, ULS pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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
30.38% of the earnings are spent on dividend by ULS. This is a low number and sustainable payout ratio.
DP30.38%
EPS Next 2Y13.4%
EPS Next 3Y13.87%
84.4
-0.12 (-0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change0%
Ins Owners0.71%
Ins Owner Change0%
Market Cap16.95B
Revenue(TTM)3.00B
Net Income(TTM)339.00M
Analysts76
Price Target92.16 (9.19%)
Short Float %5.5%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP30.38%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.86%
Min EPS beat(2)-4.89%
Max EPS beat(2)18.6%
EPS beat(4)3
Avg EPS beat(4)6.14%
Min EPS beat(4)-4.89%
Max EPS beat(4)18.6%
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)1
Avg Revenue beat(2)0.07%
Min Revenue beat(2)-0.42%
Max Revenue beat(2)0.56%
Revenue beat(4)2
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)0.71%
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)26.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.23%
EPS NY rev (1m)0%
EPS NY rev (3m)6.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.51 | ||
| Fwd PE | 40.51 | ||
| P/S | 5.65 | ||
| P/FCF | 43.58 | ||
| P/OCF | 28.93 | ||
| P/B | 14.21 | ||
| P/tB | 45.21 | ||
| EV/EBITDA | 24.56 |
EPS(TTM)1.74
EY2.06%
EPS(NY)2.08
Fwd EY2.47%
FCF(TTM)1.94
FCFY2.29%
OCF(TTM)2.92
OCFY3.46%
SpS14.95
BVpS5.94
TBVpS1.87
PEG (NY)2.81
PEG (5Y)N/A
Graham Number15.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.7% | ||
| ROE | 28.42% | ||
| ROCE | 24.15% | ||
| ROIC | 19.67% | ||
| ROICexc | 22.32% | ||
| ROICexgc | 39.29% | ||
| OM | 17.28% | ||
| PM (TTM) | 11.29% | ||
| GM | 48.88% | ||
| FCFM | 12.95% |
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 Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.4 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 107.07% | ||
| Cap/Sales | 6.56% | ||
| Interest Coverage | 11.8 | ||
| Cash Conversion | 83.36% | ||
| Profit Quality | 114.75% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 7.91 |
F-Score8
WACC8.67%
ROIC/WACC2.27
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)11%
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)6.68%
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 1Y19.86%
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 6 / 10 to ULS.
What is the valuation status for ULS stock?
ChartMill assigns a valuation rating of 2 / 10 to UL SOLUTIONS INC - CLASS A (ULS). This can be considered as Overvalued.
What is the profitability of ULS stock?
UL SOLUTIONS INC - CLASS A (ULS) has a profitability rating of 8 / 10.
How financially healthy is UL SOLUTIONS INC - CLASS A?
The financial health rating of UL SOLUTIONS INC - CLASS A (ULS) is 7 / 10.
Is the dividend of UL SOLUTIONS INC - CLASS A sustainable?
The dividend rating of UL SOLUTIONS INC - CLASS A (ULS) is 2 / 10 and the dividend payout ratio is 30.38%.