UNIVERSAL TECHNICAL INSTITUT (UTI) Stock Fundamental Analysis
NYSE:UTI - New York Stock Exchange, Inc. - US9139151040 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to UTI. UTI was compared to 72 industry peers in the Diversified Consumer Services industry. While UTI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. UTI is growing strongly while it is still valued neutral. This is a good combination! This makes UTI very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year UTI was profitable.
UTI had a positive operating cash flow in the past year.
Each year in the past 5 years UTI has been profitable.
In the past 5 years UTI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of UTI (7.97%) is better than 79.17% of its industry peers.
UTI has a Return On Equity of 19.54%. This is amongst the best in the industry. UTI outperforms 86.11% of its industry peers.
UTI has a better Return On Invested Capital (10.38%) than 84.72% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UTI is significantly below the industry average of 10.94%.
The 3 year average ROIC (5.11%) for UTI is below the current ROIC(10.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.97% | ||
| ROE | 19.54% | ||
| ROIC | 10.38% |
ROA(3y)2.68%
ROA(5y)2.09%
ROE(3y)7.52%
ROE(5y)5.81%
ROIC(3y)5.11%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 7.34%, UTI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
UTI's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 9.94%, UTI is doing good in the industry, outperforming 72.22% of the companies in the same industry.
In the last couple of years the Operating Margin of UTI has grown nicely.
The Gross Margin of UTI (49.24%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of UTI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.94% | ||
| PM (TTM) | 7.34% | ||
| GM | 49.24% |
OM growth 3Y21.82%
OM growth 5YN/A
PM growth 3Y23.23%
PM growth 5YN/A
GM growth 3Y-14.8%
GM growth 5Y-8.67%
2. Health
2.1 Basic Checks
UTI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, UTI has more shares outstanding
UTI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for UTI has been reduced compared to a year ago.
2.2 Solvency
UTI has an Altman-Z score of 4.10. This indicates that UTI is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.10, UTI is doing good in the industry, outperforming 77.78% of the companies in the same industry.
UTI has a debt to FCF ratio of 1.33. This is a very positive value and a sign of high solvency as it would only need 1.33 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.33, UTI belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
UTI has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of UTI (0.31) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 4.1 |
ROIC/WACC1.18
WACC8.76%
2.3 Liquidity
A Current Ratio of 1.07 indicates that UTI should not have too much problems paying its short term obligations.
The Current ratio of UTI (1.07) is comparable to the rest of the industry.
A Quick Ratio of 1.07 indicates that UTI should not have too much problems paying its short term obligations.
The Quick ratio of UTI (1.07) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 188.89% over the past year.
Measured over the past years, UTI shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.35% on average per year.
UTI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.69%.
Measured over the past years, UTI shows a quite strong growth in Revenue. The Revenue has been growing by 17.19% on average per year.
EPS 1Y (TTM)188.89%
EPS 3Y28.35%
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)14.69%
Revenue growth 3Y29.79%
Revenue growth 5Y17.19%
Sales Q2Q%12.64%
3.2 Future
UTI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.88% yearly.
The Revenue is expected to grow by 9.69% on average over the next years. This is quite good.
EPS Next Y42.4%
EPS Next 2Y22.08%
EPS Next 3Y17.88%
EPS Next 5YN/A
Revenue Next Year14.01%
Revenue Next 2Y10.98%
Revenue Next 3Y9.69%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 31.74 indicates a quite expensive valuation of UTI.
The rest of the industry has a similar Price/Earnings ratio as UTI.
Compared to an average S&P500 Price/Earnings ratio of 26.60, UTI is valued at the same level.
A Price/Forward Earnings ratio of 29.93 indicates a quite expensive valuation of UTI.
61.11% of the companies in the same industry are more expensive than UTI, based on the Price/Forward Earnings ratio.
UTI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.74 | ||
| Fwd PE | 29.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UTI is valued a bit cheaper than the industry average as 63.89% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, UTI is valued a bit cheaper than 69.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.34 | ||
| EV/EBITDA | 11.92 |
4.3 Compensation for Growth
UTI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
UTI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as UTI's earnings are expected to grow with 17.88% in the coming years.
PEG (NY)0.75
PEG (5Y)N/A
EPS Next 2Y22.08%
EPS Next 3Y17.88%
5. Dividend
5.1 Amount
No dividends for UTI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
33.01
+0.37 (+1.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners86.03%
Inst Owner Change3.48%
Ins Owners2.54%
Ins Owner Change-0.73%
Market Cap1.80B
Analysts82
Price Target38.08 (15.36%)
Short Float %3.01%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.03
Dividend Growth(5Y)-34.43%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)98.19%
Min EPS beat(2)73.27%
Max EPS beat(2)123.12%
EPS beat(4)4
Avg EPS beat(4)57.53%
Min EPS beat(4)12.21%
Max EPS beat(4)123.12%
EPS beat(8)7
Avg EPS beat(8)77.89%
EPS beat(12)10
Avg EPS beat(12)160.39%
EPS beat(16)14
Avg EPS beat(16)218.71%
Revenue beat(2)2
Avg Revenue beat(2)3.67%
Min Revenue beat(2)2.83%
Max Revenue beat(2)4.51%
Revenue beat(4)4
Avg Revenue beat(4)2.68%
Min Revenue beat(4)1.67%
Max Revenue beat(4)4.51%
Revenue beat(8)8
Avg Revenue beat(8)2.54%
Revenue beat(12)11
Avg Revenue beat(12)3.22%
Revenue beat(16)15
Avg Revenue beat(16)3.46%
PT rev (1m)12.56%
PT rev (3m)11.11%
EPS NQ rev (1m)-0.77%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)4.33%
EPS NY rev (3m)4.33%
Revenue NQ rev (1m)2.16%
Revenue NQ rev (3m)2.16%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.74 | ||
| Fwd PE | 29.93 | ||
| P/S | 2.29 | ||
| P/FCF | 25.34 | ||
| P/OCF | 18.01 | ||
| P/B | 6.11 | ||
| P/tB | 7.25 | ||
| EV/EBITDA | 11.92 |
EPS(TTM)1.04
EY3.15%
EPS(NY)1.1
Fwd EY3.34%
FCF(TTM)1.3
FCFY3.95%
OCF(TTM)1.83
OCFY5.55%
SpS14.39
BVpS5.4
TBVpS4.55
PEG (NY)0.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.97% | ||
| ROE | 19.54% | ||
| ROCE | 14.53% | ||
| ROIC | 10.38% | ||
| ROICexc | 13.9% | ||
| ROICexgc | 15.72% | ||
| OM | 9.94% | ||
| PM (TTM) | 7.34% | ||
| GM | 49.24% | ||
| FCFM | 9.06% |
ROA(3y)2.68%
ROA(5y)2.09%
ROE(3y)7.52%
ROE(5y)5.81%
ROIC(3y)5.11%
ROIC(5y)N/A
ROICexc(3y)7.05%
ROICexc(5y)N/A
ROICexgc(3y)7.97%
ROICexgc(5y)N/A
ROCE(3y)7.15%
ROCE(5y)N/A
ROICexcg growth 3Y41.64%
ROICexcg growth 5YN/A
ROICexc growth 3Y37.09%
ROICexc growth 5YN/A
OM growth 3Y21.82%
OM growth 5YN/A
PM growth 3Y23.23%
PM growth 5YN/A
GM growth 3Y-14.8%
GM growth 5Y-8.67%
F-Score7
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.33 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 44.73% | ||
| Cap/Sales | 3.68% | ||
| Interest Coverage | 9.25 | ||
| Cash Conversion | 70.1% | ||
| Profit Quality | 123.45% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 4.1 |
F-Score7
WACC8.76%
ROIC/WACC1.18
Cap/Depr(3y)213.97%
Cap/Depr(5y)231.88%
Cap/Sales(3y)10.54%
Cap/Sales(5y)10.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)188.89%
EPS 3Y28.35%
EPS 5YN/A
EPS Q2Q%50%
EPS Next Y42.4%
EPS Next 2Y22.08%
EPS Next 3Y17.88%
EPS Next 5YN/A
Revenue 1Y (TTM)14.69%
Revenue growth 3Y29.79%
Revenue growth 5Y17.19%
Sales Q2Q%12.64%
Revenue Next Year14.01%
Revenue Next 2Y10.98%
Revenue Next 3Y9.69%
Revenue Next 5YN/A
EBIT growth 1Y99.68%
EBIT growth 3Y58.11%
EBIT growth 5YN/A
EBIT Next Year116.85%
EBIT Next 3Y34.92%
EBIT Next 5YN/A
FCF growth 1Y310.74%
FCF growth 3YN/A
FCF growth 5Y32.12%
OCF growth 1Y218.5%
OCF growth 3Y15.89%
OCF growth 5Y31.61%