UNIVERSAL TECHNICAL INSTITUT (UTI) Stock Fundamental Analysis
NYSE:UTI - New York Stock Exchange, Inc. - US9139151040 - Common Stock - Currency: USD
UTI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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
UTI had positive earnings in the past year.
In the past year UTI had a positive cash flow from operations.
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
UTI's Return On Assets of 7.97% is fine compared to the rest of the industry. UTI outperforms 77.78% 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.
With an excellent Return On Invested Capital value of 10.38%, UTI belongs to the best of the industry, outperforming 84.72% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UTI is significantly below the industry average of 10.64%.
The last Return On Invested Capital (10.38%) for UTI is above the 3 year average (5.11%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 7.34%, UTI is in the better half of the industry, outperforming 65.28% of the companies in the same industry.
UTI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.94%, UTI is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
In the last couple of years the Operating Margin of UTI has grown nicely.
UTI has a Gross Margin (49.24%) which is comparable to the rest of the industry.
UTI's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UTI is still creating some value.
Compared to 1 year ago, UTI has more shares outstanding
Compared to 5 years ago, UTI has more shares outstanding
Compared to 1 year ago, UTI has an improved debt to assets ratio.
2.2 Solvency
UTI has an Altman-Z score of 4.00. This indicates that UTI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of UTI (4.00) is better than 79.17% of its industry peers.
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.
The Debt to FCF ratio of UTI (1.33) is better than 86.11% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that UTI is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.31, UTI perfoms like the industry average, outperforming 47.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 4 |
ROIC/WACC1.18
WACC8.77%
2.3 Liquidity
UTI has a Current Ratio of 1.07. This is a normal value and indicates that UTI is financially healthy and should not expect problems in meeting its short term obligations.
UTI has a Current ratio of 1.07. This is comparable to the rest of the industry: UTI outperforms 43.06% of its industry peers.
A Quick Ratio of 1.07 indicates that UTI should not have too much problems paying its short term obligations.
UTI has a Quick ratio (1.07) which 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%.
The Revenue has been growing by 17.19% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 17.88% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.69% on average over the next years. This is quite good.
EPS Next Y42.73%
EPS Next 2Y20.94%
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
The Price/Earnings ratio is 30.56, which means the current valuation is very expensive for UTI.
UTI's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.52. UTI is around the same levels.
A Price/Forward Earnings ratio of 29.36 indicates a quite expensive valuation of UTI.
UTI's Price/Forward Earnings ratio is in line with the industry average.
UTI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 35.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.56 | ||
| Fwd PE | 29.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UTI is valued a bit cheaper than the industry average as 68.06% of the companies are valued more expensively.
66.67% of the companies in the same industry are more expensive than UTI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.39 | ||
| EV/EBITDA | 11.39 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of UTI 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)0.72
PEG (5Y)N/A
EPS Next 2Y20.94%
EPS Next 3Y17.88%
5. Dividend
5.1 Amount
UTI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.78
+0.52 (+1.66%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners88.4%
Inst Owner Change0%
Ins Owners2.22%
Ins Owner Change-2.3%
Market Cap1.73B
Analysts81.82
Price Target38.18 (20.14%)
Short Float %4.4%
Short Ratio2.84
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)0.26%
PT rev (3m)12.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)0.23%
EPS NY rev (3m)4.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.56 | ||
| Fwd PE | 29.36 | ||
| P/S | 2.21 | ||
| P/FCF | 24.39 | ||
| P/OCF | 17.34 | ||
| P/B | 5.88 | ||
| P/tB | 6.98 | ||
| EV/EBITDA | 11.39 |
EPS(TTM)1.04
EY3.27%
EPS(NY)1.08
Fwd EY3.41%
FCF(TTM)1.3
FCFY4.1%
OCF(TTM)1.83
OCFY5.77%
SpS14.39
BVpS5.4
TBVpS4.55
PEG (NY)0.72
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 |
F-Score7
WACC8.77%
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 Y42.73%
EPS Next 2Y20.94%
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%