UNIVERSAL TECHNICAL INSTITUT (UTI) Stock Fundamental Analysis
NYSE:UTI - US9139151040 - Common Stock
26.59 USD
-0.3 (-1.12%)
26.59 USD
0 (0%)
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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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.
UTI had positive earnings in each of the past 5 years.
UTI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.52%, UTI is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
UTI has a Return On Equity of 20.57%. This is amongst the best in the industry. UTI outperforms 86.11% of its industry peers.
The Return On Invested Capital of UTI (10.86%) is better than 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UTI is below the industry average of 9.88%.
The last Return On Invested Capital (10.86%) for UTI is above the 3 year average (5.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.52% | ||
| ROE | 20.57% | ||
| ROIC | 10.86% |
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
UTI's Profit Margin of 7.79% is fine compared to the rest of the industry. UTI outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of UTI has grown nicely.
The Operating Margin of UTI (10.44%) is better than 68.06% of its industry peers.
In the last couple of years the Operating Margin of UTI has grown nicely.
Looking at the Gross Margin, with a value of 49.65%, UTI is in line with its industry, outperforming 54.17% of the companies in the same industry.
UTI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.44% | ||
| PM (TTM) | 7.79% | ||
| GM | 49.65% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UTI is creating some value.
UTI has more shares outstanding than it did 1 year ago.
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
An Altman-Z score of 3.63 indicates that UTI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.63, UTI is doing good in the industry, outperforming 79.17% of the companies in the same industry.
The Debt to FCF ratio of UTI is 0.99, which is an excellent value as it means it would take UTI, only 0.99 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.99, UTI belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
UTI has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
UTI has a Debt to Equity ratio (0.23) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.25
WACC8.72%
2.3 Liquidity
A Current Ratio of 1.00 indicates that UTI should not have too much problems paying its short term obligations.
UTI has a Current ratio (1.00) which is in line with its industry peers.
UTI has a Quick Ratio of 1.00. 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 Quick ratio of 1.00. This is comparable to the rest of the industry: UTI outperforms 47.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 128.00% over the past year.
The Earnings Per Share has been growing by 28.35% on average over the past years. This is a very strong growth
The Revenue has grown by 14.56% in the past year. This is quite good.
UTI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.19% yearly.
EPS 1Y (TTM)128%
EPS 3Y28.35%
EPS 5YN/A
EPS Q2Q%111.11%
Revenue 1Y (TTM)14.56%
Revenue growth 3Y29.79%
Revenue growth 5Y17.19%
Sales Q2Q%15.12%
3.2 Future
The Earnings Per Share is expected to grow by 11.29% on average over the next years. This is quite good.
Based on estimates for the next years, UTI will show a quite strong growth in Revenue. The Revenue will grow by 10.53% on average per year.
EPS Next Y45.26%
EPS Next 2Y16.33%
EPS Next 3Y11.29%
EPS Next 5YN/A
Revenue Next Year14.37%
Revenue Next 2Y11.54%
Revenue Next 3Y10.53%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
UTI is valuated rather expensively with a Price/Earnings ratio of 23.32.
Based on the Price/Earnings ratio, UTI is valued a bit cheaper than 65.28% of the companies in the same industry.
When comparing the Price/Earnings ratio of UTI to the average of the S&P500 Index (27.13), we can say UTI is valued inline with the index average.
With a Price/Forward Earnings ratio of 26.55, UTI can be considered very expensive at the moment.
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 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.32 | ||
| Fwd PE | 26.55 |
4.2 Price Multiples
69.44% of the companies in the same industry are more expensive than UTI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, UTI is valued a bit cheaper than 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.36 | ||
| EV/EBITDA | 9.71 |
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.
UTI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y16.33%
EPS Next 3Y11.29%
5. Dividend
5.1 Amount
UTI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.59
-0.3 (-1.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners92.66%
Inst Owner Change-1.39%
Ins Owners2.22%
Ins Owner Change-2.45%
Market Cap1.45B
Analysts81.82
Price Target38.18 (43.59%)
Short Float %4.5%
Short Ratio3.11
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)71.27%
Min EPS beat(2)69.26%
Max EPS beat(2)73.27%
EPS beat(4)4
Avg EPS beat(4)69.47%
Min EPS beat(4)12.21%
Max EPS beat(4)123.12%
EPS beat(8)7
Avg EPS beat(8)80.23%
EPS beat(12)10
Avg EPS beat(12)129.78%
EPS beat(16)14
Avg EPS beat(16)215.22%
Revenue beat(2)2
Avg Revenue beat(2)2.83%
Min Revenue beat(2)1.15%
Max Revenue beat(2)4.51%
Revenue beat(4)4
Avg Revenue beat(4)2.54%
Min Revenue beat(4)1.15%
Max Revenue beat(4)4.51%
Revenue beat(8)8
Avg Revenue beat(8)2.39%
Revenue beat(12)11
Avg Revenue beat(12)2.98%
Revenue beat(16)15
Avg Revenue beat(16)3.43%
PT rev (1m)0%
PT rev (3m)12.85%
EPS NQ rev (1m)-19.84%
EPS NQ rev (3m)-29.14%
EPS NY rev (1m)1.78%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)-0.6%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.32 | ||
| Fwd PE | 26.55 | ||
| P/S | 1.79 | ||
| P/FCF | 19.36 | ||
| P/OCF | 13.43 | ||
| P/B | 4.72 | ||
| P/tB | 5.55 | ||
| EV/EBITDA | 9.71 |
EPS(TTM)1.14
EY4.29%
EPS(NY)1
Fwd EY3.77%
FCF(TTM)1.37
FCFY5.16%
OCF(TTM)1.98
OCFY7.45%
SpS14.88
BVpS5.64
TBVpS4.79
PEG (NY)0.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.52% | ||
| ROE | 20.57% | ||
| ROCE | 15.21% | ||
| ROIC | 10.86% | ||
| ROICexc | 13.78% | ||
| ROICexgc | 15.4% | ||
| OM | 10.44% | ||
| PM (TTM) | 7.79% | ||
| GM | 49.65% | ||
| FCFM | 9.23% |
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-Score6
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.99 | ||
| Debt/EBITDA | 0.51 | ||
| Cap/Depr | 59.94% | ||
| Cap/Sales | 4.08% | ||
| Interest Coverage | 11.6 | ||
| Cash Conversion | 77.19% | ||
| Profit Quality | 118.43% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 3.63 |
F-Score6
WACC8.72%
ROIC/WACC1.25
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)128%
EPS 3Y28.35%
EPS 5YN/A
EPS Q2Q%111.11%
EPS Next Y45.26%
EPS Next 2Y16.33%
EPS Next 3Y11.29%
EPS Next 5YN/A
Revenue 1Y (TTM)14.56%
Revenue growth 3Y29.79%
Revenue growth 5Y17.19%
Sales Q2Q%15.12%
Revenue Next Year14.37%
Revenue Next 2Y11.54%
Revenue Next 3Y10.53%
Revenue Next 5YN/A
EBIT growth 1Y85.69%
EBIT growth 3Y58.11%
EBIT growth 5YN/A
EBIT Next Year116.51%
EBIT Next 3Y34.92%
EBIT Next 5YN/A
FCF growth 1Y395.38%
FCF growth 3YN/A
FCF growth 5Y32.12%
OCF growth 1Y222.73%
OCF growth 3Y15.89%
OCF growth 5Y31.61%