UNIVERSAL TECHNICAL INSTITUT (UTI)
US9139151040 - Common Stock
Overall UTI gets a fundamental rating of 5 out of 10. We evaluated UTI against 65 industry peers in the Diversified Consumer Services industry. While UTI is still in line with the averages on profitability rating, there are concerns on its financial health. UTI is not priced too expensively while it is growing strongly. Keep and eye on this one!
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.
Of the past 5 years UTI 4 years were profitable.
UTI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 1.38%, UTI is doing good in the industry, outperforming 62.50% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.56%, UTI is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
The Return On Invested Capital of UTI (4.33%) is better than 67.19% 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 15.00%.
The 3 year average ROIC (3.29%) for UTI is below the current ROIC(4.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 4.56% | ||
| ROIC | 4.33% |
ROA(3y)1.58%
ROA(5y)0.1%
ROE(3y)4.3%
ROE(5y)0.59%
ROIC(3y)3.29%
ROIC(5y)N/A
1.3 Margins
UTI's Profit Margin of 1.53% is in line compared to the rest of the industry. UTI outperforms 59.38% of its industry peers.
UTI's Profit Margin has declined in the last couple of years.
UTI has a Operating Margin of 5.28%. This is in the better half of the industry: UTI outperforms 60.94% of its industry peers.
Looking at the Gross Margin, with a value of 75.21%, UTI belongs to the top of the industry, outperforming 89.06% of the companies in the same industry.
In the last couple of years the Gross Margin of UTI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.28% | ||
| PM (TTM) | 1.53% | ||
| GM | 75.21% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-5.91%
PM growth 5YN/A
GM growth 3Y-0.3%
GM growth 5Y0.79%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UTI is destroying value.
The number of shares outstanding for UTI has been increased compared to 1 year ago.
UTI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for UTI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.00 indicates that UTI is not a great score, but indicates only limited risk for bankruptcy at the moment.
UTI has a better Altman-Z score (2.00) than 60.94% of its industry peers.
The Debt to FCF ratio of UTI is 47.21, which is on the high side as it means it would take UTI, 47.21 years of fcf income to pay off all of its debts.
UTI has a Debt to FCF ratio of 47.21. This is comparable to the rest of the industry: UTI outperforms 59.38% of its industry peers.
UTI has a Debt/Equity ratio of 0.72. This is a neutral value indicating UTI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.72, UTI is doing worse than 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 47.21 | ||
| Altman-Z | 2 |
ROIC/WACC0.5
WACC8.73%
2.3 Liquidity
A Current Ratio of 1.09 indicates that UTI should not have too much problems paying its short term obligations.
UTI has a Current ratio (1.09) which is in line with its industry peers.
A Quick Ratio of 1.09 indicates that UTI should not have too much problems paying its short term obligations.
UTI has a Quick ratio (1.09) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
UTI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -62.32%.
Measured over the past years, UTI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.53% on average per year.
The Revenue has grown by 52.66% in the past year. This is a very strong growth!
UTI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.89% yearly.
EPS 1Y (TTM)-62.32%
EPS 3Y13.53%
EPS 5YN/A
EPS growth Q2Q70%
Revenue 1Y (TTM)52.66%
Revenue growth 3Y26.4%
Revenue growth 5Y13.89%
Revenue growth Q2Q45.58%
3.2 Future
Based on estimates for the next years, UTI will show a very strong growth in Earnings Per Share. The EPS will grow by 109.63% on average per year.
Based on estimates for the next years, UTI will show a quite strong growth in Revenue. The Revenue will grow by 11.53% on average per year.
EPS Next Y274.76%
EPS Next 2Y109.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year18.74%
Revenue Next 2Y11.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 54.73, the valuation of UTI can be described as expensive.
UTI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.80, UTI is valued quite expensively.
Based on the Price/Forward Earnings ratio of 17.04, the valuation of UTI can be described as rather expensive.
UTI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UTI is cheaper than 73.44% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.27, UTI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.73 | ||
| Fwd PE | 17.04 |
4.2 Price Multiples
UTI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UTI is cheaper than 62.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UTI is valued a bit cheaper than the industry average as 60.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 223.5 | ||
| EV/EBITDA | 12.64 |
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.
The decent profitability rating of UTI may justify a higher PE ratio.
UTI's earnings are expected to grow with 109.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y109.63%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for UTI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
UNIVERSAL TECHNICAL INSTITUT
NYSE:UTI (4/18/2024, 7:25:58 PM)
After market: 14.26 +0.03 (+0.21%)14.23
-0.04 (-0.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap764.58M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.73 | ||
| Fwd PE | 17.04 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 4.56% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.28% | ||
| PM (TTM) | 1.53% | ||
| GM | 75.21% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-62.32%
EPS 3Y13.53%
EPS 5Y
EPS growth Q2Q
EPS Next Y274.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)52.66%
Revenue growth 3Y26.4%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y