UNIVERSAL TECHNICAL INSTITUT (UTI) Stock Fundamental Analysis
NYSE:UTI - New York Stock Exchange, Inc. - US9139151040 - Common Stock - Currency: USD
Overall UTI gets a fundamental rating of 6 out of 10. We evaluated UTI against 73 industry peers in the Diversified Consumer Services industry. While UTI has a great profitability rating, there are some minor concerns on its financial health. UTI is growing strongly while it is still valued neutral. This is a good combination! With these ratings, UTI could be worth investigating further 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.
UTI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UTI has a better Return On Assets (7.13%) than 79.45% of its industry peers.
UTI has a Return On Equity of 19.20%. This is amongst the best in the industry. UTI outperforms 84.93% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.34%, UTI belongs to the top of the industry, outperforming 83.56% 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 12.00%.
The last Return On Invested Capital (9.34%) for UTI is above the 3 year average (5.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.13% | ||
| ROE | 19.2% | ||
| ROIC | 9.34% |
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 7.08% is fine compared to the rest of the industry. UTI outperforms 68.49% of its industry peers.
UTI's Profit Margin has improved in the last couple of years.
UTI has a Operating Margin of 9.50%. This is in the better half of the industry: UTI outperforms 71.23% of its industry peers.
UTI's Operating Margin has improved in the last couple of years.
UTI has a Gross Margin of 48.35%. This is comparable to the rest of the industry: UTI outperforms 56.16% of its industry peers.
In the last couple of years the Gross Margin of UTI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.5% | ||
| PM (TTM) | 7.08% | ||
| GM | 48.35% |
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.
Compared to 1 year ago, UTI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.91 indicates that UTI is not in any danger for bankruptcy at the moment.
UTI's Altman-Z score of 3.91 is amongst the best of the industry. UTI outperforms 80.82% of its industry peers.
The Debt to FCF ratio of UTI is 1.62, which is an excellent value as it means it would take UTI, only 1.62 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of UTI (1.62) is better than 83.56% of its industry peers.
UTI has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.42, UTI is in line with its industry, outperforming 41.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 3.91 |
ROIC/WACC1.06
WACC8.84%
2.3 Liquidity
UTI has a Current Ratio of 1.14. This is a normal value and indicates that UTI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of UTI (1.14) is comparable to the rest of the industry.
A Quick Ratio of 1.14 indicates that UTI should not have too much problems paying its short term obligations.
UTI has a Quick ratio (1.14) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
UTI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 188.89%, which is quite impressive.
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 20.63% in the past year. This is a very strong growth!
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)20.63%
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 2Y11.02%
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 33.96, which means the current valuation is very expensive for UTI.
Compared to the rest of the industry, the Price/Earnings ratio of UTI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of UTI to the average of the S&P500 Index (26.03), we can say UTI is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 32.02, the valuation of UTI can be described as expensive.
UTI's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of UTI to the average of the S&P500 Index (21.94), we can say UTI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.96 | ||
| Fwd PE | 32.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UTI is valued a bit cheaper than the industry average as 60.27% of the companies are valued more expensively.
UTI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. UTI is cheaper than 67.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.87 | ||
| EV/EBITDA | 14.38 |
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.
UTI's earnings are expected to grow with 17.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
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 |
35.32
-0.07 (-0.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners86.03%
Inst Owner Change3.19%
Ins Owners2.54%
Ins Owner Change0.34%
Market Cap1.92B
Analysts82
Price Target33.83 (-4.22%)
Short Float %4.52%
Short Ratio2.96
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)67.67%
Min EPS beat(2)12.21%
Max EPS beat(2)123.12%
EPS beat(4)3
Avg EPS beat(4)37.95%
Min EPS beat(4)-5.06%
Max EPS beat(4)123.12%
EPS beat(8)7
Avg EPS beat(8)99.23%
EPS beat(12)10
Avg EPS beat(12)224.34%
EPS beat(16)13
Avg EPS beat(16)208%
Revenue beat(2)2
Avg Revenue beat(2)2.25%
Min Revenue beat(2)1.67%
Max Revenue beat(2)2.83%
Revenue beat(4)4
Avg Revenue beat(4)2.28%
Min Revenue beat(4)1.67%
Max Revenue beat(4)2.93%
Revenue beat(8)8
Avg Revenue beat(8)2.66%
Revenue beat(12)11
Avg Revenue beat(12)3.29%
Revenue beat(16)14
Avg Revenue beat(16)3.08%
PT rev (1m)0%
PT rev (3m)20.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)4.33%
EPS NY rev (3m)4.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)1.88%
Revenue NY rev (3m)3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.96 | ||
| Fwd PE | 32.02 | ||
| P/S | 2.53 | ||
| P/FCF | 25.87 | ||
| P/OCF | 19.59 | ||
| P/B | 6.86 | ||
| P/tB | 8.22 | ||
| EV/EBITDA | 14.38 |
EPS(TTM)1.04
EY2.94%
EPS(NY)1.1
Fwd EY3.12%
FCF(TTM)1.37
FCFY3.87%
OCF(TTM)1.8
OCFY5.1%
SpS13.97
BVpS5.15
TBVpS4.29
PEG (NY)0.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.13% | ||
| ROE | 19.2% | ||
| ROCE | 13.08% | ||
| ROIC | 9.34% | ||
| ROICexc | 13.58% | ||
| ROICexgc | 15.47% | ||
| OM | 9.5% | ||
| PM (TTM) | 7.08% | ||
| GM | 48.35% | ||
| FCFM | 9.77% |
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 Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.62 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 41.17% | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 7.74 | ||
| Cash Conversion | 75.44% | ||
| Profit Quality | 138.06% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 3.91 |
F-Score7
WACC8.84%
ROIC/WACC1.06
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)20.63%
Revenue growth 3Y29.79%
Revenue growth 5Y17.19%
Sales Q2Q%12.64%
Revenue Next Year14.01%
Revenue Next 2Y11.02%
Revenue Next 3Y9.69%
Revenue Next 5YN/A
EBIT growth 1Y106.29%
EBIT growth 3Y58.11%
EBIT growth 5YN/A
EBIT Next Year112.59%
EBIT Next 3Y34.67%
EBIT Next 5YN/A
FCF growth 1Y355.34%
FCF growth 3YN/A
FCF growth 5Y32.12%
OCF growth 1Y111.34%
OCF growth 3Y15.89%
OCF growth 5Y31.61%