Universal Technical Institute, Inc.
Universal Technical Institute, Inc. Fundamental Analysis
Universal Technical Institute, Inc. (UTI) shows moderate financial fundamentals with a PE ratio of 31.27, profit margin of 6.28%, and ROE of 16.98%. The company generates $0.9B in annual revenue with strong year-over-year growth of 14.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze UTI's fundamental strength across five key dimensions:
Efficiency Score
WeakUTI struggles to generate sufficient returns from assets.
Valuation Score
ModerateUTI shows balanced valuation metrics.
Growth Score
ExcellentUTI delivers strong and consistent growth momentum.
Financial Health Score
ModerateUTI shows balanced financial health with some risks.
Profitability Score
ModerateUTI maintains healthy but balanced margins.
Key Financial Metrics
Is UTI Expensive or Cheap?
P/E Ratio
UTI trades at 31.27 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, UTI's PEG of -2.13 indicates potential undervaluation.
Price to Book
The market values Universal Technical Institute, Inc. at 5.00 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.46 times EBITDA. This signals the market has high growth expectations.
How Well Does UTI Make Money?
Net Profit Margin
For every $100 in sales, Universal Technical Institute, Inc. keeps $6.28 as profit after all expenses.
Operating Margin
Core operations generate 8.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.98 in profit for every $100 of shareholder equity.
ROA
Universal Technical Institute, Inc. generates $6.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Universal Technical Institute, Inc. generates limited operating cash flow of $78.09M, signaling weaker underlying cash strength.
Free Cash Flow
Universal Technical Institute, Inc. generates weak or negative free cash flow of $16.71M, restricting financial flexibility.
FCF Per Share
Each share generates $0.30 in free cash annually.
FCF Yield
UTI converts 0.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.00
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How UTI Stacks Against Its Sector Peers
| Metric | UTI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.27 | 23.25 | Worse (Expensive) |
| ROE | 16.98% | 1240.00% | Weak |
| Net Margin | 6.28% | -9728.00% (disorted) | Weak |
| Debt/Equity | 1.37 | 0.77 | Weak (High Leverage) |
| Current Ratio | 1.14 | 2.54 | Neutral |
| ROA | 6.44% | -203388.00% (disorted) | Weak |
UTI outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Universal Technical Institute, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
52.53%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
332.04%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
384.37%
Industry Style: Defensive, Dividend, Low Volatility
High Growth