Universal Technical Institute Inc

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UTI : NYSE : Services
$3.69 up 0.02 | 0.54%
Today's Range: 3.6571 - 3.7
Avg. Daily Volume: 50700.0
07/21/17 - 2:16 PM ET

Financial Analysis


UNIVERSAL TECHNICAL INST's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. UNIVERSAL TECHNICAL INST has strong liquidity. Currently, the Quick Ratio is 1.56 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 62.75% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)82.588.19
EBITDA ($mil)5.21-0.83
EBIT ($mil)0.69-5.77
Net Income ($mil)-1.73-32.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)112.6752.95
Total Assets ($mil)274.65229.86
Total Debt ($mil)43.6144.44
Equity ($mil)131.9981.1


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin50.2948.44
EBITDA Margin6.31-0.94
Operating Margin0.83-6.54
Sales Turnover1.221.54
Return on Assets-6.36-20.22
Return on Equity-16.29-57.31
Debt Q2 FY17 Q2 FY16
Current Ratio1.821.08
Debt/Capital0.250.35
Interest Expense0.710.8
Interest Coverage0.96-7.24


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)24.7524.35
Div / share0.00.02
EPS-0.12-1.32
Book value / share5.333.33
Institutional Own % n/a n/a
Avg Daily Volume46724.072254.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.67 indicates a significant discount versus the S&P 500 average of 3.04 and a significant discount versus the industry average of 7.02. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, UNIVERSAL TECHNICAL INST proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
UTI NM Peers 41.50   UTI NM Peers 19.25

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

UTI's P/E is negative making this valuation measure meaningless.

 

Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

UTI's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
UTI NM Peers 33.89   UTI NA Peers 1.78

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

UTI's ratio is negative making this valuation measure meaningless.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UTI 0.67 Peers 7.02   UTI 54.69 Peers 83.25

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

UTI is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, UTI is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
UTI 0.26 Peers 4.00   UTI -5.06 Peers 12.53

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

UTI is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

UTI significantly trails its peers on the basis of sales growth

 

 

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