Universal Technical Institute Inc

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UTI : NYSE : Services
$3.35 | %
Today's Range: 3.28 - 3.5
Avg. Daily Volume: 105500.0
01/20/17 - 4:02 PM ET

Financial Analysis


UNIVERSAL TECHNICAL INST's gross profit margin for the fourth quarter of its fiscal year 2016 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 1.50 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 20.39% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)86.9290.65
EBITDA ($mil)-0.494.0
EBIT ($mil)-5.21-0.87
Net Income ($mil)-8.95-9.82


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)126.6963.35
Total Assets ($mil)297.16274.3
Total Debt ($mil)44.0544.79
Equity ($mil)136.61113.48


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin49.5548.66
EBITDA Margin-0.564.41
Operating Margin-5.99-0.96
Sales Turnover1.171.32
Return on Assets-16.05-3.33
Return on Equity-35.95-8.06
Debt Q4 FY16 Q4 FY15
Current Ratio1.711.12
Debt/Capital0.240.28
Interest Expense0.780.66
Interest Coverage-6.68-1.32


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)24.6224.23
Div / share0.00.02
EPS-0.42-0.41
Book value / share5.554.68
Institutional Own % n/a n/a
Avg Daily Volume105658.0146218.0

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 0.60 indicates a significant discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 5.75. 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 42.39   UTI 11.10 Peers 21.59

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.

 

Discount. 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 is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
UTI NM Peers 28.60   UTI NA Peers 1.69

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 0.60 Peers 5.75   UTI -417.94 Peers 21.64

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 0.24 Peers 2.75   UTI -4.29 Peers 8.88

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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