Universal Technical Institute Inc
Find Ratings ReportsUNIVERSAL TECHNICAL INST's gross profit margin for the first quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its subsector. UNIVERSAL TECHNICAL INST has weak liquidity. Currently, the Quick Ratio is 0.98 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.25% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q1 FY24 | Q1 FY23 |
---|---|---|
Net Sales ($mil) | 174.7 | 120.0 |
EBITDA ($mil) | 22.16 | 11.57 |
EBIT ($mil) | 15.18 | 6.32 |
Net Income ($mil) | 10.39 | 2.65 |
Balance Sheet | Q1 FY24 | Q1 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 148.82 | 166.77 |
Total Assets ($mil) | 732.41 | 748.07 |
Total Debt ($mil) | 348.17 | 382.91 |
Equity ($mil) | 222.19 | 217.29 |
Profitability | Q1 FY24 | Q1 FY23 |
---|---|---|
Gross Profit Margin | 50.91 | 52.86 |
EBITDA Margin | 12.68 | 9.63 |
Operating Margin | 8.69 | 5.26 |
Sales Turnover | 0.9 | 0.58 |
Return on Assets | 2.73 | 1.82 |
Return on Equity | 6.83 | 3.94 |
Debt | Q1 FY24 | Q1 FY23 |
---|---|---|
Current Ratio | 1.09 | 1.27 |
Debt/Capital | 0.61 | 0.64 |
Interest Expense | 2.87 | 1.42 |
Interest Coverage | 5.29 | 4.44 |
Share Data | Q1 FY24 | Q1 FY23 |
---|---|---|
Shares outstanding (mil) | 53.73 | 33.93 |
Div / share | 0.0 | 0.0 |
EPS | 0.17 | 0.02 |
Book value / share | 4.14 | 6.4 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 627394.0 | 144805.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 133.57 for the Educational Services subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 3.53 indicates a discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 4.51. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, UNIVERSAL TECHNICAL INST proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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UTI 56.12 | Peers 133.57 | UTI 9.35 | Peers 23.80 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. UTI is trading at a significant discount to its peers. |
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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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UTI 17.79 | Peers 36.89 | UTI 0.13 | Peers 0.97 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. UTI is trading at a significant discount to its peers. |
Discount. 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. UTI trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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UTI 3.53 | Peers 4.51 | UTI 73.33 | Peers 106.52 | |||||||||||||||||||||
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 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. |
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Price/Sales |
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Sales Growth |
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UTI 1.18 | Peers 5.18 | UTI 52.66 | Peers 25.26 | |||||||||||||||||||||
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 subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. UTI has a sales growth rate that significantly exceeds its peers. |
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