Universal Technical Institute Inc

Find Ratings Reports
UTI : NYSE : Services
$1.73 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 90,000
09/29/16 - 4:02 PM ET

Financial Analysis


UNIVERSAL TECHNICAL INST's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. UNIVERSAL TECHNICAL INST has strong liquidity. Currently, the Quick Ratio is 1.75 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 18.06% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)82.2785.11
EBITDA ($mil)-0.711.07
EBIT ($mil)-5.45-4.0
Net Income ($mil)-5.07-2.98


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)111.3559.94
Total Assets ($mil)285.03263.23
Total Debt ($mil)44.2532.63
Equity ($mil)145.68123.39


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin47.8249.17
EBITDA Margin-0.851.25
Operating Margin-6.62-4.7
Sales Turnover1.231.4
Return on Assets-17.040.85
Return on Equity-33.411.82
Debt Q3 FY16 Q3 FY15
Current Ratio2.011.08
Debt/Capital0.230.21
Interest Expense0.80.48
Interest Coverage-6.8-8.26


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)24.3524.14
Div / share0.00.1
EPS-0.21-0.12
Book value / share5.985.11
Institutional Own % n/a n/a
Avg Daily Volume92210.0112852.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 0.34 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 4.97. 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 39.70   UTI NM Peers 18.88

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 27.70   UTI NA Peers 1.55

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 0.34 Peers 4.97   UTI -2612.50 Peers -10.57

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 0.14 Peers 2.70   UTI -4.48 Peers 9.97

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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