Universal Technical Institute Inc

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UTI : NYSE : Services
$3.15 -0.07 | -2.2%
Today's Range: 3.1 - 3.29
Avg. Daily Volume: 38900.0
09/22/17 - 3:59 PM ET

Financial Analysis


UNIVERSAL TECHNICAL INST's gross profit margin for the third 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 1.62 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 12.60% 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 FY17 Q3 FY16
Net Sales ($mil)76.2682.27
EBITDA ($mil)1.75-0.71
EBIT ($mil)-2.78-5.45
Net Income ($mil)-3.92-5.07


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)97.86111.35
Total Assets ($mil)256.77285.03
Total Debt ($mil)43.3844.25
Equity ($mil)127.32145.68


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin47.1647.82
EBITDA Margin2.29-0.85
Operating Margin-3.65-6.62
Sales Turnover1.281.23
Return on Assets-6.35-17.04
Return on Equity-16.93-33.41
Debt Q3 FY17 Q3 FY16
Current Ratio1.922.01
Debt/Capital0.250.23
Interest Expense0.560.8
Interest Coverage-4.98-6.8


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)24.7624.35
Div / share0.00.0
EPS-0.21-0.21
Book value / share5.145.98
Institutional Own % n/a n/a
Avg Daily Volume39055.046991.0

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 0.65 indicates a significant discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 8.41. 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 46.44   UTI NM Peers 24.17

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 37.00   UTI NA Peers 1.72

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 0.65 Peers 8.41   UTI 56.72 Peers 149.42

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 0.25 Peers 4.79   UTI -6.00 Peers 16.26

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 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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