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Universal Technical Institute

Market Cap

US$198.4m

Last Updated

2021/04/11 22:12 UTC

Data Sources

Company Financials +

Executive Summary

Universal Technical Institute, Inc. provides postsecondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle, and marine technicians in the United States. More Details


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Universal Technical Institute's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UTI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: UTI's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.0%

UTI

0.5%

US Consumer Services

2.1%

US Market


1 Year Return

-4.1%

UTI

26.6%

US Consumer Services

56.3%

US Market

Return vs Industry: UTI underperformed the US Consumer Services industry which returned 26.6% over the past year.

Return vs Market: UTI underperformed the US Market which returned 56.3% over the past year.


Shareholder returns

UTIIndustryMarket
7 Day1.0%0.5%2.1%
30 Day-3.0%-17.2%2.4%
90 Day-0.7%-11.0%6.8%
1 Year-4.1%-4.1%26.9%26.6%59.1%56.3%
3 Year95.5%95.5%35.9%31.6%65.7%55.1%
5 Year48.2%48.2%207.0%188.2%122.3%97.7%

Long-Term Price Volatility Vs. Market

How volatile is Universal Technical Institute's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Universal Technical Institute undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UTI ($6.06) is trading below our estimate of fair value ($17.06)

Significantly Below Fair Value: UTI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UTI is unprofitable, so we can't compare its PE Ratio to the US Consumer Services industry average.

PE vs Market: UTI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UTI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UTI is good value based on its PB Ratio (1.8x) compared to the US Consumer Services industry average (2.5x).


Future Growth

How is Universal Technical Institute forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

33.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UTI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: UTI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: UTI's is expected to become profitable in the next 3 years.

Revenue vs Market: UTI's revenue (7.5% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: UTI's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if UTI's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Universal Technical Institute performed over the past 5 years?

33.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UTI is currently unprofitable.

Growing Profit Margin: UTI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: UTI is unprofitable, but has reduced losses over the past 5 years at a rate of 33.1% per year.

Accelerating Growth: Unable to compare UTI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: UTI is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (-0.4%).


Return on Equity

High ROE: UTI has a negative Return on Equity (2.47%), as it is currently unprofitable.


Financial Health

How is Universal Technical Institute's financial position?


Financial Position Analysis

Short Term Liabilities: UTI's short term assets ($130.6M) exceed its short term liabilities ($112.5M).

Long Term Liabilities: UTI's short term assets ($130.6M) do not cover its long term liabilities ($143.8M).


Debt to Equity History and Analysis

Debt Level: UTI is debt free.

Reducing Debt: UTI has not had any debt for past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: UTI has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if UTI has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is Universal Technical Institute current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate UTI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate UTI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if UTI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UTI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: UTI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of UTI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Jerome Grant (57 yo)

1.42yrs

Tenure

US$2,035,079

Compensation

Mr. Jerome A. Grant has been Chief Executive Officer and Director of Universal Technical Institute, Inc. since November 1, 2019. Mr. Grant had been Chief Operating Officer and Executive Vice President at U...


CEO Compensation Analysis

Compensation vs Market: Jerome's total compensation ($USD2.04M) is above average for companies of similar size in the US market ($USD961.12K).

Compensation vs Earnings: Jerome's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: UTI's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: UTI's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Universal Technical Institute, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Universal Technical Institute, Inc.
  • Ticker: UTI
  • Exchange: NYSE
  • Founded: 1965
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$198.403m
  • Shares outstanding: 32.74m
  • Website: https://www.uti.edu

Number of Employees


Location

  • Universal Technical Institute, Inc.
  • 4225 East Windrose Drive
  • Suite 200
  • Phoenix
  • Arizona
  • 85032
  • United States

Listings


Biography

Universal Technical Institute, Inc. provides postsecondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle, and marine technicians in the United Stat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 22:12
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.