Universal Technical Institute
Market Cap
US$239.4m
Last Updated
2020/02/17 00:09 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.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with moderate growth potential.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
3.3%
UTI
1.1%
US Consumer Services
1.5%
US Market
1 Year Return
166.5%
UTI
35.0%
US Consumer Services
20.1%
US Market
Return vs Industry: UTI exceeded the US Consumer Services industry which returned 35% over the past year.
Return vs Market: UTI exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| UTI | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.3% | 1.1% | 1.5% |
| 30 Day | 24.3% | 2.8% | 1.4% |
| 90 Day | 63.4% | 18.7% | 8.7% |
| 1 Year | 166.5%166.5% | 35.4%35.0% | 22.7%20.1% |
| 3 Year | 173.5%173.5% | 124.0%113.8% | 50.1%40.5% |
| 5 Year | -0.2%-3.6% | 197.1%163.5% | 73.1%54.1% |
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
1 month ago | Simply Wall St
What Kind Of Shareholder Appears On The Universal Technical Institute, Inc.'s (NYSE:UTI) Shareholder Register?3 months ago | Simply Wall St
Does The Universal Technical Institute, Inc. (NYSE:UTI) Share Price Tend To Follow The Market?4 months ago | Simply Wall St
The Universal Technical Institute (NYSE:UTI) Share Price Has Gained 237%, So Why Not Pay It Some Attention?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 ($9.3) is trading below our estimate of fair value ($104.02)
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 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 overvalued based on its PB Ratio (4.2x) compared to the US Consumer Services industry average (2.2x).
Next Steps
Future Growth
How is Universal Technical Institute forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
124.5%
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 (1.7%).
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 (3.3% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: UTI's revenue (3.3% 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
Next Steps
Past Performance
How has Universal Technical Institute performed over the past 5 years?
-12.5%
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, and losses have increased over the past 5 years at a rate of -12.5% 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 (14.8%).
Return on Equity
High ROE: UTI has a negative Return on Equity (3.59%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Universal Technical Institute's financial position?
Financial Position Analysis
Short Term Liabilities: UTI's short term assets ($116.6M) do not cover its short term liabilities ($117.0M).
Long Term Liabilities: UTI's short term assets ($116.6M) do not cover its long term liabilities ($138.8M).
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
Inventory Level: UTI has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if UTI's debt is covered by short term assets.
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: Whilst unprofitable UTI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: UTI is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -23.1% per year.
Next Steps
Dividend
What is Universal Technical Institute's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate UTI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate UTI's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?
1.6yrs
Average management tenure
CEO
Jerome Grant (56yo)
0.3yrs
Tenure
US$442,518
Compensation
Mr. Jerome A. Grant has been Chief Executive Officer and Director of Universal Technical Institute, Inc. since November 1, 2019. Mr. Grant had been Chief Operating Officer and Executive Vice President at U ...
CEO Compensation Analysis
Compensation vs Market: Jerome's total compensation ($USD442.52K) is below average for companies of similar size in the US market ($USD1.11M).
Compensation vs Earnings: Jerome's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.3yrs | US$442.52k | 0.15% $368.3k | |
| Executive VP & CFO | 0.4yrs | US$382.87k | no data | |
| Executive Vice President of Campus Operations & Services | 1.8yrs | US$537.09k | 0.67% $1.6m | |
| Senior VP & CIO | 0.08yrs | no data | 0.80% $1.9m | |
| Vice President of Communications & Public Affairs | 0yrs | no data | no data | |
| Senior Vice President of Admissions | 1.6yrs | no data | 0.014% $34.5k | |
| Senior VP & Chief Strategy and Transformation Officer | 0.08yrs | no data | no data | |
| President of Sacramento Campus | 6.7yrs | US$544.93k | no data | |
| Campus President of Avondale Arizona Facility | 9.3yrs | no data | no data | |
| President of Sacramento Campus | 4.5yrs | no data | no data |
1.6yrs
Average Tenure
56yo
Average Age
Experienced Management: UTI's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.3yrs | US$442.52k | 0.15% $368.3k | |
| Independent Director | 15yrs | US$155.68k | 0.34% $805.3k | |
| Independent Director | 8.7yrs | US$157.68k | 0.31% $745.0k | |
| Independent Director | 18.1yrs | US$99.00k | 0.30% $722.9k | |
| Independent Non-Executive Chairman | 2.4yrs | US$450.05k | 0.18% $421.7k | |
| Independent Director | 9.4yrs | US$99.00k | 0.32% $772.2k | |
| Independent Director | 6.1yrs | US$116.00k | 0.29% $697.7k | |
| Non-Executive Director | 15yrs | US$1.05m | 2.3% $5.5m | |
| Director | 23.1yrs | US$85.00k | 10.14% $24.3m | |
| Independent Director | 8.2yrs | US$108.00k | 0.29% $703.6k |
9.0yrs
Average Tenure
61yo
Average Age
Experienced Board: UTI's board of directors are considered experienced (9 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.
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$239.426m
- Shares outstanding: 25.74m
- Website: https://www.uti.edu
Number of Employees
Location
- Universal Technical Institute, Inc.
- 16220 North Scottsdale Road
- Suite 500
- Scottsdale
- Arizona
- 85254
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| UTI | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 2003 |
| UTI | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 2003 |
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 States. It offers certificate, diploma, or degree programs; and specialized technical education programs under various brands, such as Universal Technical Institute, Motorcycle Mechanics Institute and Marine Mechanics Institute, and NASCAR Technical Institute. The company also provides manufacturer specific advanced training programs, including student paid electives at its campuses; and manufacturer or dealer sponsored training at various campuses and dedicated training centers, as well as offers programs for welding and computer numeric control machining. It operates 13 campuses. The company was founded in 1965 and is headquartered in Scottsdale, Arizona.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 00:09 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/09/30 |
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.