NasdaqGS:ULTI

Stock Analysis Report

Executive Summary

The Ultimate Software Group, Inc. provides cloud-based human capital management solutions to enterprise companies, mid-market companies, and companies in the strategic market in the United States, Canada, Europe, the Asia Pacific, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Ultimate Software Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.4%

NasdaqGS:ULTI

-1.3%

US Software

0.9%

US Market


1 Year Return

31.4%

NasdaqGS:ULTI

19.3%

US Software

0.3%

US Market

ULTI underperformed the Software industry which returned 34.8% over the past year.

ULTI outperformed the Market in United States of America which returned 9.4% over the past year.


Share holder returns

ULTIIndustryMarket
7 Day0.4%-1.3%0.9%
30 Day0.4%-2.8%-1.9%
90 Day19.3%2.3%1.6%
1 Year31.4%31.4%20.9%19.3%2.6%0.3%
3 Year75.4%75.4%116.9%108.3%41.0%31.8%
5 Year175.6%175.6%163.4%144.3%55.2%38.0%

Price Volatility Vs. Market

How volatile is Ultimate Software Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ultimate Software Group undervalued based on future cash flows and its price relative to the stock market?

179.98x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Ultimate Software Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Ultimate Software Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Ultimate Software Group is overvalued based on earnings compared to the US Software industry average.

Ultimate Software Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Ultimate Software Group is poor value based on expected growth next year.


Price Based on Value of Assets

Ultimate Software Group is overvalued based on assets compared to the US Software industry average.


Next Steps

Future Growth

How is Ultimate Software Group expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

41.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ultimate Software Group's revenue is expected to grow by 16.9% yearly, however this is not considered high growth (20% yearly).

Ultimate Software Group's earnings are expected to grow significantly at over 20% yearly.

Ultimate Software Group's revenue growth is expected to exceed the United States of America market average.

Ultimate Software Group's earnings growth is expected to exceed the United States of America market average.

Ultimate Software Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Ultimate Software Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Ultimate Software Group performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ultimate Software Group's year on year earnings growth rate has been positive over the past 5 years.

Ultimate Software Group's 1-year earnings growth exceeds its 5-year average (106.1% vs 7.2%)

Ultimate Software Group's earnings growth has exceeded the US Software industry average in the past year (106.1% vs 37.2%).


Return on Equity

Ultimate Software Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Ultimate Software Group used its assets less efficiently than the US Software industry average last year based on Return on Assets.


Return on Capital Employed

Ultimate Software Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ultimate Software Group's financial position?


Financial Position Analysis

Ultimate Software Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Ultimate Software Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Ultimate Software Group's level of debt (1.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (4.2% vs 1.8% today).

Debt is well covered by operating cash flow (1325.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 54.7x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 120.4x debt.


Next Steps

Dividend

What is Ultimate Software Group's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Ultimate Software Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Ultimate Software Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Ultimate Software Group has not reported any payouts.

Unable to verify if Ultimate Software Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Ultimate Software Group has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Ultimate Software Group's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Ultimate Software Group's salary, the management and board of directors tenure and is there insider trading?

11.3yrs

Average management tenure


CEO

Scott Scherr (66yo)

22.7yrs

Tenure

US$8,617,850

Compensation

Mr. Scott Scherr has been President and a Director of The Ultimate Software Group, Inc. since its inception in April 1996 and has been Chairman of the Board and Chief Executive Officer since September 1996 ...


CEO Compensation Analysis

Scott's remuneration is about average for companies of similar size in United States of America.

Scott's compensation has been consistent with company performance over the past year.


Management Age and Tenure

11.3yrs

Average Tenure

56yo

Average Age

The average tenure for the Ultimate Software Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

16.6yrs

Average Tenure

63yo

Average Age

The average tenure for the Ultimate Software Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Ultimate Software Group insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,823,84412 Feb 19
Adam Rogers
EntityIndividual
Role
Chief Technology Officer
CTO & Senior VP of Product Development
Shares5,495
Max PriceUS$331.91
SellUS$987,35112 Feb 19
Gregory Swick
EntityIndividual
Role
Head of Sales
Global Chief Sales Officer
Shares2,974
Max PriceUS$331.99
SellUS$22,142,83412 Feb 19
Marc Scherr
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares66,758
Max PriceUS$331.69
SellUS$23,485,68112 Feb 19
Scott Scherr
EntityIndividual
Role
Chief Executive Officer
Founder
Shares70,809
Max PriceUS$331.68
SellUS$1,136,92412 Feb 19
Felicia Alvaro
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares3,425
Max PriceUS$331.95
SellUS$176,29007 Feb 19
James Fitzpatrick
EntityIndividual
Role
Member of the Board of Directors
Director
Shares531
Max PriceUS$332.00
SellUS$1,659,82507 Feb 19
John Phenicie
EntityIndividual
Shares5,000
Max PriceUS$331.97
SellUS$1,659,82007 Feb 19
Robert Manne
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares5,000
Max PriceUS$331.96
SellUS$1,817,90206 Nov 18
Adam Rogers
EntityIndividual
Role
Chief Technology Officer
CTO & Senior VP of Product Development
Shares7,075
Max PriceUS$259.04
SellUS$1,092,78206 Nov 18
Gregory Swick
EntityIndividual
Role
Head of Sales
Global Chief Sales Officer
Shares4,252
Max PriceUS$259.04
SellUS$131,99702 Nov 18
James Fitzpatrick
EntityIndividual
Role
Member of the Board of Directors
Director
Shares494
Max PriceUS$267.20

Ownership Breakdown


Management Team

  • Scott Scherr (66yo)

    Founder

    • Tenure: 22.7yrs
    • Compensation: US$8.62m
  • Mitch Dauerman (61yo)

    Executive Vice President of Investor Relations

    • Tenure: 1.0yrs
    • Compensation: US$6.33m
  • Greg Swick (54yo)

    Global Chief Sales Officer

    • Tenure: 0.0yrs
    • Compensation: US$4.08m
  • Robert Manne (65yo)

    General Counsel

    • Tenure: 20.0yrs
  • Vivian Maza (56yo)

    Chief People Officer & Secretary

    • Tenure: 15.3yrs
  • Adam Rogers (43yo)

    CTO & Senior VP of Product Development

    • Tenure: 12.3yrs
    • Compensation: US$6.38m
  • Julie Dodd (48yo)

    Chief Services Officer

    • Tenure: 10.3yrs
    • Compensation: US$5.18m
  • Jody Kaminsky (43yo)

    Chief Marketing Officer

    • Tenure: 9.1yrs
  • Travis Burke

    Vice President of Corporate Development

    • Tenure: 0.0yrs
  • Felicia Alvaro (57yo)

    Executive VP

    • Tenure: 1.0yrs
    • Compensation: US$7.28m

Board Members

  • Scott Scherr (66yo)

    Founder

    • Tenure: 22.7yrs
    • Compensation: US$8.62m
  • Marc Scherr (60yo)

    Vice Chairman

    • Tenure: 20.8yrs
    • Compensation: US$31.42m
  • Jonathan Mariner (63yo)

    Director

    • Tenure: 2.0yrs
    • Compensation: US$508.75k
  • James Fitzpatrick (68yo)

    Director

    • Tenure: 18.8yrs
    • Compensation: US$508.75k
  • Rick Wilber (71yo)

    Independent Director

    • Tenure: 16.6yrs
    • Compensation: US$481.96k
  • Al Leiter (52yo)

    Director

    • Tenure: 12.6yrs
    • Compensation: US$457.78k
  • Jason Dorsey (39yo)

    Director

    • Tenure: 2.0yrs
    • Compensation: US$457.78k

Company Information

The Ultimate Software Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Ultimate Software Group, Inc.
  • Ticker: ULTI
  • Exchange: NasdaqGS
  • Founded: 1990
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$10.498b
  • Shares outstanding: 31.68m
  • Website: https://www.ultimatesoftware.com

Number of Employees


Location

  • The Ultimate Software Group, Inc.
  • 2000 Ultimate Way
  • Weston
  • Florida
  • 33326
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ULTINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1998
UL1DB (Deutsche Boerse AG)YesCommon StockDEEURJun 1998

Biography

The Ultimate Software Group, Inc. provides cloud-based human capital management solutions to enterprise companies, mid-market companies, and companies in the strategic market in the United States, Canada,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/05/03 02:01
End of Day Share Price2019/05/02 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.