Universal Logistics (ULH) AI Stock Analysis

142 Followers

Top Page

Universal Logistics

(NASDAQ:ULH)

54Neutral

Universal Logistics demonstrates strong revenue growth and improved profitability but faces challenges with financial stability and negative free cash flow trends. The technical indicators suggest bearish sentiment, while the valuation appears attractive. The earnings call reflects growth potential but also highlights significant challenges. These mixed factors result in a moderate overall score.

Universal Logistics (ULH) vs. S&P 500 (SPY)

Market Cap

$701.88M

Dividend Yield1.77%

Average Volume (3M)66.45K

Price to Earnings (P/E)5.4

Beta (1Y)1.60

Revenue Growth11.06%

EPS Growth39.68%

CountryUS

Employees10,821

SectorIndustrials

Sector Strength61

IndustryTrucking

Share Statistics

EPS (TTM)4.93

Shares Outstanding26,317,326

10 Day Avg. Volume97,699

30 Day Avg. Volume66,448

Financial Highlights & Ratios

PEG Ratio0.14

Price to Book (P/B)N/A

Price to Sales (P/S)0.38

Price to Cash Flow (P/CF)2.90

P/FCF Ratio6.30

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$37.00

Price Target Upside38.73% Upside

Rating ConsensusHold

Number of Analyst Covering1

Universal Logistics Business Overview & Revenue Model

Company DescriptionUniversal Logistics Holdings, Inc. (ULH) is a comprehensive transportation and logistics company that provides a wide range of services across various sectors, including trucking, freight forwarding, customs brokerage, and warehousing. With a commitment to delivering efficient and reliable supply chain solutions, ULH serves a broad spectrum of industries, ensuring the seamless movement of goods through its integrated logistics network.

How the Company Makes MoneyUniversal Logistics Holdings, Inc. generates revenue primarily through its diverse logistics and transportation services. The company earns money from its core operations, including providing trucking services, which involve transporting goods over short and long distances. Another significant revenue stream is its freight forwarding service, where ULH acts as an intermediary, managing the transportation of goods across multiple carriers. Additionally, ULH offers warehousing solutions, earning income by providing storage and inventory management services to its clients. The company's customs brokerage services also contribute to its earnings, assisting clients in navigating complex import and export regulations. Strategic partnerships and contracts with businesses in various industries further bolster ULH's revenue, enabling it to maintain a strong presence in the logistics sector.

Universal Logistics Financial Statement Overview

Summary

Universal Logistics shows strong revenue growth and improved profitability, but financial stability is uncertain due to missing data in 2024. Negative free cash flow trends highlight capital management issues.

Income Statement

Positive

Universal Logistics has shown strong revenue growth over the years, increasing from $1.39 billion in 2020 to $1.85 billion in 2024. The company has maintained healthy gross profit margins around 13-14% for recent years, and a net profit margin improvement to 7.0% in 2024 from 5.6% in 2023. The EBIT and EBITDA margins have also improved, indicating solid operational performance. Despite these strengths, the significant drop in revenue from 2022 to 2023 may indicate potential volatility.

Balance Sheet

Negative

The balance sheet shows increasing debt levels from 2020 to 2023, peaking at $475 million in 2023, but drastically changes in 2024 with no reported debt. The lack of reported stockholders' equity in 2024 poses a risk for leveraging future growth. The equity ratio has shown improvement from 22% in 2020 to 42% in 2023, indicating strengthening financial stability until 2023. However, the absence of these figures in 2024 makes it challenging to assess current leverage.

Cash Flow

Neutral

Operating cash flow remains robust, though it decreased in 2024 compared to previous years. Free cash flow has been negative in recent periods, signaling potential cash management issues. The operating cash flow to net income ratio indicates the company is generating sufficient cash relative to its profit, but the negative free cash flow to net income ratio in 2024 highlights concerns over capital expenditures.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.85B	1.66B	2.02B	1.75B	1.39B
	Gross Profit
315.88M	255.82M	350.00M	215.33M	159.54M
	EBIT
203.11M	145.44M	164.92M	42.64M	4.35M
	EBITDA
332.40M	225.54M	317.09M	203.82M	154.50M
	Net Income Common Stockholders
129.91M	92.90M	168.63M	73.73M	48.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
30.94M	23.28M	57.18M	21.96M	15.30M
	Total Assets
1.79B	1.25B	1.20B	1.14B	1.06B
	Total Debt
838.44M	475.54M	472.03M	427.35M	460.12M
	Net Debt
819.09M	463.03M	424.85M	413.42M	451.36M
	Total Liabilities
1.14B	721.33M	756.75M	835.28M	823.48M
	Stockholders Equity
647.02M	532.20M	446.93M	302.21M	239.57M
Cash Flow		Free Cash Flow
-139.23M	-30.31M	96.31M	44.44M	8.63M
	Operating Cash Flow
112.37M	210.25M	213.41M	83.28M	99.34M
	Investing Cash Flow
-462.90M	-236.77M	-103.74M	-33.23M	-86.56M
	Financing Cash Flow
365.04M	-8.56M	-78.24M	-44.56M	-8.95M

Universal Logistics Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price26.67

Price Trends

50DMA

29.17

Negative

100DMA

37.89

Negative

200DMA

40.01

Negative

Market Momentum

MACD

-1.13

Negative

RSI

38.16

Neutral

STOCH

42.49

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ULH, the sentiment is Neutral. The current price of 26.67 is above the 20-day moving average (MA) of 26.28, below the 50-day MA of 29.17, and below the 200-day MA of 40.01, indicating a neutral trend. The MACD of -1.13 indicates Negative momentum. The RSI at 38.16 is Neutral, neither overbought nor oversold. The STOCH value of 42.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ULH.

Universal Logistics Risk Analysis

Universal Logistics disclosed 35 risk factors in its most recent earnings report. Universal Logistics reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Universal Logistics Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARCB	63 Neutral	$1.66B	9.86	13.56%	0.80%	-5.61%	40.21%
Sector *	62 Neutral	$7.68B	13.06	3.21%	3.34%	3.61%	-14.41%
CVLG	59 Neutral	$545.19M	15.84	8.39%	1.26%	2.53%	-35.42%
MRTN	56 Neutral	$1.10B	40.74	3.53%	1.78%	-14.83%	-61.80%
ULH	54 Neutral	$701.88M	5.41	22.03%	1.77%	11.06%	39.68%
WERN	54 Neutral	$1.78B	52.70	2.29%	2.06%	-7.71%	-69.05%
HTLD	52 Neutral	$687.13M	―	-3.52%	0.97%	-13.25%	-301.55%

* Industrials Sector Average

Performance Comparison

ULH

Universal Logistics

26.61

-6.84

-20.45%

CVLG

Covenant Logistics Group

19.60

-3.27

-14.30%

HTLD

Heartland Express

8.63

-2.08

-19.42%

MRTN

Marten Transport

13.33

-3.59

-21.22%

WERN

Werner Enterprises

28.52

-7.88

-21.65%

ARCB

ArcBest

63.42

-87.64

-58.02%

Universal Logistics Earnings Call Summary

Earnings Call Date: Feb 6, 2025 | % Change Since: -37.66% | Next Earnings Date: Apr 24, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant revenue growth and strong performance in the contract logistics and trucking segments. However, challenges in the intermodal segment and a decline in operating margins present concerns. Overall, the company shows promise with a robust sales pipeline and strategic initiatives aimed at overcoming current challenges.

Highlights

Revenue Growth and Strong Financial Performance

Universal reported a 19% increase in top-line revenues for Q4 2024 and an earnings per share of $0.77. The full year saw $1.85 billion in revenue, 11% operating margins, and $4.93 earnings per share, marking the second-best financial performance in the company's history.

Contract Logistics Segment Growth

The contract logistics segment saw a 52.7% revenue increase to $307.4 million, with the successful acquisition of Parsec contributing significantly. This acquisition led to the segment's annual revenue run rate surpassing $1.1 billion.

Trucking Segment Success

The trucking segment saw an 11.5% increase in revenue to $83.8 million, driven by a 30.5% increase in revenue per load. The specialized heavy haul wind business performed exceptionally well, contributing to the segment's highest operating margin in over two years.

Strong Sales Pipeline

Universal has a robust sales pipeline with opportunities totaling over $800 million, indicating strong future growth potential.

Lowlights

Intermodal Segment Challenges

The intermodal segment faced a difficult year with a 15.9% decrease in revenues and a significant operating loss of $9.7 million for Q4 2024. Efforts are underway to transform this segment into a leaner, more efficient operation.

Operating Margin Decline

Operating margin guidance for 2025 has been adjusted downward due to various factors, including the roll-off of a specialty development program, increased depreciation and amortization expenses, and continued headwinds in the intermodal segment.

Company Guidance

During Universal Logistics Holdings' fourth quarter 2024 earnings call, the company provided guidance for 2025, projecting total operating revenues between $1.7 billion and $1.8 billion, with operating margins in the range of 7% to 9%. The company expects capital expenditures for 2025 to be between $125 million and $150 million, excluding any strategic real estate purchases, and anticipates interest expenses of $48 million to $51 million. For the first quarter of 2025, projected revenues are between $390 million and $410 million, with operating margins of 6.5% to 7.5% and an EBITDA margin of 14.5% to 16.5%. The guidance reflects expected challenges, including the roll-off of a specialty development program, increased depreciation and amortization from recent acquisitions, and softness in the automotive sector and intermodal market, especially in Southern California.

Universal Logistics Corporate Events

DividendsBusiness Operations and StrategyFinancial Disclosures

Universal Logistics Reports Strong Q3 2024 Earnings Growth

Positive

Oct 24, 2024

Universal Logistics Holdings reported a strong third quarter in 2024, with net income rising to $26.5 million and earnings per share up by 14.7% year-over-year. Despite challenges from a depressed freight environment, the company benefited from its diverse service offerings and strategic acquisitions. Operating revenues reached $426.8 million, a slight increase from last year, driven by a robust performance in the contract logistics segment. Additionally, a cash dividend of $0.105 per share was announced, payable in January 2025.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.