Universal Logistics (ULH) AI Stock Analysis

• Market Cap: $757.87M
• Dividend Yield: 1.48%
• Average Volume (3M): 36.48K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.51
• Revenue Growth: 1.16%
• EPS Growth: -30.78%
• Country: US
• Employees: 10,821
• Sector: Industrials
• Sector Strength: 86
• Industry: Trucking
• EPS (TTM): 0.23
• Shares Outstanding: 26,333,239
• 10 Day Avg. Volume: 52,060
• 30 Day Avg. Volume: 36,476
• PEG Ratio: -0.22
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.58
• Enterprise Value/Market Cap: 1.94
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 5.79
• Enterprise Value/Ebitda: 1.20
• 1Y Price Target: $29.00
• Price Target Upside: 0.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: $31.00 ▲(7.71%Upside)

Universal Logistics Holdings' stock score of 70 reflects a mix of strengths and challenges. The company's operational efficiency and attractive valuation are significant positives. However, declining revenue growth and negative cash flow pose risks. Technical indicators suggest short-term bullish momentum, while earnings call insights highlight both challenges and strategic opportunities.

Universal Logistics Business Overview & Revenue Model

Company Description

Universal Logistics Holdings, Inc. provides transportation and logistics solutions in the United States, Mexico, Canada, and Colombia. It offers truckload services, which include dry van, flatbed, heavy-haul, and refrigerated operations; domestic and international freight forwarding, and customs brokerage services; and final mile and ground expedite services. The company transports various commodities comprising automotive parts, machinery, building materials, paper, food, consumer goods, furniture, steel, and other metals. It also provides value-added services for individual customer requirements, including material handling, consolidation, sequencing, sub-assembly, cross-dock, kitting, repacking, warehousing, and returnable container management; and intermodal support services comprising short-to-medium distance delivery of steamship and rail truck containers between the port or railhead, and the customer and drayage services. The company serves automotive, steel, oil and gas, alternative energy, and manufacturing industries, as well as other transportation companies who aggregate loads from various shippers. The company was formerly known as Universal Truckload Services, Inc. and changed its name to Universal Logistics Holdings, Inc. in April 2016. Universal Logistics Holdings, Inc. was founded in 1932 and is headquartered in Warren, Michigan.

How the Company Makes Money

Universal Logistics Holdings generates revenue through a multi-faceted business model that includes several key streams. The company earns money primarily through its transportation services, which include truckload, intermodal logistics, and freight brokerage services. Truckload services involve the transportation of full trailer loads of freight, while intermodal logistics combines different modes of transport, such as rail and truck, to move goods. Additionally, ULH's freight brokerage services connect shippers with carriers, helping to optimize freight movement across the supply chain. Besides transportation, ULH also provides value-added services such as warehousing, material handling, and logistics management, which contribute significantly to its earnings. Strategic partnerships with carriers and shippers, along with a focus on operational efficiency and customer service, further enhance ULH's revenue generation capabilities.

Universal Logistics Financial Statement Overview

Summary

Universal Logistics exhibits solid operational efficiency but faces challenges with declining revenue growth and negative free cash flow. The healthy EBIT and EBITDA margins suggest operational strength, but the negative Free Cash Flow indicates potential liquidity issues. The company needs to focus on improving these areas to ensure long-term financial stability.

Income Statement

Universal Logistics shows a mixed performance in its income statement. The TTM Gross Profit Margin stands at 14.6%, indicating efficiency in controlling production costs. However, the Net Profit Margin has decreased to 4.8% in the TTM, reflecting a decline in overall profitability from the previous year. The Revenue Growth Rate is negative at -5.9% from the prior annual report, which could be concerning if the trend continues. The EBIT Margin and EBITDA Margin for the TTM are healthy at 8.3% and 16.5%, respectively, suggesting operational efficiency.

Balance Sheet

The balance sheet reveals a solid equity base with a Debt-to-Equity ratio of 1.3 in the TTM, indicating moderate leverage. The Return on Equity (ROE) is 12.9% in the TTM, showing effective use of equity capital. The Equity Ratio stands at 35.9%, suggesting a balanced approach to financing with a reasonable level of equity coverage for assets. The company should monitor its debt levels to avoid increased financial risk.

Cash Flow

Universal Logistics exhibits a concerning trend in cash flow. The Free Cash Flow is negative in the TTM at -$75.8 million. However, the Operating Cash Flow to Net Income ratio is 1.9, indicating efficient cash generation relative to net earnings. The Free Cash Flow to Net Income ratio is negative, highlighting challenges in covering net income with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.74B	1.85B	1.66B	2.02B	1.75B	1.39B
Gross Profit	253.62M	315.88M	255.82M	352.40M	215.33M	159.54M
EBITDA	287.03M	332.40M	225.54M	318.37M	170.50M	152.68M
Net Income	83.46M	129.91M	92.90M	168.63M	73.73M	48.13M
Balance Sheet
Total Assets	1.06B	1.80B	1.25B	1.20B	1.14B	1.06B
Cash, Cash Equivalents and Short-Term Investments	15.38M	30.94M	23.28M	57.18M	21.96M	15.30M
Total Debt	466.60M	838.44M	475.54M	484.33M	537.90M	560.13M
Total Liabilities	829.24M	1.14B	721.33M	756.75M	835.28M	823.48M
Stockholders Equity	227.63M	647.02M	532.20M	446.93M	302.21M	239.57M
Cash Flow
Free Cash Flow	-75.81M	-139.23M	-30.31M	96.31M	44.44M	8.63M
Operating Cash Flow	159.80M	112.37M	210.25M	213.41M	83.28M	99.34M
Investing Cash Flow	-446.02M	-462.90M	-236.77M	-103.74M	-33.23M	-86.56M
Financing Cash Flow	310.50M	365.04M	-8.56M	-78.24M	-44.56M	-8.95M

Universal Logistics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ULH, the sentiment is Positive. The current price of 28.78 is above the 20-day moving average (MA) of 25.37, above the 50-day MA of 24.63, and below the 200-day MA of 35.38, indicating a neutral trend. The MACD of 0.79 indicates Negative momentum. The RSI at 71.35 is Negative, neither overbought nor oversold. The STOCH value of 90.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ULH.

Universal Logistics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ULH	70 Outperform	$757.87M	9.09	13.57%	1.48%	1.16%	-30.78%
ARCB	69 Neutral	$1.90B	10.97	14.25%	0.58%	-5.69%	51.78%
CVLG	68 Neutral	$683.28M	18.57	8.95%	1.09%	0.59%	-11.10%
MRTN	66 Neutral	$1.11B	51.45	2.83%	1.76%	-13.47%	-62.49%
WERN	61 Neutral	$1.80B	102.07	1.21%	1.93%	-7.66%	-78.26%
Sector *	58 Neutral	$1.34B	4.24	-2.93%	7.38%	3.67%	-51.13%
HTLD	54 Neutral	$717.19M	―	-3.44%	0.88%	-13.10%	-121.50%

Universal Logistics Corporate Events

Universal Logistics Reports Q1 2025 Financial Decline

Universal Logistics Holdings held its Annual Meeting of Shareholders on April 23, 2025, where shareholders elected 11 directors, approved the company’s conversion to a Nevada corporation, and ratified Grant Thornton LLP as the independent accounting firm for 2025. The company reported a significant decline in its first quarter 2025 financial results, with operating revenues down 22.3% to $382.4 million and net income dropping to $6.0 million from $52.5 million the previous year. Despite the sluggish start to 2025, Universal remains focused on improving underperforming operations and strategic customer acquisition to drive growth. The Board of Directors declared a cash dividend of $0.105 per share, payable on July 1, 2025.