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Universal Logistics (ULH)
NASDAQ:ULH
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Universal Logistics
(NASDAQ:ULH)
Rating:67Neutral
Price Target:
$26.00
▲( 10.36% Upside)
Universal Logistics (ULH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$663.60M
Dividend Yield1.67%
Average Volume (3M)68.45K
Price to Earnings (P/E)8.0
Beta (1Y)1.44
Revenue Growth1.16%
EPS Growth-30.78%
CountryUS
Employees10,821
SectorIndustrials
Sector Strength90
IndustryTrucking
Share Statistics
EPS (TTM)0.23
Shares Outstanding26,333,239
10 Day Avg. Volume40,511
30 Day Avg. Volume68,451
Financial Highlights & Ratios
PEG Ratio-6.90
Price to Book (P/B)1.11
Price to Sales (P/S)0.00
P/FCF Ratio-5.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$29.00Price Target Upside23.09% Upside
Rating ConsensusHold
Number of Analyst Covering1
Universal Logistics Business Overview & Revenue Model
Company DescriptionUniversal 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 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
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.75
Positive
Balance Sheet
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.40
Negative
Cash Flow
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.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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
Negative
23.56
Price Trends
25.36
Negative
31.03
Negative
37.62
Negative
Market Momentum
-0.16
Negative
42.34
Neutral
39.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ULH, the sentiment is Negative. The current price of 23.56 is below the 20-day moving average (MA) of 23.98, below the 50-day MA of 25.36, and below the 200-day MA of 37.62, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 42.34 is Neutral, neither overbought nor oversold. The STOCH value of 39.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 3 New Risks
1.
We may change our dividend policy at any time. Q4, 2024
2.
We identified a material weakness in our internal control over financial reporting that could have resulted in material misstatements in our financial statements and cause us to fail to meet our reporting and financial obligations. Q4, 2024
3.
If we make acquisitions in the future, we may not successfully integrate the acquired company, which could have a materially adverse effect on our business. Q4, 2024
Universal Logistics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.52B | 8.74 | 14.25% | 0.76% | -5.69% | 51.78% | |
67 Neutral | $663.60M | 7.96 | 13.57% | 1.67% | 1.16% | -30.78% | |
65 Neutral | $614.77M | 16.70 | 8.95% | 1.04% | 0.59% | -11.10% | |
64 Neutral | $4.39B | 11.81 | 5.17% | 249.38% | 3.98% | -12.17% | |
63 Neutral | $1.09B | 50.55 | 2.83% | 1.83% | -13.47% | -62.49% | |
53 Neutral | $705.41M | ― | -3.44% | 0.91% | -13.10% | -121.50% | |
50 Neutral | $1.68B | 95.40 | 1.21% | 2.06% | -7.66% | -78.26% |
* Industrials Sector Average
Performance Comparison
ULH
Universal Logistics
23.56
-20.38
-46.38%
CVLG
Covenant Logistics Group
22.47
-0.59
-2.56%
HTLD
Heartland Express
8.80
-2.45
-21.78%
MRTN
Marten Transport
12.99
-4.36
-25.13%
WERN
Werner Enterprises
26.16
-10.29
-28.23%
ARCB
ArcBest
62.05
-43.15
-41.02%
Universal Logistics Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: -12.12%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant challenges, including declines in overall revenue, income, and performance in several segments. However, there were positive aspects such as the performance of the contract logistics segment, successful integration of the Parsec acquisition, and improvement in auto production volumes. The company's strategic focus on specialized freight and the declaration of a dividend also provided some positive outlook.Q1-2025 Updates
Positive Updates
Contract Logistics Segment Performance
The contract logistics segment contributed $255.9 million in revenue and delivered a solid 9.3% operating margin. The company is on track to book over $1.1 billion in contract logistics revenue in 2025.
Parsec Acquisition Integration
The Parsec acquisition contributed $56.4 million in revenue this quarter. The company now operates 87 value-added programs, including 20 rail terminal operations, a significant increase from 71 programs last year.
Positive Trends in Auto Production
Auto production volumes showed improvement, particularly in February and March. The company expects long-term opportunities in this segment with key launches beginning in the second quarter.
Revenue Per Load Increase in Trucking
Revenue per load, excluding fuel surcharges in the trucking segment, increased by more than 24%, indicating the success of the strategy to focus on specialized high-yield freight.
Dividend Declaration
The Board of Directors declared a regular quarterly dividend of 10.5 cents per share, payable to shareholders of record on June 2, 2025.
Negative Updates
Overall Revenue and Income Decline
Total operating revenue for the first quarter was $382.4 million, a decrease from $491.9 million in the same period last year. Net income dropped to $6 million from $52.5 million.
Trucking Segment Volume Decline
Trucking segment revenues decreased by 20.2% due to a 31.3% drop in volumes, resulting in lower overall operating income for the segment.
Intermodal Segment Performance
The intermodal segment faced challenges with revenues decreasing to $70.7 million and an operating loss of $10.7 million. There was also a 3.4% drop in volumes and an 8.7% decline in rate per load.
EBITDA and Operating Margin Decrease
EBITDA decreased by $45.2 million to $51.7 million. The operating margin for the first quarter of 2025 was 4.1%, down from 15.3% in the first quarter of 2024.
Company Guidance
During the first quarter of 2025 earnings call, Universal Logistics Holdings reported a total operating revenue of $382.4 million, with a net income of $6 million or $0.23 per share, and an operating margin of 4.1%. Despite a sluggish freight environment and a year-over-year decline, the company remains optimistic about its long-term growth. The contract logistics segment contributed $255.9 million in revenue with a 9.3% operating margin, and the Parsec acquisition added $56.4 million in revenue. The trucking segment saw a 20.2% revenue decrease to $55.6 million, yet revenue per load increased by over 24%. The intermodal segment recorded a $10.7 million operating loss, but stable freight volumes are anticipated. For Q2 2025, Universal expects revenues between $390 million and $410 million, with operating margins between 5% and 7%, and EBITDA margins of 14% to 16%. Capital expenditures for the full year are projected at $100 million to $125 million for equipment, and $55 million to $65 million for real estate. The company declared a regular quarterly dividend of 10.5 cents per share, payable on July 1, 2025.Universal Logistics Corporate Events
Shareholder MeetingsDividendsBusiness Operations and StrategyFinancial Disclosures
Universal Logistics Reports Q1 2025 Financial Decline
Negative
Apr 24, 2025
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.
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.