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Universal Logistics (ULH)
NASDAQ:ULH
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Universal Logistics
(NASDAQ:ULH)
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Rating:52Neutral
Price Target:
$15.50
â–¼(-3.19% Downside)
Universal Logistics' overall stock score is primarily impacted by its challenging financial performance, including declining revenue and profitability, high leverage, and cash flow constraints. The bearish technical indicators and negative valuation metrics further weigh on the score. The recent corporate event of an impairment charge adds additional risk, highlighting the need for caution.
Positive Factors
Operational Efficiency
Universal Logistics maintains strong operational efficiency, as indicated by healthy EBIT and EBITDA margins, which can support profitability even in challenging market conditions.
Governance Enhancement
The appointment of Marcus Hudson to the audit committee strengthens governance by adding financial expertise, potentially improving financial oversight and investor confidence.
Diverse Revenue Streams
Universal Logistics' diverse revenue streams across logistics, transportation, and warehousing reduce dependency on a single market, enhancing resilience against sector-specific downturns.
Negative Factors
High Leverage
The high debt-to-equity ratio indicates significant leverage, posing risks in volatile markets and potentially limiting financial flexibility.
Declining Revenue
A declining revenue growth rate reflects a challenging market environment, which could impact long-term growth prospects and investor confidence.
Cash Flow Constraints
Negative free cash flow growth highlights cash flow constraints, which may affect liquidity and the ability to invest in growth opportunities or manage debt effectively.
Universal Logistics (ULH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$421.54M
Dividend Yield2.76%
Average Volume (3M)45.62K
Price to Earnings (P/E)―
Beta (1Y)1.65
Revenue Growth-7.55%
EPS Growth-130.67%
CountryUS
Employees10,821
SectorIndustrials
Sector Strength72
IndustryTrucking
Share Statistics
EPS (TTM)-2.84
Shares Outstanding26,330,057
10 Day Avg. Volume73,652
30 Day Avg. Volume45,615
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)1.87
Price to Sales (P/S)0.65
P/FCF Ratio-8.68
Enterprise Value/Market Cap3.15
Enterprise Value/Revenue0.80
Enterprise Value/Gross Profit6.01
Enterprise Value/Ebitda5.05
Forecast
1Y Price Target
$17.00Price Target Upside6.18% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 generates revenue through multiple streams, primarily from its logistics and transportation services. The company earns money by charging clients for freight transportation services, including full truckload and intermodal shipping. Additionally, ULH provides warehousing and distribution services, which contribute significantly to its revenue. The company may also generate income from logistics management solutions, where it partners with businesses to streamline their supply chain operations. Key revenue streams include contracts with major clients across various industries, as well as long-term partnerships with carriers and freight brokers, which enhance its service capabilities and market reach.
Universal Logistics Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mixed performance for Universal Logistics Holdings. While there were some positive developments, particularly in the Contract Logistics segment and sales initiatives, the overall revenue and income decline, coupled with challenges in the Trucking and Intermodal segments, indicate significant pressure. The sentiment is balanced, with equal highlights and lowlights.Q2-2025 Updates
Positive Updates
Contract Logistics Segment Performance
The Contract Logistics segment remained the cornerstone of Universal's results, with revenues of $260.6 million. Despite a slight decline from last year, the integration of Parsec contributed $55 million in revenue.
Truck Segment Resilience
Trucking revenues were $64.1 million, down nearly 30% year-over-year. However, operating margin improved to 5.2% from 4.8%, with operating income at $3.3 million.
Intermodal Segment Progress
Intermodal segment revenues were $68.9 million, down 13.5% year-over-year, but the operating loss narrowed from $10.7 million in Q1 to $5.7 million.
Sales and Business Development Initiatives
The company expanded its sales organization with new senior sales directors and rolled out a new CRM solution, enhancing customer relationship management and sales pipeline visibility.
Negative Updates
Overall Revenue and Income Decline
Universal reported a decline in operating revenues to $393.8 million from $462.2 million last year, and net income decreased to $8.3 million from $30.7 million.
Trucking Revenue and Load Volume Drop
Trucking segment revenues decreased nearly 30% year-over-year, with a 22.6% drop in load volumes and an 8.9% decrease in revenue per load.
Intermodal Segment Under Pressure
Intermodal segment revenues declined 13.5% year-over-year, and load volumes declined nearly 13%.
Reduced Operating and EBITDA Margins
Operating margin decreased to 5.1% from 10.2% last year, and EBITDA margin dropped to 14.3% from 18.4%.
Challenges in Class 8 and Automotive Sectors
Class 8 production faced challenges with significant year-over-year declines, and the SAAR for autos dropped recently.
Company Guidance
During the Universal Logistics Holdings' second quarter 2025 earnings call, the company reported operating revenues of $393.8 million, with a net income of $8.3 million, or $0.32 per diluted share. The company achieved an operating income of $19.9 million, marking a 5.1% operating margin, and an EBITDA of $56.2 million, which represented 14.3% of revenue. The Contract Logistics segment remained pivotal, generating $260.6 million in revenue, while Trucking revenues fell to $64.1 million due to a 22.6% drop in load volumes. The Intermodal segment faced challenges, with revenues down to $68.9 million, but managed to narrow its operating loss to $5.7 million from $10.7 million in the first quarter. For the third quarter of 2025, Universal projects revenues between $390 million and $410 million, with operating margins expected in the 5% to 7% range and EBITDA margins between 14% and 16%. The company anticipates full-year revenues between $1.6 billion and $1.7 billion, maintaining similar margin ranges as Q3 guidance.Universal Logistics Financial Statement Overview
Summary
Universal Logistics faces a challenging financial landscape with declining revenue and profitability margins, high leverage, and cash flow constraints. While operational efficiency remains a strength, the company must address its leverage and cash flow issues to improve financial stability and investor confidence.Income Statement
Universal Logistics shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 3.94%, reflecting a challenging market environment. Gross profit margin stands at 13.23%, and net profit margin at 3.66%, both showing a decrease from the previous year, indicating pressure on profitability. However, the company maintains a reasonable EBIT margin of 7.32% and an EBITDA margin of 15.62%, suggesting operational efficiency.65
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 1.39, indicating significant leverage, which poses a risk in volatile markets. Return on equity is 9.47%, showing a decline from previous periods, which may concern investors. The equity ratio is 34.23%, suggesting a moderate level of equity financing relative to total assets.60
Neutral
Cash Flow
Cash flow analysis indicates challenges, with a negative free cash flow growth rate of 11.93% and a free cash flow to net income ratio of -0.38, highlighting cash flow constraints. The operating cash flow to net income ratio is 0.83, suggesting that operating cash flow is not fully covering net income, which could impact liquidity.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.67B | 1.85B | 1.66B | 2.02B | 1.75B | 1.39B |
| Gross Profit | 220.96M | 315.88M | 255.82M | 352.40M | 215.33M | 159.54M |
| EBITDA | 263.23M | 332.40M | 225.54M | 318.37M | 177.76M | 152.68M |
| Net Income | 61.05M | 129.91M | 92.90M | 168.63M | 73.73M | 48.13M |
Balance Sheet | ||||||
| Total Assets | 1.86B | 1.79B | 1.25B | 1.20B | 1.14B | 1.06B |
| Cash, Cash Equivalents and Short-Term Investments | 34.20M | 30.94M | 23.28M | 57.18M | 21.96M | 15.30M |
| Total Debt | 911.70M | 838.44M | 475.54M | 484.33M | 537.90M | 560.13M |
| Total Liabilities | 1.21B | 1.14B | 721.33M | 756.75M | 835.28M | 823.48M |
| Stockholders Equity | 653.69M | 647.02M | 532.20M | 446.93M | 302.21M | 239.57M |
Cash Flow | ||||||
| Free Cash Flow | -66.77M | -139.23M | -30.31M | 96.31M | 44.44M | 8.63M |
| Operating Cash Flow | 175.96M | 112.37M | 210.25M | 213.41M | 83.28M | 99.34M |
| Investing Cash Flow | -448.34M | -462.90M | -236.77M | -103.74M | -33.23M | -86.56M |
| Financing Cash Flow | 299.56M | 365.04M | -8.56M | -78.24M | -44.56M | -8.95M |
Universal Logistics Technical Analysis
Negative
16.01
Price Trends
15.97
Positive
17.92
Negative
21.34
Negative
Market Momentum
-0.03
Positive
46.99
Neutral
16.20
Positive
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 16.01 is below the 20-day moving average (MA) of 16.76, above the 50-day MA of 15.97, and below the 200-day MA of 21.34, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 46.99 is Neutral, neither overbought nor oversold. The STOCH value of 16.20 is Positive, 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 36 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $1.00B | 58.57 | 2.53% | 2.07% | -9.74% | -42.57% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $616.16M | 91.45 | 6.84% | 1.23% | 1.62% | -22.52% | |
63 Neutral | $2.05B | 84.19 | 1.78% | 1.84% | -3.42% | -43.86% | |
58 Neutral | $781.45M | -22.61 | -4.35% | 0.87% | -19.56% | -54.39% | |
56 Neutral | $2.03B | 34.44 | 4.61% | 0.62% | -5.34% | -48.16% | |
52 Neutral | $421.54M | -10.46 | -6.66% | 2.76% | -7.55% | -130.67% |
* Industrials Sector Average
ULH
Universal Logistics
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-26.09
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.