Universal Logistics (ULH) AI Stock Analysis

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Universal Logistics

(NASDAQ:ULH)

Rating:64Neutral

Price Target:

$26.00

▲(5.35% Upside)

Universal Logistics faces significant financial challenges, including declining revenue growth and negative free cash flow, which are the most impactful factors on its stock score. While the company shows operational efficiency and reasonable valuation, technical indicators suggest bearish momentum. The earnings call highlights ongoing challenges but also points to strategic initiatives that could support future recovery.

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

Market Cap

$657.19M

Dividend Yield1.62%

Average Volume (3M)50.35K

Price to Earnings (P/E)10.8

Beta (1Y)1.75

Revenue Growth-5.55%

EPS Growth-52.21%

CountryUS

Employees10,821

SectorIndustrials

Sector Strength83

IndustryTrucking

Share Statistics

EPS (TTM)0.32

Shares Outstanding26,329,588

10 Day Avg. Volume31,913

30 Day Avg. Volume50,351

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 Cap2.37

Enterprise Value/Revenue0.90

Enterprise Value/Gross Profit6.13

Enterprise Value/Ebitda5.36

Forecast

1Y Price Target

$27.00

Price Target Upside9.40% Upside

Rating ConsensusHold

Number of Analyst Covering2

Universal Logistics Business Overview & Revenue Model

Company DescriptionUniversal Logistics Holdings, Inc. (ULH) is a leading provider of logistics and transportation services in North America. The company operates across multiple sectors, including truckload, logistics management, intermodal, and dedicated contract carriage. ULH offers a comprehensive suite of services, including freight brokerage, warehousing, and supply chain management, aimed at optimizing the movement of goods for its diverse customer base ranging from small businesses to large corporations.

How the Company Makes MoneyUniversal Logistics generates revenue through several key streams, primarily by providing logistics and transportation services. Its truckload segment contributes significantly to earnings by offering transportation of goods via a fleet of owned and leased trucks. The logistics management services also represent a vital revenue source, where ULH acts as an intermediary for customers needing freight brokerage and supply chain solutions. Additionally, the intermodal services, which combine rail and truck transportation, provide cost-effective and efficient shipping options for clients. Significant partnerships with major retailers and manufacturers enhance the company's service offerings and contribute to its earnings, along with the growing demand for third-party logistics solutions. Furthermore, ULH leverages technology to optimize its operations and improve efficiency, which helps in maintaining competitive pricing and profitability.

Universal Logistics Earnings Call Summary

Earnings Call Date:Jul 24, 2025

(Q2-2025)

% Change Since: -9.89%|

Next Earnings Date:Oct 23, 2025

Earnings Call Sentiment Neutral

The earnings call reveals a challenging environment with declining revenues and margins across segments, yet there are positive developments such as improved trucking margins, strategic sales initiatives, and progress in the Intermodal segment. The ongoing commitment to sales expansion and cost management indicates potential for future recovery, but current financial challenges weigh heavily.

Q2-2025 Updates

Positive Updates

Stable Contract Logistics Performance

The Contract Logistics segment remains the cornerstone with revenues of $260.6 million. The integration of Parsec contributed $55 million in revenue. The segment continues to operate 87 value-added programs, up from 68 a year ago, indicating expansion and stability.

Trucking Segment Margin Improvement

Despite a 30% decline in revenues, the Trucking segment's operating margin improved to 5.2% from 4.8% a year ago, showing resilience in specialized freight, including wind energy.

Intermodal Segment Progress

The Intermodal segment showed signs of progress, narrowing its operating loss to $5.7 million from $10.7 million in the first quarter. The operating ratio improved from 115.1 in Q1 to 108.2.

Strategic Sales Initiatives

Universal Logistics has expanded its sales organization, hired senior sales directors, and rolled out a new CRM solution. These actions have improved coordination and accelerated customer-centric solutions, supporting a growing $1 billion sales pipeline.

Dividend Declaration

The Board of Directors declared a $0.105 per share regular quarterly dividend, payable on October 1, 2025, indicating a commitment to returning value to shareholders.

Negative Updates

Decline in Overall Financial Performance

Universal reported a decline in net income to $8.3 million from $30.7 million the previous year, and a decrease in operating revenues to $393.8 million from $462.2 million.

Significant Trucking Revenue Drop

Trucking segment revenues decreased nearly 30% year-over-year, primarily due to a 22.6% drop in load volumes and an 8.9% decrease in revenue per load, excluding fuel surcharges.

Contract Logistics Margin Decline

Contract Logistics operating income decreased to $21.8 million from $52.9 million a year earlier, with margins dropping from 20.1% to 8.4% due to the absence of the special development project and increased depreciation and amortization on the Parsec acquisition.

Challenges in Intermodal Segment

The Intermodal segment faced a 13.5% decline in revenue year-over-year and continued to operate at a loss, despite sequential improvements.

Company Guidance

During the second quarter of 2025, Universal Logistics Holdings 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, corresponding to a 5.1% operating margin. EBITDA was reported at $56.2 million, equating to 14.3% of revenue. The Contract Logistics segment, a key contributor, posted revenues of $260.6 million. Meanwhile, the Trucking segment faced a 30% revenue decline compared to the previous year, totaling $64.1 million, yet managed to improve its operating margin to 5.2%. The Intermodal segment saw revenues of $68.9 million, a 13.5% decrease year-over-year, but reduced its operating loss to $5.7 million. The company remains focused on cost management, operational efficiency, and enhancing sales capabilities, with expectations for third-quarter revenues between $390 million and $410 million, alongside operating margins of 5% to 7% and EBITDA margins of 14% to 16%. Universal plans to invest $100 million to $125 million in equipment and $50 million to $65 million in real estate for the full year.

Universal Logistics Financial Statement Overview

Summary

Universal Logistics demonstrates solid operational efficiency and moderate leverage, but struggles with declining revenue growth and negative free cash flow. Margins remain competitive, yet the company must improve cash flow and manage debt levels to ensure financial stability.

Income Statement

Positive

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

Positive

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

Neutral

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	289.96M	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	1.80B	1.79B	1.25B	1.20B	1.14B	1.06B
Cash, Cash Equivalents and Short-Term Investments	32.59M	30.94M	23.28M	57.18M	21.96M	15.30M
Total Debt	838.88M	838.44M	475.54M	484.33M	537.90M	560.13M
Total Liabilities	1.15B	1.14B	721.33M	756.75M	835.28M	823.48M
Stockholders Equity	646.40M	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

Negative

Last Price24.68

Price Trends

50DMA

25.39

Negative

100DMA

25.16

Negative

200DMA

32.80

Negative

Market Momentum

MACD

-0.42

Negative

RSI

49.00

Neutral

STOCH

85.24

Negative

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 24.68 is below the 20-day moving average (MA) of 24.91, below the 50-day MA of 25.39, and below the 200-day MA of 32.80, indicating a bearish trend. The MACD of -0.42 indicates Negative momentum. The RSI at 49.00 is Neutral, neither overbought nor oversold. The STOCH value of 85.24 is Negative, 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 0 New Risks

Universal Logistics Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARCB	69 Neutral	$1.64B	10.74	12.50%	0.64%	-6.42%	25.72%
CVLG	67 Neutral	$639.47M	18.43	8.58%	1.03%	0.75%	-15.76%
Sector *	65 Neutral	$2.68B	15.34	15.18%	3.46%	-0.30%	27.34%
ULH	64 Neutral	$657.19M	10.77	9.67%	1.62%	-5.55%	-52.21%
WERN	61 Neutral	$1.69B	33.05	3.65%	1.95%	-6.43%	-13.76%
MRTN	58 Neutral	$989.66M	47.31	2.72%	1.94%	-11.77%	-52.06%
HTLD	44 Neutral	$643.26M	―	-4.42%	0.95%	-16.42%	-49.44%

* Industrials Sector Average

Performance Comparison

ULH

Universal Logistics

24.68

-14.16

-36.46%

CVLG

Covenant Logistics Group

24.26

-1.86

-7.12%

HTLD

Heartland Express

8.31

-3.97

-32.33%

MRTN

Marten Transport

12.14

-4.88

-28.67%

WERN

Werner Enterprises

28.31

-8.40

-22.88%

ARCB

ArcBest

73.51

-34.84

-32.16%

Universal Logistics Corporate Events

DividendsBusiness Operations and StrategyFinancial Disclosures

Universal Logistics Reports Q2 Revenue Decline

Negative

Jul 24, 2025

On July 24, 2025, Universal Logistics Holdings, Inc. announced its second quarter financial results, reporting a decrease in operating revenues to $393.8 million, down 14.8% from the previous year. The company also declared a cash dividend of $0.105 per share, payable on October 1, 2025. Despite a challenging freight environment, Universal’s contract logistics and trucking segments showed resilience, while the intermodal segment continued to underperform. The company remains focused on strategic investments and long-term growth initiatives.

The most recent analyst rating on (ULH) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Universal Logistics stock, see the ULH Stock Forecast page.

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.Date of analysis: Aug 15, 2025