UL Solutions Inc. Class A (ULS) AI Stock Analysis

• Market Cap: $13.55B
• Dividend Yield: 0.76%
• Average Volume (3M): 918.38K
• Price to Earnings (P/E): 41.1
• Beta (1Y): 0.51
• Revenue Growth: 6.92%
• EPS Growth: 21.82%
• Country: US
• Employees: 14,813
• Sector: General
• Sector Strength: N/A
• Industry: Specialty Business Services
• EPS (TTM): 0.52
• Shares Outstanding: 62,752,790
• 10 Day Avg. Volume: 746,293
• 30 Day Avg. Volume: 918,380
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 5.20
• Enterprise Value/Gross Profit: 10.76
• Enterprise Value/Ebitda: 23.35
• 1Y Price Target: $70.43
• Price Target Upside: 3.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: $73.00 ▲(7.37% Upside)

UL Solutions Inc. has a strong financial foundation and positive earnings call results, driving a favorable outlook. However, the high P/E ratio suggests potential overvaluation, and technical indicators show mixed signals. The company's strategic investments and growth in key segments are positive, but challenges in certain areas and macroeconomic uncertainties temper the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and market position.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling the company to invest in growth opportunities and withstand economic fluctuations.

Leadership Changes

Leadership changes aim to enhance agility and responsiveness, potentially strengthening the company's strategic direction and operational efficiency.

Negative Factors

Consumer Segment Challenges

Slowing growth in the consumer segment may indicate market saturation or competitive pressures, potentially impacting future revenue streams.

Advisory Services Weakness

Challenges in advisory services could limit growth in this segment, affecting overall revenue diversification and strategic positioning.

Cost Pressures

Rising costs can pressure margins, potentially reducing profitability and limiting the company's ability to invest in growth initiatives.

UL Solutions Inc. Class A Business Overview & Revenue Model

Company Description

UL Solutions Inc. provides safety science services worldwide. It operates through three segments: Industrial, Consumer, and Software and Advisory. The Industrial segment provides testing, inspection, and certification services across various end markets, including energy, industrial automation, engineered materials, and built environment, as well as stakeholders, such as manufacturers, building owners, end users, and regulators. The Consumer segment offers safety certification testing, ongoing certification, global market access, testing for connectivity, performance and quality, and critical systems advisory and training services, as well as product market acceptance and risk mitigation services for customers in the consumer products end markets comprising consumer electronics, medical devices, information technologies, appliances, HVAC, lighting, and retail, as well as consumer applications, such as new mobility, smart products, and 5G. The Software and Advisory segment provide software and technical advisory services that enable customers to manage regulatory requirements, deliver supply chain transparency, and operationalize sustainability for regulated industries, including life sciences, supply chain regulations, transparency needs, and new ESG and sustainability requirements. It offers ULTRUS software brand to help customers improve speed to market, sustainability and safety. UL Solutions Inc. was formerly known as UL Inc. and changed its name to UL Solutions Inc. in June 2022. The company was founded in 1894 and is headquartered in Northbrook, Illinois with additional offices in North America, Asia Pacific, Africa, Europe, Latin America, and Middle East. UL Solutions Inc. operates as a subsidiary of ULSE Inc.

How the Company Makes Money

UL Solutions Inc. makes money primarily through its comprehensive suite of testing, inspection, and certification services. The company charges fees for assessing products and systems to ensure they meet specific safety and performance standards. Revenue streams include certification services for electrical and electronic products, advisory and training services for regulatory compliance, and software sales that help clients manage product safety and compliance data. Significant partnerships with industry leaders and government agencies often bolster its service offerings, enhancing its reputation as a trusted authority in safety science. The company also benefits from recurring revenue from clients who require ongoing compliance and certification services.

UL Solutions Inc. Class A Financial Statement Overview

Summary

UL Solutions Inc. demonstrates strong financial health with consistent revenue growth, efficient operations, and effective cash flow management. Improved leverage and robust return on equity enhance financial stability, though past leverage levels and cash flow volatility present some risks.

Income Statement

UL Solutions Inc. has demonstrated strong revenue growth with a TTM increase of 1.58% and consistent gross profit margins around 48%. The net profit margin is stable at approximately 11%, indicating effective cost management. EBIT and EBITDA margins are healthy, reflecting operational efficiency. However, the slight decline in net profit margin from previous periods suggests potential cost pressures.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.74 in the TTM, showing improved leverage management compared to previous years. Return on equity is robust at 34%, indicating effective use of shareholder funds. The equity ratio is stable, suggesting a balanced capital structure. However, past higher leverage levels pose a potential risk if not managed carefully.

Cash Flow

Operating cash flow is strong, with a TTM operating cash flow to net income ratio of 0.76, indicating good cash generation relative to earnings. Free cash flow growth is positive at 18.95%, supporting future investments. The free cash flow to net income ratio of 0.63 highlights solid cash conversion. However, fluctuations in free cash flow growth in prior years suggest potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.95B	2.87B	2.68B	2.52B	2.52B	2.30B
Gross Profit	1.43B	1.38B	1.26B	1.21B	1.18B	1.03B
EBITDA	657.00M	642.00M	535.00M	535.00M	417.00M	481.00M
Net Income	327.00M	326.00M	260.00M	293.00M	224.00M	231.00M
Balance Sheet
Total Assets	2.92B	2.80B	2.74B	2.72B	3.66B	3.55B
Cash, Cash Equivalents and Short-Term Investments	272.00M	298.00M	315.00M	373.00M	1.38B	971.00M
Total Debt	805.00M	935.00M	1.06B	660.00M	154.00M	161.00M
Total Liabilities	1.81B	1.87B	2.06B	1.64B	1.33B	1.28B
Stockholders Equity	1.09B	904.00M	654.00M	1.05B	2.31B	2.25B
Cash Flow
Free Cash Flow	364.00M	287.00M	252.00M	208.00M	314.00M	368.00M
Operating Cash Flow	581.00M	524.00M	467.00M	372.00M	421.00M	487.00M
Investing Cash Flow	-248.00M	-234.00M	-175.00M	-238.00M	178.00M	-344.00M
Financing Cash Flow	-346.00M	-284.00M	-294.00M	-1.12B	-228.00M	-20.00M

UL Solutions Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.99
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ULS, the sentiment is Positive. The current price of 67.99 is above the 20-day moving average (MA) of 64.95, above the 50-day MA of 67.57, and above the 200-day MA of 60.73, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 56.83 is Neutral, neither overbought nor oversold. The STOCH value of 84.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ULS.

UL Solutions Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GPN	76 Outperform	20.71B	14.93	6.33%	1.16%	-4.17%	4.76%
MMS	76 Outperform	4.99B	16.31	17.84%	1.35%	3.40%	13.75%
RTO	76 Outperform	12.54B	37.49	7.26%	2.66%	1.56%	-32.50%
ULS	74 Outperform	$13.55B	41.06	35.12%	0.76%	6.92%	21.82%
ARMK	67 Neutral	9.85B	27.71	11.73%	1.11%	-0.06%	3.83%
CBZ	65 Neutral	3.07B	31.66	5.77%	―	46.49%	-25.62%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

UL Solutions Inc. Class A Corporate Events

UL Solutions Inc. Announces Leadership Changes

On August 14, 2025, UL Solutions Inc. announced significant executive leadership changes effective September 1, 2025. Weifang Zhou will transition to a non-executive role as Special Advisor to the CEO, while Alex Dadakis will succeed him as Executive Vice President and President of Testing, Inspection, and Certification. Gitte Schjøtz will take over Dadakis’s previous role as Chief Business Operations and Innovation Officer. These changes aim to enhance the company’s agility and responsiveness to market demands, reinforcing its position in the Testing, Inspection, and Certification industry.