Universal Technical Institute (UTI) AI Stock Analysis

• Market Cap: $1.44B
• Dividend Yield: N/A
• Average Volume (3M): 728.21K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.79
• Revenue Growth: 14.56%
• EPS Growth: 127.02%
• Country: US
• Employees: 3,700
• Sector: Consumer Defensive
• Sector Strength: 64
• Industry: Education & Training Services
• EPS (TTM): 0.19
• Shares Outstanding: 54,423,610
• 10 Day Avg. Volume: 1,113,058
• 30 Day Avg. Volume: 728,207
• 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: 1.40
• Enterprise Value/Revenue: 2.50
• Enterprise Value/Gross Profit: 5.04
• Enterprise Value/Ebitda: 15.57
• 1Y Price Target: $35.83
• Price Target Upside: 39.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: $29.00 ▲(12.53% Upside)

Universal Technical Institute's overall stock score is driven by strong financial performance and positive corporate events. The raised guidance and strategic expansions contribute positively. However, weak technical indicators and moderate valuation limit the score. The earnings call provides a positive outlook but highlights some challenges in student growth and future margin expansion.

Positive Factors

Financial Performance

Universal Technical Institute reported financial results of its fiscal third quarter that topped expectations and full-year revenue and starts guidance was raised.

Market Confidence

The stock is trading at a premium to its postsecondary education peer group average, indicating strong market confidence.

Strategic Growth

The North Star Strategy is expected to deliver approximately 10% revenue CAGR and expand its adjusted EBITDA margin to nearly 20% through FY/29.

Negative Factors

Investment Impact

Planned growth investments in the near-term will pressure margins in FY/26 and FY/27.

Margin Pressure

Planned growth investments in the near-term are expected to pressure margins in upcoming fiscal years.

Universal Technical Institute Business Overview & Revenue Model

Company Description

Universal Technical Institute (UTI) is a leading provider of technical education, specializing in training individuals for careers in the automotive, diesel, collision repair, motorcycle, and marine industries. Founded in 1965, UTI operates multiple campuses across the United States, offering a range of programs that combine hands-on experience with classroom instruction. The institute is dedicated to equipping students with the skills necessary to succeed in their chosen fields, addressing the growing demand for skilled technicians in various sectors.

How the Company Makes Money

UTI primarily generates revenue through tuition and fees paid by students enrolled in its training programs. The institute offers various programs that vary in length and cost, allowing it to cater to a wide range of students. Additionally, UTI benefits from partnerships with industry leaders and employers, which can lead to sponsorships, job placement services, and other collaborative initiatives that enhance its educational offerings. The institute may also receive funding from federal financial aid programs, including Pell Grants and student loans, which further contributes to its revenue. Overall, the combination of direct tuition income and financial aid support forms the backbone of UTI's revenue model.

Universal Technical Institute Financial Statement Overview

Summary

Universal Technical Institute exhibits strong financial health with impressive revenue and profit growth, supported by efficient operational performance and solid cash flow management. The balance sheet indicates moderate leverage, but the high return on equity and strong equity ratio suggest a stable financial foundation.

Income Statement

Universal Technical Institute has demonstrated strong revenue growth with a TTM revenue increase of 6.83% and significant improvement in profitability, evident from a TTM gross profit margin of 49.23% and a net profit margin of 7.34%. The EBIT margin stands at 9.94%, reflecting robust operational efficiency. The company's EBITDA margin of 17.41% further underscores its solid earnings performance. These positive trends highlight the company's effective cost management and revenue generation strategies.

Balance Sheet

The balance sheet shows a healthy equity ratio of 40.78%, indicating a strong equity base. The debt-to-equity ratio of 0.87 suggests moderate leverage, which could pose some risk if not managed carefully. However, the return on equity is impressive at 19.54%, indicating efficient use of shareholder investments to generate profits. Overall, the company maintains a stable financial position with potential for future growth.

Cash Flow

The cash flow statement reflects solid cash management, with a remarkable free cash flow growth rate of 15.06% in the TTM period. The operating cash flow to net income ratio of 1.74 demonstrates strong cash generation relative to net income, while the free cash flow to net income ratio of 1.23 further confirms the company's effective cash conversion capabilities. These metrics indicate a robust cash flow position, supporting operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	809.53M	732.69M	607.41M	418.76M	335.08M	300.76M
Gross Profit	401.94M	348.16M	277.54M	211.53M	168.26M	144.83M
EBITDA	130.09M	116.89M	72.73M	55.03M	45.09M	34.84M
Net Income	63.10M	42.00M	12.32M	25.85M	14.58M	8.01M
Balance Sheet
Total Assets	740.76M	744.58M	740.68M	552.91M	512.57M	441.98M
Cash, Cash Equivalents and Short-Term Investments	120.56M	161.90M	151.55M	95.37M	133.72M	114.86M
Total Debt	261.00M	294.75M	349.62M	209.80M	198.03M	157.75M
Total Liabilities	433.97M	484.34M	514.72M	337.51M	324.04M	265.46M
Stockholders Equity	306.79M	260.23M	225.97M	215.40M	188.53M	176.52M
Cash Flow
Free Cash Flow	74.73M	61.60M	-7.54M	-33.43M	-6.40M	1.77M
Operating Cash Flow	107.76M	85.89M	49.15M	46.03M	55.19M	11.03M
Investing Cash Flow	-85.77M	-24.00M	-44.07M	-134.60M	-22.95M	-45.76M
Financing Cash Flow	-67.71M	-51.34M	81.85M	12.59M	24.82M	43.09M

Universal Technical Institute Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UTI, the sentiment is Negative. The current price of 25.77 is below the 20-day moving average (MA) of 30.17, below the 50-day MA of 31.88, and below the 200-day MA of 27.98, indicating a bearish trend. The MACD of -1.65 indicates Positive momentum. The RSI at 29.21 is Positive, neither overbought nor oversold. The STOCH value of 9.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UTI.

Universal Technical Institute Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRDO	78 Outperform	$2.08B	13.87	16.39%	1.63%	15.99%	13.25%
LOPE	77 Outperform	$5.56B	24.00	30.77%	―	6.52%	11.72%
UTI	72 Outperform	$1.44B	22.64	23.11%	―	14.56%	127.02%
ATGE	72 Outperform	$4.57B	20.85	16.60%	―	12.85%	81.69%
STRA	71 Outperform	$1.86B	16.20	6.89%	3.05%	4.31%	-1.08%
Sector *	63 Neutral	$20.98B	14.59	-8.07%	3.13%	2.83%	-9.85%
LINC	58 Neutral	$638.38M	42.96	8.27%	―	14.53%	75.66%

Universal Technical Institute Corporate Events

Universal Technical Institute Reports Strong Q3 2025 Results

On August 6, 2025, Universal Technical Institute reported its fiscal year 2025 third-quarter results, highlighting a 15.1% revenue growth to $204.3 million and a significant increase in net income by 113.9% to $10.7 million. The company raised its lower-end guidance for fiscal 2025 revenue and new student starts, driven by strong performance and favorable regulatory conditions. With the lifting of growth restrictions on Concorde Career Colleges, UTI is set to accelerate its program and campus expansions, marking a pivotal stage in its North Star strategy. This development is expected to enhance UTI’s market positioning and operational capabilities, benefiting stakeholders through sustained growth and strategic execution.

The most recent analyst rating on (UTI) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Universal Technical Institute stock, see the UTI Stock Forecast page.