Universal Technical Institute (UTI) AI Stock Analysis

• Market Cap: $1.73B
• Dividend Yield: N/A
• Average Volume (3M): 731.07K
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.78
• Revenue Growth: 14.56%
• EPS Growth: 127.02%
• Country: US
• Employees: 3,700
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.19
• Shares Outstanding: 54,423,610
• 10 Day Avg. Volume: 867,216
• 30 Day Avg. Volume: 731,069
• 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: 1.17
• Enterprise Value/Revenue: 2.50
• Enterprise Value/Gross Profit: 5.04
• Enterprise Value/Ebitda: 15.57
• 1Y Price Target: $35.80
• Price Target Upside: 12.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: $31.00 ▼(-2.67% Downside)

Universal Technical Institute's strong earnings call performance and solid financial health are the primary drivers of its stock score. Despite some technical weaknesses and valuation concerns, the company's positive outlook and strategic growth initiatives contribute to a favorable overall assessment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for UTI's programs and effective market positioning, supporting long-term financial stability.

Expansion Achievements

Lifting growth restrictions enables UTI to expand its educational offerings, enhancing its market reach and competitive edge in the technical education sector.

Program Expansion

Expanding HVACR programs increases UTI's capacity to meet industry demand, strengthening its educational portfolio and attracting more students.

Negative Factors

New Student Starts Decline

A decline in new student starts could impact future revenue growth, signaling potential challenges in attracting new enrollments.

Capacity Limitations

Capacity limitations in programs may restrict UTI's ability to scale, potentially hindering growth and limiting student intake.

Cash Conversion Challenges

Challenges in cash conversion could affect liquidity, limiting UTI's ability to invest in growth opportunities and manage financial obligations efficiently.

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 demonstrates strong financial health with consistent revenue growth and improving profitability. The balance sheet shows effective leverage management, and cash flow generation is on an upward trajectory. While there are areas for improvement in cash conversion, the overall financial position is solid and promising.

Income Statement

Universal Technical Institute shows strong revenue growth with a 3.43% increase in TTM, supported by improving margins. The gross profit margin is robust at 49.65%, and the net profit margin has improved to 7.79%, indicating enhanced profitability. EBIT and EBITDA margins are also healthy, reflecting effective cost management.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.85, showing a decrease from previous years, indicating better leverage management. Return on equity is strong at 22.12%, suggesting efficient use of equity. The equity ratio is moderate, indicating a balanced asset structure.

Cash Flow

Cash flow analysis reveals a positive trend with a 5.42% growth in free cash flow. The operating cash flow to net income ratio is 0.58, showing adequate cash generation relative to net income. However, the free cash flow to net income ratio of 0.69 suggests room for improvement in converting income to free cash flow.

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: Positive
• Last Price: 31.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UTI, the sentiment is Positive. The current price of 31.85 is above the 20-day moving average (MA) of 28.20, above the 50-day MA of 28.66, and above the 200-day MA of 28.97, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 70.85 is Negative, neither overbought nor oversold. The STOCH value of 89.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UTI.

Universal Technical Institute Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRDO	79 Outperform	$2.40B	16.06	15.38%	1.46%	15.99%	13.25%
STRA	78 Outperform	$2.03B	17.69	6.91%	2.82%	4.31%	-1.08%
ATGE	74 Outperform	$5.47B	24.57	16.54%	―	12.85%	81.69%
UTI	73 Outperform	$1.73B	27.99	23.11%	―	14.56%	127.02%
APEI	71 Outperform	$696.31M	36.53	10.51%	―	5.50%	338.59%
LINC	54 Neutral	$724.69M	49.93	5.55%	―	14.53%	75.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

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.