Universal Technical Institute (UTI) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: N/A
• Average Volume (3M): 742.48K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.86
• Revenue Growth: 14.05%
• EPS Growth: 51.96%
• Country: US
• Employees: 3,700
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.34
• Shares Outstanding: 54,429,870
• 10 Day Avg. Volume: 995,908
• 30 Day Avg. Volume: 742,480
• PEG Ratio: 0.55
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 2.12
• P/FCF Ratio: 31.93
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 2.29
• Enterprise Value/Gross Profit: 4.62
• Enterprise Value/Ebitda: 16.56
• 1Y Price Target: $36.80
• Price Target Upside: 59.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.92
• Revenue Forecast (FY): $900.96M

• Rating: 65 Neutral
• Price Target: $25.00 ▲(8.13% Upside)

Universal Technical Institute's overall stock score reflects strong financial performance and positive future guidance from the earnings call. However, technical indicators suggest bearish momentum, and the valuation is moderate. The company's strategic growth investments are promising, but they temporarily impact profit margins.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for UTI's programs and effective execution of its business strategy, supporting long-term financial health.

Program and Campus Expansion

Expanding programs and campuses enhances UTI's market reach and addresses industry demand, positioning the company for sustained growth.

Strategic Growth Investments

Strategic investments in new campuses and programs are set to drive long-term growth, supporting UTI's North Star strategy and market expansion.

Negative Factors

Profit Margin Moderation

Growth investments are moderating profit margins, which could impact short-term profitability, though they aim to support long-term expansion.

Declining Free Cash Flow

A decline in free cash flow may limit UTI's ability to fund new initiatives or respond to market changes, posing a risk to financial flexibility.

Debt Levels

High debt levels could strain UTI's financial resources, impacting its ability to invest in growth opportunities and maintain operational stability.

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, and motorcycle industries. With campuses across the United States, UTI offers a range of programs designed to equip students with the skills and knowledge necessary to succeed in highly technical and hands-on roles. The institute focuses on practical training and industry-relevant curriculum, often partnering with major automotive manufacturers and employers to ensure that its offerings meet current market demands.

How the Company Makes Money

UTI generates revenue primarily through tuition and fees paid by students enrolled in its various technical training programs. The institute offers both certificate and degree programs, which are priced based on the length and complexity of the educational curriculum. Additional revenue streams include financial aid services, where UTI assists students in securing federal and state funding, as well as private loans. The institute has established partnerships with major automotive brands and industry employers, which not only help enhance curriculum relevance but may also lead to job placement opportunities for graduates, further boosting UTI's appeal to prospective students. Furthermore, UTI may receive funds through grants and sponsorships related to workforce development initiatives.

Universal Technical Institute Financial Statement Overview

Summary

Universal Technical Institute exhibits strong revenue growth and improving profitability, supported by efficient operational performance. The balance sheet shows improved leverage but requires attention to equity returns. Cash flow generation is robust, though declining free cash flow poses a potential risk. Overall, the financial health is solid with opportunities for further strengthening.

Income Statement

Universal Technical Institute has demonstrated consistent revenue growth over the years, with a notable 3.22% increase in the most recent year. The net profit margin has improved to 7.54%, indicating enhanced profitability. However, the gross profit margin is not provided for the latest year, which limits a full assessment of cost efficiency. The EBIT and EBITDA margins show a positive trend, reflecting operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has improved from previous years, indicating better leverage management, though it remains relatively high. The return on equity is not available for the latest year, but past data shows a positive trend. The equity ratio is stable, suggesting a balanced asset structure. Overall, the balance sheet reflects moderate financial stability with room for improvement in equity returns.

Cash Flow

Operating cash flow has increased, showing strong cash generation capabilities. However, free cash flow has declined by 25.93% in the latest year, which could impact future investments. The free cash flow to net income ratio is healthy at 56.87%, indicating efficient cash conversion. The cash flow statement suggests solid operational cash flow but highlights concerns over declining free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	835.62M	835.62M	732.69M	607.41M	418.76M	335.08M
Gross Profit	415.13M	415.13M	348.16M	277.54M	211.53M	168.26M
EBITDA	115.77M	146.69M	116.89M	73.56M	55.03M	45.09M
Net Income	63.02M	63.02M	42.00M	12.32M	25.85M	14.58M
Balance Sheet
Total Assets	826.14M	826.14M	744.58M	740.68M	552.91M	512.57M
Cash, Cash Equivalents and Short-Term Investments	127.36M	127.36M	161.90M	151.55M	95.37M	133.72M
Total Debt	259.07M	259.07M	294.75M	349.62M	209.80M	198.03M
Total Liabilities	498.03M	498.03M	484.34M	514.72M	337.51M	324.04M
Stockholders Equity	328.11M	328.11M	260.23M	225.97M	215.40M	188.53M
Cash Flow
Free Cash Flow	55.35M	55.35M	61.60M	-7.54M	-33.43M	-6.40M
Operating Cash Flow	97.33M	97.33M	85.89M	49.15M	46.03M	55.19M
Investing Cash Flow	-87.88M	-87.88M	-24.00M	-44.07M	-134.60M	-22.95M
Financing Cash Flow	-42.79M	-42.79M	-51.34M	81.85M	12.59M	24.82M

Universal Technical Institute Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 23.12 is below the 20-day moving average (MA) of 27.15, below the 50-day MA of 29.78, and below the 200-day MA of 29.69, indicating a bearish trend. The MACD of -2.07 indicates Positive momentum. The RSI at 30.83 is Neutral, neither overbought nor oversold. The STOCH value of 20.16 is Neutral, 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
ATGE	73 Outperform	$3.36B	13.88	17.38%	―	12.24%	52.97%
STRA	71 Outperform	$1.83B	16.18	6.76%	3.19%	3.74%	-8.40%
APEI	68 Neutral	$569.11M	29.86	11.20%	―	6.75%	141.11%
PRDO	65 Neutral	$1.80B	11.95	16.14%	2.00%	24.23%	17.56%
UTI	65 Neutral	$1.25B	20.29	21.42%	―	14.05%	51.96%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LINC	53 Neutral	$650.82M	45.43	7.94%	―	16.90%	41.11%

Universal Technical Institute Corporate Events

Universal Technical Institute’s Earnings Call Highlights Growth and Optimism

Universal Technical Institute’s recent earnings call conveyed a positive sentiment, highlighting robust financial performance and significant growth in student numbers. The company is making strategic expansions and celebrating notable achievements, despite facing challenges in new student growth and potential impacts on future EBITDA margins due to ongoing investments. Overall, the outlook remains optimistic with raised guidance for fiscal 2025.

Universal Technical Institute Reports Strong Q3 Growth

Universal Technical Institute, Inc. (NYSE: UTI) is a prominent provider of workforce solutions, offering education programs in transportation, skilled trades, and healthcare sectors through its divisions, Universal Technical Institute and Concorde Career Colleges.

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.