Universal Technical Institute (UTI)
NYSE:UTI
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Universal Technical Institute
(NYSE:UTI)
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Rating:69Neutral
Price Target:
$39.00
▲(10.36% Upside)
Action:ReiteratedDate:03/19/26
The score is driven primarily by improving financial performance (strong revenue/margin trajectory and ROE) tempered by weakening recent free cash flow. Technicals are supportive with clear upward trend and positive momentum, while valuation is less compelling at a ~27.8 P/E and no dividend yield. Earnings-call guidance is constructive but explicitly comes with near-term profitability and cash-flow pressure due to elevated growth investments and CapEx.
Positive Factors
Revenue & margin expansion
Sustained top-line scale and margin expansion reflect structural demand for skilled-trades training and improved operating leverage. The move from lower-margin years to consistent EBITDA margins supports durable earnings power, reinvestment capacity, and the ability to fund campus growth without relying solely on external financing.
Negative Factors
Weak free cash flow
Sharp decline and volatility in FCF signal constrained cash conversion despite profitable operations. Persistent FCF weakness limits internal funding for growth, raises dependency on liquidity lines or debt, and reduces margin for error if enrollments or collections soften, increasing financing risk during expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & margin expansion
Sustained top-line scale and margin expansion reflect structural demand for skilled-trades training and improved operating leverage. The move from lower-margin years to consistent EBITDA margins supports durable earnings power, reinvestment capacity, and the ability to fund campus growth without relying solely on external financing.
Read all positive factors
Universal Technical Institute (UTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.15B
Dividend YieldN/A
Average Volume (3M)853.10K
Price to Earnings (P/E)27.8
Beta (1Y)0.83
Revenue Growth14.05%
EPS Growth51.96%
CountryUS
Employees3,700
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.23
Shares Outstanding55,020,508
10 Day Avg. Volume591,327
30 Day Avg. Volume853,095
Financial Highlights & Ratios
PEG Ratio0.55
Price to Book (P/B)5.39
Price to Sales (P/S)2.12
P/FCF Ratio31.93
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue2.94
Enterprise Value/Gross Profit5.94
Enterprise Value/Ebitda19.83
Forecast
1Y Price Target
$36.80Price Target Upside4.13% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.78
Revenue Forecast (FY)$911.35M
Universal Technical Institute Business Overview & Revenue Model
Company Description
Universal Technical Institute, Inc. provides transportation and technical training programs in the United States. The company provides postsecondary education for students seeking careers as professional automotive, diesel, collision repair, motor...
How the Company Makes Money
UTI primarily generates revenue by charging tuition and fees to students enrolled in its career training programs. A significant portion of these payments is typically funded through student financial aid programs (including government-sponsored a...
Universal Technical Institute Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive outlook driven by double-digit revenue growth, rising student metrics, repeatable campus ramp success (Austin, Miramar, Fort Myers), reiterated full-year guidance, and healthy liquidity. Near-term headwinds are primarily intentional: sizeable growth investments and elevated CapEx that depress reported EBITDA and free cash flow in the short term and create quarter-to-quarter lumpy profitability. Regulatory timing at the state level and modest short-term marketing and margin pressure are noted risks but are described as managed and transitory within management's execution plan.Positive Updates
Consolidated Revenue Growth
Revenue for Q1 increased 9.6% year-over-year to $220.8 million (reported as $221 million in prepared remarks), driven by growth across both divisions.
Negative Updates
Near-Term Margin and EBITDA Pressure from Growth Investments
Growth investments (~$7.6 million in Q1; ~ $40 million planned for FY2026) reduced reported adjusted EBITDA to $27.1 million from baseline $34.7 million. Management expects a further contraction in net income and adjusted EBITDA in Q2 before recovery in later quarters.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Revenue for Q1 increased 9.6% year-over-year to $220.8 million (reported as $221 million in prepared remarks), driven by growth across both divisions.
Read all positive updates
Company Guidance
UTI reiterated fiscal 2026 guidance calling for consolidated revenue of $905–$915 million (≈9% y/y at the midpoint); baseline adjusted EBITDA of roughly $156 million (which reflects about $40 million of growth investments) and company‑reported adjusted EBITDA in the low‑hundreds million range (management cited ~$114–119 million); total new student starts of 31,500–33,000; net income of $40–45 million and diluted EPS of $0.71–$0.80; adjusted free cash flow of about $20–25 million; and planned CapEx of roughly $100 million (with ~ $75 million growth CapEx). Management expects quarter‑level pacing of mid‑to‑high single‑digit revenue growth in Q2 (Q3 slightly higher), Q4 as the strongest quarter with low double‑digit growth, starts growth to be low‑to‑mid double digits in Q2 and mid‑to‑high single digits in the other quarters, and longer‑term targets of >$1.2 billion revenue and ~ $220 million adjusted EBITDA by fiscal 2029 (≈10% revenue CAGR).Universal Technical Institute Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
71
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 855.03M | 835.62M | 732.69M | 607.41M | 418.76M | 335.08M |
| Gross Profit | 423.64M | 415.13M | 348.16M | 275.68M | 211.53M | 168.26M |
| EBITDA | 126.93M | 146.69M | 116.89M | 73.56M | 55.03M | 45.09M |
| Net Income | 53.69M | 63.02M | 42.00M | 12.32M | 25.85M | 14.58M |
Balance Sheet | ||||||
| Total Assets | 833.96M | 826.14M | 744.58M | 740.68M | 552.91M | 512.57M |
| Cash, Cash Equivalents and Short-Term Investments | 162.81M | 169.15M | 161.90M | 151.55M | 98.91M | 133.72M |
| Total Debt | 459.13M | 278.90M | 294.75M | 349.62M | 209.80M | 198.03M |
| Total Liabilities | 498.05M | 498.03M | 484.34M | 514.72M | 337.51M | 324.04M |
| Stockholders Equity | 335.91M | 328.11M | 260.23M | 225.97M | 215.40M | 188.53M |
Cash Flow | ||||||
| Free Cash Flow | 16.58M | 55.35M | 61.60M | -7.54M | -33.43M | -6.40M |
| Operating Cash Flow | 77.45M | 97.33M | 85.89M | 49.15M | 46.03M | 55.19M |
| Investing Cash Flow | -131.09M | -87.88M | -24.00M | -44.07M | -134.60M | -22.95M |
| Financing Cash Flow | -26.65M | -42.79M | -51.34M | 81.85M | 12.59M | 24.82M |
Universal Technical Institute Technical Analysis
Positive
35.34
Price Trends
31.49
Positive
29.14
Positive
29.84
Positive
Market Momentum
1.72
Negative
65.93
Neutral
78.40
Neutral
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 35.34 is below the 20-day moving average (MA) of 36.03, above the 50-day MA of 31.49, and above the 200-day MA of 29.84, indicating a bullish trend. The MACD of 1.72 indicates Negative momentum. The RSI at 65.93 is Neutral, neither overbought nor oversold. The STOCH value of 78.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UTI.
Universal Technical Institute Risk Analysis
Universal Technical Institute disclosed 42 risk factors in its most recent earnings report. Universal Technical Institute reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Universal Technical Institute Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $2.24B | 11.89 | 16.30% | 1.88% | 24.23% | 17.56% | |
75 Outperform | $1.86B | 14.05 | 7.66% | 2.99% | 3.74% | -8.40% | |
71 Outperform | $1.03B | 21.57 | 11.20% | ― | 6.75% | 141.11% | |
69 Neutral | $2.15B | 27.79 | 16.98% | ― | 14.05% | 51.96% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $1.26B | 14.71 | 10.75% | ― | 16.90% | 41.11% |
* Consumer Defensive Sector Average
UTI
Universal Technical Institute
39.11
12.58
47.42%
APEI
American Public Education
56.18
33.25
145.01%
PRDO
Perdoceo Education
36.61
11.82
47.69%
LINC
Lincoln Edu
40.84
25.23
161.63%
STRA
Strategic Education
81.75
-0.31
-0.38%
Universal Technical Institute Corporate Events
Executive/Board ChangesShareholder Meetings
Universal Technical Institute Shareholders Back Board and Pay
Positive
Mar 18, 2026
Universal Technical Institute, Inc. held its Annual Meeting of Stockholders on March 12, 2026, where shareholders elected three Class I directors — Robert T. DeVincenzi, Jerome A. Grant and Shannon L. Okinaka — to serve three-year term...
Business Operations and StrategyFinancial Disclosures
Universal Technical Institute Delivers Q1 2026 Results, Reaffirms Outlook
Neutral
Feb 4, 2026
Universal Technical Institute reported fiscal 2026 first-quarter results on February 4, 2026, with revenue climbing 9.6% to $220.8 million as student enrollment expanded, while net income fell to $12.8 million and adjusted EBITDA dropped 23.5% bec...
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.