Universal Technical Institute (UTI) AI Stock Analysis

• Market Cap: $1.43B
• Dividend Yield: N/A
• Average Volume (3M): 895.63K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.90
• 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: 874,477
• 30 Day Avg. Volume: 895,629
• 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: 1.33
• Enterprise Value/Revenue: 2.28
• Enterprise Value/Gross Profit: 4.58
• Enterprise Value/Ebitda: 16.44
• 1Y Price Target: $36.80
• Price Target Upside: 39.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.92
• Revenue Forecast (FY): $900.96M

• Rating: 63 Neutral
• Price Target: $26.00 ▼(-1.10% Downside)

Universal Technical Institute's overall stock score reflects strong financial performance and positive future growth projections from the earnings call. However, technical indicators suggest bearish momentum, and valuation metrics indicate moderate attractiveness. The company's strategic investments are expected to drive long-term growth but may temporarily impact profit margins.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and demand for UTI's programs, supporting long-term financial stability and scalability.

Program and Campus Expansion

Expanding programs and campuses enhances UTI's market presence and addresses skilled workforce shortages, driving sustainable growth.

Strategic Growth Investments

Strategic investments in new campuses and programs position UTI for long-term growth, aligning with industry needs and expanding its footprint.

Negative Factors

Moderated Profit Margins

Growth investments may temporarily reduce profit margins, impacting short-term profitability but are necessary for long-term expansion.

Declining Free Cash Flow

A decline in free cash flow could limit UTI's ability to fund future investments and manage financial flexibility, posing a risk to growth.

Delayed Cash Flow Impact

Delays in cash flow due to regulatory processes can affect liquidity management, potentially impacting operational efficiency.

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: Neutral
• Last Price: 26.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UTI, the sentiment is Neutral. The current price of 26.29 is above the 20-day moving average (MA) of 24.66, below the 50-day MA of 28.14, and below the 200-day MA of 29.51, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 50.99 is Neutral, neither overbought nor oversold. The STOCH value of 81.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UTI.

Universal Technical Institute Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATGE	79 Outperform	$3.65B	15.10	17.38%	―	12.24%	52.97%
STRA	73 Outperform	$1.89B	16.73	6.76%	2.98%	3.74%	-8.40%
PRDO	72 Outperform	$1.89B	12.53	16.14%	1.91%	24.23%	17.56%
APEI	68 Neutral	$693.92M	29.29	11.20%	―	6.75%	141.11%
UTI	63 Neutral	$1.43B	23.17	21.42%	―	14.05%	51.96%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LINC	53 Neutral	$753.91M	52.63	7.94%	―	16.90%	41.11%

Universal Technical Institute Corporate Events

Universal Technical Institute Reports Strong Fiscal 2025 Results

Universal Technical Institute reported strong financial results for fiscal year 2025, with a 14% increase in revenue to $835.6 million and a 50% rise in net income to $63.0 million compared to the previous year. The company exceeded its operational targets and is poised for further growth, planning to open new campuses and launch additional programs. The results highlight the scalability and resilience of UTI’s business model, setting a solid foundation for future expansion under its North Star strategy.

Universal Technical Institute Announces New Campus Locations

On November 18, 2025, Universal Technical Institute, Inc. announced the first three of its planned new campus locations for fiscal 2027 as part of its multi-year North Star strategy to address the shortage of skilled workers in America. The new campuses, UTI-Salt Lake City, Concorde-Houston, and Concorde-Atlanta, will open in 2027 pending regulatory approvals, expanding the company’s footprint and enhancing its position as a leader in training programs for skilled collar and healthcare workers. This strategic move aims to drive sustainable growth through innovation and partnership, reaching more students and employers with industry-aligned training.