Universal Technical Institute (UTI)
NYSE:UTI
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Universal Technical Institute
(NYSE:UTI)
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Rating:61Neutral
Price Target:
$47.00
▲(22.88% Upside)
Action:Reiterated
Date:05/23/26
The score is held back primarily by weak cash conversion (sharp TTM free-cash-flow decline) and an extremely high P/E that leaves little margin for error. Offsetting factors include solid technical uptrend signals and a constructive earnings-call outlook with reaffirmed guidance and strong enrollment momentum, though near-term profitability pressure from growth investments tempers the upside.
Positive Factors
Enrollment and Revenue Growth
Sustained double-digit new-student starts and rising active-student counts indicate durable demand for UTI’s programs, improving campus utilization and revenue visibility. Strong enrollment growth supports predictable tuition cash flows and provides a larger base for placement and lifetime student services.
Negative Factors
Weak Free Cash Flow Conversion
A severe decline in free cash flow undermines the company’s ability to self-fund capex and growth, increasing reliance on liquidity or external financing. Poor cash conversion vs. reported earnings raises sustainability concerns and heightens execution risk for capital-heavy campus rollouts.
Read all positive and negative factors
Positive Factors
Negative Factors
Enrollment and Revenue Growth
Sustained double-digit new-student starts and rising active-student counts indicate durable demand for UTI’s programs, improving campus utilization and revenue visibility. Strong enrollment growth supports predictable tuition cash flows and provides a larger base for placement and lifetime student services.
Read all positive factors
Universal Technical Institute (UTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.25B
Dividend YieldN/A
Average Volume (3M)1.41M
Price to Earnings (P/E)50.3
Beta (1Y)0.60
Revenue Growth11.03%
EPS Growth-26.34%
CountryUS
Employees3,700
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.79
Shares Outstanding55,061,382
10 Day Avg. Volume1,467,599
30 Day Avg. Volume1,410,775
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 Cap1.02
Enterprise Value/Revenue2.63
Enterprise Value/Gross Profit5.42
Enterprise Value/Ebitda20.43
Forecast
1Y Price Target
$43.00Price Target Upside12.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.8
Revenue Forecast (FY)$912.13M
Universal Technical Institute Business Overview & Revenue Model
Company Description
Universal Technical Institute, Inc. (UTI) is an American educational provider specializing in technical and transportation training programs. The institute offers postsecondary education designed to equip students for professional careers in vario...
How the Company Makes Money
UTI primarily generates revenue by operating career-training schools and charging students tuition and fees for enrollment in its programs (including the classroom and hands-on lab instruction required for technician and skilled-trade training). A...
Universal Technical Institute Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call presented strong operational momentum—solid enrollment growth, revenue expansion, confirmed liquidity, successful early campus ramps, and reaffirmed full-year and long-term targets—supported by robust industry partnerships and structural demand tailwinds. At the same time, near-term profitability is being intentionally reduced by meaningful growth investments and higher operating spending, creating short-term margin and execution risk that management believes will pay off as new campuses and programs scale. Overall the positives around demand, growth trajectory, guidance reaffirmation, and balance sheet strength outweigh the temporary profitability pressures.Positive Updates
Strong Enrollment Momentum
Total new student starts increased ~13.8% year-over-year to 7,569 in Q2; average full-time active students grew 7.2% YoY to 26,385. UTI division average full-time active students grew 5.3% YoY while Concord grew 10.2% YoY.
Negative Updates
Quarterly Net Income Very Thin
Consolidated net income for Q2 was only $400,000, or $0.01 per diluted share, indicating limited current-quarter profitability despite revenue growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Enrollment Momentum
Total new student starts increased ~13.8% year-over-year to 7,569 in Q2; average full-time active students grew 7.2% YoY to 26,385. UTI division average full-time active students grew 5.3% YoY while Concord grew 10.2% YoY.
Read all positive updates
Company Guidance
UTI reaffirmed its fiscal 2026 guidance after a strong first half, calling for consolidated revenue of $905–$915 million (about 9% YoY at the midpoint), net income of $40–$45 million and diluted EPS of $0.71–$0.80; baseline adjusted EBITDA to exceed $150 million (SEC‑reported adjusted EBITDA $114–$119 million, including roughly $40 million of growth investments); total new student starts of 31,500–33,000; Q3 revenue growth expected mid‑to‑high single digits and Q4 the strongest quarter in the low‑ to mid‑double‑digit range; full‑year capex plan of $100 million+ annually (year‑to‑date capex $52.7 million), available liquidity of $202.4 million, 55 million shares outstanding, and longer‑term targets of >$1.2 billion revenue by fiscal 2029 (10% CAGR) with adjusted EBITDA approaching $220 million.Universal Technical Institute Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 868.99M | 835.62M | 732.69M | 607.41M | 418.76M | 335.08M |
| Gross Profit | 422.67M | 415.13M | 348.16M | 277.54M | 211.53M | 168.26M |
| EBITDA | 112.05M | 146.69M | 116.89M | 73.56M | 55.03M | 45.09M |
| Net Income | 42.68M | 63.02M | 42.00M | 12.32M | 25.85M | 14.58M |
Balance Sheet | ||||||
| Total Assets | 852.18M | 826.14M | 744.58M | 740.68M | 552.91M | 512.57M |
| Cash, Cash Equivalents and Short-Term Investments | 161.98M | 169.15M | 161.90M | 151.55M | 98.91M | 133.72M |
| Total Debt | 316.22M | 278.90M | 294.75M | 349.62M | 209.80M | 198.03M |
| Total Liabilities | 512.28M | 498.03M | 484.34M | 514.72M | 337.51M | 324.04M |
| Stockholders Equity | 339.90M | 328.11M | 260.23M | 225.97M | 215.40M | 188.53M |
Cash Flow | ||||||
| Free Cash Flow | 1.88M | 55.35M | 61.60M | -7.54M | -33.43M | -6.40M |
| Operating Cash Flow | 82.23M | 97.33M | 85.89M | 49.15M | 46.03M | 55.19M |
| Investing Cash Flow | -117.34M | -87.88M | -24.00M | -44.07M | -134.60M | -22.95M |
| Financing Cash Flow | 28.21M | -42.79M | -51.34M | 81.85M | 12.59M | 24.82M |
Universal Technical Institute Technical Analysis
Neutral
38.25
Price Trends
38.14
Positive
35.43
Positive
31.82
Positive
Market Momentum
0.83
Positive
48.25
Neutral
32.76
Neutral
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 38.25 is below the 20-day moving average (MA) of 40.11, above the 50-day MA of 38.14, and above the 200-day MA of 31.82, indicating a neutral trend. The MACD of 0.83 indicates Positive momentum. The RSI at 48.25 is Neutral, neither overbought nor oversold. The STOCH value of 32.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.21B | 12.50 | 17.21% | 1.88% | 17.75% | 15.21% | |
77 Outperform | $1.81B | 12.91 | 7.85% | 2.99% | 3.02% | 20.69% | |
68 Neutral | $983.39M | 23.59 | 14.02% | ― | 3.84% | 87.34% | |
66 Neutral | $1.51B | 64.11 | 11.72% | ― | 19.92% | 84.00% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $2.25B | 50.25 | 13.02% | ― | 11.03% | -26.34% |
* Consumer Defensive Sector Average
UTI
Universal Technical Institute
39.14
5.50
16.35%
APEI
American Public Education
52.13
24.75
90.39%
PRDO
Perdoceo Education
34.04
2.81
9.01%
LINC
Lincoln Edu
46.15
23.34
102.32%
STRA
Strategic Education
77.41
-4.18
-5.12%
Universal Technical Institute Corporate Events
Business Operations and StrategyFinancial Disclosures
Universal Technical Institute Posts Q2 Growth Amid Margin Pressure
Neutral
May 6, 2026
Universal Technical Institute reported fiscal 2026 second-quarter results on May 6, 2026, showing revenue up 6.7% to $221.4 million and a 7.2% increase in average full-time active students, but a sharp decline in net income to $0.4 million and adj...
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...
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.