Universal Technical Institute (UTI)
NYSE:UTI
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Universal Technical Institute
(NYSE:UTI)
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Rating:56Neutral
Price Target:
$41.00
▲(7.19% Upside)
Action:Downgraded
Date:05/09/26
The score is driven mainly by solid business momentum and reaffirmed guidance, supported by improving leverage and strong liquidity. Offsetting these positives are weak cash conversion with sharply lower TTM free cash flow and near-term margin pressure from heavy growth investment. Valuation is a meaningful headwind due to the extremely high P/E, while technicals are broadly neutral.
Positive Factors
Enrollment & Revenue Momentum
Sustained student-start and active-student growth indicates durable demand for UTI’s skilled-trades programs, improving revenue visibility and campus utilization. Over 2–6 months this supports predictable tuition cash inflows, scaling benefits and stronger operating leverage as new cohorts stabilize.
Negative Factors
Weak Cash Conversion
A sharp collapse in free cash flow undermines the quality of reported earnings and constrains the firm’s internal funding for capex and growth. Persistently weak cash conversion increases reliance on liquidity or debt and raises risk that planned investments won’t been funded sustainably.
Read all positive and negative factors
Positive Factors
Negative Factors
Enrollment & Revenue Momentum
Sustained student-start and active-student growth indicates durable demand for UTI’s skilled-trades programs, improving revenue visibility and campus utilization. Over 2–6 months this supports predictable tuition cash inflows, scaling benefits and stronger operating leverage as new cohorts stabilize.
Read all positive factors
Universal Technical Institute (UTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.04B
Dividend YieldN/A
Average Volume (3M)638.43K
Price to Earnings (P/E)1142.2
Beta (1Y)0.71
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. Volume944,830
30 Day Avg. Volume638,428
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 Cap1.11
Enterprise Value/Revenue2.61
Enterprise Value/Gross Profit5.37
Enterprise Value/Ebitda20.27
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)$911.34M
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: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
36.92
Positive
33.26
Positive
30.74
Positive
Market Momentum
0.47
Positive
49.27
Neutral
53.29
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 above the 20-day moving average (MA) of 37.27, above the 50-day MA of 36.92, and above the 200-day MA of 30.74, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 49.27 is Neutral, neither overbought nor oversold. The STOCH value of 53.29 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.12B | 10.78 | 17.21% | 1.88% | 17.75% | 15.21% | |
77 Outperform | $1.81B | 13.67 | 7.85% | 2.99% | 3.02% | 20.69% | |
70 Outperform | $971.47M | 14.66 | 14.02% | ― | 3.84% | 87.34% | |
66 Neutral | $1.50B | 72.68 | 11.72% | ― | 19.92% | 84.00% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | $2.04B | 1,142.17 | 13.02% | ― | 11.03% | -26.34% |
* Consumer Defensive Sector Average
UTI
Universal Technical Institute
37.08
1.76
4.98%
APEI
American Public Education
52.96
24.86
88.47%
PRDO
Perdoceo Education
33.81
3.44
11.31%
LINC
Lincoln Edu
47.43
25.99
121.22%
STRA
Strategic Education
79.99
-5.84
-6.80%
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.