Universal Technical Institute (UTI) AI Stock Analysis

• Market Cap: $1.72B
• Dividend Yield: N/A
• Average Volume (3M): 593.92K
• Price to Earnings (P/E): 30.4
• Beta (1Y): 0.86
• Revenue Growth: 14.69%
• EPS Growth: 188.00%
• Country: US
• Employees: 3,700
• Sector: Industrials
• Sector Strength: 93
• Industry: Education & Training Services
• EPS (TTM): 0.21
• Shares Outstanding: 54,406,216
• 10 Day Avg. Volume: 467,658
• 30 Day Avg. Volume: 593,922
• PEG Ratio: 4.29
• Price to Book (P/B): 5.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.59
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 4.86
• Enterprise Value/Ebitda: 3.95
• 1Y Price Target: $37.00
• Price Target Upside: 17.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: $35.00 ▲(10.97%Upside)

Universal Technical Institute's strong financial performance and positive earnings outlook are significant strengths, contributing positively to the overall score. However, the technical analysis and valuation indicate potential risks, such as high valuation and bearish momentum, which temper the overall score.

Positive Factors

Earnings

Revenues increased 12.6% to $207.4 million, above the FactSet consensus of $196.6 million.

Financial Performance

Adjusted EBITDA increased 27.8% to $28.9 million, above the FactSet consensus of $25.1 million.

Guidance

Management raised its guidance for FY/25 for all key metrics, indicating strong future performance.

Negative Factors

Market Position

The stock is trading at a premium to its closest trade school comp, potentially suggesting overvaluation.

Valuation

The stock is trading at a premium to its postsecondary education peer group, which might limit potential upside.

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, motorcycle, and marine technicians. It also offers certificate, diploma, or degree programs under various brands, such as Universal Technical Institute, Motorcycle Mechanics Institute and Marine Mechanics Institute, and NASCAR Technical Institute. In addition, the company provides manufacturer specific advanced training programs, including student paid electives at its campuses; and manufacturer or dealer sponsored training at various campuses and dedicated training centers, as well as offers programs for welding and computer numeric control machining. As of September 30, 2021, it operated 12 campuses. Universal Technical Institute, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.

How the Company Makes Money

UTI generates revenue primarily through tuition fees paid by students enrolled in its educational programs. The company offers a range of programs with varying durations and costs, allowing it to cater to different student needs and career goals. In addition to tuition fees, UTI may receive funding from federal and state financial aid programs that students utilize to help cover their educational expenses. Partnerships with leading industry brands also play a significant role in UTI's revenue model, as these collaborations often result in sponsorships, scholarships, and job placement opportunities for graduates, making the institution more attractive to prospective students.

Universal Technical Institute Financial Statement Overview

Summary

Universal Technical Institute exhibits strong financial health across its income statement, balance sheet, and cash flow statement. The company has shown impressive revenue and profit growth, supported by efficient operational performance and solid cash flow management. While the balance sheet indicates moderate leverage, the high return on equity and strong equity ratio suggest a stable financial foundation.

Income Statement

Universal Technical Institute has demonstrated strong revenue growth with a TTM revenue increase of 6.83% and significant improvement in profitability, evident from a TTM gross profit margin of 49.23% and a net profit margin of 7.34%. The EBIT margin stands at 9.94%, reflecting robust operational efficiency. The company's EBITDA margin of 17.41% further underscores its solid earnings performance. These positive trends highlight the company's effective cost management and revenue generation strategies.

Balance Sheet

The balance sheet shows a healthy equity ratio of 40.78%, indicating a strong equity base. The debt-to-equity ratio of 0.87 suggests moderate leverage, which could pose some risk if not managed carefully. However, the return on equity is impressive at 19.54%, indicating efficient use of shareholder investments to generate profits. Overall, the company maintains a stable financial position with potential for future growth.

Cash Flow

The cash flow statement reflects solid cash management, with a remarkable free cash flow growth rate of 15.06% in the TTM period. The operating cash flow to net income ratio of 1.74 demonstrates strong cash generation relative to net income, while the free cash flow to net income ratio of 1.23 further confirms the company's effective cash conversion capabilities. These metrics indicate a robust cash flow position, supporting operational and strategic initiatives.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	732.69M	607.41M	418.76M	335.08M	300.76M
Gross Profit	348.16M	277.54M	211.53M	168.26M	144.83M
EBITDA	116.89M	72.73M	55.03M	45.09M	34.84M
Net Income	42.00M	12.32M	25.85M	14.58M	8.01M
Balance Sheet
Total Assets	744.58M	740.68M	552.91M	512.57M	441.98M
Cash, Cash Equivalents and Short-Term Investments	161.90M	151.55M	95.37M	133.72M	114.86M
Total Debt	294.75M	349.62M	209.80M	198.03M	157.75M
Total Liabilities	484.34M	514.72M	337.51M	324.04M	265.46M
Stockholders Equity	260.23M	225.97M	215.40M	188.53M	176.52M
Cash Flow
Free Cash Flow	61.60M	-7.54M	-33.43M	-6.40M	1.77M
Operating Cash Flow	85.89M	49.15M	46.03M	55.19M	11.03M
Investing Cash Flow	-24.00M	-44.07M	-134.60M	-22.95M	-45.76M
Financing Cash Flow	-51.34M	81.85M	12.59M	24.82M	43.09M

Universal Technical Institute Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.54
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 31.54 is below the 20-day moving average (MA) of 32.06, below the 50-day MA of 33.42, and above the 200-day MA of 27.03, indicating a neutral trend. The MACD of -0.40 indicates Positive momentum. The RSI at 43.71 is Neutral, neither overbought nor oversold. The STOCH value of 42.17 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
LOPE	78 Outperform	$4.79B	21.19	29.85%	―	6.31%	11.24%
ATGE	76 Outperform	$4.11B	18.97	16.62%	―	13.10%	127.72%
PRDO	71 Outperform	$1.87B	12.62	16.54%	1.83%	6.35%	0.35%
UTI	70 Outperform	$1.72B	30.41	21.81%	―	14.69%	188.00%
STRA	69 Neutral	$1.88B	16.62	6.86%	3.06%	5.72%	11.02%
Sector *	67 Neutral	£2.85B	10.57	4.69%	213.48%	2.73%	-20.56%
LINC	64 Neutral	$719.37M	59.05	7.04%	―	15.24%	-54.31%

Universal Technical Institute Corporate Events

Universal Technical Institute Reports Strong Q2 2025 Financial Results

On May 7, 2025, Universal Technical Institute, Inc. reported strong financial results for the fiscal second quarter of 2025, ending March 31, 2025. The company achieved a 12.6% increase in revenue to $207.4 million and a 47% rise in net income to $11.4 million compared to the same period last year. The results were driven by a 21.4% growth in new student starts and a 10.3% increase in average full-time active students. The company raised its full-year guidance, reflecting confidence in its growth and diversification strategy, supported by favorable macroeconomic trends and rising demand for skilled trades and healthcare professionals. The announcement highlights UTI’s strategic advancements, including new program launches and campus expansions, positioning the company for long-term scalability and enhanced profitability.