Understanding Asset Value

Report Generated
2026-02-04 12:22:12
UTI
Universal Technical Institute, Inc.
$28.09
Price from Yahoo Finance
Today: -1.46% | YTD: +13.1%

How Universal Technical Institute, Inc. Makes Money

Income Statement Flow (TTM) | Source: Yahoo Finance

Revenue
$0.8B
Gross Profit
$0.4B
50% margin
Operating Income
$0.1B
10% margin
Net Income
$0.1B
8% margin

Current Price

Price $28.09
52-Week High $36.32
52-Week Low $21.29

Market Data

Market Cap $1.55B
Shares Outstanding 0.06B
Beta 1.37

Valuation Ratios

P/E (TTM) 24.86x
P/E (Forward) 30.21x
EV/EBITDA 14.26x

Financial Health

Profit Margin 7.5%
ROE 21.4%
Revenue Growth 13.3%

Levered Free Cash Flow (TTM) - Cash That Can't Lie

$0.08B 5.49% Yield
$0.10B OCF - $0.04B CapEx - $0.01B Interest = $0.08B

Source: Cash Flow Statement | LFCF = Operating Cash Flow - CapEx - Interest Expense

HOLD

Fair Value: $27.23

-3.1% Downside

Stock is trading near fair value (-3.1% from target). Current price reflects fundamentals appropriately.

Investment Verdict

Universal Technical Institute, Inc. (UTI) currently trades at $28.09, representing a -3.1% premium to our calculated fair value of $27.23.

Key Strengths: Strong balance sheet (Net Debt/EBITDA: 0.8x); Strong interest coverage (14.8x).

Key Risks: No significant concerns identified.

The company generates $0.08B in levered free cash flow annually, providing real cash returns to shareholders. Wall Street consensus is strong_buy with a mean price target of $37.33.

Business Simplicity Filter

CriterionStatusNotes
≤4 operating segments PASS Segment count estimated from sector classification. Verify in 10-K for accuracy.
Top 2 segments ≥70% of revenue PASS Revenue concentration estimated. Verify segment breakdown in 10-K.
≤3 material geographic regions PASS Most US-listed companies report US vs International (2 regions).
No exotic debt instruments or off-balance-sheet complexity PASS Review 10-K for convertibles, derivatives, and off-balance-sheet items.

Recommendation: PROCEED TO VALUATION

Company Profile

Employees 4,100
Country United States

Universal Technical Institute, Inc. provides transportation, skilled trades, and healthcare education programs in the United States. It operates in two segments, UTI and Concorde. The company offers certificate, diploma, or degree programs. It also 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. The company serves students, partners, and communities by providing education and support services in various fields. Universal Technical Institute, Inc. was founded in 1965 and is based in Phoenix, Arizona.

Enterprise Value Calculation

Market Capitalization $1.55B
(+) Total Debt $0.28B
(-) Cash & Equivalents $0.17B
Net Debt $0.11B
Enterprise Value $1.66B
EV = Market Cap + Total Debt - Cash = $1.55B + $0.28B - $0.17B = $1.66B

Leverage & Solvency

MetricValueWhat It Means
Net Debt / EBITDA 0.78x Very Strong
Interest Coverage 14.8x Very Strong
Debt / Equity 85.0% Elevated
Current Ratio 1.07 Adequate

Overall: Balance sheet is adequate with some areas to monitor.

Peer Comparison

Industry: Education & Training Services | Data: TTM (Trailing 12 Months) as of 2026-02-04 | Source: Yahoo Finance

CompanyMarket CapP/EForward P/EEV/EBITDAProfit Margin
WMT $1030.6B 45.2x 43.5x 25.3x 3.3%
COST $440.1B 53.1x 44.6x 32.4x 3.0%
PG $369.2B 23.3x 21.6x 15.7x 19.3%
KO $334.9B 25.8x 24.1x 22.4x 27.3%
PEP $227.7B 27.8x 18.3x 15.6x 8.8%
UTI (Target) $1.5B 24.9x 30.2x 14.3x 7.5%
Peer Average (excl. target) - 26.8x 24.1x 22.4x 8.8%

Intrinsic Value Calculation

MethodInputsFair Value
Equity (TTM EPS) EPS: $1.13 x 24.1x P/E $27.23
Equity (Forward EPS) EPS: $0.93 x 24.1x P/E $22.41
EV-Based (EBITDA) EBITDA: $0.14B x 20.2x $49.51
Headline Fair Value Median value used (spread 82.0% exceeds 15% threshold) $27.23
Fair Multiples Basis: Fair P/E of 24.1x and EV/EBITDA of 20.2x. Multiples adjusted for below-average growth.

Sensitivity Analysis

P/E Multiple Sensitivity (using TTM EPS)

Low (22x)
Base (24x)
High (26x)
$24.97
$27.23
$29.49

EV/EBITDA Multiple Sensitivity

Low (19x)
Base (20x)
High (21x)
$46.96
$49.51
$52.06

Red / Green Dashboard

Green Factors (Positive)

  • Strong balance sheet (Net Debt/EBITDA: 0.8x)
  • Strong interest coverage (14.8x)

Red Factors (Concerns)

  • No significant concerns identified

Assessment: Moderately positive profile. Green factors outweigh concerns.

Seasoned Analyst Perspective

Valuation Context

UTI trades at 24.9x TTM P/E and 30.2x Forward P/E. This compares to peer averages of 26.8x TTM and 24.1x Forward P/E.

Cash Flow Quality

The company generates positive levered free cash flow of $0.08B, demonstrating its ability to generate real cash after all obligations. The 5.5% LFCF yield is attractive.

Analyst Consensus

6 analysts cover this stock with a consensus strong_buy rating. Price targets range from $36 to $40, with a mean of $37.

Market Sentiment Indicators

VIX
VIX (Fear Index)

19.04 - Neutral/Low Fear

Neutral/Low Fear
F&G
CNN Fear & Greed Index

Score: 40/100

Fear
SKEW
CBOE SKEW Index (Tail Risk)

143.85

Elevated Tail Risk Concerns
MKT
Market Breadth

SPY YTD: 15.3% | RSP YTD: 12.8%

Healthy Breadth

Supply Chain Analysis

No customer/supplier data available for this company. Data is curated from SEC 10-K filings for major tech companies.

Earnings Surprise History (Last 8 Quarters)

Track Record: 7 beats, 1 misses, 0 in-line out of 8 quarters | 88% Beat Rate

DateEPS EstimateEPS ActualResultSurprise %
2025-11-19 $0.26 $0.34 BEAT 32.5%
2025-08-06 $0.11 $0.19 BEAT 72.7%
2025-05-07 $0.12 $0.21 BEAT 72.6%
2025-02-05 $0.18 $0.39 BEAT 116.8%
2024-11-20 $0.30 $0.34 BEAT 13.3%
2024-08-06 $0.07 $0.09 BEAT 38.5%
2024-05-08 $0.15 $0.14 MISS -4.1%
2024-02-07 $0.04 $0.17 BEAT 300.0%
Average Earnings Surprise: 80.3% (Company tends to beat estimates)

Analyst Data

Price Targets

High Target $40.00
Mean Target $37.33
Low Target $36.00

Consensus

Recommendation strong_buy
# of Analysts 6

Data Sources & Citations

All financial data sourced from:

Click any blue number throughout the report to view its source.

Disclaimer

This analysis is generated automatically using publicly available data and should not be considered as financial advice. All figures are sourced from Yahoo Finance and may contain inaccuracies. Always verify data with primary sources (SEC filings, company IR) before making investment decisions.

Past performance does not guarantee future results. Investing involves risk, including the possible loss of principal.

Why Levered Free Cash Flow Matters

Levered FCF is cash that can't be faked. Unlike earnings which can be manipulated through accounting (depreciation schedules, revenue recognition, etc.), cash flow is simple: the money is either in the bank or it's not.

This metric shows how much actual cash the company generates after paying for:

A company with strong Levered FCF can pay dividends, buy back shares, pay down debt, or invest in growth - all from real cash, not accounting profits.

Why Customer & Supplier Earnings Matter

Customers and suppliers report earnings BEFORE the company you're analyzing. Their results give you early signals about demand and supply chain health.

Customer Example: If Microsoft (AMD customer) beats revenue estimates by 20%, it likely means they bought more chips than analysts expected. This is bullish for AMD's upcoming earnings.

Supplier Example: If TSMC (AMD supplier) reports strong demand from AMD, that confirms AMD's production is ramping up.

By the time AMD reports, you already have data points from 5+ related companies. Smart analysts piece these together to predict earnings before they're announced.

Why Segment Breakdown Matters

Not all revenue is equal. Different business segments have different growth rates and profit margins.

For example, AMD's Data Center segment has ~40% margins while Gaming might be ~15%. A shift toward Data Center means higher overall profitability even if total revenue stays flat.

Watch for: