📊 UTI Key Takeaways
Is Universal Technical Institute Inc. (UTI) a Good Investment?
UTI exhibits strong revenue growth of 14% YoY, but fundamentals are deteriorating with negative free cash flow of -$45.6M, anemic net margins of 3.0%, and ROE of only 3.9%. The significant gap between net income ($13.3M) and operating cash flow ($7.1M) signals quality-of-earnings concerns, while high capex requirements ($52.7M) relative to operating returns are unsustainable.
Universal Technical Institute Inc. Key Strengths (UTI)
- Strong top-line growth of 14% YoY demonstrates market demand for technical education
- Moderate leverage with Debt/Equity of 0.38x and $87.2M cash provides financial flexibility
- EPS growth of 50.7% YoY indicates management shareholder returns through buybacks
UTI Stock Risks: Universal Technical Institute Inc. Investment Risks
- Negative free cash flow of -$45.6M is unsustainable and indicates the business is burning cash despite revenue growth
- Thin profit margins (3.0% net, 3.6% operating) and poor returns (ROE 3.9%, ROA 1.6%) suggest structural profitability challenges
- Operating cash flow of $7.1M versus net income of $13.3M reveals earnings quality concerns and dependence on non-cash items
- High capital intensity with capex of $52.7M (11.9% of revenue) pressures cash generation
- Interest coverage of 2.2x is tight, limiting debt service flexibility if operations deteriorate
Key Metrics to Watch
- Free cash flow trend - critical indicator of business sustainability
- Operating margin expansion - must improve profitability to justify capital investments
- Operating cash flow conversion - reconcile gap with net income to verify earnings quality
- Capital expenditure efficiency - assess ROI on heavy capex spending
Universal Technical Institute Inc. (UTI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Universal Technical Institute Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
UTI Profit Margin, ROE & Profitability Analysis
UTI vs Services Sector: How Universal Technical Institute Inc. Compares
How Universal Technical Institute Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Universal Technical Institute Inc. Stock Overvalued? UTI Valuation Analysis 2026
Based on fundamental analysis, Universal Technical Institute Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Universal Technical Institute Inc. Balance Sheet: UTI Debt, Cash & Liquidity
UTI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Universal Technical Institute Inc.'s revenue has grown significantly by 149% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.13 reflects profitable operations.
UTI Revenue Growth, EPS Growth & YoY Performance
UTI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $207.4M | $433.0K | $0.01 |
| Q1 2026 | $201.4M | $12.8M | $0.23 |
| Q3 2025 | $177.5M | $5.0M | $0.09 |
| Q2 2025 | $184.2M | $7.8M | $0.14 |
| Q1 2025 | $174.7M | $10.4M | $0.17 |
| Q3 2024 | $153.3M | -$509.0K | $0.03 |
| Q2 2024 | $163.8M | $2.6M | $0.04 |
| Q1 2024 | $120.0M | $2.6M | $0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Universal Technical Institute Inc. Dividends, Buybacks & Capital Allocation
UTI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Universal Technical Institute Inc. (CIK: 0001261654)
📋 Recent SEC Filings
❓ Frequently Asked Questions about UTI
What is the AI rating for UTI?
Universal Technical Institute Inc. (UTI) has an AI grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are UTI's key strengths?
Claude: Strong top-line growth of 14% YoY demonstrates market demand for technical education. Moderate leverage with Debt/Equity of 0.38x and $87.2M cash provides financial flexibility.
What are the risks of investing in UTI?
Claude: Negative free cash flow of -$45.6M is unsustainable and indicates the business is burning cash despite revenue growth. Thin profit margins (3.0% net, 3.6% operating) and poor returns (ROE 3.9%, ROA 1.6%) suggest structural profitability challenges.
What is UTI's revenue and growth?
Universal Technical Institute Inc. reported revenue of $442.2M.
Does UTI pay dividends?
Universal Technical Institute Inc. does not currently pay dividends.
Where can I find UTI SEC filings?
Official SEC filings for Universal Technical Institute Inc. (CIK: 0001261654) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is UTI's EPS?
Universal Technical Institute Inc. has a diluted EPS of $0.24.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is UTI's fundamental grade?
Based on our AI fundamental analysis in June 2026, Universal Technical Institute Inc. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is UTI stock overvalued or undervalued?
Valuation metrics for UTI: ROE of 3.9% (sector avg: 16%), net margin of 3.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is UTI's AI grade for 2026?
Our dual AI analysis gives Universal Technical Institute Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is UTI's free cash flow?
Universal Technical Institute Inc.'s operating cash flow is $7.1M, with capital expenditures of $52.7M. FCF margin is -10.3%.
How does UTI compare to other Services stocks?
Vs Services sector averages: Net margin 3.0% (avg: 10%), ROE 3.9% (avg: 16%), current ratio 1.17 (avg: 1.5).