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Universal Technical Institute

UTI
43
Education & Training Services · Consumer Defensive
Price
$40.31
-0.26 (-0.64%)
Market Cap
$2.22B
Winston Score
43
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+67.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 33.1M (2021) → 55.6M (2025)

Universal Technical Institute trains people for careers as mechanics and technicians. It runs trade schools across the United States that teach students how to repair cars, trucks, motorcycles, diesel engines, and heating and cooling systems. The company partners with brands like BMW, Ford, and Harley-Davidson to offer specialized training programs, which helps graduates get hired directly by dealerships and repair shops.

UTI makes money by charging tuition to students, many of whom use federal financial aid to pay for their education. The company operates roughly 30 campuses across the country and serves around 15,000 students at any given time. Its main competitive advantage is its long-standing relationships with major automotive brands, which makes its credentials more recognized by employers than those from generic trade schools. The biggest risk is its heavy dependence on federal student aid programs — any change in government funding rules could significantly reduce enrollment and revenue.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+6.7% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-96.2% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (2%)

Research and development spending

Insider Activity

3.8%ownership

Relatively low insider ownership

Cash Runway

~10 months

$87M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Short runway — potential dilution ahead through share issuance

Cash watch

Universal Technical Institute has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
46.7%
Healthy — 46.7% gross margin
Operating Margin
0.2%
Thin — 0.2% operating margin
ROCE
0.1%
Weak — 0.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+9.9%
Steady sales growth (9.9% YoY)
EPS YoY
-7.9%
Earnings shrinking (-7.9% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
190%
Turns 190% of profit into real cash
FCF Margin
1.1%
Thin free cash flow (1.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.44
Conservative — low debt load (0.44)
Interest Cover
11.10x
Comfortably covers interest (11.1x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
53.2x
Expensive — P/E 53.2

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+6.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (53.2 → 47.1)

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Dividends

Not applicable for this business.
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