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Universal Technical Institute
(NYSE:UTI)
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Rating:53Neutral
Price Target:
$27.00
▼(-28.53% Downside)
Action:Reiterated
Date:08/18/26
The score is held back primarily by weakened TTM quality (margin compression and negative free cash flow) and bearish technicals with the stock trading well below major moving averages. Offsetting factors include solid multi-year revenue growth and a generally constructive earnings call with ongoing enrollment momentum and reaffirmed long-term targets, though near-term guidance was tightened and execution/mix issues remain.
Positive Factors
Sustained Revenue and Enrollment Growth
Consistent revenue and enrollment growth indicate durable demand for technician, healthcare and skilled-trade training. Expanding student volumes support operating scale and provide a foundation for continued growth as newer campuses mature.
Negative Factors
Recent Margin Compression
Material TTM margin deterioration shows that revenue growth is not currently translating proportionally into earnings. Higher costs, enrollment mix and growth investments could keep profitability below prior levels until operating execution improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue and Enrollment Growth
Consistent revenue and enrollment growth indicate durable demand for technician, healthcare and skilled-trade training. Expanding student volumes support operating scale and provide a foundation for continued growth as newer campuses mature.
Read all positive factors
Universal Technical Institute (UTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.34B
Dividend YieldN/A
Average Volume (3M)937.47K
Price to Earnings (P/E)36.5
Beta (1Y)0.56
Revenue Growth9.15%
EPS Growth-46.11%
CountryUS
Employees4,100
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.63
Shares Outstanding55,095,230
10 Day Avg. Volume1,067,084
30 Day Avg. Volume937,473
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$41.83Price Target Upside10.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.78
Revenue Forecast (FY)$910.85M
Universal Technical Institute Business Overview & Revenue Model
Company Description
Universal Technical Institute, Inc. (UTI) is an American educational provider specializing in technical and transportation training programs. The institute offers postsecondary education designed to equip students for professional careers in vario...
How the Company Makes Money
UTI primarily generates revenue by operating career-training schools and charging students tuition and fees for enrollment in its programs (including the classroom and hands-on lab instruction required for technician and skilled-trade training). A...
Universal Technical Institute Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 25, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and strategic picture: solid Q3 revenue (+7%), rising student counts (+~6% avg. FTE; new starts +11%), strong performance from new campuses and program launches, improved lead generation, and continued employer demand across transportation, skilled trades and healthcare. The primary near-term headwinds are execution-related (insufficient field rep coverage) and a faster-than-expected mix shift toward shorter skilled-trades programs that lowered FY26 revenue and EBITDA versus original expectations. Management has taken concrete remediation actions (added ~20% high-school admissions staff, accelerated CapEx, pricing/optimization efforts) and reiterated confidence in its multi-year North Star targets, keeping the long-term outlook intact. Given strong underlying demand, multiple growth achievements and corrective actions to address execution gaps, the highlights outweigh the lowlights.Positive Updates
Revenue Growth
Consolidated revenue increased ~7.2% year-over-year to $218.9 million in Q3 2026 (reported as $219 million), demonstrating continued top-line growth.
Negative Updates
Near-Term Softness in UTI High School Channel
UTI high school new student starts for Q4 are tracking below initial expectations, primarily in auto and diesel programs, driving a downward adjustment to Q4/FY26 revenue and profitability expectations.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth
Consolidated revenue increased ~7.2% year-over-year to $218.9 million in Q3 2026 (reported as $219 million), demonstrating continued top-line growth.
Read all positive updates
Company Guidance
UTI updated fiscal 2026 guidance to consolidated revenue of $893M–$900M (≈7% YoY), baseline adjusted EBITDA to exceed $135M and reported adjusted EBITDA of $100M–$103M (reflecting ~ $35M of growth investments), tightened new student starts to 31,900–32,300, and net income of $32M–$36M with diluted EPS of $0.57–$0.64. Quarter-to-date (Q3) operating metrics included revenue of $218.9M (up 7.2% YoY), average full-time active students of 25,131 (+5.8% YoY), new student starts of 6,342 (+10.9% YoY), baseline adjusted EBITDA of $27.2M (reported adj. EBITDA $18.2M after $9M of growth investments), 55M shares outstanding and $181M of available liquidity. Capital spend for FY26 is now expected to be about $110M (year-to-date CapEx $85.4M, ~85% of prior target), management expects FY27 revenue growth above FY26 with modest EBITDA dollar growth and is maintaining longer-term North Star targets of >$1.2B revenue and ~ $220M adjusted EBITDA by FY2029.Universal Technical Institute Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
60
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 883.60M | 835.62M | 732.69M | 607.41M | 418.76M | 335.08M |
| Gross Profit | 543.48M | 415.13M | 348.16M | 277.54M | 211.53M | 168.26M |
| EBITDA | 104.63M | 146.69M | 116.89M | 73.56M | 55.03M | 45.09M |
| Net Income | 34.30M | 63.02M | 42.00M | 12.32M | 25.85M | 14.58M |
Balance Sheet | ||||||
| Total Assets | 897.86M | 826.14M | 744.58M | 740.68M | 552.91M | 512.57M |
| Cash, Cash Equivalents and Short-Term Investments | 170.12M | 169.15M | 161.90M | 151.55M | 95.37M | 133.72M |
| Total Debt | 359.47M | 278.90M | 294.75M | 349.62M | 209.80M | 198.03M |
| Total Liabilities | 553.56M | 498.03M | 484.34M | 514.72M | 337.51M | 324.04M |
| Stockholders Equity | 344.31M | 328.11M | 260.23M | 225.97M | 215.40M | 188.53M |
Cash Flow | ||||||
| Free Cash Flow | -22.87M | 55.35M | 61.60M | -7.54M | -33.43M | -6.40M |
| Operating Cash Flow | 74.51M | 97.33M | 85.89M | 49.15M | 46.03M | 55.19M |
| Investing Cash Flow | -89.34M | -87.88M | -24.00M | -44.07M | -134.60M | -22.95M |
| Financing Cash Flow | 77.37M | -42.79M | -51.34M | 81.85M | 12.59M | 24.82M |
Universal Technical Institute Technical Analysis
Negative
37.78
Price Trends
38.27
Negative
38.10
Negative
33.72
Negative
Market Momentum
-4.59
Positive
26.37
Positive
7.38
Positive
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 37.78 is above the 20-day moving average (MA) of 32.29, below the 50-day MA of 38.27, and above the 200-day MA of 33.72, indicating a bearish trend. The MACD of -4.59 indicates Positive momentum. The RSI at 26.37 is Positive, neither overbought nor oversold. The STOCH value of 7.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
86 Outperform | $1.84B | 13.40 | 8.19% | 3.17% | 3.53% | 23.97% | |
79 Outperform | $2.04B | 11.56 | 17.70% | 1.98% | 11.68% | 18.98% | |
74 Outperform | $818.99M | 17.68 | 15.30% | ― | 3.64% | 129.52% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | $834.27M | 35.35 | 11.59% | ― | 22.02% | 57.98% | |
53 Neutral | $1.34B | 36.50 | 10.17% | ― | 9.15% | -46.11% |
* Consumer Defensive Sector Average
UTI
Universal Technical Institute
22.92
-3.83
-14.32%
APEI
American Public Education
44.39
13.28
42.72%
PRDO
Perdoceo Education
32.48
0.31
0.97%
LINC
Lincoln Edu
26.16
6.19
31.00%
STRA
Strategic Education
82.38
4.23
5.42%
Universal Technical Institute Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Universal Technical Institute Announces New $200M Credit Facility
Positive
Aug 18, 2026
On August 12, 2026, Universal Technical Institute entered into a new credit agreement that refinances and replaces its prior facility, securing a senior secured revolving credit line of up to $200 million with a syndicate led by Fifth Third Bank a...
Business Operations and StrategyFinancial Disclosures
Universal Technical Institute Reports Mixed Q3 2026 Results
Negative
Aug 5, 2026
Universal Technical Institute reported fiscal third-quarter 2026 results on August 5, 2026, with revenue up 7.2% year over year to $218.9 million and net income down to $2.3 million as strategic growth expenses weighed on profitability. Adjusted E...
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.