Upside case
Bull case
$177+68.3%
ULS would need investors to value it at roughly 81x earnings — about 33x more generous than today's 48x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
UL Solutions Inc. (ULS) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
8
analysts
4 bullish · 0 bearish · 8 covering ULS
Strong Buy
0
Buy
4
Hold
4
Sell
0
Strong Sell
0
Consensus Target
$89
-14.6% vs today
Scenario Range
$94 – $177
Model bear to bull value window
Coverage
8
Published analyst ratings
Valuation Context
48.0x
Forward P/E · Market cap $21.1B
ULS price targets
Three scenarios for where ULS stock could go
Current
~$105
Confidence
69 / 100
Updated
May 1, 2026
Where we are now
Current · $105
Bear
$94
Base
$153
Bull
$177
Market caseClosest to today
Base case
$153+45.6%
At 70x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$94-10.4%
If investor confidence fades or macro conditions deteriorate, a 5x multiple contraction could push ULS down roughly 10% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
UL Solutions Inc.
ULS · NYSEIndustrialsSpecialty Business ServicesDecember year-end
UL Solutions is a global safety science company that provides testing, inspection, and certification services to ensure product safety and regulatory compliance. It generates revenue through three main segments: Industrial (testing for energy, automation, and built environment), Consumer (safety certification for electronics, medical devices, and appliances), and Software & Advisory (regulatory compliance software and consulting). The company's competitive advantage lies in its century-old brand reputation, global regulatory recognition, and comprehensive testing infrastructure that creates high switching costs for manufacturers needing certification across multiple markets.
Market Cap
$21.1B
Revenue TTM
$3.1B
Net Income TTM
$349M
Net Margin
11.2%
ULS Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
89%Exceptional
12 quarters tracked
Revenue Beat Rate
100%Exceptional
vs consensus estimates
Avg EPS Surprise
+17.1%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$0.52/$0.47
Revenue
$776M/$769M
Q4 2025
EPS
$0.56/$0.47
Revenue
$783M/$771M
Q1 2026
EPS
$0.53/$0.45
Revenue
$789M/$782M
Q2 2026
EPS
$0.50/$0.42
Revenue
$758M/$749M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.52/$0.47 | +10.6% | $776M/$769M | +0.9% |
| Q4 2025 | $0.56/$0.47 | +18.6% | $783M/$771M | +1.6% |
| Q1 2026 | $0.53/$0.45 | +19.0% | $789M/$782M | +0.8% |
| Q2 2026 | $0.50/$0.42 | +19.0% | $758M/$749M | +1.3% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$3.2B
+6.4% YoY
FY2
$3.4B
+6.3% YoY
EPS Outlook
FY1
$2.35
+40.6% YoY
FY2
$2.33
-0.7% YoY
Trailing FCF (TTM)$450M
FCF Margin: 14.5%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
ULS beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
ULS Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $285M
Product Mix
Latest annual revenue by segment or product family
Software
100.0%
+4.4% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
41.0%
+6.4% YoY
Tap, hover, or focus a slice to inspect segment detail.
Software is the largest disclosed segment at 100.0% of FY 2025 revenue, up 4.4% YoY.
UNITED STATES is the largest reported region at 41.0%, up 6.4% YoY.
ULS Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Overvalued
Fair value est. $65 — implies -29.2% from today's price.
Premium to Fair Value
29.2%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
ULS
65.6x
vs
S&P 500
25.2x
+160% premium
vs Industrials Trailing P/E
ULS
65.6x
vs
Industrials
25.9x
+153% premium
vs ULS 5Y Avg P/E
Today
65.6x
vs
5Y Average
40.0x
+64% premium
Forward PE
48.0x
S&P 500
19.1x
+151%
Industrials
20.7x
+131%
5Y Avg
—
—
Trailing PE
65.6x
S&P 500
25.2x
+160%
Industrials
25.9x
+153%
5Y Avg
40.0x
+64%
PEG Ratio
9.87x
S&P 500
1.74x
+467%
Industrials
1.64x
+502%
5Y Avg
—
—
EV/EBITDA
28.5x
S&P 500
15.2x
+87%
Industrials
13.7x
+108%
5Y Avg
19.3x
+48%
Price/FCF
52.3x
S&P 500
21.3x
+146%
Industrials
21.0x
+149%
5Y Avg
37.3x
+40%
Price/Sales
6.9x
S&P 500
3.1x
+120%
Industrials
1.6x
+331%
5Y Avg
4.4x
+58%
Dividend Yield
0.49%
S&P 500
1.87%
-74%
Industrials
1.25%
-61%
5Y Avg
0.82%
-41%
| Metric | ULS | S&P 500 | Industrials | 5Y Avg ULS |
|---|---|---|---|---|
| Forward PE | 48.0x | 19.1x+151% | 20.7x+131% | — |
| Trailing PE | 65.6x | 25.2x+160% | 25.9x+153% | 40.0x+64% |
| PEG Ratio | 9.87x | 1.74x+467% | 1.64x+502% | — |
| EV/EBITDA | 28.5x | 15.2x+87% | 13.7x+108% | 19.3x+48% |
| Price/FCF | 52.3x | 21.3x+146% | 21.0x+149% | 37.3x+40% |
| Price/Sales | 6.9x | 3.1x+120% | 1.6x+331% | 4.4x+58% |
| Dividend Yield | 0.49% | 1.87% | 1.25% | 0.82% |
ULS trades above S&P 500 benchmarks on 6 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolULS Financial Health
Verdict
Strong
ULS generates $450M in free cash flow at a 14.5% margin — 23.1% ROIC signals a durable competitive advantage.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$3.1B
Revenue Growth
TTM vs prior year
+6.9%
Gross Margin
Gross profit as a share of revenue
49.6%
Operating Margin
Operating income divided by revenue
17.8%
Net Margin
Net income divided by revenue
11.2%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$1.71
Free Cash Flow (TTM)
Cash generation after capex
$450M
FCF Margin
FCF as share of revenue — the primary cash quality signal
14.5%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
23.1%
ROA
Return on assets, trailing twelve months
11.9%
Cash & Equivalents
Liquid assets on the balance sheet
$295M
Net Debt
Total debt minus cash
$537M
Debt Serviceability
Net debt as a multiple of annual free cash flow
1.2× FCF
~1.2 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
28.1%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.5%
Dividend
0.5%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$0.51
Payout Ratio
Share of earnings distributed as dividends
32.0%
Shares Outstanding
Current diluted share count
201M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageULS Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Regulatory Changes
UL Solutions faces potential adverse effects from changing regulatory frameworks that could decrease demand for its core services of inspection, testing, and certification. This risk is particularly significant as regulatory shifts can lead to immediate impacts on revenue streams.
High Risk
International Operational Risks
The company generates approximately 24% of its revenue from China, exposing it to significant international operational risks, including compliance difficulties. Any adverse developments in Chinese regulations or market conditions could severely impact ULS's financial performance.
Medium
Innovation Failure
A failure to innovate in response to market demands and technological advancements could jeopardize UL Solutions' ability to maintain revenue and profitability. As competition intensifies, the company's growth could stall if it does not keep pace with industry innovations.
Medium
Valuation Concerns
UL Solutions trades at a premium valuation, with a high price-to-earnings ratio that leaves little room for execution missteps or macroeconomic disappointments. Analysts have raised concerns that the current valuation may not accurately reflect decelerating growth trends.
Lower
Market Volatility
While the stock has not experienced significant price volatility in the past three months, it has faced selling pressure and retreated from its 52-week high. This could indicate underlying market concerns that may affect investor sentiment.
Lower
Competition for Talent
Operating in a fragmented industry, UL Solutions must attract and retain skilled talent to maintain its competitive advantage. A shortage of qualified professionals could hinder the company's operational effectiveness and growth potential.
Lower
Dividend Yield
The dividend yield for UL Solutions is modest, offering limited support during market pullbacks. This could be a concern for income-focused investors looking for more substantial returns in volatile market conditions.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why ULS Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Market Leadership and Brand Reputation
UL Solutions is a global leader in the TIC industry, benefiting from a strong brand reputation that drives demand for its services. Established in 1893, the company has built a globally recognized brand with a mission to make the world safer, more secure, and more sustainable.
Growing Market
The global TIC market is valued at $410 billion and is projected to reach $550 billion by 2033. UL Solutions operates in the 'Product TIC' segment, worth approximately $38 billion, holding about a 7% market share, with sector growth expected at 4-5%.
Consistent Growth and Financial Strength
UL Solutions is experiencing current growth of 6.1%, outpacing the sector, with a forecasted long-term growth of 5.4%. The company demonstrates strong free cash flow, low leverage, and has shown accelerating organic growth and expanding EBITDA margins.
Recurring Revenue and Wide Moat
The company generates essential, recurring safety certification services, contributing to a wide economic moat. This business model fosters long-term client relationships and stable recurring revenues.
Innovation and Expansion
UL Solutions is investing in high-growth areas such as data centers, energy storage, and AI safety certification. The company has issued the world's first certifications for AI-enabled products under its UL 3115 standard, which is seen as a long-term growth catalyst.
Financial Performance
The company reported record 2025 revenue surpassing $3 billion for the first time, with recent quarterly results showing revenue up 6.8% year-over-year. Management has also raised its quarterly dividend, signaling confidence in future performance.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
ULS Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$104.89
52W Range Position
94%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$60.00
+74.8% from the low
52-Week High
$107.54
-2.5% from the high
1 Month
+24.59%
3 Month
+51.05%
YTD
+29.5%
1 Year
+74.7%
3Y CAGR
+44.2%
5Y CAGR
+24.6%
10Y CAGR
+11.6%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
ULS vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
48.0x
vs 16.0x median
+199% above peer median
Revenue Growth
+6.4%
vs +7.1% median
-10% below peer median
Net Margin
11.2%
vs 5.3% median
+113% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
ULS ULS UL Solutions Inc. | $21.1B | 48.0x | +6.4% | 11.2% | Buy | -14.6% |
BV BV BrightView Holdings, Inc. | $1.2B | 16.0x | -1.0% | 1.4% | Buy | +14.6% |
NVT NVT nVent Electric plc | $27.9B | 40.3x | +18.8% | 11.4% | Buy | -20.9% |
TRU TRU TransUnion | $13.6B | 14.3x | +8.8% | 14.9% | Buy | +39.0% |
BUR BURL Burlington Stores, Inc. | $20.0B | 32.0x | +7.1% | 5.3% | Buy | +6.1% |
ICF ICFI ICF International, Inc. | $1.3B | 10.6x | -1.6% | 4.9% | Buy | +37.5% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
ULS Dividend and Capital Return
ULS returns 0.5% total yield, led by a 0.49% dividend.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
0.5%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
0.49%
Payout Ratio
32.0%
How ULS Splits Its Return
Div 0.49%
Dividend 0.49%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.51
Growth Streak
Consecutive years of dividend increases
1Y
3Y Div CAGR
-60.0%
5Y Div CAGR
62.7%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
201M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.14 | — | — | — |
| 2025 | $0.52 | +38.7% | 0.0% | 0.6% |
| 2024 | $0.38 | — | 0.0% | 1.0% |
FAQ
7 questionsULS Investor Questions
Common questions answered from live analyst data and company financials.
01Is UL Solutions Inc. (ULS) stock a buy or sell in 2026?
UL Solutions Inc. (ULS) is rated Buy by Wall Street analysts as of 2026. Of 8 analysts covering the stock, 4 rate it Buy or Strong Buy, 4 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $89, implying -14.6% from the current price of $105. The bear case scenario is $94 and the bull case is $177.
02What is the ULS stock price target for 2026?
The Wall Street consensus price target for ULS is $89 based on 8 analyst estimates. The high-end target is $96 (-8.5% from today), and the low-end target is $79 (-24.7%). The base case model target is $153.
03Is UL Solutions Inc. (ULS) stock overvalued in 2026?
ULS trades at 48.0x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for UL Solutions Inc. (ULS) stock in 2026?
The primary risks for ULS in 2026 are: (1) Regulatory Changes — UL Solutions faces potential adverse effects from changing regulatory frameworks that could decrease demand for its core services of inspection, testing, and certification. (2) International Operational Risks — The company generates approximately 24% of its revenue from China, exposing it to significant international operational risks, including compliance difficulties. (3) Innovation Failure — A failure to innovate in response to market demands and technological advancements could jeopardize UL Solutions' ability to maintain revenue and profitability. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is UL Solutions Inc.'s revenue and earnings forecast?
Analyst consensus estimates ULS will report consensus revenue of $3.2B (+6.4% year-over-year) and EPS of $2.35 (+40.6% year-over-year) for the upcoming fiscal year. The following year, analysts project $3.4B in revenue.
06When does UL Solutions Inc. (ULS) report its next earnings?
A confirmed upcoming earnings date for ULS is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does UL Solutions Inc. generate?
UL Solutions Inc. (ULS) generated $450M in free cash flow over the trailing twelve months — a free cash flow margin of 14.5%. ULS returns capital to shareholders through dividends (0.5% yield) and share repurchases ($0 TTM).