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UTIUniversal Technical Institute, Inc.
$20.42$1.1B
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  4. Financial Ratios

Universal Technical Institute, Inc. (UTI) Financial Ratios

Latest Ratios: P/E Ratio 18.1x · EV/EBITDA 9.1x · ROE 21.4%. (2000–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

UTI Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$1.1B$1.8B$827M$289M$184M$224M$153M$138M$67M$86M$43M
Enterprise Value$1.3B$2.0B$960M$487M$327M$288M$234M$114M$51M$79M$-31713860
P/E Ratio →18.0728.8121.6864.4614.3239.7695.13————
P/S Ratio1.352.171.130.480.440.670.510.420.210.260.12
P/B Ratio3.465.523.181.280.851.190.871.210.530.680.32
P/FCF20.3132.7013.42———86.439.05———
P/OCF11.5518.609.635.883.994.0613.876.36——5.86

P/E links to full P/E history page with 30-year chart

UTI EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—2.351.310.800.780.860.780.340.160.24-0.09
EV / EBITDA9.1013.998.727.255.936.476.9711.98—4.82-67.76
EV / EBIT15.2921.8214.6117.5514.6918.64———121.16—
EV / FCF—35.4415.58———132.167.43———

UTI Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin49.7%49.7%47.5%45.7%50.5%50.2%48.2%46.2%42.4%44.2%44.0%
Operating Margin10.0%10.0%8.0%3.5%5.3%4.5%-1.3%-2.4%-11.1%-0.6%-5.4%
Net Profit Margin7.5%7.5%5.7%2.0%6.2%4.4%2.7%-2.4%-10.3%-2.5%-13.7%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE21.4%21.4%17.3%5.6%12.8%8.0%5.5%-6.5%-25.9%-6.2%-38.1%
ROA8.0%8.0%5.7%1.9%4.9%3.1%2.2%-2.8%-11.7%-2.8%-16.7%
ROIC14.3%14.3%10.8%4.1%5.5%4.4%-1.7%-5.8%-23.1%-1.5%-14.7%
ROCE14.7%14.7%10.8%4.4%5.6%4.3%-1.6%-4.3%-18.7%-0.9%-9.8%

UTI Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.850.851.131.550.971.050.890.360.330.340.32
Debt / EBITDA1.991.992.685.203.804.444.704.29—2.6494.13
Net Debt / Equity—0.460.510.880.670.340.46-0.22-0.13-0.06-0.55
Net Debt / EBITDA1.081.081.212.952.601.442.41-2.61—-0.43-160.24
Debt / FCF—2.742.16———45.74-1.62———
Interest Coverage15.9615.966.942.8711.1142.36-258.40-1.38-9.780.19-5.26

UTI Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.071.071.081.110.991.381.481.221.261.701.71
Quick Ratio1.071.071.081.110.921.381.480.991.002.161.71
Cash Ratio0.740.740.790.820.691.010.940.680.631.131.28
Asset Turnover—1.010.980.820.760.650.681.231.121.181.17
Inventory Turnover————21.40——8.047.49——
Days Sales Outstanding—23.0118.5818.7219.2524.7149.2725.5030.2717.1116.04

UTI Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield——0.1%1.8%2.8%2.3%0.1%1.0%1.7%6.1%3.4%
Payout Ratio——————1.2%————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield5.5%3.5%4.6%1.6%7.0%2.5%1.1%————
FCF Yield4.9%3.1%7.4%———1.2%11.1%———
Buyback Yield0.0%0.0%1.4%0.3%0.4%0.2%0.0%0.5%0.3%0.7%0.9%
Total Shareholder Yield0.0%0.0%1.5%2.0%3.2%2.5%0.1%1.4%2.0%6.8%4.3%
Shares Outstanding—$56M$51M$34M$34M$33M$30M$25M$25M$25M$24M

Key Metrics

Growth RegimeAccelerating
ProfitabilityStrained
Balance SheetAdequate
Cash FlowMixed
Top Statement Risk

Leverage and capex surge

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q3)

Margin Compression Despite Revenue Growth

Operating margin collapsed from 13.6% in 2025Q1 to 1.5% in 2026Q3, while revenue grew 7.2% year-over-year, per reported financials. This suggests cost escalation is outpacing top-line gains.

The sequential deterioration in operating margin from 11.2% in 2025Q4 to 1.5% in 2026Q3, despite revenue growth, indicates that SG&A expenses are absorbing incremental revenue. The 15% year-over-year increase in SG&A to $97.3M in 2026Q3, as noted in the income statement analysis, suggests that the company's cost structure is becoming less flexible. Investors should monitor whether this is a temporary investment phase or a structural shift in the cost base.

Return on Capital Decaying Sharply

ROIC fell from 5.2% in 2025Q1 to 0.4% in 2026Q3, while ROE dropped from 8.2% to 0.7%, based on reported figures. This indicates that recent capital investments are not yet generating adequate returns.

The sharp decline in ROIC and ROE over the past five quarters suggests that the company's heavy capital expenditure, which surged to 37% of revenue in 2026Q3, is not yet translating into profitable growth. The asset turnover has remained relatively stable around 0.25-0.28, implying that the decline in returns is driven by margin compression rather than asset efficiency. This may indicate that the company is in a period of heavy investment with delayed payoffs, but the lack of improvement in returns warrants close monitoring.

Working Capital Swings Distort Efficiency

Cash conversion cycle data is incomplete, but DSO rose from 15 days in 2024Q2 to 22 days in 2026Q3, per financial statements. This suggests a slight deterioration in receivables collection, though the impact is modest.

The increase in DSO from 15 to 22 days over the period indicates that the company is taking longer to collect from students or funding sources, which may tie up cash. However, the more significant efficiency issue is the massive working capital outflow of $81.1M in 2026Q3, which reversed a positive contribution in 2025Q4. This swing suggests that the company's working capital management is volatile, possibly due to timing of disbursements for new campus investments. The lack of DIO data limits a full assessment of inventory efficiency, but the company's service-based model likely minimizes inventory risk.

Debt Service Comfort Deteriorates

Interest coverage fell from 29.1x in 2025Q4 to 4.1x in 2026Q3, while D/EBITDA spiked to 87.4x, according to reported figures. This indicates a significant strain on debt servicing capacity.

The dramatic increase in D/EBITDA from 8.3x in 2025Q4 to 87.4x in 2026Q3 is largely due to the collapse in EBITDA, as operating income fell to $3.2M. Even though the absolute debt level rose only modestly, the coverage ratio has deteriorated sharply, suggesting that the company's earnings are insufficient to comfortably service its debt. The D/E ratio improved from 1.39 to 1.04, but this is misleading because equity has been bolstered by retained earnings, not by a reduction in debt. Investors should monitor whether the company can restore EBITDA growth to avoid covenant breaches or refinancing difficulties.

Liquidity Buffer Thin but Stable

Current ratio improved to 1.30 in 2026Q3 from 1.02 in 2024Q2, but cash covers only 36% of total debt, per balance sheet data. This suggests a modest liquidity cushion that could be tested under stress.

The current ratio of 1.30 indicates that current assets exceed current liabilities by a narrow margin, which is typical for a service company with minimal inventory. However, the quick ratio is identical to the current ratio, confirming that inventory is not a significant factor. The cash position of $130.1M covers only about a third of total debt, which may limit flexibility if the company faces a downturn or needs to refinance. The negative free cash flow in 2026Q3 of -$63.5M suggests that the company is relying on external financing to fund its capex, which could strain liquidity if capital markets tighten.

P/E Misleads Due to Earnings Volatility

The trailing P/E of 20.3 appears reasonable, but forward P/E of 34.6 implies expected earnings decline, per valuation data. This suggests that the market is pricing in a recovery that may not materialize.

The wide gap between trailing P/E (20.3) and forward P/E (34.6) indicates that analysts expect earnings to fall significantly in the coming year, likely due to margin compression and increased SBC. The PEG ratio of 0.24 is misleading because it is based on historical growth rates that may not be sustainable given the current cost pressures. A more appropriate metric for UTI would be EV/EBITDA, which at 10.1x is more reflective of the company's operating performance, but even this is distorted by the recent EBITDA collapse. Investors should focus on normalized EBITDA and cash flow metrics, adjusting for the one-time working capital swings and the surge in capex, to assess the company's true earning power.

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Includes 30+ ratios · 26 years · Updated daily

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UTI — Frequently Asked Questions

Quick answers to the most common questions about buying UTI stock.

What is Universal Technical Institute, Inc.'s P/E ratio?

Universal Technical Institute, Inc.'s current P/E ratio is 18.1x. The historical average is 43.0x. This places it at the 18th percentile of its historical range.

What is Universal Technical Institute, Inc.'s EV/EBITDA?

Universal Technical Institute, Inc.'s current EV/EBITDA is 9.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.2x.

What is Universal Technical Institute, Inc.'s ROE?

Universal Technical Institute, Inc.'s return on equity (ROE) is 21.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 9.3%.

Is UTI stock overvalued?

Based on historical data, Universal Technical Institute, Inc. is trading at a P/E of 18.1x. This is at the 18th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What are Universal Technical Institute, Inc.'s profit margins?

Universal Technical Institute, Inc. has 49.7% gross margin and 10.0% operating margin.

How much debt does Universal Technical Institute, Inc. have?

Universal Technical Institute, Inc.'s Debt/EBITDA ratio is 2.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.