Universal Technical Institute, Inc. (UTI) AI Stock Analysis
UTI AI stock analysis summary
AI ResearchUniversal Technical Institute, Inc. (UTI) provides specialized technical training across transportation and manufacturing fields. Full-year revenue reached $835.6M in FY2025, but quarterly earnings declined 78.9% in the latest quarter ending June 30, 2026. The stock closed at $20.58, down 32.6% over the past year.
- Market cap
- $1.13B
- Revenue (TTM)
- $883.6M
- P/E
- 34.3x fwd 27.2x
- 1Y return
- -32.6% S&P 500 16.8%
- Avg. target
- $38.83 88.7% vs last close
Bull case
- Annual revenue grew at a 5-year CAGR of 22.7% from FY2020 through FY2025, reaching $835.6M.
- Free cash flow generation remained positive at $55.4M in FY2025 alongside $97.3M in operating cash flow.
- All 6 analyst recommendations are positive, with a mean price target of $38.83 indicating 88.7% upside over the $20.58 share price.
Bear case
- Quarterly earnings fell 78.9% year-over-year in the latest quarter ending June 30, 2026.
- The stock trades at a trailing P/E of 34.3x, well above the US-listed Consumer Defensive peer median of 18.6x.
- Total debt stood at $359.5M on June 30, 2026, leaving net debt at $189.4M with a debt-to-equity ratio of 1.04.
What Universal Technical Institute does
Universal Technical Institute, Inc. is a provider of specialized technical education focused on transportation industries across the United States. Operating brands include Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. It offers certificate, diploma, and degree programs in automotive, motorcycle, marine, and motorsports technologies, along with welding and CNC machining. The company also provides manufacturer-specific training programs through student electives and sponsored manufacturer partnerships. Founded in 1965 and based in Phoenix, Arizona, it operated a network of 16 campuses as of September 30, 2022.
Growth and profitability
Revenue expanded from $335.1M in FY2021 to $835.6M in FY2025, representing a 5-year revenue CAGR of 22.7% through FY2025. Annual net income rose to $63.0M in FY2025 with an operating margin of 10.0%, up from $42.0M and 8.0% in FY2024. For the trailing twelve months, revenue totaled $883.6M with an operating margin of 2.0% and EPS of $0.60. In the latest quarter ended June 30, 2026, quarterly revenue grew 7.2% year-over-year, while quarterly earnings fell 78.9%.
Balance sheet and cash flow
As of June 30, 2026, the company held $170.1M in cash and short-term investments against total debt of $359.5M, resulting in net debt of $189.4M. Shareholders' equity was $344.3M, yielding a debt-to-equity ratio of 1.04 and a current ratio of 1.30. In FY2025, operating cash flow was $97.3M and free cash flow was $55.4M. Capital expenditures totaled $42.0M, while share buybacks accounted for $4.8M.
Valuation and performance
At $20.58 per share, UTI carries a market capitalization of $1.13B and an enterprise value of $1.31B. It trades at a trailing P/E of 34.3x and a forward P/E of 27.2x, compared to medians of 18.6x and 14.3x for its US-listed Consumer Defensive peers. Its price-to-sales multiple is 1.3x versus the peer median of 0.7x, while its EV-to-EBITDA matches the peer median at 11.7x. Over the past year, the stock fell 32.6%, trailing the S&P 500 return of 16.8%.
What analysts expect
Wall Street coverage includes 5 Strong Buy ratings, 1 Buy rating, and no Hold or Sell recommendations. The mean price target is $38.83, which is 88.7% above the last close of $20.58. For the fiscal year ending September 30, 2026, consensus estimates expect revenue of $896.2M and EPS of $0.60, representing a 46.6% drop in EPS. UTI beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 18, 2026.
Key risks and what to watch
- Short interest represents 13.9% of the float as of October 16, 2026.
- Full-year EPS for the period ending September 30, 2026, is estimated to decline 46.6% to $0.60.
- The stock has declined 36.8% below its 200-day average and sits close to its 52-week low of $18.02.
- Share count expanded by 66.6% over 5 years, diluting existing holdings.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this UTI AI stock analysis
This page is an AI-written research summary of Universal Technical Institute, Inc. (UTI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: UTI income statement, UTI balance sheet, UTI key metrics, UTI analyst forecast, UTI chart. See the UTI stock overview for the latest quote and news.
UTI AI stock analysis FAQ
Does UTI pay a dividend?
Universal Technical Institute does not currently pay a dividend. In FY2025, cash capital deployment included $42.0M in capital expenditures and $4.8M in share buybacks.
What are analysts forecasting for UTI's earnings?
For the fiscal year ending September 30, 2026, analysts estimate EPS of $0.60, representing a 46.6% decline. For the next fiscal year, analysts forecast EPS to rebound 21.8% to $0.73 on revenue of $971.9M.
How does UTI's valuation compare to its peers?
UTI trades at a trailing P/E of 34.3x and a forward P/E of 27.2x, higher than the US-listed Consumer Defensive peer medians of 18.6x and 14.3x. Its EV-to-EBITDA of 11.7x aligns with the peer group median.
When does UTI report its next earnings?
UTI's next scheduled earnings date is November 18, 2026. The company exceeded EPS expectations in 3 of the last 4 quarters.