Dec. 12 at 10:16 AM
$UTI 3) Financial Health: Manageable Leverage, Improving Cash Flow
Debt
$278.9M, cash
$175.9M → net debt light relative to revenue base.
Assets rising to
$826M, liabilities stable at
$498M showing balance sheet trending stronger.
FCF TTM
$55.3M, with Q4 FCF rebound to
$40.6M.
=> UTI is not capital-strained; liquidity and cash generation are solid.
4) Risks: Cyclical Enrollment + No Dividend + Thin Margins
Education/training enrollments can fluctuate with economic cycles.
Stock offers no dividend, so returns rely on revenue/EPS growth and multiple expansion.
Margins thin and sensitive to labor + operating cost spikes.
=> Execution risk remains, but fundamentals outweigh the negatives.
5) Bottom Line: Quality Fundamentals + Strong Upside Potential
$UTI is a growing education platform with rising profitability, strengthening balance sheet, and a nearly +50% analyst upside target.
Technical signs of bottoming + improving fundamentals create an attractive asymmetric setup into 2025.
