The Screen · Consumer Defensive · Education & Training Services
Universal Technical Institute, Inc.
UTI · the NYSE · USD · Market cap $1.2B · 4,100 employees
Universal Technical Institute, Inc.
FAIL · Does not pass the screen
22.12 USD
At the last full screen 2026-08-26
Screened 2026-08-26 · the tape above runs as of 22:12 UTC · 11 Sep · two dates, stated on purpose · verdict and workings shown in full · never trimmed
The Label · The Season, Not the Day
This name holds its markdown label.
Universal Technical Institute, Inc. holds its Markdown at $22.12. The statistical read favours the sellers, held for 57 days.
As held on the ledger · 2026-08-26
Phase
Markdown · caution
Quantitative state
The statistical read favours the sellers, held for 57 days
Price at the screen
$22.12
Valuation
36.26 trailing · 23.78 forward price to earnings
Values screen
FAIL· score 70.0
Beta
1.24
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
33.76%
Below 33%
Interest-bearing debt is 33.8% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
5.06%
Below 33%
Cash held in interest-bearing accounts and securities is 5.1% of assets, under the one-third limit.
Pass
Receivables
22.99%
Below 49%
Money owed to the company is 23.0% of assets, under the 49% limit.
Pass
Revenue purity
0.74%
Below 5%
Only 0.7% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
Fair value range in USD, drawn from the 2026-08-26 screen. The gold marker is the market price at the same screen. A 35.8% margin of safety to the base estimate.
Third-party analyst targets: 6 covering, consensus None. The average target sits +88% from the screen price.
Reading the gap · Both our model and the analysts see meaningful upside from here.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-08-26 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Vocational training priced like a growth star
Every time a mechanic or nurse needs a certificate to start work, schools like Universal Technical Institute step in to deliver the training. Yet the shares sit 23% above our fair value at a forward multiple of 43 times earnings, even though revenue is rising only 7% a year and profit margins remain stuck at 5%.
We pass because the numbers do not justify the price. Return on equity of 13% and an unknown competitive moat offer little protection when growth stays modest and the market already prices in far stronger expansion than the business has delivered.
Regulatory shifts in education funding and swings in student enrolment could hit results quickly, while the gap between current price and fair value leaves little room for disappointment. Analysis, not advice.
The risks · The things to watch: it's a small-cap, so the share price can swing harder than the market.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
UTI trades on the NYSE. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 26.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 26% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 22%. Our forward projection puts the odds of a 10% gain over the next month near 38%. The street (6 analysts) rates it none, with a mean price target of $42. Insiders have been net buyers over the past quarter.
2026-07-18Markup$39.14+0.0%Entry 3
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 26% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 22%. Our forward projection puts the odds of a 10% gain over the next month near 38%. The street (6 analysts) rates it none, with a mean price target of $42.
2026-07-03Markup$39.14+0.0%Entry 2
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
2026-07-02Markup$39.14Entry 1
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
