Universal Logistics Holdings, Inc. (ULH) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Universal Logistics's EV/EBITDA of 15.8 is above its 5-year median of 5.5.

P/B below the industry

Universal Logistics's price-to-book of 1.43 is below the Trucking and Courier Services, except Air median of 1.83.

Trading above fair value

The share price of $30.43 is above our fair value estimate of $15.39.

Margin of safety under 20%

The price is 97.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -8.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -8.3% over the last twelve months; the Trucking and Courier Services, except Air median is 7.6%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was -15.1% over the last twelve months and averaged 19.3% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -3.0%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Universal Logistics's return on equity of -15.1% is below the Trucking and Courier Services, except Air median of 3.4%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -6.0% over the last twelve months, against a 5-year average of 3.8%.

Net margin below the industry

Universal Logistics's net margin of -6.0% is below the Trucking and Courier Services, except Air median of 2.1%.

High debt

Debt is 123% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 192% five years ago to 123%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 21.2% of total debt.

Interest not well covered

Operating income covers interest expense -1.0 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.20 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.72; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Universal Logistics paid dividends worth 1.4% of the share price over the last twelve months.

Yield below Treasuries

The 1.4% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Universal Logistics yields 1.4%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 30.2% of free cash flow.