UL Solutions Inc. (ULS) stock analysis
Close on Nov 11, 2026Market cap $16.47BP/E 32.9Yield 0.64%
StockData Score
Prices as of Nov 11, 2026How the score works
Solid15 of 30 checks passed
UL Solutions passes 15 of the 30 checks behind our score; 5 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 2/6
- Past performance
- 4/6
- Financial health
- 5/6
- Dividend
- 3/6
What stands out
Return on capital over 10%
Return on invested capital was 28.6%, above the 10% that usually covers the cost of capital.
Low debt
Debt is 18.9% of shareholders' equity, under the 40% we consider low.
Interest well covered
Operating income covers interest expense 17.6 times.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 225% of total debt.
What to watch
Margin of safety under 20%
The price is 33.5% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $81.58 is above our fair value estimate of $61.09.
Revenue growing under 10% a year
Revenue grew 6.6% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew 2.9% a year over the last three fiscal years.
Valuation1/6
P/E below its 5-year median
UL Solutions's P/E of 32.9 is below its own 5-year median of 39.5.
P/E above the industry
UL Solutions's P/E of 32.9 is above the Engineering, Accounting, Research, Management, and Related Services median of 25.2.
EV/EBITDA above its 5-year median
UL Solutions's EV/EBITDA of 21.8 is above its 5-year median of 20.4.
P/B above the industry
UL Solutions's price-to-book of 10.33 is above the Engineering, Accounting, Research, Management, and Related Services median of 3.70.
Trading above fair value
The share price of $81.58 is above our fair value estimate of $61.09.
Margin of safety under 20%
The price is 33.5% above fair value, so there is no margin of safety.
Growth2/6
Revenue growing under 10% a year
Revenue grew 6.6% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew 2.9% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew 6.6% over the last twelve months; the Engineering, Accounting, Research, Management, and Related Services median is 6.6%.
Guidance raised
UL Solutions raised its Full-Year 2026 Capital expenditures outlook on Aug 4, 2026.
Gross margin improving
Gross margin was 50.3% over the last twelve months, against 48.4% a year earlier.
Past performance4/6
Return on equity
Needs positive equity and five years of results.
Return on capital over 10%
Return on invested capital was 28.6%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
UL Solutions's return on equity of 37.6% is above the Engineering, Accounting, Research, Management, and Related Services median of -10.2%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 16.1% over the last twelve months, against a 5-year average of 10.8%.
Net margin above the industry
UL Solutions's net margin of 16.1% is above the Engineering, Accounting, Research, Management, and Related Services median of -53.6%.
Financial health5/6
Low debt
Debt is 18.9% of shareholders' equity, under the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 225% of total debt.
Interest well covered
Operating income covers interest expense 17.6 times.
Short-term assets cover short-term debts
Current assets are 1.42 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 8.67; above 3 is the safe zone and below 1.8 the distress zone.
Dividend3/6
Pays a dividend
UL Solutions paid dividends worth 0.7% of the share price over the last twelve months.
Yield below Treasuries
The 0.7% 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; UL Solutions yields 0.7%.
Dividend stability
Fewer than five years of dividend history.
Covered by earnings
Dividends take 21.8% of net income.
Covered by free cash flow
Dividends take 25.2% of free cash flow.
Fair value
How we estimate itOur estimate per share
$61.09
The share price is 34% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 29.5× | 39.5× | 25.2× | $73.13 | 44% |
| EV/EBITDA | 16.8× | 20.4× | 15.3× | $63.19 | 39% |
| Earnings power | 7.4% cost of equity | – | – | $24.09 | 17% |
| Fair value | $61.09 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 39.5
- Engineering, Accounting, Research, Management, and Related Services median 25.2
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $72.49M
- Value traded per 1% price move
- $42.24M
Downside
Medium risk
- Typical loss in a bad month
- 17.3%
- Volatility (annualized)
- 43%
- Sharpe ratio, 1 year
- -0.25
- Beta to the S&P 500 (5Y)
- 0.44
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2021 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +6.4% | +6.6% | – | – | |
| Gross profit | +8.5% | +7.8% | – | – | |
| Operating income | +13.0% | +8.2% | – | – | |
| Net income | -0.3% | +3.5% | – | – | |
| EPS, diluted | -1.2% | +2.9% | – | – | |
| Free cash flow | +40.4% | +24.7% | – | – | |
| Dividend per share | +4.0% | -59.8% | – | – |
Returns and balance sheet
5 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2021 | FY2021 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | 30.0% | |
| Return on assets | – | – | 11.4% | |
| Current ratio | – | – | 1.32 | |
| Debt to equity | – | – | 0.39 | |
| Net debt to EBITDA | – | – | 0.28× | |
| Interest coverage | – | – | 12.7× | |
| Capex to revenue | – | – | 6.5% | |
| Diluted shares | – | – | 203M |
Cash use needs five years of cash flow figures
UL Solutions does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 10.6% | 1.07× | 2.64× | 30.0% |
| FY2024 | 11.4% | 1.04× | 3.55× | 41.8% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$325.00M
- Cash generatingOperating cash flow above zero$600.00M
- Return on assets improvedROA up on the prior year11.9% → 11.6%
- Earnings backed by cashOperating cash flow above net income$600.00M vs $325.00M
- Less leverageLong-term debt to assets fell24.7% → 16.8%
- Better liquidityCurrent ratio rose1.24 → 1.32
- No dilutionShare count did not rise201M → 203M
- Gross margin improvedGross margin up on the prior year48.50% → 49.46%
- More efficientAsset turnover rose1.05 → 1.09
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