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UL Solutions: Initiating Coverage With Narrow Moat Rating; $38 Fair Value Estimate
We initiate coverage of UL Solutions with a narrow moat rating and a $38 per share fair value estimate. We view shares as fairly valued.
UL Solutions Inc Class A common stock ULS
Bulls Say, Bears Say
Bulls
The size of the global TIC market is growing as regulations increase and end-users’ demands for ESG compliance and product transparency heighten.
Bears
Competitors are also expanding their portfolio and global scale as they pursue market share and may eat into UL Solutions’ customer base.
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News
-
UL Solutions Plans to Construct Advanced Automotive and Battery Testing Center in Korea to Serve the Automotive Industry
-
UL Solutions Launches New UL 360 Features and Content to Support Compliance with New EU Sustainability Reporting Requirements
-
Governor Proclaims June 3 UL Solutions Day in Illinois
-
UL Solutions to Participate in the 44th Annual William Blair Growth Stock Conference
-
UL Solutions Announces Quarterly Dividend
-
UL Solutions Acquires Germany-Based Battery Testing and Simulation Company BatterieIngenieure
-
UL Solutions tops revenue estimates in first quarter as a public company
-
UL Solutions Inc. Reports Strong First Quarter 2024 Results
Trading Information
- Previous Close Price
- $42.99
- Day Range
- $42.01–43.95
- 52-Week Range
- $33.15–43.95
- Bid/Ask
- $41.22 / $45.25
- Market Cap
- $8.42 Bil
- Volume/Avg
- 1.5 Mil / 1.0 Mil
Key Statistics
- Price/Earnings (Normalized)
- 28.32
- Price/Sales
- 3.16
- Dividend Yield (Trailing)
- 0.29%
- Dividend Yield (Forward)
- 1.16%
- Total Yield
- 0.29%
Company Profile
UL Solutions is a global leader specializing in a broad range of product testing, inspection, and certification, or TIC, services. UL Solutions is the for-profit branch out of three organizations under the UL Enterprise. TIC operations make up nearly all of UL Solutions’ total revenue and are composed of two segments: industrial and consumer. UL Solutions’ remaining business includes software and advisory, or S&A, which complements its core TIC offerings. The firm operates globally.
- Sector
- Industrials
- Industry
- Specialty Business Services
- Stock Style Box
- Small Core
- Total Number of Employees
- 15,233
- Website
- https://www.ul.com
Competitors
Valuation
|
Metric
|
ULS
|
BVI
|
ITRK
|
|---|---|---|---|
Price/Earnings (Normalized) | 28.32 | 20.28 | 20.62 |
Price/Book Value | 12.81 | 6.14 | 5.81 |
Price/Sales | 3.16 | 2.04 | 2.33 |
Price/Cash Flow | 17.55 | 14.01 | 14.74 |
Price/Earnings
ULS
BVI
ITRK
Financial Strength
|
Metric
|
ULS
|
BVI
|
ITRK
|
|---|---|---|---|
Quick Ratio | 1.17 | 1.67 | 1.02 |
Current Ratio | 1.27 | 1.67 | 1.09 |
Interest Coverage | 8.98 | 8.40 | 10.40 |
Quick Ratio
ULS
BVI
ITRK
Profitability
|
Metric
|
ULS
|
BVI
|
ITRK
|
|---|---|---|---|
Return on Assets (Normalized) | 11.36% | 8.25% | 10.16% |
Return on Equity (Normalized) | 33.68% | 31.39% | 28.28% |
Return on Invested Capital (Normalized) | 19.32% | 12.79% | 14.92% |
Return on Assets
ULS
BVI
ITRK
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