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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 11.00
ULTI's Cash to Debt is ranked higher than
61% of the 1618 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 25.64 vs. ULTI: 11.00 )
ULTI' s 10-Year Cash to Debt Range
Min: 2.56   Max: 11.04
Current: 11

2.56
11.04
Equity to Asset 0.32
ULTI's Equity to Asset is ranked lower than
58% of the 1589 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 0.60 vs. ULTI: 0.32 )
ULTI' s 10-Year Equity to Asset Range
Min: -0.24   Max: 0.57
Current: 0.32

-0.24
0.57
Interest Coverage 188.71
ULTI's Interest Coverage is ranked higher than
61% of the 1077 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 403.68 vs. ULTI: 188.71 )
ULTI' s 10-Year Interest Coverage Range
Min: 5.76   Max: 188.71
Current: 188.71

5.76
188.71
F-Score: 7
Z-Score: 6.13
M-Score: -2.40
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 10.53
ULTI's Operating margin (%) is ranked higher than
80% of the 1604 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 5.48 vs. ULTI: 10.53 )
ULTI' s 10-Year Operating margin (%) Range
Min: -26.15   Max: 10.53
Current: 10.53

-26.15
10.53
Net-margin (%) 6.22
ULTI's Net-margin (%) is ranked higher than
76% of the 1602 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 3.67 vs. ULTI: 6.22 )
ULTI' s 10-Year Net-margin (%) Range
Min: -26.42   Max: 21.87
Current: 6.22

-26.42
21.87
ROE (%) 13.56
ULTI's ROE (%) is ranked higher than
86% of the 1564 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 6.77 vs. ULTI: 13.56 )
ULTI' s 10-Year ROE (%) Range
Min: -552.02   Max: 54.33
Current: 13.56

-552.02
54.33
ROA (%) 4.27
ULTI's ROA (%) is ranked higher than
71% of the 1616 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 3.63 vs. ULTI: 4.27 )
ULTI' s 10-Year ROA (%) Range
Min: -46.78   Max: 24.51
Current: 4.27

-46.78
24.51
ROC (Joel Greenblatt) (%) 74.27
ULTI's ROC (Joel Greenblatt) (%) is ranked higher than
81% of the 1600 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 30.96 vs. ULTI: 74.27 )
ULTI' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -199.41   Max: 76.48
Current: 74.27

-199.41
76.48
Revenue Growth (%) 18.90
ULTI's Revenue Growth (%) is ranked higher than
89% of the 1208 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 6.30 vs. ULTI: 18.90 )
ULTI' s 10-Year Revenue Growth (%) Range
Min: -5.8   Max: 29.2
Current: 18.9

-5.8
29.2
EBITDA Growth (%) 39.80
ULTI's EBITDA Growth (%) is ranked higher than
92% of the 951 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 7.70 vs. ULTI: 39.80 )
ULTI' s 10-Year EBITDA Growth (%) Range
Min: -10.2   Max: 325.4
Current: 39.8

-10.2
325.4
EPS Growth (%) 100.00
ULTI's EPS Growth (%) is ranked higher than
97% of the 892 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 8.80 vs. ULTI: 100.00 )
ULTI' s 10-Year EPS Growth (%) Range
Min: -55.4   Max: 100
Current: 100

-55.4
100
» ULTI's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

ULTI Guru Trades in Q1 2013

Jim Simons 26,414 sh (New)
RS Investment Management 340,047 sh (+11.78%)
Ron Baron 809,000 sh (unchged)
Pioneer Investments 33,700 sh (-8.17%)
Steven Cohen 4,056 sh (-53.82%)
» More
Q2 2013

ULTI Guru Trades in Q2 2013

Jim Simons 76,414 sh (+189.29%)
Ron Baron 809,000 sh (unchged)
Steven Cohen Sold Out
Pioneer Investments 30,933 sh (-8.21%)
RS Investment Management 274,709 sh (-19.21%)
» More
Q3 2013

ULTI Guru Trades in Q3 2013

Steven Cohen 23,848 sh (New)
RS Investment Management 349,434 sh (+27.2%)
Pioneer Investments 30,595 sh (-1.09%)
Ron Baron 731,205 sh (-9.62%)
Jim Simons 47,514 sh (-37.82%)
» More
Q4 2013

ULTI Guru Trades in Q4 2013

Jim Simons 115,353 sh (+142.78%)
Ron Baron 731,205 sh (unchged)
Pioneer Investments Sold Out
RS Investment Management 294,494 sh (-15.72%)
Steven Cohen 8,383 sh (-64.85%)
» More
» Details

Insider Trades

Latest Guru Trades with ULTI

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ruane Cunniff 2012-06-30 Sold Out 0.06%$69.29 - $89.84 $ 129.6866%0
Ruane Cunniff 2012-03-31 Reduce -66.67%0.11%$64.2 - $74.54 $ 129.6899%99990
Ruane Cunniff 2011-12-31 Reduce -39.76%0.1%$45.55 - $70.16 $ 129.68114%299990
Ruane Cunniff 2011-03-31 Reduce -26.28%0.12%$48.19 - $60.37 $ 129.68147%602460
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Ultimate Software Group, Inc.

Baron Funds Comments on Ultimate Software Group - Aug 23, 2012

From Baron Funds' second quarter letter:

The shares of The Ultimate Software Group, Inc. (ULTI), a leading provider of cloud based payroll and human resources services, rose 21.4% in the quarter. The company reported recurring revenue growth of 22%. We believe the company is positioned to continue to add new accounts, especially now that customers are more accepting of the SaaS ("software as a service") business model.We believe the company is on a path to doing $1 billion in revenues and $250 million in cash flow in five years, and, if so, and appropriately valued, we think the stock could triple from here.
Check out Ron Baron latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 146.50
ULTI's P/E(ttm) is ranked lower than
72% of the 1119 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 23.20 vs. ULTI: 146.50 )
ULTI' s 10-Year P/E(ttm) Range
Min: 16.15   Max: 1348.48
Current: 146.5

16.15
1348.48
P/B 19.30
ULTI's P/B is ranked lower than
79% of the 1504 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.45 vs. ULTI: 19.30 )
ULTI' s 10-Year P/B Range
Min: 5.89   Max: 163.5
Current: 19.3

5.89
163.5
P/S 9.20
ULTI's P/S is ranked lower than
85% of the 1650 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.98 vs. ULTI: 9.20 )
ULTI' s 10-Year P/S Range
Min: 1.3   Max: 11.93
Current: 9.2

1.3
11.93
PFCF 85.90
ULTI's PFCF is ranked lower than
70% of the 874 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 19.50 vs. ULTI: 85.90 )
ULTI' s 10-Year PFCF Range
Min: 25.64   Max: 1860
Current: 85.9

25.64
1860
EV-to-EBIT 76.90
ULTI's EV-to-EBIT is ranked lower than
73% of the 1278 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 17.39 vs. ULTI: 76.90 )
ULTI' s 10-Year EV-to-EBIT Range
Min: 74.1   Max: 14199.9
Current: 76.9

74.1
14199.9
PEG 3.40
ULTI's PEG is ranked lower than
53% of the 601 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.98 vs. ULTI: 3.40 )
ULTI' s 10-Year PEG Range
Min: 2.74   Max: 324.76
Current: 3.4

2.74
324.76
Shiller P/E 527.00
ULTI's Shiller P/E is ranked lower than
77% of the 616 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 29.33 vs. ULTI: 527.00 )
ULTI' s 10-Year Shiller P/E Range
Min: 94.21   Max: 1261
Current: 527

94.21
1261

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 23.70
ULTI's Price/Tangible Book is ranked lower than
87% of the 1245 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 4.00 vs. ULTI: 23.70 )
ULTI' s 10-Year Price/Tangible Book Range
Min: 2.76   Max: 109.63
Current: 23.7

2.76
109.63
Price/DCF (Projected) 8.60
ULTI's Price/DCF (Projected) is ranked lower than
77% of the 753 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.50 vs. ULTI: 8.60 )
ULTI' s 10-Year Price/DCF (Projected) Range
Min: 3.39   Max: 47.68
Current: 8.6

3.39
47.68
Price/Median PS Value 1.70
ULTI's Price/Median PS Value is ranked lower than
67% of the 1516 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.10 vs. ULTI: 1.70 )
ULTI' s 10-Year Price/Median PS Value Range
Min: 0.11   Max: 2
Current: 1.7

0.11
2
Price/Peter Lynch Fair Value 5.80
ULTI's Price/Peter Lynch Fair Value is ranked lower than
81% of the 365 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.50 vs. ULTI: 5.80 )
ULTI' s 10-Year Price/Peter Lynch Fair Value Range
Min: 2.27   Max: 34.27
Current: 5.8

2.27
34.27
Price/Graham Number 12.20
ULTI's Price/Graham Number is ranked lower than
88% of the 911 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.20 vs. ULTI: 12.20 )
ULTI' s 10-Year Price/Graham Number Range
Min: 3.9   Max: 19.38
Current: 12.2

3.9
19.38
Earnings Yield (Greenblatt) 1.30
ULTI's Earnings Yield (Greenblatt) is ranked lower than
64% of the 1324 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 5.40 vs. ULTI: 1.30 )
ULTI' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.1   Max: 1.4
Current: 1.3

0.1
1.4
Forward Rate of Return (Yacktman) 50.53
ULTI's Forward Rate of Return (Yacktman) is ranked higher than
98% of the 1007 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 5.32 vs. ULTI: 50.53 )
ULTI' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -0.8   Max: 52.9
Current: 50.53

-0.8
52.9

Business Description

Industry: Application Software » Software - Infrastructure
Compare:MSFT, ORCL, VMW, CTXS, CA » details
Traded in other countries:UL1.Germany
Ultimate Software Group, Inc. is a Delaware corporation formed in April 1996. The Company is a provider of cloud-based human capital management ("HCM"). The Company's UltiPro software ("UltiPro") is a comprehensive, easy-to-use solution delivered primarily over the Internet to organizations based in the United States and Canada, including those with global employees. The Company is a SaaS provider of people management solutions, with more than 7 million people records in the cloud. Built on the belief that people are the most important ingredient of any business, the Company's award-winning UltiPro delivers HR, payroll, and talent management solutions that seamlessly connect people with the information and resources they need to work more effectively. The Company's solutions are marketed as two solution suites based on company size. UltiPro Enterprise is designed to address the needs of companies with 1,000 or more employees. UltiPro Workplace is designed for companies with fewer than 1,000 employees. The solution includes feature sets for talent acquisition, HR management and compliance, benefits management and online enrollment, payroll, performance management, salary planning and budgeting, reporting and analytical decision-making tools, time and attendance, and a self-service Web portal for executives, managers, administrators, and employees. UltiPro Workplace was developed for companies in the mid-market and is delivered through SaaS. UltiPro Workplace provides medium-sized and smaller companies with nearly all the features that Enterprise companies have with UltiPro, plus a bundled services package. Ultimate's SaaS offering of UltiPro, branded 'Intersourcing', provides on-line access to human capital management functionality for organizations that need to simplify the IT support requirements of their business applications. In 2012, Ultimate was ranked 25 on FORTUNE'S '100 Companies to Work For' list. Ultimate has more than 2,300 customers with employees in 115 countries, including Adobe Systems Incorporated, The Container Store, Culligan International, Major League Baseball, The New York Yankees Baseball Team, and Texas Roadhouse. The company has two main revenue sources: recurring revenues and services revenues. The company's customers represent a variety of industries, including manufacturing, food services, sports, technology, finance, insurance, retail, real estate, transportation, communications, healthcare and other services. The Company's competitors in the Enterprise market include large service bureaus, primarily Automatic Data Processing Inc. ('ADP') and, to a lesser extent, Ceridian; and companies, such as PeopleSoft/Oracle, Lawson, Kronos, and Workday that offer human resource management and payroll software products for use on mainframes, client/server environments and/or Web servers.

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