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115.97 (1y: +29%)
Market Cap 3.13 B P/E(ttm) 184.00
Enterprise Value 3.06 B P/B 27.80
ULTI- NAS (USA)
Ultimate Software Group, Inc.
  • Currently 1/5
Business Predictability Rank: 1-Star
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$115.97
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GuruFocus Financial Strength Rank measures how strong a companyย’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 6.575
ULTI's Cash to Debt is ranked higher than
60% of the 1618 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 7.41 vs. ULTI: 6.575 )
ULTI' s 10-Year Cash to Debt Range
Min: 2.56   Max: 11.04
Current: 6.58
2.56
11.04
Equity to Asset 0.218
ULTI's Equity to Asset is ranked lower than
62% of the 1618 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 0.56 vs. ULTI: 0.218 )
ULTI' s 10-Year Equity to Asset Range
Min: -0.24   Max: 0.57
Current: 0.22
-0.24
0.57
Interest Coverage 61.2
ULTI's Interest Coverage is ranked higher than
64% of the 1618 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 25.60 vs. ULTI: 61.2 )
ULTI' s 10-Year Interest Coverage Range
Min: 31   Max: No Debt
Current: 61.2
F-Score: 7
Z-Score: 2.94
M-Score: -2.55
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’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.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

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 : 5/10

vs
industry		 vs
history
Operating margin (%) 8.80
ULTI's Operating margin (%) is ranked higher than
75% of the 1618 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 4.30 vs. ULTI: 8.80 )
ULTI' s 10-Year Operating margin (%) Range
Min: -26.2   Max: 8.8
Current: 8.8
-26.2
8.8
Net-margin (%) 4.4
ULTI's Net-margin (%) is ranked higher than
69% of the 1618 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.70 vs. ULTI: 4.4 )
ULTI' s 10-Year Net-margin (%) Range
Min: -26.4   Max: 21.9
Current: 4.4
-26.4
21.9
ROE (%) 12.8
ULTI's ROE (%) is ranked higher than
83% of the 1618 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 4.70 vs. ULTI: 12.8 )
ULTI' s 10-Year ROE (%) Range
Min: -552   Max: 54.3
Current: 12.8
-552
54.3
ROA (%) 2.8
ULTI's ROA (%) is ranked higher than
62% of the 1618 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.90 vs. ULTI: 2.8 )
ULTI' s 10-Year ROA (%) Range
Min: -46.8   Max: 24.5
Current: 2.8
-46.8
24.5
ROC (Joel Greenblatt) (%) 127.40
ULTI's ROC (Joel Greenblatt) (%) is ranked higher than
92% of the 1618 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 0.00 vs. ULTI: 127.40 )
ULTI' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -95.2   Max: 453.5
Current: 127.4
-95.2
453.5
Revenue Growth (%) 9.9
ULTI's Revenue Growth (%) is ranked higher than
87% of the 1618 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 0.00 vs. ULTI: 9.9 )
ULTI' s 10-Year Revenue Growth (%) Range
Min: -3.6   Max: 21.2
Current: 9.9
-3.6
21.2
EBITDA Growth (%) 34.6
ULTI's EBITDA Growth (%) is ranked higher than
98% of the 1618 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 0.00 vs. ULTI: 34.6 )
ULTI' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 46.4
Current: 34.6
0
46.4
ยป ULTI's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

ULTI Guru Trades in Q2 2012

RS Investment Management 311,960 sh (+9.41%)
Ron Baron 804,700 sh (unchged)
Ruane Cunniff Sold Out
Pioneer Investments 53,104 sh (-11.81%)
» More
Q3 2012

ULTI Guru Trades in Q3 2012

Steven Cohen 10,061 sh (New)
Ron Baron 804,700 sh (unchged)
RS Investment Management 307,380 sh (-1.47%)
Pioneer Investments 38,623 sh (-27.27%)
» More
Q4 2012

ULTI Guru Trades in Q4 2012

Ron Baron 809,000 sh (+0.53%)
RS Investment Management 304,220 sh (-1.03%)
Pioneer Investments 36,700 sh (-4.98%)
Steven Cohen 8,783 sh (-12.7%)
» More
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
» 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 $ 115.9748%0
Ruane Cunniff 2012-03-31 Reduce -66.67%0.11%$64.2 - $74.54 $ 115.9778%99990
Ruane Cunniff 2011-12-31 Reduce -39.76%0.1%$45.55 - $70.16 $ 115.9791%299990
Ruane Cunniff 2011-03-31 Reduce -26.28%0.12%$48.19 - $60.37 $ 115.97121%602460
Ruane Cunniff 2010-06-30 Reduce -35.68%0.12%$31.84 - $36.7 $ 115.97238%824560
Premium More recent guru trades are included for Premium Members only!!
ยป Financial Charts

Peter Lynch Chart

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

Top Ranked Articles about Ultimate Software Group, Inc.

Baron Funds Comments on Ultimate Software Group
August 23, 2012
From Baron Funds' second quarter letter: Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 184.00
ULTI's P/E(ttm) is ranked lower than
72% of the 1023 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 20.80 vs. ULTI: 184.00 )
ULTI' s 10-Year P/E(ttm) Range
Min: 17.32   Max: 1483.33
Current: 184
17.32
1483.33
P/B 27.80
ULTI's P/B is ranked lower than
76% of the 1370 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.02 vs. ULTI: 27.80 )
ULTI' s 10-Year P/B Range
Min: 2.1   Max: 163.5
Current: 27.8
2.1
163.5
P/S 9.41
ULTI's P/S is ranked lower than
72% of the 1452 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.69 vs. ULTI: 9.41 )
ULTI' s 10-Year P/S Range
Min: 0.64   Max: 9.4
Current: 9.41
0.64
9.4
PFCF 138.10
ULTI's PFCF is ranked lower than
70% of the 1019 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 17.43 vs. ULTI: 138.10 )
ULTI' s 10-Year PFCF Range
Min: 4.03   Max: 1860
Current: 138.1
4.03
1860
EV-to-EBIT 83.3
ULTI's EV-to-EBIT is ranked lower than
71% of the 1019 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 14.50 vs. ULTI: 83.3 )
ULTI' s 10-Year EV-to-EBIT Range
Min: 52.4   Max: 14199.9
Current: 83.3
52.4
14199.9
PEG 3
ULTI's PEG is ranked higher than
51% of the 423 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.64 vs. ULTI: 3 )
ULTI' s 10-Year PEG Range
Min: 2.97   Max: 128.65
Current: 3
2.97
128.65
Shiller P/E 322.5
ULTI's Shiller P/E is ranked lower than
100% of the Companies
in the Global Software - Infrastructure industry.

( Industry Median: vs. ULTI: 322.5 )
ULTI' s 10-Year Shiller P/E Range
Min: 101.46   Max: 1891.5
Current: 322.5
101.46
1891.5

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 77.8
ULTI's Price/Net Current Asset Value is ranked lower than
68% of the 930 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 13.40 vs. ULTI: 77.8 )
ULTI' s 10-Year Price/Net Current Asset Value Range
Min: 2.9   Max: 65.1
Current: 77.8
2.9
65.1
Price/Tangible Book 28.7
ULTI's Price/Tangible Book is ranked lower than
75% of the 1116 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 3.30 vs. ULTI: 28.7 )
ULTI' s 10-Year Price/Tangible Book Range
Min: 2.8   Max: 97.4
Current: 28.7
2.8
97.4
Price/DCF (Projected) 9.1
ULTI's Price/DCF (Projected) is ranked lower than
63% of the 551 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.30 vs. ULTI: 9.1 )
ULTI' s 10-Year Price/DCF (Projected) Range
Min: 3.4   Max: 48.9
Current: 9.1
3.4
48.9
Price/Median PS Value 2.3
ULTI's Price/Median PS Value is ranked lower than
69% of the 1300 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.00 vs. ULTI: 2.3 )
ULTI' s 10-Year Price/Median PS Value Range
Min: 0.2   Max: 1.9
Current: 2.3
0.2
1.9
Price/Peter Lynch Fair Value 7.4
ULTI's Price/Peter Lynch Fair Value is ranked lower than
58% of the 276 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.50 vs. ULTI: 7.4 )
ULTI' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.7   Max: 41.6
Current: 7.4
1.7
41.6
Price/Graham Number 17.2
ULTI's Price/Graham Number is ranked lower than
77% of the 813 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.80 vs. ULTI: 17.2 )
ULTI' s 10-Year Price/Graham Number Range
Min: 4.2   Max: 20.5
Current: 17.2
4.2
20.5
Earnings Yield (Greenblatt) 1.20
ULTI's Earnings Yield (Greenblatt) is ranked higher than
53% of the 1618 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 3.30 vs. ULTI: 1.20 )
ULTI' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.1   Max: 1.9
Current: 1.2
0.1
1.9
Forward Rate of Return (Yacktman) 50.46
ULTI's Forward Rate of Return (Yacktman) is ranked higher than
99% of the 1618 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 0.00 vs. ULTI: 50.46 )
ULTI' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -0.6   Max: 50.7
Current: 50.46
-0.6
50.7

Business Description

Ultimate is a Delaware corporation formed in April 1996 to assume the business and operations of The Ultimate Software Group, Ltd., a limited partnership founded in 1990. 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, Ultimate'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. Ultimate'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.
Company Website
SEC Reports
Industry: Software - Infrastructure
Compare:MSFT, ORCL, VMW, CTXS, CA
Traded in other countries:UL1.Germany
ยป More Articles for ULTI

Headlines

Articles On GuruFocus.com
Baron Funds Comments on Ultimate Software Group Aug 23 2012 
Ultimate Software Group Inc. (ULTI) Vice-Chairman & COO Marc D Scherr sells 30,500 Shares Feb 14 2011 
Ultimate Software Group Inc. (ULTI) Chairman, President and CEO Scott Scherr sells 35,900 Shares Feb 14 2011 
Ultimate Software Group Inc. Reports Operating Results (10-Q) Nov 09 2010 
Ultimate Software Group Inc. (ULTI) Chairman, President and CEO Scott Scherr sells 31,775 Shares Nov 01 2010 
Ultimate Software Group Inc. (ULTI) Vice-Chairman & COO Marc D Scherr sells 22,242 Shares Nov 01 2010 
Ultimate Software Group Inc. (ULTI) Exec. VP, CFO and Treasurer Mitchell K Dauerman sells 9,680 Shar Nov 01 2010 
Ultimate Software Group Inc. Reports Operating Results (10-Q) Aug 09 2010 
Ultimate Software Group Inc. (ULTI) Chairman, President and CEO Scott Scherr sells 80,000 Shares Aug 03 2010 
Ultimate Software Group Inc. (ULTI) Vice-Chairman & COO Marc D Scherr sells 50,000 Shares Aug 02 2010 

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