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Universal Technical InstituteUTI -2.67%85 Gross Margin % is 45.94% as of Jun. 2026, which is 2% below its 10-year median of 46.87. GuruFocus rates UTI with a GF Score™ of 85/100 and a GF Value™ of $28.48 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 244 Education companies, Universal Technical Institute ranks better than 50% on this metric.
Universal Technical Institute (NYSE:UTI) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Universal Technical Institute had a gross margin of 45.94% for the quarter that ended in Jun. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Universal Technical Institute Gross Margin % Related Terms
Universal Technical Institute Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Universal Technical Institute Gross Margin % Chart
For the Education & Training Services subindustry, Universal Technical Institute's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Universal Technical Institute Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Universal Technical Institute's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Universal Technical Institute's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Universal Technical Institute (UTI) has a Gross Margin % of 45.94% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Universal Technical Institute and its competitors. This is near median its historical median of 46.87. Over the past decade, Universal Technical Institute's Gross Margin % has ranged from 42.39 to 50.51. According to the industry distribution chart, Universal Technical Institute ranks #122 out of 244 companies in the Education industry, placing it in the top 50%.
Is Universal Technical Institute's Gross Margin % too high?
Universal Technical Institute's current Gross Margin % of 45.94% is near median its 10-year median of 46.87. Over the past 10 years, this metric has ranged from a low of 42.39 to a high of 50.51. The Education industry median Gross Margin % is 48.02. Universal Technical Institute's value of 45.94% is 4.3% below this industry median. Based on the distribution chart, Universal Technical Institute ranks #122 out of 244 companies in the Education industry, which is above the industry midpoint. Overall, Universal Technical Institute has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Universal Technical Institute's Gross Margin % compare to PRDO and MH?
According to the Education industry distribution chart, Universal Technical Institute ranks #122 out of 244 companies for Gross Margin %. This puts Universal Technical Institute in the upper half of its industry. The industry median Gross Margin % is 48.02. Universal Technical Institute's value of 45.94% is 4.3% below this benchmark. Historically, Universal Technical Institute's own Gross Margin % has ranged from 42.39 to 50.51 over the past decade. While the company's 10-year median is 46.87 vs. the industry median of 48.02, Universal Technical Institute has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Education company?
The median Gross Margin % among Education companies is 48.02, based on 244 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Technical Institute's current Gross Margin % of 45.94% is 4.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Universal Technical Institute and its competitors. For the Education industry, the median Gross Margin % is 48.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Technical Institute's current Gross Margin % is 45.94%, which is near median its own 10-year median of 46.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Technical Institute stock overvalued right now?
Based on GuruFocus' analysis, Universal Technical Institute (UTI) is currently considered Modestly Undervalued. The stock's GF Value™ is $28.48, compared to a current price of $25.15 — trading 11.7% below its estimated fair value. The current Gross Margin % is 45.94%, which is near median its 10-year median of 46.87 and 4.3% below the Education industry median of 48.02. Universal Technical Institute's overall GF Score™ is 85/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Universal Technical Institute (UTI), the current Gross Margin % is 45.94% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Universal Technical Institute (UTI) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Technical Institute stock appears to be undervalued.
The current stock price of $25.15 is trading 11.7% below its estimated GF Value™ of $28.48.
GuruFocus considers Universal Technical Institute to be Modestly Undervalued.
Key valuation signals for UTI:
Gross Margin %: 45.94% (near median its 10-year median of 46.87)
GF Value™: $28.48 vs. price of $25.15 (11.7% below fair value)
Industry Position: 4.3% below the Education median (#122 of 244)
No single metric tells the full story. See the UTI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Technical Institute Inc is an educational institution. It provides undergraduate degree, as well as certificate programs for technicians in the automotive, diesel, collision repair, motorcycle and marine fields. The company's reportable segment which includes Universal Technical Institute (UTI) and Concorde Career Colleges, Corporate. Majority of the revenue is generated from UTI segment which provides different kinds of degree and non-degree transportation and skilled trades technical training programs under brands such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute and others. It also provides dealer technician training or instructor staffing services to manufacturers.
85GF Score
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