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Universal Technical Institute (STU:UTI) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Universal Technical Institute Net Margin % Related Terms
Universal Technical Institute Net 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.
For the Education & Training Services subindustry, Universal Technical Institute's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Universal Technical Institute's Net Margin % distribution charts can be found below:
* The bar in red indicates where Universal Technical Institute's Net 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.
Universal Technical Institute (STU:UTI) has a Net Margin % of 1.04% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Universal Technical Institute and its competitors. This is 56% below median its historical median of 2.35. According to the industry distribution chart, Universal Technical Institute ranks #147 out of 257 companies in the Education industry, placing it in the top 57.2%.
Is Universal Technical Institute's Net Margin % too high?
Universal Technical Institute's current Net Margin % of 1.04% is 56% below median its 10-year median of 2.35. The Education industry median Net Margin % is 5.81. Universal Technical Institute's value of 1.04% is 82.1% below this industry median. Based on the distribution chart, Universal Technical Institute ranks #147 out of 257 companies in the Education industry, which is below the industry midpoint. Overall, Universal Technical Institute has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Universal Technical Institute's Net Margin % compare to PRDO and MH?
According to the Education industry distribution chart, Universal Technical Institute ranks #147 out of 257 companies for Net Margin %. This places Universal Technical Institute in the lower half of its industry. The industry median Net Margin % is 5.81. Universal Technical Institute's value of 1.04% is 82.1% below this benchmark. While the company's 10-year median is 2.35 vs. the industry median of 5.81, 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 Net Margin % for an Education company?
The median Net Margin % among Education companies is 5.81, based on 257 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Technical Institute's current Net Margin % of 1.04% is 82.1% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Universal Technical Institute and its competitors. For the Education industry, the median Net Margin % is 5.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Technical Institute's current Net Margin % is 1.04%, which is 56% below median its own 10-year median of 2.35. 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 (STU:UTI) is currently considered Modestly Undervalued. The stock's GF Value™ is €24.71, compared to a current price of €21.82 — trading 11.7% below its estimated fair value. The current Net Margin % is 1.04%, which is 56% below median its 10-year median of 2.35 and 82.1% below the Education industry median of 5.81. Universal Technical Institute's overall GF Score™ is 80/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Universal Technical Institute (STU:UTI), the current Net Margin % is 1.04% 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 (STU:UTI) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Technical Institute stock appears to be undervalued.
The current stock price of €21.82 is trading 11.7% below its estimated GF Value™ of €24.71.
GuruFocus considers Universal Technical Institute to be Modestly Undervalued.
Key valuation signals for STU:UTI:
Net Margin %: 1.04% (56% below median its 10-year median of 2.35)
GF Value™: €24.71 vs. price of €21.82 (11.7% below fair value)
Industry Position: 82.1% below the Education median (#147 of 257)
No single metric tells the full story. See the STU: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.
80GF Score
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