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Universal Technical InstituteSTU:UTI -3.11%80 Operating Margin % is 1.48% as of Jun. 2026, which is 8% below its 10-year median of 1.61. GuruFocus rates STU:UTI with a GF Score™ of 80/100 and a GF Value™ of €24.71 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 257 Education companies, Universal Technical Institute ranks worse than 63.42% on this metric.
Universal Technical Institute (STU:UTI) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Universal Technical Institute Operating Margin % Related Terms
Universal Technical Institute Operating 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 Operating Margin % Chart
STU:UTI vs PRDO, MH, DAO: Operating Margin % Comparison
For the Education & Training Services subindustry, Universal Technical Institute's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Universal Technical Institute's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Universal Technical Institute's Operating Margin % falls into.
Universal Technical Institute Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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 Operating Margin % of 1.48% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Universal Technical Institute and its competitors. This is near median its historical median of 1.61. According to the industry distribution chart, Universal Technical Institute ranks #163 out of 257 companies in the Education industry, placing it in the top 63.4%.
Is Universal Technical Institute's Operating Margin % too high?
Universal Technical Institute's current Operating Margin % of 1.48% is near median its 10-year median of 1.61. The Education industry median Operating Margin % is 10.20. Universal Technical Institute's value of 1.48% is 85.5% below this industry median. Based on the distribution chart, Universal Technical Institute ranks #163 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 Operating Margin % compare to PRDO and MH?
According to the Education industry distribution chart, Universal Technical Institute ranks #163 out of 257 companies for Operating Margin %. This places Universal Technical Institute in the lower half of its industry. The industry median Operating Margin % is 10.20. Universal Technical Institute's value of 1.48% is 85.5% below this benchmark. While the company's 10-year median is 1.61 vs. the industry median of 10.20, 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 Operating Margin % for an Education company?
The median Operating Margin % among Education companies is 10.20, based on 257 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Technical Institute's current Operating Margin % of 1.48% is 85.5% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Universal Technical Institute and its competitors. For the Education industry, the median Operating Margin % is 10.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Technical Institute's current Operating Margin % is 1.48%, which is near median its own 10-year median of 1.61. 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 Operating Margin % is 1.48%, which is near median its 10-year median of 1.61 and 85.5% below the Education industry median of 10.20. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Universal Technical Institute (STU:UTI), the current Operating Margin % is 1.48% 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:
Operating Margin %: 1.48% (near median its 10-year median of 1.61)
GF Value™: €24.71 vs. price of €21.82 (11.7% below fair value)
Industry Position: 85.5% below the Education median (#163 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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