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Universal Technical Institute (NYSE:UTI) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Universal Technical Institute ROE % Related Terms
Universal Technical Institute ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Education Industry
For the Education industry and Consumer Defensive sector, Universal Technical Institute's ROE % distribution charts can be found below:
* The bar in red indicates where Universal Technical Institute's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Universal Technical Institute (UTI) has a ROE % of 2.66% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Universal Technical Institute and its competitors. This is 52% below median its historical median of 5.55. According to the industry distribution chart, Universal Technical Institute ranks #112 out of 261 companies in the Education industry, placing it in the top 42.9%.
Is Universal Technical Institute's ROE % too high?
Universal Technical Institute's current ROE % of 2.66% is 52% below median its 10-year median of 5.55. The Education industry median ROE % is 7.70. Universal Technical Institute's value of 2.66% is 65.5% below this industry median. Based on the distribution chart, Universal Technical Institute ranks #112 out of 261 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 ROE % compare to PRDO and MH?
According to the Education industry distribution chart, Universal Technical Institute ranks #112 out of 261 companies for ROE %. This puts Universal Technical Institute in the upper half of its industry. The industry median ROE % is 7.70. Universal Technical Institute's value of 2.66% is 65.5% below this benchmark. While the company's 10-year median is 5.55 vs. the industry median of 7.70, 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 ROE % for an Education company?
The median ROE % among Education companies is 7.70, based on 261 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Technical Institute's current ROE % of 2.66% is 65.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Universal Technical Institute and its competitors. For the Education industry, the median ROE % is 7.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Technical Institute's current ROE % is 2.66%, which is 52% below median its own 10-year median of 5.55. 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 ROE % is 2.66%, which is 52% below median its 10-year median of 5.55 and 65.5% below the Education industry median of 7.70. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Universal Technical Institute (UTI), the current ROE % is 2.66% 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:
ROE %: 2.66% (52% below median its 10-year median of 5.55)
GF Value™: $28.48 vs. price of $25.15 (11.7% below fair value)
Industry Position: 65.5% below the Education median (#112 of 261)
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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