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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Universal Technical Institute's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was 1.25%.
As of today (2026-08-15), Universal Technical Institute's WACC % is 10.49%. Universal Technical Institute's ROIC % is 4.52% (calculated using TTM income statement data).
Universal Technical Institute earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Universal Technical Institute (NYSE:UTI) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Universal Technical Institute's WACC % is 10.49%. Universal Technical Institute's ROIC % is 4.52% (calculated using TTM income statement data).
Universal Technical Institute earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Universal Technical Institute ROIC % Related Terms
Universal Technical Institute ROIC % 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 ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Education Industry
For the Education industry and Consumer Defensive sector, Universal Technical Institute's ROIC % distribution charts can be found below:
* The bar in red indicates where Universal Technical Institute's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jun. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (UTI) has a ROIC % of 1.25% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Universal Technical Institute and its competitors.
Is Universal Technical Institute's ROIC % too high?
Universal Technical Institute's current ROIC % is 1.25%. The Education industry median ROIC % is 5.36. Universal Technical Institute's value of 1.25% is 76.7% below this industry median. 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 ROIC % compare to PRDO and MH?
Universal Technical Institute's ROIC % of 1.25% can be compared against companies in the Education industry. The industry median ROIC % is 5.36. Universal Technical Institute's value of 1.25% is 76.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Education company?
The median ROIC % among Education companies is 5.36, based on 261 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Technical Institute's current ROIC % of 1.25% is 76.7% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Universal Technical Institute and its competitors. For the Education industry, the median ROIC % is 5.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Technical Institute's current ROIC % is 1.25%. 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 ROIC % is 1.25% and 76.7% below the Education industry median of 5.36. 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 ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Universal Technical Institute (UTI), the current ROIC % is 1.25% 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:
ROIC %: 1.25%
GF Value™: $28.48 vs. price of $25.15 (11.7% below fair value)
Industry Position: 76.7% below the Education median
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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