Universal Technical Institute: Hedge Recession With This Counter Cyclical Stock Trading At <2.5x Forward EBITDA; +200% Upside Potential

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About: Universal Technical Institute, Inc. (UTI)
by: PNW Value
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PNW Value
Value
Summary

Universal Technical Institute, Inc. (“UTI” or the “Company”) is a for-profit, automotive trade school on the verge of a breakout.

Due to the absence of analyst coverage and index-exclusion, we believe the market is overlooking the Company’s spectacular turnaround progress.

The Great Recession was a huge enrollment catalyst for UTI. Given the Company’s operational leverage and enrollment capacity, we expect a future slowdown to be highly accretive for shareholders.

Many leading indicators suggest the U.S. economy is likely to enter recession soon, which would be a boon to UTI and provide a hedge to most portfolios.

UTI’s public ownership structure, elevated graduation rates, education quality, and long-standing industry partnerships help offset potential regulatory risk.

Overview

UTI is an accredited, postsecondary education company with a focus on automotive services. Its customers include high school students looking for an alternative to a college education and adults seeking a career change. The