We've tracked UTI closely for years, anticipating it would benefit enormously once the cycle turned.
The stock has traded along all-time lows for the past 5 years, largely because it has struggled operationally as its core business is counter-cyclical.
UTI is a prime beneficiary of previous governmental regulations, as they now have minimal competition.
Trading at 8x 2019 EBITDA, with a business model that has tremendous operating leverage, we think UTI will generate its current market cap in cash in 5 years as student enrollments are set to erupt higher.
Universal Technical Institute (UTI) is the nation's leading postsecondary, for-profit trade school specializing in training students to become technicians in automotive, diesel, & motorcycle repair. Additionally, UTI offers programs for students to