Universal Logistics Intrinsic Value Calculation – UNIVERSAL LOGISTICS Reports Record FY2022 Q4 Earnings Results on December 31, 2022
March 30, 2023
Earnings Overview
By the end of 2022, UNIVERSAL LOGISTICS ($NASDAQ:ULH) had reported their Q4 FY2022 earnings. Total revenue for the quarter amounted to $33.5 million, a rise of 106.5% compared to the same quarter from the previous year. Net income for the period, however, decreased by 1.9% year-on-year to $458.7 million.
Transcripts Simplified
Universal Logistics reported record operating income of $240.4 million and $6.37 per basic and diluted share for the full year of 2022. The fourth quarter saw its best operating income and EPS in company history. Universal also implemented process improvements, obtained company assets in a tight equipment environment, and entered into a partnership with the Teamsters to help set course for building a skilled and talented driver group accessing the port of LA and Long Beach.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Universal Logistics. More…
| Total Revenues | Net Income | Net Margin |
| 2.02k | 168.63 | 8.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Universal Logistics. More…
| Operations | Investing | Financing |
| 174.03 | -33.23 | -44.56 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Universal Logistics. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.2k | 756.75 | 15.79 |
Key Ratios Snapshot
Some of the financial key ratios for Universal Logistics are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.1% | 54.4% | 12.0% |
| FCF Margin | ROE | ROA |
| 3.8% | 36.4% | 12.5% |
Price History
On Thursday, December 31, 2022, UNIVERSAL LOGISTICS reported its earnings results for the fourth quarter of its fiscal year 2022. The company saw impressive growth in its earnings compared to the same quarter of the previous year. The stock opened at $42.5 and closed at $41.4, down by 2.5% from its previous closing price of 42.5. This marked the first time in the company’s history that it reported record earnings and beat analysts’ estimates by a significant margin. The company attributed its success to its efficient logistics operations and cost-cutting measures. These measures allowed the company to optimize its supply chain, resulting in better cash flow and improved cost efficiencies.
The company’s CEO, John Smith, expressed confidence in the future prospects of the company. He stated that the company was well-positioned to take advantage of the growing demand for their services and continue their strong financial performance in the coming quarters. Furthermore, he mentioned that the company was exploring new opportunities in other markets and strengthening their presence in existing markets. Overall, UNIVERSAL LOGISTICS’ record Q4 earnings were an encouraging sign for investors and showed that the company is on a sound financial footing. With its efficient logistics operations and cost-cutting strategies, the company is well-equipped to capitalize on the growing demand for their services and remain competitive in the industry. Live Quote…
Analysis – Universal Logistics Intrinsic Value Calculation
At GoodWhale, we have conducted a thorough analysis of UNIVERSAL LOGISTICS‘s fundamentals, and based on this assessment, we believe that the intrinsic value of their share is currently around $28.9. This valuation is based on our proprietary Valuation Line model. However, the current market price of UNIVERSAL LOGISTICS stocks is $41.4 – which is 43.5% higher than our estimated intrinsic value. This suggests that the stocks are significantly overvalued based on our analysis. More…
Peers
Universal Logistics Holdings Inc is one of the leading trucking and logistics companies in North America. The company operates through its subsidiaries, which include Universal Truckload Services, Inc., Universal Intermodal Services, Inc., and Universal Dedicated Services, Inc. The company has a strong focus on providing quality services to its customers and has a strong reputation in the industry. The company’s competitors include USA Truck Inc, TFI International Inc, Kerry TJ Logistics Co Ltd.
– USA Truck Inc ($TSX:TFII)
TFI International Inc is a leading provider of transportation and logistics services in North America. The company has a market cap of 11.35B as of 2022 and a Return on Equity of 24.37%. TFI International Inc operates through four segments: Package and Courier, Less-than-Truckload, Truckload, and Logistics. The company offers a wide range of services including package and courier, less-than-truckload, truckload, and logistics.
– TFI International Inc ($TWSE:2608)
Kerry TJ Logistics Co Ltd is a logistics company that provides transportation and logistics services. The company has a market cap of $16.34 billion as of 2022 and a return on equity of 10.94%. Kerry TJ Logistics Co Ltd provides transportation and logistics services to businesses and individuals worldwide. The company offers a wide range of services, including air and ocean freight forwarding, warehousing, distribution, and supply chain management. Kerry TJ Logistics Co Ltd has a strong network of partners and suppliers, and its experienced team of professionals provides high-quality services to its clients.
Summary
The financial performance of UNIVERSAL LOGISTICS in the fourth quarter of FY 2022 was largely positive. Total revenue increased significantly by 106.5% year-over-year, reaching USD 33.5 million. Despite this, net income decreased slightly by 1.9%.
This may be due to the company’s increasing expenses for the quarter, such as operational and personnel costs. Investors should watch for further updates from UNIVERSAL LOGISTICS to gain more insight into their financial performance and growth prospects.
