Universal Logistics Stock Fair Value – Universal Logistics Reports Second Quarter FY2023 Earnings Results on June 30, 2023
August 21, 2023
🌥️Earnings Overview
On June 30, 2023, UNIVERSAL LOGISTICS ($NASDAQ:ULH) released their earnings results for the second quarter of FY2023. The total revenue for the quarter totaled USD 412.6 million, a decrease of 21.7% year over year. Net income also suffered, dropping 47.3% from the same quarter of the previous year and reaching USD 23.6 million.
Share Price
At the start of the day, the stock opened at $31.6 and closed at the same value, experiencing a slight 0.3% decrease from the previous day’s closing price of $31.7. Despite this unfavorable economic climate, UNIVERSAL LOGISTICS was able to maintain a steady cash flow and profit margin.
In addition, the company’s debt-to-equity ratio remained stable, indicating their commitment to financial stability. Furthermore, their debt-to-income ratio was lower than the industry average, demonstrating their ability to efficiently manage their finances even in difficult times. Overall, UNIVERSAL LOGISTICS reported satisfactory results for the quarter and their stock price remained relatively unchanged, signaling investor confidence in the company’s financial position. Live Quote…
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 |
| 1.81k | 130.37 | 7.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Universal Logistics. More…
| Operations | Investing | Financing |
| 249.05 | -148.86 | -49.05 |
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 |
| 1.24k | 745.98 | 18.62 |
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 |
| 9.2% | 64.9% | 10.8% |
| FCF Margin | ROE | ROA |
| 4.9% | 25.5% | 9.9% |
Analysis – Universal Logistics Stock Fair Value
At GoodWhale, we have conducted a thorough financial analysis of UNIVERSAL LOGISTICS to determine the fair value of their shares. Based on our proprietary Valuation Line, the fair value of UNIVERSAL LOGISTICS share is estimated to be around $27.0. However, the current market price of the stock is $31.6, resulting in an overvaluation of 16.8%. This indicates strong investor sentiment and potential upside for those who believe that the stock price will eventually revert to its fair value. More…
Peers
Universal Logistics Holdings Inc is one of the leading trucking and logistics companies in North America. The company operates through its subsidiaries, which include Universal Truckload Services, Inc., Universal Intermodal Services, Inc., and Universal Dedicated Services, Inc. The company has a strong focus on providing quality services to its customers and has a strong reputation in the industry. The company’s competitors include USA Truck Inc, TFI International Inc, Kerry TJ Logistics Co Ltd.
– USA Truck Inc ($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
Investors in UNIVERSAL LOGISTICS should be aware that the company has reported a significant decline in both revenue and net income in the second quarter of FY2023. Total revenue for the quarter was USD 412.6 million, a decrease of 21.7% from the same period the previous year, and net income fell 47.3% year over year to USD 23.6 million. While this could be a cause for concern, it is important to consider the longer-term performance and outlook for UNIVERSAL LOGISTICS before making an investing decision.
