UL Solutions Inc.

Consulting Services

ULSStrong10 of 11 basics passed

$69.99

-0.93%

Market cap $14.1B

$69.99

-0.93%

Market cap $14.1B

UL Solutions is a global leader specializing in a broad range of product testing, inspection, and certification services. UL Solutions is the for-profit branch out of three organizations under the UL Enterprise.

It is a $14.1B industrial company. Revenue grew 6.6% over the last year, it keeps 16¢ of every dollar of sales as profit, and its net debt equals ~0.4 years of free cash flow. It trades at 28.0× earnings — near the lowest of its own history.

Website: ul.com
Location: Northbrook, IL
Employees: 14 851
Sector: Industrials

Share price · 3 years

$34.94 → $69.99+100.3%

price only — dividends excluded

Key facts · TTM

Revenue: total sales; $3.15B
Profit: keeps 16¢ of every $1 sold; $506M
Free cash flow: cash left after running the business; $436M
Net debt: debt minus cash on hand; $196M
P/E: years of profit in the price; 28.0
EPS: earnings per share, TTM; $2.49
Dividend: pays out 22% of profit · 25% of FCF; 0.78%
Shares: up 10% since 2021 — dilution; 203.0M
Volatility: beta vs the market — under 1 swings less; 0.74

Revenue, last 5 years

52-week range

Low $64.03$69.99High $104.89

Today's price is 15% of the way from the year's low to its high.

P/E vs its history2y

28.0×median 43.7×

Higher than 3% of past days — near the lowest of its own history.

Valuation vs own history

P/E

28.0×

97%

P/S

4.5×

82%

EV/EBITDA

25.3×

85%

P/B

8.7×

97%

FCF yield

3.1%

97%

Share of the last ~5 years that was pricier than today (unusually cheap vs its own history). Based on the daily valuation record.

Insider activity · 90 days

-$876Knet selling

Purchases$0

Sales$876K

Insiders trading, last 14d0 buy · 1 sell

Standing in Industrials

Size$14.1Btop 64%
Revenue growth+7%top 34%
Net margin16%top 19%
Return on equity38%top 15%
P/E28.0×top 56%
Dividend yield0.78%top 69%

Ranked against 130 Industrials companies with a full CV — for P/E, lower ranks higher.

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Strong profitability, health, quality and moat; Growth lags behind.

Valuation69

P/E vs own history3th pct · 25/25
FCF yield3.1% · 12/25
P/S4.5x · 20/25
EV/EBITDA15.6x · 12/25

Growth35

Revenue CAGR4.9% · 6/25
Net income CAGR9.8% · 12/25
EPS CAGR ~5Y7.1% · 12/25
Fwd implied growth4.8% · 5/25

Profitability85

ROIC22.3% · 20/25
ROE37.6% · 25/25
Net margin16.1% · 20/25
Operating margin23.9% · 20/25

Health82

Altman Z7.00 · 25/25
Current ratio1.42 · 12/25
Interest coverage11.0x · 25/25
Net cash / debtD/A 7% · 20/25

Quality94

Piotroski F7/9 · 22/25
Beneish M-2.76 · 25/25
FCF conversion86% · 22/25
Margin stabilityσ 2.2% · 25/25

Moat88

ROIC >12% years5/5 yrs · 25/25
Median gross margin47.9% · 20/25
FCF-positive years5/5 yrs · 25/25
Worst-year net marginworst 8.9% · 18/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

FY2024Financial
Best year on record
$326M net income
FY2021Financial
Profitable every year on record
5 consecutive profitable years in our data
FY2021Financial
Revenue already above $1B
$2.52B in first reported year
FY2021Financial
Positive free cash flow every year since
5-year streak
2018Product
UPM launched brand promise 'UPM Biofore – Beyond fossils'
2011Acquisition
The overcapacity continued in graphic paper business and in 2011, UPM acquired Myllykoski Corporation and Rhein…
2009Product
UPM created the term "Biofore" to describe new forest industry
2000Acquisition
The Miramichi paper mill in New Brunswick, which UPM acquired in 2000, was closed in 2007
1996Acquisition
UPM-Kymmene was formed by the merger of Kymmene Corporation with Repola Oy and its subsidiary United Paper Mills Ltd…

Achievements

Verifiable track record, straight from the reported numbers.

$3.1B revenue in FY2025

Revenue up 6.6% year over year

Profitable 5 years in a row

Positive free cash flow 5 years in a row

14 851 employees

ROIC of 22.3%

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

High gross margin (50.4%)
Could repay net debt from ~0.1 years of free cash flow
Interest covered 11.0× by operating earnings
High returns on invested capital (ROIC 22.3%)
Piotroski F-Score 7/9 — fundamentally strong checklist

Watch-outs

Nothing stands out as a concern in the available data.

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

10 of 11 checks passed

Revenue growing — the company sells more than a year ago+6.6% YoY
Profitable — makes more than it spends$506M TTM
Profit growing — earnings are higher than last year+3.0% YoY
Generates cash — cash left after running and investing$436M TTM
Debt under control — could handle its obligations~0.4y of cash flow to repay
Established company — not a micro-cap — lower blow-up risk$14.1B market cap
Not printing shares — share count not ballooning — you keep your slice+10.2% shares over ~5y
Proven track record — years of profitability behind it5/5 profitable years
Financially stable — balance sheet not near distressAltman Z 7.0 — safe
Pays a dividend — returns cash to shareholdersyield 0.78%
Valuation not extreme — price not wildly above earningsP/E 28.0

Peer comparisonUL Solutions Inc. vs 6 largest industrials peers — cap, P/E, growth and margin side by sideOpen ▾

Company	Market cap	P/E	Revenue growth	Net margin	Profile
ULS this company	$14.1B	28.0	+6.6%	16.1%	Strong
LRCX Lam Research Corp	$399.2B	54.9	+26.0%	31.3%	Strong
CAT Caterpillar Inc.	$368.0B	33.9	+18.4%	14.5%	Solid
RTX RTX Corporation	$251.3B	32.4	+11.8%	8.3%	Strained
DE Deere & Company	$167.7B	34.4	+8.3%	10.2%	Solid
ETN Eaton Corporation, plc	$167.2B	43.6	+15.5%	12.8%	Mixed
UNP Union Pacific Corp.	$166.8B	22.6	+4.2%	28.8%	Strained

Head-to-head: ULS vs LRCX · ULS vs CAT · ULS vs RTX

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 6Buy 5Hold 6

Appendix · Financial records

The full statements behind this CV, FY2021–FY2025. For readers who want to check the numbers.

Profit & lossRevenue $3.15B · net income $506M (TTM)Open ▾

Profit & loss

Revenue and profit over the company's career — the income statement, visualised.

How FY2025 revenue flows to profit

RevenueNet income

Revenue (TTM)

$3.15B

YoY 6.6%

Net income (TTM)

$506M

Margin 16.1%

Gross margin

50.4%

Operating margin

23.9%

P/E ratio

28.0

Dividend yield

0.78%

Income statement — full detail

Figures in USD billions · EPS in USD

	2021	2022	2023	2024	2025
Revenue	2.5	2.5	2.7	2.9	3.1
Gross profit	1.2	1.2	1.3	1.4	1.5
Operating income (EBIT)	0.3	0.4	0.4	0.5	0.5
Net income	0.2	0.3	0.3	0.3	0.3
EPS (diluted)	1.22	1.47	1.30	1.62	1.60

Cash flowFree cash flow $436M · operating cash flow $678M (TTM)Open ▾

Cash flow statement

Cash generated by the business and what is left after investment — year by year.

Operating cash flowFree cash flow

Free cash flow (TTM)

$436M

Margin 13.9%

Operating cash flow (TTM)

$678M

FCF margin

13.9%

Cash flow statement — full detail

Figures in USD billions

	2021	2022	2023	2024	2025
Operating cash flow	0.4	0.4	0.5	0.5	0.6
Capital expenditure	-0.1	-0.2	-0.2	-0.2	-0.2
Free cash flow	0.3	0.2	0.3	0.3	0.4
FCF margin	12.5%	8.3%	9.4%	10.0%	13.2%

Balance sheetAssets $2.92B · net debt $196M (FY2025)Open ▾

Balance sheet

How the balance sheet is built — what it owns versus how it is financed.

How $2.92B of assets is financed

56%

44%

Liabilities $1.63B — borrowed moneyEquity $1.26B — owners' stake

Cash vs debt

Total debt $491M − cash $295M = net debt $196M

Cash on hand covers 60% of debt.

Altman Z-Score

7.00

Safe zone

Debt repayment

0.1 yrs

Years of free cash flow to clear net debt

Interest coverage

11.0x

EBIT ÷ interest expense

ROE

37.6%

Profit per $1 of equity

Balance sheet — full detail

Figures in USD billions

	2021	2022	2023	2024	2025
Cash & equivalents	1.4	0.4	0.3	0.3	0.3
Total assets	3.7	2.7	2.7	2.8	2.9
Total liabilities	1.3	1.6	2.1	1.9	1.6
Total debt	0.2	0.7	1.1	0.7	0.5
Equity	2.3	1.1	0.7	0.9	1.3
Net debt	-1.2	0.3	0.7	0.4	0.2

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of ULS on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $69.99 · market cap $14.1B.