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The Ultimate Software Group, Inc. [NASDAQ:ULTI]: Analyst Rating and Earnings

Equities traders oftentimes stay updated on what leading stock market analysts say about a potential stock purchase. When it comes to The Ultimate Software Group, Inc. [ULTI], the most recently available average analyst rating is from the quarter that ends in December. On average, stock market experts give ULTI an Hold rating. Its stock price has been found in the range of 9.09 to 13.54. This is compared to its latest closing price of $331.50.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The Ultimate Software Group, Inc. [ULTI] is sitting at 2.53. This is compared to 1 month ago, when its average rating was 2.16.

For the quarter ending in Dec-18 The Ultimate Software Group, Inc. [ULTI] generated $0.3 billion in sales. That’s 1.40% higher than the average estimate of $0.3 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.

Keep looking out for the next-scheduled quarterly financial results that this company is expected to put out, which is slated to occur on Tue 7 May (In 84 Days).

Fundamental Analysis of The Ultimate Software Group, Inc. [ULTI]

Now let’s turn to look at profitability: with a current Operating Margin for The Ultimate Software Group, Inc. [ULTI] sitting at +7.33 and its Gross Margin at +61.26, this company’s Net Margin is now 3.20%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 12.08, and its Return on Invested Capital has reached 4.60%. Its Return on Equity is 9.56, and its Return on Assets is 3.95. These metrics suggest that this The Ultimate Software Group, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, The Ultimate Software Group, Inc. [ULTI] has generated a Total Debt to Total Equity ratio of 1.43. Similarly, its Total Debt to Total Capital is 1.41, while its Total Debt to Total Assets stands at 0.63. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 0.68, and its Long-Term Debt to Total Capital is 0.67. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.

What about valuation? This company’s Enterprise Value to EBITDA is 77.10 and its Total Debt to EBITDA Value is 0.09. The Enterprise Value to Sales for this firm is now 8.98, and its Total Debt to Enterprise Value stands at 0.00.

Similarly, this company’s Receivables Turnover is 5.31 and its Total Asset Turnover is 0.69. This publicly-traded organization’s liquidity data is also interesting: its Current Ratio is 1.07.

Performance Indicators

Let’s now turn our attention to trading performance: The Ultimate Software Group, Inc. [ULTI] has 31.24M shares outstanding, amounting to a total market cap of $10.36B. Its stock price has been found in the range of 219.97 to 365.86. At its current price, it has moved by -9.39% from its 52-week high, and it has moved 50.71% from its 52-week low.

This stock’s Beta value is currently 1.25, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 80.26. This RSI suggests that The Ultimate Software Group, Inc. is currently Overbought.

Conclusion: Is The Ultimate Software Group, Inc. [ULTI] a Reliable Buy?

The Ultimate Software Group, Inc. [ULTI] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.