Quality Investor

UL Solutions Inc.

Rank #83Capital Return

ULS · NYSE · Industrials

UL Solutions Inc. (ULS) — Rank #83 by gross profitability (GP/assets 0.48) · ROE 20.4% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0001901440 · all metrics point-in-time as of the filing date.

About

UL Solutions Inc., together with its subsidiaries, provides testing, inspection and certification services and related software and advisory services worldwide.

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It operates through three segments: Industrial, Consumer, and Software and Advisory. The Industrial segment provides testing, inspection, and certification services across various end markets, including energy, industrial automation, engineered materials, and built environment, as well as stakeholders, such as manufacturers, building and asset owners, end users, and regulators. The Consumer segment offers safety certification testing, ongoing certification, global market access, testing for connectivity, performance and quality, and critical systems advisory and training services, as well as product market acceptance and risk mitigation services for customers in the consumer products end markets comprising consumer electronics, medical devices, information technologies, appliances, HVAC, lighting, and retail, as well as consumer applications, such as new mobility, smart products, and 5G. The Software and Advisory segment provide software and technical advisory services that enable customers to manage regulatory requirements, deliver supply chain transparency, and operationalize sustainability. It offers ULTRUS, a software that helps customers meet regulatory, supply chain, and sustainability challenges. UL Solutions Inc. was formerly known as UL Inc. and changed its name to UL Solutions Inc. in December 2021.

The company was founded in 1894 and is headquartered in Northbrook, Illinois. UL Solutions Inc. operates as a subsidiary of ULSE Inc.

Industry
Specialty Business Services
Sector
Industrials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
ul.com

Price History

ULS+108.2% · +35.7% CAGRSPY+53.6% · +19.6% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$13.46B

P/E (annual)

41.7

P/S (annual)

4.4

P/B

8.4

P/OCF (annual)

22.4

Shareholder Yield

-0.2%

Employees

14,587

Industry

Specialty Business Services

Exchange

NYSE

Signal Flags

3 green1 red
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Valuation convergenceEPS declining, shares diluting, and revenue growth decelerating simultaneously

Quality Profile

Profitability

1/1 pass
GP / assets
0.48
Return on equity
20.4%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.93
Current ratio
1.42×
Net cash
$133.00M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.5%

Growth

2/2 pass
Revenue growth
6.4%
Piotroski F-Score
7 / 9
Share dilution
1.0%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

14.8%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 1.0% — per-share value needs a total required return of 15.8% once share-count change is priced in.

vs. own 6-year median revenue growth: 7.2%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

10.1%

r = 10% (base)

14.8%

r = 12%

18.9%

Net debt / market cap: -1.0%

Base FCF: $403M3Y mean FCF: $325.7M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

51.6xExpensive
33.3xmed 39.1x51.6x

P / S

Price / revenue per share

5.5xExpensive
3.8xmed 4.2x5.5x

P / B

Price / book value per share

13.3xFair
10.0xmed 12.7x16.5x

P / GP

Price / gross profit per share

11.1xExpensive
7.8xmed 8.7x11.1x

P / FCF

Price / free cash flow per share

41.6xFair
37.8xmed 42.2x51.9x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.48

Primary signal (Novy-Marx).

2nd of 5 SIC 87 peers

Return on equity

20.4%

Gross margin

49.5%

1st of 5 SIC 87 peers

Revenue growth (YoY)

6.4%

RPO growth (YoY)

-2.8%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

6.6%

Revenue CAGR (5Y)

Earnings CAGR (3Y)

3.5%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.93

2nd of 5 SIC 87 peers (best = lowest)

Current ratio

1.42×

4th of 5 SIC 87 peers

Quick ratio

1.05×

Net cash

$133.00M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$403.00M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.24

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.5%

Stock-based comp intensity.

Dividend safety

Composite score

3.0 / 5

Good
Payout ratio
32.0%4/5 Strong
FCF coverage
3.88×5/5 Strong
Dividend growth streak
1 yr1/5 Weak
Balance-sheet health
D/E 0.93 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20222025
Capital Return