Quality Investor

UL Solutions Inc.

Rank #87Capital ReturnWatchlistCompare with other stocks

ULS · NYSE · Industrials

UL Solutions Inc. (ULS) — Rank #87 by gross profitability (GP/assets 0.48) · ROE 20.4% · Piotroski F-Score 7 / 9.

As-of 2026-10-30 · 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

Company Snapshot

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

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

14,587

Industry

Specialty Business Services

Exchange

NYSE

11/12

Flags passed

ULS fails 1 critical flag

Passes 11 of 12 quality flags

  • FAIL
    Valuation convergence

    EPS declining, shares diluting, and revenue growth decelerating simultaneously

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin

Strengths Operating leverage expanding · Deferred revenue growing · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

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%

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

Profitability

Does it make money well?

No warning flags · GP/assets 0.48

Gross profitability (GP / assets)

0.48

Primary signal (Novy-Marx).

3rd of 7 SIC 87 peers

Return on equity

20.4%

Gross margin

49.5%

2nd of 7 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)

—

Cash Flow Health

Is the cash real?

No warning flags · FCF 24% above net income

Free cash flow

$403.00M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

24.0%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.5%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $133.00M, F-Score 7/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.93

3rd of 7 SIC 87 peers (best = lowest)

Current ratio

1.42×

6th of 7 SIC 87 peers

Quick ratio

1.05×

Net cash

$133.00M

Cash & equivalents minus total debt.

Piotroski F-Score

7 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

Warning: Valuation convergence

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

Capital allocation quality

Composite score

2.7 / 5

Fair
Share count trend
1.0%2/5 Fair
Buyback timing
N/AN/A
Dividend growth consistency
1 yr1/5 Weak
Net debt trajectory(deleveraging)
8.5%5/5 Strong

Lifecycle Phase History

20222025
Capital Return

Price History

ULS+87.1% · +29.4% CAGRSPY+53.5% · +19.3% CAGR