UL Solutions Inc. Class A Common Stock (ULS)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see a testing, inspection and certification business with a trust-based franchise. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $816.0 million, net income was $246.0 million, and diluted EPS was $1.21. That compares sharply with fiscal Q2 2025, when revenue was $776.0 million, net income was $91.0 million, and diluted EPS was $0.45. For fiscal year 2025, period ended 2025-12-31, revenue was $3.1 billion and net income was $325.0 million, roughly flat against fiscal year 2024 revenue of $2.9 billion and net income of $326.0 million. The computed Lynch category is SLOW GROWER, with profit growth of 3.5% a year and revenue growth of 6.6% over three years. Financial health looks decent: debt-to-equity is 0.29, FairStock's Piotroski F-Score is 7/9, Altman Z-Score is 6.70, and trailing free cash flow is $436.0 million, a 3.0% FCF yield. FairStock's ROE is 38.71%, but ROCE is 12.33%, and P/B is 9.00. At the close on 2026-10-13, the $71.08 price gives a FairStock P/E of 28.66, EV/EBITDA of 15.47, PEG of 0.77, and FairStock Score of 44/100. FairStock's Graham Number of $21.00 implies a margin of safety of -238.48%, so the price is far above a conservative asset-based value. I admire the low beta of 0.62 and the regulatory-service nature, but I demand a margin of safety. Here I see quality and reasonable leverage, yet the price already assumes durable growth and high returns. I would want more consistent profit growth and a better price before calling it compelling.

In plain English: UL Solutions helps companies test, inspect and certify products, and sells related software and advice. The business is profitable and has low debt, but the stock price looks high compared with its earnings and asset value. It looks more like a steady, modest grower than a fast grower.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer