Universal Technical Institute (UTI) suffers from unreasonably high valuation and steadily declining enrollment. Bulls focus on UTI’s assets and clean balance sheet but overlook the company’s $142 million in off-balance sheet debt, which is nearly 60% of its market value. With the rise of free community college offerings and increased scrutiny on for-profit colleges, there is little left UTI can do to combat declining demand for its education. Investors should not expect the company’s curre...
Universal Technical Institute (UTI) suffers from unreasonably high valuation and steadily declining enrollment. Bulls focus on UTI’s assets and clean balance sheet but overlook the company’s $142 million in off-balance sheet debt, which is nearly 60% of its market value. With the rise of free community college offerings and increased scrutiny on for-profit colleges, there is little left UTI can do to combat declining demand for its education. Investors should not expect the company’s curre...
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