Is the business good?
How good a business is ULS?
UL Solutions Inc. earns 31% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
31%
Return on invested capital · cost of capital 9.0% · 22 points above what the capital costs: growth creates value
- Operating margin
- 18%
Operating margin · Specialty Business Services median 10% · 12 months to Q1 2026
- Cash conversion
- 1.29×
Cash conversion · 0.91× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +0.49%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2022 | 16% |
| FY2023 | 14% |
| FY2024 | 16% |
| FY2025 | 17% |
Details›
- Gross margin12 months to Q1 2026
- 50%
- Operating margin12 months to Q1 2026
- 18%
- Net margin12 months to Q1 2026
- 11%
- Free cash flow margin
- 14%
- Revenue, trailing twelve months
- $3.11B
- Free cash flow, trailing twelve months
- $450M
- Net income, trailing twelve months
- $350M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 31%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Specialty Business Services
Ranks #7 of 18 by Smart Score