| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 48.82 | 205 |
| Intrinsic value (DCF) | 11.05 | -31 |
| Graham-Dodd Method | 35.11 | 119 |
| Graham Formula | 92.08 | 475 |
Universal Logistics Holdings, Inc. (NASDAQ: ULH) is a leading provider of comprehensive transportation and logistics solutions across the United States, Mexico, Canada, and Colombia. Founded in 1932 and headquartered in Warren, Michigan, the company operates in the trucking sector under the industrials umbrella. ULH offers a diversified portfolio of services, including truckload (dry van, flatbed, heavy-haul, refrigerated), freight forwarding, customs brokerage, final mile, and ground expedite services. It serves key industries such as automotive, steel, oil and gas, alternative energy, and manufacturing, with value-added solutions like warehousing, kitting, and intermodal support. With a market cap of approximately $606 million, ULH leverages its asset-light model and extensive North American network to deliver flexible, cost-effective logistics solutions. The company’s ability to integrate technology and customized services positions it as a competitive player in the fragmented logistics industry.
Universal Logistics Holdings presents a mixed investment profile. On the positive side, the company operates in a resilient industry with steady demand for freight and logistics services, supported by its diversified service offerings and asset-light model. Its trailing revenue of $1.85 billion and net income of $129.9 million reflect operational scale, while a beta of 1.002 suggests market-aligned volatility. However, risks include high total debt ($838 million) relative to cash reserves ($19.4 million), which could strain liquidity in a downturn. Capital expenditures ($251.6 million) indicate ongoing investments, but free cash flow remains pressured. The dividend yield (~1.5%) is modest, and the cyclical nature of freight demand exposes ULH to economic fluctuations. Investors should weigh its niche positioning against sector-wide margin pressures and competition.
Universal Logistics Holdings competes in the highly fragmented trucking and logistics industry, where differentiation hinges on service breadth, operational efficiency, and customer relationships. ULH’s competitive advantages include its asset-light model, which reduces capital intensity, and its ability to provide integrated solutions (e.g., cross-docking, sequencing) for automotive and industrial clients. The company’s international footprint in Mexico and Canada adds diversification, though it lags behind global giants in scale. Its focus on value-added services (e.g., kitting, warehousing) creates stickiness with clients, but pricing power is limited by competition from larger players like J.B. Hunt and smaller regional carriers. Technology adoption (e.g., freight visibility tools) is table stakes in the industry, and ULH must continue investing here to remain competitive. Margin pressures from driver shortages and fuel costs are sector-wide challenges. ULH’s niche in automotive logistics—a key revenue driver—provides stability but ties performance to cyclical OEM production. Overall, the company’s regional strength and service flexibility are offset by its lack of scale in a margin-sensitive industry.