[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  LTValue [@qualitybargain](/creator/twitter/qualitybargain) on x 2280 followers Created: 2025-05-25 05:38:43 UTC ULS Solutions $ULS looks like a great business but with recent move post Q1 result to ~$72/sh and trading at ~40x NTM PE, valuation doesn't seem to make sense. Brokers just saying "this business should be worth 38x". Feels a bit like $VRSK (which now trades at 42x...), in the sense that both are high quality businesses (high ROIC, capital efficient etc.) with good earnings resilience/visibility (based on recurring revenue and pricing power, which is highly valued in this market given how uncertain anything with cyclical exposure is), and both are growing EPS ~10-12%. With VRSK I don't think there's a story of subscription growth inflecting higher to justify the multiple. Same thing with ULS (they may benefit from more testing associated with supply chain re-configuration, but offset to this is product innovation cycles/plans getting pushed out, so hard to take a view). So it just ends up looking super crowded and expensive. Problem is that if a stock like this has any wobble or miss vs. the street, then this thing could get whacked and be down -15-20% in a day... XXXXX engagements  **Related Topics** [$vrsk](/topic/$vrsk) [$72sh](/topic/$72sh) [$uls](/topic/$uls) [verisk analytics inc](/topic/verisk-analytics-inc) [stocks industrials](/topic/stocks-industrials) [Post Link](https://x.com/qualitybargain/status/1926513236943225312)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
LTValue @qualitybargain on x 2280 followers
Created: 2025-05-25 05:38:43 UTC
ULS Solutions $ULS looks like a great business but with recent move post Q1 result to ~$72/sh and trading at ~40x NTM PE, valuation doesn't seem to make sense.
Brokers just saying "this business should be worth 38x".
Feels a bit like $VRSK (which now trades at 42x...), in the sense that both are high quality businesses (high ROIC, capital efficient etc.) with good earnings resilience/visibility (based on recurring revenue and pricing power, which is highly valued in this market given how uncertain anything with cyclical exposure is), and both are growing EPS ~10-12%.
With VRSK I don't think there's a story of subscription growth inflecting higher to justify the multiple.
Same thing with ULS (they may benefit from more testing associated with supply chain re-configuration, but offset to this is product innovation cycles/plans getting pushed out, so hard to take a view).
So it just ends up looking super crowded and expensive.
Problem is that if a stock like this has any wobble or miss vs. the street, then this thing could get whacked and be down -15-20% in a day...
XXXXX engagements
Related Topics $vrsk $72sh $uls verisk analytics inc stocks industrials