United Labels (ULC) AI Stock Analysis

• Market Cap: €8.52M
• Dividend Yield: N/A
• Average Volume (3M): 2.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -7.67%
• EPS Growth: -107.69%
• Country: DE
• Employees: 23
• Sector: General
• Sector Strength: N/A
• Industry: Leisure
• EPS (TTM): N/A
• Shares Outstanding: 6,930,000
• 10 Day Avg. Volume: 2,104
• 30 Day Avg. Volume: 2,021
• PEG Ratio: -0.97
• Price to Book (P/B): 4.16
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 16.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: €1.00 ▼(-23.08% Downside)
• Action: Reiterated Date: 01/13/26
• Date: Action: Reiterated 01/13/26

The score is primarily constrained by pressured financial performance: weaker TTM revenue and profitability, sharply lower operating cash flow, and high leverage (~3x debt-to-equity). Technical indicators are broadly neutral and do not strongly offset the fundamentals, while valuation is also weaker due to negative earnings and no dividend yield data.

Positive Factors

Licensing-based revenue model

A diversified licensing and distribution model creates durable revenue channels: royalties, retail partnerships and e‑commerce broaden market access and reduce reliance on any single channel. Over months, strong brand partnerships support steady demand and product monetization.

Gross margin improvement

Material gross margin improvement indicates persistent pricing power or improved sourcing/product mix. Higher gross margins provide a buffer for operating expenses, making profitability less sensitive to revenue swings and supporting sustainable margin recovery if top-line stabilizes.

Positive free cash flow

Positive free cash flow despite recent earnings weakness shows the business can generate cash after investments. This cash provides flexibility to fund working capital, modest growth initiatives or gradual deleveraging over the coming months without immediate external financing.

Negative Factors

Revenue and profitability decline

A meaningful drop in revenue alongside margin compression reduces intrinsic earnings power and limits reinvestment capacity. If these trends persist, they impair sustainable cash generation and return on equity, making recovery and funding of strategic initiatives more difficult.

High leverage

Substantial leverage materially limits financial flexibility and raises fixed interest obligations. With a small equity base, the company faces higher refinancing and covenant risk during downturns, constraining strategic options and increasing sensitivity to operating volatility over the medium term.

Weak operating cash flow conversion

Very low and declining operating cash flow relative to revenue signals poor cash conversion and rising working capital pressure. Coupled with high debt, weak OCF reduces capacity to service obligations and fund growth internally, increasing reliance on external financing risk.

United Labels Business Overview & Revenue Model

Company Description

United Labels AG, together with its subsidiaries, develops, produces, and markets licensed consumer products featuring cartoon characters in Germany and internationally. It operates through two segments, Key Account and Special Retail. The company offers comicware under license primarily from Peanuts, Warner Bros., Hasbro, Mattel, Z.A.G., Viacom/Nickelodeon, and others. It provides clothing, including nightwear, underwear, hosiery, boxer shorts, trousers, shorts, swimwear, sweatshirts, pullovers, t-shirts, and jackets; gift items, such as mugs, cereal bowls, eggcups, crockery, glassware, eyeglass cases, money boxes, cookie jars, figurines, candles, alarm clocks, and clocks; and plush toys, beanbags, cushions, and slippers. The company also offers stationery comprising papers, writing pads, pen boxes, desk pads, pencil cases, bookends, pens, and stationery and storage boxes; home textiles consisting of towels, flannels, tea towels, bathrobes, slippers, bed linen, pillows, aprons, and serviettes; and bags and accessories, such as travel bags, sports bags, handbags, backpacks, wallets, belts, hair accessories, caps, scarves, gloves, and key rings. It sells its products directly to end customers through various outlets, e-commerce platforms, specialist retailers, wholesalers, discounters, purchasing associations, and mass-market retailers. UNITEDLABELS Aktiengesellschaft was founded in 1987 and is headquartered in Münster, Germany.

How the Company Makes Money

United Labels generates revenue through multiple channels, primarily by licensing agreements with popular entertainment franchises, which allows them to produce and sell merchandise featuring these brands. Key revenue streams include direct sales of products through retail partnerships, e-commerce platforms, and their own branded online store. The company also benefits from strategic partnerships with distributors and retailers, enhancing their market reach. Additionally, ULC may earn income through royalties from licensing agreements, where they receive a percentage of sales from products sold under licensed brands, further diversifying their income sources.

United Labels Financial Statement Overview

Summary

Income statement trends weakened in TTM: revenue fell ~12% vs. 2024 and net income turned slightly negative, with EBITDA margin compressing (~6.0% vs. ~9.1%). Cash flow is positive but softening (TTM operating cash flow ~1.8% of revenue and down sharply vs. 2024), while leverage remains a major constraint (debt-to-equity ~3.0x) and ROE has deteriorated to slightly negative.

Income Statement

Profitability has weakened into TTM (Trailing-Twelve-Months): revenue is down versus 2024 (about 12%), and net income flipped slightly negative (TTM net margin roughly -0.2% vs. +0.7% in 2024). Operating profitability remains positive but thinner, with EBITDA margin down to ~6.0% in TTM from ~9.1% in 2024. A key positive is gross margin stability/improvement versus 2023 (TTM ~36.9% vs. ~27.3% in 2023), but the overall earnings trajectory has become less consistent compared with the stronger 2022–2023 period.

Balance Sheet

Leverage is the main constraint: debt-to-equity is high and persistent (TTM ~3.0x; 2024 ~2.9x), leaving limited balance-sheet flexibility. Equity has improved from earlier years but remains relatively small versus the debt load. Returns on equity have deteriorated to slightly negative in TTM, reflecting the recent profitability softness and reducing the cushion for creditors and shareholders if conditions weaken.

Cash Flow

Cash generation is mixed. TTM operating cash flow is positive but light relative to revenue (about 1.8%), and it declined sharply versus 2024 (TTM ~€0.35M vs. ~€1.63M). Free cash flow remains positive in TTM (~€0.79M), but the recent free-cash-flow growth is negative, signaling weaker momentum. While free cash flow compares favorably to the small TTM net loss, the overall pattern shows volatility across years and reduced cash conversion in the most recent period.

Breakdown	TTM	Mar 2025	Mar 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.73M	22.45M	24.82M	22.34M	17.97M	13.16M
Gross Profit	7.28M	8.33M	6.76M	6.94M	4.94M	4.73M
EBITDA	1.18M	2.05M	1.58M	1.60M	909.75K	1.90M
Net Income	-45.11K	156.20K	632.25K	444.68K	-212.79K	767.95K
Balance Sheet
Total Assets	28.65M	26.98M	20.95M	24.60M	18.43M	18.50M
Cash, Cash Equivalents and Short-Term Investments	21.73K	413.60K	762.48K	263.53K	128.27K	237.99K
Total Debt	8.93M	8.04M	7.61M	7.29M	7.73M	8.00M
Total Liabilities	25.67M	24.21M	18.25M	22.38M	17.45M	17.52M
Stockholders Equity	2.96M	2.75M	2.68M	2.20M	966.60K	959.16K
Cash Flow
Free Cash Flow	788.00K	705.00K	583.00K	1.00K	1.06M	808.00K
Operating Cash Flow	350.00K	1.63M	800.00K	1.72K	1.59M	1.16M
Investing Cash Flow	-678.00K	-788.00K	-217.00K	-717.00	-533.00K	-348.00K
Financing Cash Flow	290.00K	-1.19M	-85.00K	-868.00	-1.17M	-963.00K

United Labels Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ULC, the sentiment is Negative. The current price of 1.3 is above the 20-day moving average (MA) of 1.24, above the 50-day MA of 1.29, and below the 200-day MA of 1.40, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.93 is Neutral, neither overbought nor oversold. The STOCH value of 65.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:ULC.

United Labels Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TNIE	79 Outperform	€1.42B	46.46	8.50%	―	29.34%	―
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
ACX	47 Neutral	€14.11M	-4.30	-12.47%	―	9.83%	-43.74%
ULC	44 Neutral	€8.52M	-190.77	-1.47%	―	-7.67%	-107.69%