uCloudlink Group (UCL) AI Stock Analysis

• Market Cap: $47.25M
• Dividend Yield: N/A
• Average Volume (3M): 54.92K
• Price to Earnings (P/E): 10.2
• Beta (1Y): -0.06
• Revenue Growth: 7.08%
• EPS Growth: 59.40%
• Country: US
• Employees: 404
• Sector: Communication Services
• Sector Strength: 74
• Industry: Telecommunications Services
• EPS (TTM): 0.12
• Shares Outstanding: 25,284,350
• 10 Day Avg. Volume: 23,045
• 30 Day Avg. Volume: 54,923
• PEG Ratio: 0.17
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.56
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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

uCloudlink Group's overall stock score of 64 reflects its strong financial performance and growth prospects, tempered by technical challenges and increased operational expenses. While the valuation is attractive, the company's reliance on liabilities and the recent decline in profit margins are key risks. The earnings call's optimistic guidance supports a positive outlook, albeit with caution due to operational cost pressures.

uCloudlink Group Business Overview & Revenue Model

Company Description

uCloudlink Group Inc. operates as a mobile data traffic sharing marketplace in the telecommunications industry. It provides uCloudlink 1.0, a model that focuses on cross-border travelers that need mobile data connectivity services in various countries; and operates portable Wi-Fi services under the Roamingman name in China and Malaysia, which provides global mobile data connectivity services, as well as offers GlocalMe portable Wi-Fi terminals and cloud SIM architecture for mobile virtual network operators, mobile network operators (MNOs), and portable Wi-Fi terminal rental companies. The company also offers uCloudlink 2.0, a model that provides mobile data connectivity services to local users through various MNOs; GlocalMe Inside, an implementation solution for smartphones and other smart hardware products, which enables them to access its cloud SIM architecture and SIM card pool; and GlocalMe, a world phone series. In addition, it provides IoT modules with GlocalMe Inside implementation to meet the demand for mobile data from various terminals, as well as provides integrated network solutions to its customers; SIM cards with prepaid data packages; and value-added services, such as advertisement. Further, it's platform-as-a-service/software-as-a-service offers modules, such as customer relationship management, operations and business support system, and SIM card enterprise resource planning and management. The company was incorporated in 2014 and is headquartered in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

uCloudlink Group generates revenue primarily through its mobile data connectivity services, leveraging its cloud SIM technology. The company earns money by selling portable Wi-Fi devices and SIM cards, as well as through data usage charges. Customers, including individual travelers, enterprises, and mobile network operators, pay for access to mobile data, either through one-time purchases or subscription models. Additionally, uCloudlink has partnerships with telecom operators and local service providers, allowing them to expand their network coverage and service offerings, which further contributes to their revenue streams. The company's unique position in the market as a facilitator of global mobile data connectivity without the need for physical SIM cards sets it apart and drives its business growth.

uCloudlink Group Financial Statement Overview

Summary

uCloudlink Group has shown significant financial improvement. The income statement reflects robust revenue growth and profitability with a net profit margin of 5.0%. The balance sheet is solid with a debt-to-equity ratio of 0.46, but the equity ratio of 33.3% suggests reliance on liabilities. Cash flow generation is strong, with a 16.8% growth in free cash flow, although the free cash flow to net income ratio could be better.

Income Statement

uCloudlink Group has shown a strong recovery in its income statement metrics. The company achieved a gross profit margin of 48.4% and a net profit margin of 5.0% in the latest fiscal year, indicating effective cost management and profitability. The revenue growth rate of 7.1% from the previous year highlights a positive growth trajectory. The EBIT and EBITDA margins, at 4.8% and 7.3% respectively, further emphasize the company's operational efficiency improvements.

Balance Sheet

The balance sheet strength of uCloudlink Group is solid, with a healthy debt-to-equity ratio of 0.46, reflecting moderate leverage. The return on equity (ROE) is 21.1%, indicating effective use of equity to generate profits. However, the equity ratio of 33.3% suggests a reliance on liabilities to finance assets, which could pose a risk in times of financial stress.

Cash Flow

The cash flow position shows positive trends, with free cash flow growing by 16.8% year-over-year. The operating cash flow to net income ratio is favorable at 2.0, suggesting strong cash generation relative to reported profits. However, the free cash flow to net income ratio of 1.1 indicates moderate conversion of profits into free cash flow, which could be improved.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
91.64M	85.58M	71.46M	73.82M	89.57M
	Gross Profit
44.36M	41.97M	32.53M	21.83M	28.30M
	EBIT
4.38M	2.59M	-19.19M	-45.91M	-70.54M
	EBITDA
6.71M	3.78M	-18.19M	-43.73M	-60.68M
	Net Income Common Stockholders
4.56M	2.81M	-19.93M	-46.33M	-63.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.76M	30.98M	26.81M	20.65M	41.37M
	Total Assets
64.98M	56.61M	45.93M	67.13M	97.25M
	Total Debt
9.90M	7.67M	3.06M	3.18M	3.70M
	Net Debt
-20.16M	-15.71M	-11.86M	-4.69M	-18.29M
	Total Liabilities
43.36M	40.55M	36.64M	47.03M	40.86M
	Stockholders Equity
21.62M	16.05M	9.29M	20.09M	56.39M
Cash Flow		Free Cash Flow
5.19M	4.44M	3.98M	-22.62M	-3.77M
	Operating Cash Flow
9.19M	6.51M	4.40M	-21.74M	-2.04M
	Investing Cash Flow
-3.76M	-240.00K	-162.00K	-935.00K	-35.44M
	Financing Cash Flow
1.73M	2.51M	3.54M	735.00K	26.68M

uCloudlink Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UCL, the sentiment is Negative. The current price of 1.24 is below the 20-day moving average (MA) of 1.25, below the 50-day MA of 1.28, and below the 200-day MA of 1.40, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.58 is Neutral, neither overbought nor oversold. The STOCH value of 23.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UCL.

uCloudlink Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIFY	65 Neutral	$317.78M	―	0.20%	―	12.76%	―
UCL	64 Neutral	$47.25M	10.22	24.20%	―	7.08%	59.40%
TDS	64 Neutral	$4.19B	―	-0.54%	0.42%	-3.80%	83.27%
GOGO	61 Neutral	$1.11B	86.94	24.98%	―	11.85%	-90.54%
CALX	60 Neutral	$2.34B	―	-3.97%	―	-20.02%	-193.84%
Sector *	59 Neutral	$27.83B	1.88	-18.16%	4.00%	2.13%	-44.45%
ATNI	56 Neutral	$313.80M	―	-5.13%	4.95%	-4.35%	-78.64%