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Universal Electronics Inc. (UEIC)
NASDAQ:UEIC
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Universal Electronics
(NASDAQ:UEIC)
53Neutral
Universal Electronics (UEIC) vs. S&P 500 (SPY)
Market Cap
$80.24M
Dividend YieldN/A
Average Volume (3M)98.54K
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue Growth-6.08%
EPS Growth75.80%
CountryUS
Employees3,838
SectorTechnology
Sector Strength42
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-1.86
Shares Outstanding13,111,653
10 Day Avg. Volume92,338
30 Day Avg. Volume98,538
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.21
Price to Cash Flow (P/CF)3.30
P/FCF Ratio3.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.50Price Target Upside125.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Universal Electronics Business Overview & Revenue Model
Company DescriptionUniversal Electronics Inc. (UEIC) is a leading global provider of wireless control solutions for home entertainment and smart home devices. The company designs, develops, and delivers innovative solutions, including universal remote controls, smart thermostats, and AV accessories. UEIC operates across multiple sectors, primarily focusing on consumer electronics, smart home technologies, and home automation products.
How the Company Makes MoneyUniversal Electronics Inc. generates revenue through the sale of its wireless control products and smart home solutions to both retail and OEM (Original Equipment Manufacturer) markets. Key revenue streams include the sales of universal remote controls, smart home devices, and licensing of its patented technologies to other manufacturers. The company partners with major electronics manufacturers, service operators, and retailers globally to distribute its products. Additionally, UEIC earns from recurring revenue streams through software and services associated with its smart home solutions, which enhance the functionality and integration of its products within the connected home ecosystem.
Universal Electronics Financial Statement Overview
Summary
Universal Electronics faces challenges with declining revenue and profitability, impacting its income statement performance negatively. The balance sheet shows moderate leverage but a need to bolster equity. Cash flow stability is somewhat maintained, yet there is room for improvement in free cash flow consistency. Strategic measures to enhance revenue growth and profitability are essential for future financial health.Income Statement
Universal Electronics has shown a declining revenue trend from 2019 to 2024, with significant negative net income and EBIT margins in recent years. Gross profit margins have also decreased, indicating pressure on profitability. The company needs to focus on improving operational efficiency and reversing the revenue decline to enhance financial health.42
Neutral
Balance Sheet
The company's balance sheet reflects moderate financial stability with a relatively low debt-to-equity ratio and declining stockholders' equity. The equity ratio has also decreased over the years, suggesting increased leverage. Efforts to strengthen equity and manage liabilities could improve the overall financial position.55
Neutral
Cash Flow
While Universal Electronics has maintained positive operating cash flow, free cash flow has been inconsistent due to fluctuating capital expenditures and investing activities. The operating cash flow to net income ratio indicates a stronger cash generation capability than profitability suggests, but improving free cash flow consistency is critical for financial flexibility.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 394.88M | 420.46M | 542.75M | 601.60M | 614.68M | Gross Profit |
| 113.99M | 97.56M | 152.29M | 173.02M | 176.26M | EBIT |
| -15.30M | -85.30M | 14.55M | 23.25M | 27.80M | EBITDA |
| 10.52M | -1.66M | 38.58M | 50.00M | 67.00M | Net Income Common Stockholders |
| -24.03M | -98.24M | 407.00K | 5.30M | 38.57M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 26.78M | 42.75M | 66.74M | 60.81M | 57.15M | Total Assets |
| 323.35M | 355.87M | 504.16M | 510.35M | 510.29M | Total Debt |
| 9.23M | 72.37M | 103.03M | 70.27M | 33.68M | Net Debt |
| -17.55M | 29.62M | 36.29M | 9.45M | -23.47M | Total Liabilities |
| 170.25M | 176.95M | 235.76M | 234.40M | 196.99M | Stockholders Equity |
| 153.10M | 178.92M | 268.41M | 275.95M | 313.30M |
| Cash Flow | Free Cash Flow | |||
| 6.39M | 11.31M | -9.66M | 23.24M | 50.16M | Operating Cash Flow |
| 14.82M | 25.19M | 10.93M | 40.28M | 73.39M | Investing Cash Flow |
| -8.43M | -13.88M | -21.21M | -17.04M | -23.73M | Financing Cash Flow |
| -19.76M | -34.78M | 20.50M | -22.03M | -65.96M |
Universal Electronics Technical Analysis
Negative
6.44
Price Trends
8.38
Negative
9.64
Negative
9.71
Negative
Market Momentum
-0.59
Negative
25.34
Positive
9.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UEIC, the sentiment is Negative. The current price of 6.44 is below the 20-day moving average (MA) of 6.77, below the 50-day MA of 8.38, and below the 200-day MA of 9.71, indicating a bearish trend. The MACD of -0.59 indicates Negative momentum. The RSI at 25.34 is Positive, neither overbought nor oversold. The STOCH value of 9.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UEIC.
Universal Electronics Risk Analysis
Universal Electronics disclosed 45 risk factors in its most recent earnings report. Universal Electronics reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Universal Electronics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $273.72M | 9.02 | 19.64% | 2.32% | 4.65% | 23.82% | |
63 Neutral | $14.94B | 32.64 | 24.10% | 0.23% | -14.45% | -64.32% | |
57 Neutral | $20.94B | 10.43 | -13.41% | 2.52% | 4.53% | -23.34% | |
53 Neutral | $80.24M | ― | -14.47% | ― | -6.08% | 75.80% | |
51 Neutral | $1.27B | ― | -12.95% | ― | -8.74% | -2452.05% |
* Technology Sector Average
Performance Comparison
UEIC
Universal Electronics
6.44
-3.60
-35.86%
JBL
Jabil
138.75
0.91
0.66%
HBB
Hamilton Beach Brands Holding Company
19.96
-4.30
-17.72%
SONO
Sonos
10.77
-8.25
-43.38%
Universal Electronics Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -30.15% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call reflects positive growth in the connected home market and strong financial discipline. Despite some concerns over cash reserves and a cautious outlook for Q1 2025, the company is optimistic about long-term growth opportunities.Highlights
Sales Growth and Improved EPS
In Q4 2024, sales grew by 13%, and EPS improved by $0.24 per share compared to the fourth quarter a year ago.
Connected Home Market Expansion
Significant progress in the connected home market, with increased momentum and several new products shipping, leading to a strong pipeline of new products that will fuel long-term revenue growth.
Innovations at CES
At the International Consumer Electronics Show, UEI introduced groundbreaking QuickSet HomeSense technology and new capabilities in the UEI TIDE family, enhancing climate control and energy management.
Financial Stability and Debt Reduction
Net cash provided by operating activities was $14.8 million, and the outstanding line of credit was reduced by over $18 million in 2024, resulting in a net debt position at year end of approximately $10 million.
Lowlights
Cash and Cash Equivalents Decrease
Cash and cash equivalents decreased from $42.8 million at December 31, 2023, to $26.8 million at December 31, 2024.
Q1 2025 Revenue Guidance Concerns
Guidance for Q1 2025 shows expected net sales ranging from $87 million to $97 million, a potential decrease from Q4 2024 due to GAAP revenue recognition shifts.
Company Guidance
During the Universal Electronics fourth quarter and full year 2024 financial results call, the company provided guidance highlighting several key metrics and strategic initiatives. In Q4 2024, sales grew by 13%, and EPS improved by $0.24 per share compared to the previous year, surpassing both internal and consensus projections. The connected home business, particularly in climate control, HVAC, and home automation, showed significant momentum, contributing to a strong pipeline of new products expected to drive long-term revenue growth. For fiscal 2025, the company anticipates continued top and bottom-line growth, with first-quarter sales projected between $87 million and $97 million, despite shifting $4 million in revenue from Q1 2025 to Q4 2024 due to accounting practices. Operating expenses are expected to remain stable, with gross margins anticipated to be around 30% for the year. The company is optimistic about new customer acquisitions and existing relationships with major OEM brands, such as Daikin and Carrier, which are expected to fuel ongoing growth in the connected home market.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.