Universal Electronics (UEIC) AI Stock Analysis

• Market Cap: $54.67M
• Dividend Yield: N/A
• Average Volume (3M): 112.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: 2.35%
• EPS Growth: 18.83%
• Country: US
• Employees: 3,838
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.17
• Shares Outstanding: 12,864,412
• 10 Day Avg. Volume: 85,174
• 30 Day Avg. Volume: 112,506
• PEG Ratio: 0.11
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 2.41
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 0.58
• Enterprise Value/Ebitda: 9.85
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.1
• Revenue Forecast (FY): $339.91M

• Rating: 55 Neutral
• Price Target: $4.50 ▲(7.14% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is held back primarily by persistent multi-year revenue decline and ongoing net losses, despite stabilization versus prior trough levels. Strengths include low leverage and generally supportive cash generation, while technicals show modest improvement without a confirmed long-term uptrend. Valuation is penalized by negative earnings, and the earnings call was mixed—cost actions and connected-home progress are positives, but near-term revenue pressure and margin headwinds remain key risks.

Positive Factors

Low leverage / stronger balance sheet

Sharp debt reduction and a very low debt-to-equity ratio materially lower financial risk and increase flexibility. Over a 2-6 month horizon this supports the company’s ability to fund product development, absorb cyclical revenue weakness, and pursue capital allocation (buybacks or targeted investments) without refinancing stress.

Positive operating and free cash flow

Consistent positive operating cash flow and a sizable 2025 free cash flow bolster liquidity and fund operations independently of earnings volatility. Durable cash generation supports restructuring, R&D, and shareholder returns, reducing reliance on external capital during industry downturns.

Connected‑home growth and product design wins

A double-digit connected‑home revenue increase tied to new product launches indicates successful diversification away from legacy pay-TV exposure. Securing design wins and platform commitments (e.g., QuickSet Cloud, batteryless remote) creates recurring software/cloud opportunities and improves long-term revenue mix and stickiness.

Negative Factors

Multi-year revenue decline

A sustained drop in revenue over multiple years undermines scale economies, reduces bargaining power with suppliers and customers, and constrains reinvestment capacity. Without a durable reversal, shrinking top-line limits margin recovery and makes long-term turnaround dependent on material share gains or new market expansion.

Ongoing net losses and negative returns

Persisting net losses and negative return metrics erode shareholder capital and limit internal funding for growth. Even with low leverage, prolonged unprofitability pressures equity, risks dilutive capital actions if raised, and constrains sustained investment in products and go‑to‑market capabilities.

Exposure to weak home‑entertainment markets

Significant exposure to subscription broadcasting and home‑entertainment channels facing structural declines in key regions creates persistent revenue headwinds. Regional weakness (LatAm/EMEA) and industry secular trends reduce predictability of OEM/operator orders and make revenue recovery dependent on successful diversification.

Universal Electronics Business Overview & Revenue Model

Company Description

Universal Electronics Inc. designs, develops, manufactures, and sells pre-programmed and universal control products, audio-video (AV) accessories, and intelligent wireless security and smart home products for video services, consumer electronics, security, home automation, climate control, and home appliance markets. The company offers universal radio frequency (RF) and infrared remote controls primarily for sale to video service providers, original equipment manufacturers (OEMs), retailers, and private label customers; integrated circuits on which its software and universal device control database is embedded for sale to OEMs, video service providers, and private label customers; and software, firmware, and technology solutions that enable devices, such as televisions, set-top boxes, audio systems, smart speakers, game consoles, and other consumer electronic and smart home devices to connect and interact with home networks and interactive services to control and deliver home entertainment, smart home services, and device or system information. It also provides cloud-services that support its embedded software and hardware solutions; intellectual property that the company licenses principally to OEMs and video service providers; RF sensors for residential security, safety, and home automation applications; wall-mount and handheld thermostat controllers and connected accessories for intelligent energy management systems, primarily to OEM customers, as well as hotels and hospitality system integrators; and AV accessories to consumers, including universal remote controls, television wall mounts, and stands and digital television antennas. The company also serves through a network of national and regional distributors and dealers. It sells its products under the One For All brand in the United States, the People's Republic of China, rest of Asia, Europe, Latin America, and internationally. The company was incorporated in 1986 and is headquartered in Scottsdale, Arizona.

How the Company Makes Money

UEIC makes money primarily by selling control-related products and solutions to business customers in the home entertainment and smart home markets. Key revenue streams include: (1) Hardware product sales: sales of remote controls and other control devices supplied to pay-TV service providers (e.g., cable/satellite/IPTV operators) and consumer electronics OEMs/brands, typically as part of operator set-top deployments or OEM accessory bundles. (2) Embedded software and device control solutions: revenue from providing software/firmware and device databases that enable remote-control functionality and interoperability across many third-party devices; these offerings are generally sold or bundled into customer solutions supporting UEIC’s control ecosystem. (3) Intellectual property licensing: licensing of UEIC’s patents and related technologies to third parties where applicable, generating licensing/royalty income. (4) Services and cloud/IoT enablement (where contracted): revenue associated with enabling, integrating, and supporting connected-home control experiences (such as configuration, provisioning, and platform/support services) tied to UEIC’s control and interoperability solutions. Earnings are influenced by volumes in pay-TV deployments and consumer electronics demand, customer concentration among large operators/OEMs, and the company’s ability to secure design wins and long-term supply relationships; specific partnership terms or customer-specific revenue contributions are null.

Universal Electronics Financial Statement Overview

Summary

Fundamentals are mixed. Revenue shows a multi-year decline and the company is still loss-making (latest net margin ~-5%), which drags the score. Offsetting this, leverage is very low after meaningful debt reduction and operating cash flow remains positive with solid 2025 free cash flow (~$23.6M), supporting liquidity.

Income Statement

Revenue has been in a multi-year decline (down from ~$615M in 2020 to ~$368M in 2025), with the latest year still showing negative growth. Profitability has also been weak: while gross margin has stayed relatively steady around ~29% recently, the company remains loss-making (2025 net margin around -5%), though losses are materially smaller than 2023’s deep downturn. Overall, the income statement shows stabilization versus the trough but not a return to consistent operating profitability.

Balance Sheet

Leverage has improved meaningfully, with total debt dropping sharply over time and debt-to-equity now very low in 2025 (~0.04), which reduces financial risk. However, equity has trended down since 2021–2022 levels and returns on equity are negative in recent years due to net losses. Overall balance sheet risk looks contained, but ongoing losses still pressure the capital base.

Cash Flow

Cash generation is a relative bright spot: operating cash flow is positive across all years shown, and 2025 free cash flow is strong (~$23.6M) and higher than 2024. That said, free cash flow growth is negative in 2025, and cash flow conversion has been inconsistent historically (including negative free cash flow in 2022). Overall, cash flow supports liquidity, but durability through the cycle is not yet fully proven.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	368.29M	394.88M	420.46M	542.75M	601.60M
Gross Profit	103.25M	113.99M	97.56M	152.29M	173.02M
EBITDA	14.11M	10.52M	-9.28M	38.58M	50.00M
Net Income	-18.60M	-24.03M	-98.24M	407.00K	5.30M
Balance Sheet
Total Assets	274.00M	323.35M	355.87M	504.16M	510.35M
Cash, Cash Equivalents and Short-Term Investments	32.31M	26.78M	42.75M	66.74M	60.81M
Total Debt	33.48M	49.74M	72.37M	108.54M	75.03M
Total Liabilities	127.81M	170.25M	176.95M	235.76M	234.40M
Stockholders Equity	146.18M	153.10M	178.92M	268.41M	275.95M
Cash Flow
Free Cash Flow	19.75M	6.39M	11.31M	-9.66M	23.24M
Operating Cash Flow	23.63M	14.82M	25.19M	10.93M	40.28M
Investing Cash Flow	-6.75M	-8.43M	-13.88M	-21.21M	-17.04M
Financing Cash Flow	-16.66M	-19.76M	-34.78M	20.50M	-22.03M

Universal Electronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.20
• 50DMA: Positive
• 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 UEIC, the sentiment is Positive. The current price of 4.2 is above the 20-day moving average (MA) of 3.93, above the 50-day MA of 3.94, and below the 200-day MA of 4.62, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 58.78 is Neutral, neither overbought nor oversold. The STOCH value of 75.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UEIC.

Universal Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBCH	64 Neutral	$219.72M	18.07	13.20%	―	6.43%	196.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SONO	57 Neutral	$1.59B	5.81	-4.45%	―	-4.93%	-59.17%
UEIC	55 Neutral	$54.67M	-2.56	-12.50%	―	2.35%	18.83%
KOSS	50 Neutral	$34.27M	-17.32	-2.85%	―	11.58%	81.08%
ZEPP	48 Neutral	$192.68M	-0.67	-17.94%	―	13.27%	-66.48%
GPRO	46 Neutral	$104.33M	-6.14	-102.47%	―	-27.37%	70.46%

Universal Electronics Corporate Events

Universal Electronics Highlights 2025 Results Amid Ongoing Challenges

On March 11, 2026, Universal Electronics amended its long‑standing credit agreement, doubling the cap on restricted payments to $8 million, a move that provides greater balance sheet flexibility for capital allocation. The same day, the board expanded the share repurchase program to allow buybacks of up to 1,013,556 shares, signaling ongoing willingness to return capital after repurchasing 765,201 shares, or 5.8% of outstanding stock, in the fourth quarter of 2025.

Reporting results on March 12, 2026, the company posted GAAP net sales of $87.7 million for the fourth quarter of 2025 and $368.3 million for the full year, with cost reductions driving improved margins and a swing to $4.2 million of adjusted non‑GAAP net income for 2025 versus a loss a year earlier. Management highlighted secular pressure in home entertainment and slower‑than‑expected growth in connected home, and said it plans to further cut operating costs and structurally reduce working capital in 2026 to bolster profitability and cash generation despite anticipating a revenue decline.

The most recent analyst rating on (UEIC) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Universal Electronics stock, see the UEIC Stock Forecast page.