Universal Electronics (UEIC) AI Stock Analysis

• Market Cap: $62.74M
• Dividend Yield: N/A
• Average Volume (3M): 90.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: -6.08%
• EPS Growth: 75.80%
• Country: US
• Employees: 3,838
• Sector: Technology
• Sector Strength: 45
• Industry: Consumer Electronics
• EPS (TTM): -1.86
• Shares Outstanding: 13,111,653
• 10 Day Avg. Volume: 76,764
• 30 Day Avg. Volume: 90,532
• PEG Ratio: N/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 Ratio: 3.20
• 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: $14.50
• Price Target Upside: 197.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Universal Electronics faces substantial challenges with declining financial performance and bearish technical indicators. Despite positive earnings call highlights, including growth in the connected home market, valuation concerns remain due to negative earnings. Strategic improvements in revenue and profitability are crucial to enhance stock performance.

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

Universal 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 4.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 4.87 is below the 20-day moving average (MA) of 5.41, below the 50-day MA of 6.84, and below the 200-day MA of 9.25, indicating a bearish trend. The MACD of -0.61 indicates Negative momentum. The RSI at 30.91 is Neutral, neither overbought nor oversold. The STOCH value of 14.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UEIC.

Universal Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBB	76 Outperform	$262.83M	8.66	19.64%	2.34%	4.65%	23.82%
JBL	64 Neutral	$14.30B	31.93	24.10%	0.24%	-14.45%	-64.32%
Sector *	59 Neutral	$10.59B	10.09	-6.37%	3.05%	7.44%	-10.67%
UEIC	49 Neutral	$62.74M	―	-14.47%	―	-6.08%	75.80%
SONO	48 Neutral	$990.77M	―	-12.95%	―	-8.74%	-2452.05%