Universal Electronics (UEIC) AI Stock Analysis

• Market Cap: $90.61M
• Dividend Yield: N/A
• Average Volume (3M): 44.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -2.15%
• EPS Growth: 52.80%
• Country: US
• Employees: 3,838
• Sector: Technology
• Sector Strength: 86
• Industry: Consumer Electronics
• EPS (TTM): -0.12
• Shares Outstanding: 13,169,997
• 10 Day Avg. Volume: 29,573
• 30 Day Avg. Volume: 44,953
• PEG Ratio: -7.08
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -27.37
• Enterprise Value/Market Cap: 3.32
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 2.66
• Enterprise Value/Ebitda: 19.75
• 1Y Price Target: $15.00
• Price Target Upside: 124.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: $7.00 ▲(4.79%Upside)

The overall score reflects significant financial challenges, despite some positive momentum in technical analysis and earnings call optimism. Financial performance, especially declining revenues and ongoing losses, weigh heavily, while valuation metrics are unattractive due to the negative P/E ratio. The potential growth in Connected Home provides some optimism.

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 primarily through the sale of its hardware products, such as universal remote controls and smart home sensors, to both individual consumers and large-scale manufacturers. The company also earns from licensing its technology and software to other electronics manufacturers and service providers, enabling them to integrate UEIC’s advanced control features into their own products. Additionally, UEIC benefits from strategic partnerships with major consumer electronics and service companies, which enhance product distribution and market penetration. The company’s software and cloud services, which provide ongoing support and upgrades for their devices, offer a recurring revenue stream through subscription models and service contracts.

Universal Electronics Financial Statement Overview

Summary

Universal Electronics faces significant challenges with declining revenues and negative profitability metrics. Despite positive signs in cash flow management and a controlled debt position, the overall financial health is constrained by ongoing losses and declining revenue.

Income Statement

Universal Electronics has experienced a decline in revenue from the previous year, with a TTM revenue of $395.31 million, a slight increase from the previous period. However, the company is facing profitability challenges with negative net income and EBIT margins. Gross profit margin remains stable at around 28.6%, indicating efficiency in production. The ongoing decline in revenues and negative profit margins highlight significant financial pressures.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.29, indicating some leverage but not excessive. However, the return on equity is negative due to net losses, which is a concern for investors. The equity ratio is 48.3%, suggesting a balanced but cautious approach to asset financing. Overall, the balance sheet reveals moderate stability but is overshadowed by profitability issues.

Cash Flow

Cash flow performance shows improvement with operating cash flow increasing to $26.58 million in the TTM period, leading to a strong operating cash flow to net income ratio due to negative net income. Free cash flow also grew significantly, indicating better cash management. Despite these improvements, the negative net income still poses a risk to future cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	395.31M	394.88M	420.46M	542.75M	601.60M	614.68M
Gross Profit	113.01M	113.99M	97.56M	152.29M	173.02M	176.26M
EBITDA	6.91M	10.52M	-1.66M	38.58M	50.00M	67.00M
Net Income	-21.65M	-24.03M	-98.24M	407.00K	5.30M	38.57M
Balance Sheet
Total Assets	310.61M	323.35M	355.87M	504.16M	510.35M	510.29M
Cash, Cash Equivalents and Short-Term Investments	27.39M	26.78M	42.75M	66.74M	60.81M	57.15M
Total Debt	43.06M	49.74M	72.37M	103.03M	70.27M	33.68M
Total Liabilities	160.64M	170.25M	176.95M	235.76M	234.40M	196.99M
Stockholders Equity	149.97M	153.10M	178.92M	268.41M	275.95M	313.30M
Cash Flow
Free Cash Flow	18.77M	6.39M	11.31M	-9.66M	23.24M	50.16M
Operating Cash Flow	26.58M	14.82M	25.19M	10.93M	40.28M	73.39M
Investing Cash Flow	-7.97M	-8.43M	-13.88M	-21.21M	-17.04M	-23.73M
Financing Cash Flow	-15.92M	-19.76M	-34.78M	20.50M	-22.03M	-65.96M

Universal Electronics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.68
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 6.68 is below the 20-day moving average (MA) of 6.94, above the 50-day MA of 6.19, and below the 200-day MA of 8.39, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 52.22 is Neutral, neither overbought nor oversold. The STOCH value of 40.79 is Neutral, 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
TBCH	68 Neutral	$269.56M	19.24	12.49%	―	44.41%	―
VUZI	57 Neutral	$212.72M	―	-136.11%	―	-46.37%	-34.50%
UEIC	56 Neutral	$90.61M	―	-13.55%	―	-2.15%	52.80%
GPRO	55 Neutral	$137.68M	―	-83.57%	―	-20.88%	62.21%
ZEPP	55 Neutral	$35.06M	―	-28.57%	―	-39.27%	-211.36%
Sector *	50 Neutral	AU$1.43B	2.07	-28.24%	3.34%	15.64%	-7.01%
KOSS	42 Neutral	$46.88M	―	-2.44%	―	-0.34%	32.41%

Universal Electronics Corporate Events

Universal Electronics Stockholders Approve Key Resolutions

Universal Electronics Inc. held its annual meeting of stockholders on May 27, 2025. During the meeting, stockholders approved an advisory resolution on executive officer compensation and ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm.

The most recent analyst rating on (UEIC) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Universal Electronics stock, see the UEIC Stock Forecast page.

Universal Electronics Continues Share Repurchase Program

On May 6, 2025, Universal Electronics Inc. announced the continuation of its share repurchase program, initially approved in October 2023. The company is authorized to buy back up to $4.0 million worth of its common stock or 778,362 shares by August 6, 2025, through privately negotiated or open-market transactions. This move allows flexibility in managing its capital structure, although the company is not obligated to repurchase any shares, and the program may be discontinued based on market conditions.

Universal Electronics Appoints New Director Under Agreement

On May 2, 2025, Universal Electronics Inc. entered into a Cooperation Agreement with Kent Lake Partners and other associated parties, resulting in the appointment of Michael D. Burger to the Board of Directors as a Class II director. This agreement includes provisions for voting alignment with the Board’s recommendations and standstill provisions restricting certain actions by the Investor Parties, impacting the company’s governance structure and strategic direction until the 2026 Annual Meeting.