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Universal Electronics Inc. (UEIC)
NASDAQ:UEIC

Universal Electronics (UEIC) AI Stock Analysis

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Universal Electronics

(NASDAQ:UEIC)

Rating:48Neutral
Price Target:
$6.50
▼(-4.13%Downside)
Universal Electronics' overall score is constrained by financial pressures, including declining revenues and negative profitability metrics. While technical analysis shows some bullish momentum, and the earnings call provided optimism with improvements in certain segments, poor valuations and ongoing losses weigh heavily on the score.

Universal Electronics (UEIC) vs. SPDR S&P 500 ETF (SPY)

Universal Electronics Business Overview & Revenue Model

Company DescriptionUniversal 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 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 Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 10.60%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in the Connected Home segment and significant improvements in financial performance, including reduced losses and operating expenses. However, challenges persist in the Home Entertainment segment and there is uncertainty regarding tariffs. Overall, the positive developments in new growth areas and financial improvements suggest optimism for the future.
Q1-2025 Updates
Positive Updates
Connected Home Channel Growth
The Connected Home sales grew by 31% to $31.7 million for Q1 2025, demonstrating success in new projects and expansion with existing accounts.
Improved Financial Performance
Net loss improved from $3.4 million in Q1 2024 to $1.5 million in Q1 2025, with a per-share loss decreasing from $0.26 to $0.12.
Operating Expense Reduction
Operating expenses decreased from $29.4 million in Q1 2024 to $27.6 million in Q1 2025, reflecting cost-saving measures.
Cash Flow and Debt Reduction
Generated $9 million of cash flow from operations and reduced net debt to $3.6 million by March 31, 2025, from $10.2 million at year-end.
Strong Sales Guidance for Q2 2025
Sales are expected to grow between 1% and 12% year-over-year, with Connected Home sales projected to grow between 37% and 55%.
Negative Updates
Home Entertainment Channel Decline
Sales in the Home Entertainment channel decreased by 11% to $60.6 million in Q1 2025, primarily due to lower demand for subscription broadcasting products.
Continued Net Loss
Despite improvements, the company still reported a net loss of $1.5 million for Q1 2025.
Uncertainty in Tariffs
Ongoing concerns about the impact of tariffs and regulatory changes on financial performance, though mitigated by price adjustments.
Company Guidance
In the first quarter of 2025, Universal Electronics reported net sales of $92.3 million, a slight increase from $91.9 million in the same period in 2024, with the connected home channel experiencing a 31% growth to $31.7 million. Meanwhile, the home entertainment channel saw an 11% decline to $60.6 million. The company achieved a gross profit of $26.1 million, maintaining a gross margin of 28.3%. Operating expenses were reduced to $27.6 million, resulting in a net loss of $1.5 million, or $0.12 per share, an improvement from a $3.4 million loss, or $0.26 per share, in the prior year. For Q2 2025, guidance suggests sales between $91 million and $101 million, with expected growth in the connected home channel ranging from 37% to 55%, offsetting a projected 3% to 12% decline in home entertainment. Expected EPS is between $0.05 and $0.15, compared to a loss of $0.09 per share in Q2 2024.

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
42
Neutral
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
55
Neutral
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
60
Neutral
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
394.88M420.46M542.75M601.60M614.68M
Gross Profit
113.99M97.56M152.29M173.02M176.26M
EBIT
-15.30M-85.30M14.55M23.25M27.80M
EBITDA
10.52M-1.66M38.58M50.00M67.00M
Net Income Common Stockholders
-24.03M-98.24M407.00K5.30M38.57M
Balance SheetCash, Cash Equivalents and Short-Term Investments
26.78M42.75M66.74M60.81M57.15M
Total Assets
323.35M355.87M504.16M510.35M510.29M
Total Debt
9.23M72.37M103.03M70.27M33.68M
Net Debt
-17.55M29.62M36.29M9.45M-23.47M
Total Liabilities
170.25M176.95M235.76M234.40M196.99M
Stockholders Equity
153.10M178.92M268.41M275.95M313.30M
Cash FlowFree Cash Flow
6.39M11.31M-9.66M23.24M50.16M
Operating Cash Flow
14.82M25.19M10.93M40.28M73.39M
Investing Cash Flow
-8.43M-13.88M-21.21M-17.04M-23.73M
Financing Cash Flow
-19.76M-34.78M20.50M-22.03M-65.96M

Universal Electronics Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price6.78
Price Trends
50DMA
5.88
Positive
100DMA
7.39
Negative
200DMA
8.52
Negative
Market Momentum
MACD
0.28
Positive
RSI
55.94
Neutral
STOCH
40.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UEIC, the sentiment is Neutral. The current price of 6.78 is above the 20-day moving average (MA) of 6.72, above the 50-day MA of 5.88, and below the 200-day MA of 8.52, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 55.94 is Neutral, neither overbought nor oversold. The STOCH value of 40.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 1 New Risks
1.
Artificial Intelligence Q4, 2024

Universal Electronics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$228.06M16.7512.49%44.41%
61
Neutral
$11.55B10.41-6.86%2.93%7.50%-8.30%
55
Neutral
$220.34M-136.11%-46.37%-34.50%
54
Neutral
$101.45M-83.57%-20.88%62.21%
48
Neutral
$87.19M-13.55%-2.15%52.80%
48
Neutral
$34.22M-28.57%-39.27%-211.36%
45
Neutral
$53.82M-2.44%-0.34%32.41%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UEIC
Universal Electronics
6.78
-5.22
-43.50%
GPRO
GoPro
0.66
-0.82
-55.41%
KOSS
Koss
5.81
1.03
21.55%
TBCH
Turtle Beach
12.15
-3.26
-21.16%
VUZI
Vuzix
3.18
1.70
114.86%
ZEPP
Zepp Health
2.47
-0.50
-16.84%

Universal Electronics Corporate Events

Shareholder Meetings
Universal Electronics Stockholders Approve Key Resolutions
Neutral
May 28, 2025

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.

Stock Buyback
Universal Electronics Continues Share Repurchase Program
Neutral
May 8, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Universal Electronics Appoints New Director Under Agreement
Neutral
May 5, 2025

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.

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.