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Universal Electronics Inc. (UEIC)
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Universal Electronics (UEIC) AI Stock Analysis

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UEIC

Universal Electronics

(NASDAQ:UEIC)

Rating:52Neutral
Price Target:
$4.50
▼(-10.00% Downside)
Universal Electronics faces significant challenges in profitability and valuation, reflected in its negative P/E ratio and ongoing net losses. However, strong cash flow management and growth in the Connected Home segment provide some optimism. The technical analysis indicates bearish momentum, but the positive earnings call suggests potential for future improvement.

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 generates revenue primarily through the sale of its remote control products, licensing of its technology and intellectual property, and providing software solutions for the connected home market. The company has established strategic partnerships with major consumer electronics manufacturers, cable and satellite service providers, and smart home technology companies, which contribute to a steady stream of income through product sales and service agreements. Additionally, UEIC earns revenue by offering customized solutions tailored to the specific needs of its partners, enhancing their product offerings and improving consumer engagement.

Universal Electronics Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in the connected home channel and an improved financial position, including reduced net loss and debt. However, challenges remain with a decline in the home entertainment segment and uncertainties around market conditions and tariffs. The company is cautiously optimistic but faces some headwinds.
Q1-2025 Updates
Positive Updates
Growth in Connected Home Channel
Connected home sales grew by 31% to $31.7 million in Q1 2025, representing 34% of total sales and offsetting declines in other areas.
Improved Financial Performance
Net loss improved to $1.5 million from $3.4 million in Q1 2024, with EPS improving by $0.14 year-over-year.
Cash Flow and Debt Reduction
Generated $9 million of cash flow from operations, reducing net debt to $3.6 million from $10.2 million at year end.
New Product Launches and Partnerships
Started shipping innovative outdoor sensors for Somfy and a sustainable green remote for a major operator in Europe.
Negative Updates
Decline in Home Entertainment Sales
Home entertainment sales decreased by 11% to $60.6 million due to lower demand for subscription broadcasting products.
Operating Loss
Operating loss was $1.5 million compared to $3.4 million in Q1 2024, indicating challenges in achieving profitability.
Market and Regulatory Uncertainty
Potential adverse effects from tariffs and macro-level economic uncertainty, particularly affecting large-ticket items like HVAC.
Company Guidance
During the Universal Electronics First Quarter 2025 Financial Results Conference Call, the company provided guidance for the second quarter of 2025, projecting sales between $91 million and $101 million, representing growth of 1% to 12% compared to the second quarter of 2024. The connected home sales are expected to range from $32 million to $36 million, indicating significant growth of 37% to 55% from $23.3 million in the previous year. Conversely, home entertainment sales are anticipated to decline by 3% to 12%, ranging from $59 million to $65 million, compared to $67.2 million in the same period last year. The expected EPS for Q2 2025 is forecasted to be between $0.05 and $0.15 per diluted share, contrasting with a loss per share of $0.09 in Q2 2024. This guidance reflects the company's continued progress in connected home solutions and the stabilization of its traditional home entertainment business amid ongoing economic uncertainties.

Universal Electronics Financial Statement Overview

Summary
Universal Electronics shows mixed financial performance. While cash flow management is strong with significant free cash flow growth, profitability remains a challenge with negative net profit and EBIT margins. The balance sheet is stable with low leverage, but the return on equity is negative, indicating inefficiencies.
Income Statement
45
Neutral
Universal Electronics shows a mixed performance in its income statement. The TTM data indicates a slight revenue growth of 1.83%, but the company is struggling with profitability, as evidenced by a negative net profit margin of -4.07% and an EBIT margin of -0.82%. The gross profit margin is relatively stable at 29.15%, suggesting some efficiency in managing production costs. However, the negative EBIT and net income highlight ongoing operational challenges.
Balance Sheet
55
Neutral
The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.055 from previous years, indicating reduced leverage. However, the return on equity remains negative at -10.61%, pointing to inefficiencies in generating returns for shareholders. The equity ratio is not explicitly calculated but suggests a stable capital structure given the low debt levels.
Cash Flow
65
Positive
Cash flow analysis shows positive trends, with a significant free cash flow growth of 40.77% in the TTM period. The operating cash flow to net income ratio is 0.21, indicating that the company is generating cash flow despite net losses. The free cash flow to net income ratio is high at 0.89, suggesting effective cash management and potential for reinvestment or debt reduction.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue402.52M394.88M420.46M542.75M601.60M614.68M
Gross Profit117.33M113.99M100.92M152.29M173.02M176.26M
EBITDA8.16M10.52M-65.00M38.58M50.00M67.00M
Net Income-16.37M-24.03M-98.24M407.00K5.30M38.57M
Balance Sheet
Total Assets304.14M323.35M355.87M504.16M510.35M510.29M
Cash, Cash Equivalents and Short-Term Investments34.26M26.78M42.75M66.74M60.81M57.15M
Total Debt8.45M49.74M72.37M108.54M75.03M39.77M
Total Liabilities151.38M170.25M176.95M235.76M234.40M196.99M
Stockholders Equity152.76M153.10M178.92M268.41M275.95M313.30M
Cash Flow
Free Cash Flow26.43M6.39M11.31M-9.66M23.24M50.16M
Operating Cash Flow29.85M14.82M25.19M10.93M40.28M73.39M
Investing Cash Flow-7.41M-8.43M-13.88M-21.21M-17.04M-23.73M
Financing Cash Flow-11.67M-19.76M-34.78M20.50M-22.03M-65.96M

Universal Electronics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.00
Price Trends
50DMA
6.07
Negative
100DMA
6.04
Negative
200DMA
7.82
Negative
Market Momentum
MACD
-0.38
Negative
RSI
42.14
Neutral
STOCH
72.89
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 5 is below the 20-day moving average (MA) of 5.23, below the 50-day MA of 6.07, and below the 200-day MA of 7.82, indicating a bearish trend. The MACD of -0.38 indicates Negative momentum. The RSI at 42.14 is Neutral, neither overbought nor oversold. The STOCH value of 72.89 is Neutral, 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$305.81M16.4717.97%24.09%
61
Neutral
$35.62B7.50-10.94%1.87%8.86%-10.27%
61
Neutral
$289.48M-76.81%-19.83%73.22%
54
Neutral
$579.46M-28.36%-18.94%-197.82%
52
Neutral
$68.82M-10.48%4.00%62.67%
44
Neutral
$61.04M-2.44%-0.34%32.41%
43
Neutral
$161.64M-113.13%-12.75%57.64%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UEIC
Universal Electronics
5.00
-4.22
-45.77%
GPRO
GoPro
1.70
0.39
29.77%
KOSS
Koss
6.41
-2.18
-25.38%
TBCH
Turtle Beach
15.57
0.34
2.23%
VUZI
Vuzix
2.08
1.20
136.36%
ZEPP
Zepp Health
37.37
34.41
1162.50%

Universal Electronics Corporate Events

Private Placements and Financing
Universal Electronics Expands Borrowing Capacity with Bank of China
Neutral
Jul 31, 2025

Universal Electronics Inc. announced amendments to its credit agreements with U.S. Bank National Association and Bank of China Limited. On July 25, 2025, the company entered into a Tenth Amendment to its Credit Agreement with U.S. Bank, allowing it to increase the lien amount in favor of Bank of China from $11,500,000 to $21,000,000. Additionally, on July 30, 2025, its subsidiary Gemstar Technology (Yangzhou) Co. Ltd. expanded its borrowing capacity with Bank of China from 80,000,000 RMB to 130,000,000 RMB for general business purposes until July 16, 2026.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 15, 2025