Universe Pharmaceuticals (UPC) AI Stock Analysis

• Market Cap: $2.26M
• Dividend Yield: N/A
• Average Volume (3M): 45.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -27.81%
• EPS Growth: N/A
• Country: US
• Employees: 225
• Sector: Healthcare
• Sector Strength: 37
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 563,338
• 10 Day Avg. Volume: 80,721
• 30 Day Avg. Volume: 45,387
• PEG Ratio: <0.01
• Price to Book (P/B): 0.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.44
• Enterprise Value/Market Cap: -16.54
• Enterprise Value/Revenue: -0.37
• Enterprise Value/Gross Profit: -6.25
• Enterprise Value/Ebitda: 1.52
• 1Y Price Target: $4.00
• Price Target Upside: 12.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: $3.50 ▼(-1.13%Downside)

The overall stock score reflects significant financial challenges and technical weaknesses. The unattractive valuation further contributes to a low score. The absence of positive momentum and earnings call insights leaves little room for optimism.

Universe Pharmaceuticals Business Overview & Revenue Model

Company Description

Universe Pharmaceuticals (UPC) is a pharmaceutical company that focuses on developing, manufacturing, and marketing traditional Chinese medicine (TCM) products. The company operates in the pharmaceutical sector, providing a range of herbal medicines and other health products primarily targeting elderly patients who suffer from chronic health conditions. Its core products include medicinal liquor, ointments, and capsules formulated using traditional Chinese medicinal practices.

How the Company Makes Money

Universe Pharmaceuticals makes money through the sale of its traditional Chinese medicine products, which are distributed across various retail and wholesale channels. Its revenue model is primarily based on the production and sale of these TCM products to pharmacies, hospitals, and healthcare facilities. The company also collaborates with research institutions to develop new formulations and improve existing products. Additionally, Universe Pharmaceuticals may engage in partnerships with other pharmaceutical companies to expand its product offerings and market reach, contributing to its earnings.

Universe Pharmaceuticals Financial Statement Overview

Summary

Universe Pharmaceuticals faces financial difficulties characterized by declining revenues, persistent losses, and cash flow challenges. The balance sheet is moderately leveraged but stable, indicating some asset stability amidst financial strain.

Income Statement

Universe Pharmaceuticals has experienced declining revenue over recent years, with a significant drop from 2020 to 2024. The company has shifted from profitability to consistent losses, highlighted by negative net income margins in recent periods. Gross profit margins have contracted, and EBIT and EBITDA margins have turned negative, indicating operational challenges.

Balance Sheet

The balance sheet shows a moderate level of leverage with a debt-to-equity ratio that remains manageable. However, equity has decreased over the years, reflecting financial strain. Despite this, the company maintains a solid equity ratio, suggesting some level of asset stability.

Cash Flow

Universe Pharmaceuticals faces challenges in cash flow generation, with negative operating cash flow observed in the latest period. Free cash flow has been volatile, turning negative in recent years, and the free cash flow to net income ratio reflects operational inefficiencies. Despite these issues, financing activities have provided liquidity support.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	23.02M	32.31M	40.14M	47.98M	30.70M
Gross Profit	6.07M	10.32M	21.89M	25.33M	14.09M
EBITDA	-7.36M	-3.22M	-6.40M	14.20M	10.61M
Net Income	-8.73M	-6.16M	-8.74M	11.32M	7.56M
Balance Sheet
Total Assets	67.95M	53.29M	59.54M	70.14M	28.80M
Cash, Cash Equivalents and Short-Term Investments	29.50M	18.50M	18.86M	21.80M	10.06M
Total Debt	7.99M	5.48M	3.94M	4.33M	2.65M
Total Liabilities	22.45M	13.75M	13.10M	11.21M	8.00M
Stockholders Equity	45.50M	39.53M	46.44M	58.93M	20.80M
Cash Flow
Free Cash Flow	-9.87M	1.08M	-1.41M	-15.59M	6.06M
Operating Cash Flow	-9.51M	1.12M	-1.31M	-2.06M	6.12M
Investing Cash Flow	-361.29K	-44.17K	-3.91M	-27.06M	-51.80K
Financing Cash Flow	33.95M	-1.39M	3.32M	26.58M	470.14K

Universe Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UPC, the sentiment is Negative. The current price of 3.54 is below the 20-day moving average (MA) of 3.71, below the 50-day MA of 4.07, and below the 200-day MA of 36.85, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 44.11 is Neutral, neither overbought nor oversold. The STOCH value of 24.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UPC.

Universe Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COSM	49 Neutral	$27.05M	―	-58.30%	―	―	―
Sector *	46 Neutral	C$198.38M	-2.33	-23.14%	2.83%	20.73%	-1.08%
UPC	45 Neutral	$2.26M	―	2.66%	―	-27.81%	―
YCBD	41 Neutral	$8.02M	―	-8.46%	―	-9.22%	89.90%
CPHI	39 Underperform	$5.68M	―	-59.14%	―	-33.10%	71.37%