Universe Pharmaceuticals (UPC) AI Stock Analysis

• Market Cap: $2.12M
• Dividend Yield: N/A
• Average Volume (3M): 64.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -27.81%
• EPS Growth: N/A
• Country: US
• Employees: 225
• Sector: Healthcare
• Sector Strength: 47
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 563,338
• 10 Day Avg. Volume: 77,520
• 30 Day Avg. Volume: 64,725
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -17.95
• Enterprise Value/Revenue: -1.98
• Enterprise Value/Gross Profit: -6.36
• Enterprise Value/Ebitda: -21.08
• 1Y Price Target: $3.50
• Price Target Upside: -4.89% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: $3.50 ▼(-4.89% Downside)

Universe Pharmaceuticals faces significant financial and operational challenges, with declining revenues and profitability issues being the most impactful factors. The technical analysis further indicates bearish momentum, and poor valuation metrics highlight the company's current struggles.

Universe Pharmaceuticals Business Overview & Revenue Model

Company Description

Universe Pharmaceuticals INC, a pharmaceutical company, engages in the manufacture, marketing, distribution, and sale of traditional Chinese medicine derivative products in China. It offers products for the treatment of common chronic health conditions in the elderly for physical wellness and longevity; and cold and flu medications. The company also distributes and sells third-party producers, including biomedical drugs, medical instruments, traditional Chinese medicine pieces products, and dietary supplements. Its customers include pharmaceutical companies, hospitals, clinics, and drugstore chains. The company was incorporated in 2019 and is based in Ji'An, China. Universe Pharmaceuticals INC is a subsidiary of Sununion Holding Group Limited.

How the Company Makes Money

Universe Pharmaceuticals generates revenue through multiple streams. The primary revenue model is based on the sale of pharmaceutical products, including both proprietary medications and partnerships in generic drug development. Additionally, UPC earns income through licensing agreements, where it collaborates with other pharmaceutical companies to co-develop drugs or grant rights for distribution. The company may also receive milestone payments and royalties based on the performance of its products in the market. Strategic partnerships with research institutions and industry players further enhance UPC's revenue potential by providing access to additional resources and expertise in drug development.

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: Neutral
• Last Price: 3.68
• 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 Neutral. The current price of 3.68 is above the 20-day moving average (MA) of 3.59, below the 50-day MA of 3.69, and below the 200-day MA of 17.72, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 50.67 is Neutral, neither overbought nor oversold. The STOCH value of 61.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UPC.

Universe Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COSM	52 Neutral	$24.98M	―	-52.69%	―	―	―
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
UPC	45 Neutral	$2.12M	―	2.66%	―	-27.81%	―
YCBD	44 Neutral	$6.33M	―	-33.13%	―	-7.80%	90.17%
CPHI	41 Neutral	$4.50M	―	-52.05%	―	-29.64%	73.63%
PTPI	―	$1.31M	―	-216.17%	―	―	―
AKAN	―	$3.17M	―	-1460.27%	―	―	―