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Universe Pharmaceuticals (UPC)
NASDAQ:UPC
US Market
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Universe Pharmaceuticals (UPC) AI Stock Analysis

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UPC

Universe Pharmaceuticals

(NASDAQ:UPC)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
$12.00
▲(184.36% Upside)
Action:Reiterated
Date:07/01/26
The score is primarily held down by deteriorated financial performance: multi-year revenue contraction, ongoing net losses, and continued negative operating/free cash flow. Offsetting factors are a relatively conservative balance sheet and some 2025 improvement in gross margin and cash burn. Limited technical and valuation inputs (missing technical indicators, negative P/E, no dividend yield data) keep the overall score in the lower range.
Positive Factors
Conservative balance sheet
Low leverage and modest absolute debt provide a durable financial buffer. With debt small relative to equity, the company has lower near-term refinancing risk and more optionality to fund operations, R&D or selective M&A without immediate solvency pressure if losses moderate.
Negative Factors
Multi-year revenue decline
A sustained drop in revenue erodes scale and increases unit costs, straining gross-to-operating leverage. Lower top-line reduces capacity to invest in R&D, commercial expansion or recover fixed costs, making profitability and sustainable growth more difficult absent a clear revenue turnaround.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and modest absolute debt provide a durable financial buffer. With debt small relative to equity, the company has lower near-term refinancing risk and more optionality to fund operations, R&D or selective M&A without immediate solvency pressure if losses moderate.
Read all positive factors

Universe Pharmaceuticals (UPC) vs. SPDR S&P 500 ETF (SPY)

Universe Pharmaceuticals Business Overview & Revenue Model

Company Description
Universe Pharmaceuticals Inc. (UPC) operates as a pharmaceutical enterprise primarily focused on the Chinese market. The company specializes in the production, promotion, and sale of products derived from traditional Chinese medicine (TCM). These ...
How the Company Makes Money
null...

Universe Pharmaceuticals Financial Statement Overview

Summary
Operating fundamentals are weak: revenue has declined sharply (about ~$48.0M in 2021 to ~$17.9M in 2025), the company has posted net losses for four straight years (2022–2025), and cash flow remains negative (2025 operating cash flow about -$5.1M; free cash flow about -$5.4M). Positives include a conservative balance sheet (low debt-to-equity ~0.16) and improving gross margin in 2025 (~35.3% vs. ~26.4% in 2024) with reduced cash burn, but profitability and self-funding capacity are still not restored.
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
24
Negative
BreakdownSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue17.86M23.02M32.31M40.14M47.98M
Gross Profit6.30M6.07M10.32M21.89M25.33M
EBITDA-2.92M-7.36M-3.18M-6.40M14.20M
Net Income-3.67M-8.73M-6.16M-8.74M11.32M
Balance Sheet
Total Assets69.30M67.95M53.29M59.54M70.14M
Cash, Cash Equivalents and Short-Term Investments33.59M29.50M18.50M18.86M21.80M
Total Debt9.26M7.99M5.48M3.94M4.33M
Total Liabilities13.17M22.45M13.75M13.10M11.21M
Stockholders Equity56.13M45.50M39.53M46.44M58.93M
Cash Flow
Free Cash Flow-5.40M-9.87M1.08M-1.41M-15.59M
Operating Cash Flow-5.05M-9.51M1.12M-1.31M-2.06M
Investing Cash Flow-341.81K-361.29K-44.17K-3.91M-27.06M
Financing Cash Flow9.73M33.95M-1.39M3.32M26.58M

Universe Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.22
Price Trends
50DMA
3.40
Positive
100DMA
3.12
Positive
200DMA
3.75
Positive
Market Momentum
MACD
0.85
Negative
RSI
57.58
Neutral
STOCH
22.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UPC, the sentiment is Positive. The current price of 4.22 is above the 20-day moving average (MA) of 4.02, above the 50-day MA of 3.40, and above the 200-day MA of 3.75, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 57.58 is Neutral, neither overbought nor oversold. The STOCH value of 22.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UPC.

Universe Pharmaceuticals Risk Analysis

Universe Pharmaceuticals disclosed 69 risk factors in its most recent earnings report. Universe Pharmaceuticals reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Universe Pharmaceuticals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
46
Neutral
$3.99M>-0.012.66%-22.44%-100.02%
45
Neutral
$29.09M-0.87-18.93%-7.07%75.39%
44
Neutral
$4.22M-0.41
41
Neutral
$4.14M-0.03
$2.28M-0.06-9999.00%92.53%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UPC
Universe Pharmaceuticals
6.32
2.71
75.07%
CPHI
China Pharma Holdings
0.72
-0.98
-57.76%
RDHL
RedHill Biopharma
0.81
-1.25
-60.58%
SXTC
China SXT Pharmaceuticals
2.45
-279.55
-99.13%
PRFX
PainReform
1.36
-5.64
-80.57%
SHPH
Shuttle Pharmaceuticals Holdings, Inc.
3.58
-35.52
-90.84%

Universe Pharmaceuticals Corporate Events

Universe Pharmaceuticals Moves to Acquire Best Praise Patents in All-Stock Deal
Jun 26, 2026
On June 17, 2026, Universe Pharmaceuticals Inc. entered into a share purchase agreement to acquire 100% of Best Praise International Limited, which holds five early-stage pharmaceutical patents in China spanning age-related diseases, neurodegenera...
Universe Pharmaceuticals Grants CEO Majority-Strengthening Equity Award Under 2026 Plan
May 14, 2026
Universe Pharmaceuticals Inc. disclosed that on April 14, 2026 it adopted a 2026 Equity Incentive Plan authorizing up to 84,500 ordinary shares for equity-based compensation awards. The plan covers both Class A and Class B ordinary shares and is i...
Universe Pharmaceuticals Adopts 2026 Equity Incentive Plan to Align Talent and Shareholder Interests
Apr 16, 2026
On April 14, 2026, Universe Pharmaceuticals Inc. adopted a 2026 Equity Incentive Plan designed to attract, retain and incentivize employees, directors and consultants by aligning their compensation with shareholder interests. The plan initially au...
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: Jul 01, 2026