Upexi (UPXI) AI Stock Analysis

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Upexi

(NASDAQ:UPXI)

33Underperform

Upexi is currently facing significant financial challenges, highlighted by declining revenues, negative cash flows, and high debt levels. The technical analysis supports a bearish outlook, while valuation metrics reflect profitability struggles. These factors collectively suggest a weak position for the stock, with a need for substantial strategic improvements.

Upexi (UPXI) vs. S&P 500 (SPY)

Market Cap

$3.03M

Dividend YieldN/A

Average Volume (3M)44.55K

Price to Earnings (P/E)―

Beta (1Y)1.04

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees64

SectorCommunication Services

Sector Strength76

IndustryInternet Content & Information

Share Statistics

EPS (TTM)-23.29

Shares Outstanding1,320,924

10 Day Avg. Volume111,019

30 Day Avg. Volume44,555

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.12

Price to Cash Flow (P/CF)-0.60

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Upexi Business Overview & Revenue Model

Company DescriptionUpexi, Inc. is a diversified brand owner and innovator focused on the development, acquisition, and scaling of consumer packaged goods (CPG) brands. Operating across various sectors, including health and wellness, pet care, beauty, and lifestyle, Upexi leverages its expertise in e-commerce and digital marketing to enhance brand visibility and market reach. With a strategic focus on acquiring high-potential brands and optimizing their growth through proprietary technology and marketing strategies, Upexi aims to create a portfolio of market-leading products.

How the Company Makes MoneyUpexi generates revenue through the sale of consumer packaged goods across multiple channels, including direct-to-consumer e-commerce platforms, third-party marketplaces, and retail partnerships. The company's revenue model is driven by acquiring and scaling diverse brands in sectors with high growth potential. Upexi enhances its brands' market presence through targeted digital marketing efforts and data-driven strategies to increase sales and customer engagement. Additionally, strategic partnerships and collaborations with influencers and other businesses contribute to expanding its market reach and driving revenue growth.

Upexi Financial Statement Overview

Summary

Upexi is facing significant financial challenges, with declining revenue, negative net income, and cash flow problems. The balance sheet shows high debt levels and negative equity, underscoring financial instability.

Income Statement

Negative

Upexi has experienced notable revenue volatility with a significant decline in TTM. Gross profit margin has diminished, and net income remains negative, indicating profitability challenges. The company has faced consistent EBIT and EBITDA losses, impacting overall financial health.

Balance Sheet

Very Negative

The balance sheet reveals a high debt-to-equity ratio and negative equity in the TTM period, highlighting financial instability. The negative return on equity reflects insufficient earnings relative to equity. With assets and liabilities at zero in the latest period, the company faces significant balance sheet concerns.

Cash Flow

Negative

Cash flow statements show negative operating and free cash flow, indicating cash management issues. The TTM period reflects a worsening cash flow situation, impacting the company's ability to sustain operations without external financing.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
-14.81M	26.00M	80.68M	44.58M	24.10M	7.41M
	Gross Profit
1.75M	12.82M	33.56M	25.19M	11.90M	2.57M
	EBIT
-21.94M	-22.46M	-7.55M	-2.65M	626.89K	-4.84M
	EBITDA
-30.33M	-9.72M	-2.40M	-4.36M	3.56M	-4.23M
	Net Income Common Stockholders
-22.79M	-23.66M	-16.93M	-2.05M	2.98M	-5.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
406.35K	661.41K	4.49M	7.15M	14.53M	887.52K
	Total Assets
17.53M	23.51M	63.85M	48.49M	27.25M	6.40M
	Total Debt
10.52M	8.03M	27.35M	15.27M	864.06K	2.85M
	Net Debt
10.11M	7.37M	22.86M	8.12M	-13.67M	1.96M
	Total Liabilities
13.77M	17.00M	36.02M	19.70M	6.04M	4.22M
	Stockholders Equity
3.76M	6.52M	28.34M	28.73M	21.22M	225.58K
Cash Flow		Free Cash Flow
-5.36M	-4.89M	-419.87K	-5.63M	1.52M	-6.09M
	Operating Cash Flow
-5.91M	-4.89M	517.70K	521.87K	2.94M	-4.16M
	Investing Cash Flow
-2.47M	-3.38M	-2.57M	-11.61M	-1.28M	-1.46M
	Financing Cash Flow
-952.82K	-353.79K	-285.33K	3.70M	11.99M	2.82M

Upexi Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.30

Price Trends

50DMA

2.80

Negative

100DMA

3.54

Negative

200DMA

4.35

Negative

Market Momentum

MACD

-0.06

Negative

RSI

45.26

Neutral

STOCH

59.40

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UPXI, the sentiment is Negative. The current price of 2.3 is below the 20-day moving average (MA) of 2.33, below the 50-day MA of 2.80, and below the 200-day MA of 4.35, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 45.26 is Neutral, neither overbought nor oversold. The STOCH value of 59.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UPXI.

Upexi Risk Analysis

Upexi disclosed 6 risk factors in its most recent earnings report. Upexi 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

Upexi Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	74 Outperform	$789.55M	16.63	29.13%	1.61%	5.14%	12.03%
ALRM	72 Outperform	$2.50B	22.06	17.54%	―	6.59%	53.89%
REZI	65 Neutral	$2.33B	22.33	3.83%	―	8.31%	-49.90%
ARLO	61 Neutral	$943.45M	―	-29.88%	―	4.01%	-27.92%
Sector *	58 Neutral	$13.10B	6.80	-2.53%	3.86%	2.36%	-36.75%
CREX	51 Neutral	$14.21M	27.05	-12.92%	―	12.59%	18.85%
UPXI	33 Underperform	$3.03M	―	-475.54%	―	―	―

* Communication Services Sector Average

Performance Comparison

UPXI

Upexi

2.30

-7.50

-76.53%

NSSC

Napco Security Technologies

21.69

-19.16

-46.90%

ALRM

Alarm

50.40

-14.42

-22.25%

ARLO

Arlo Technologies

9.21

-1.39

-13.11%

REZI

Resideo Technologies

15.77

-3.51

-18.21%

CREX

Creative Realities

1.36

-1.80

-56.96%

Upexi Earnings Call Summary

Earnings Call Date: Feb 18, 2025 | % Change Since: -41.03% | Next Earnings Date: May 19, 2025

Earnings Call Sentiment Negative

The earnings call highlighted significant operational improvements, particularly in gross margins and brand product sales, along with strategic investments in high-margin areas. However, these positives were overshadowed by a notable decline in overall revenue, adjusted EBITDA, and a net loss from continued operations, indicating financial challenges.

Highlights

Increased Gross Profit Margins

Gross profit margins increased to 38% in the fiscal second quarter from 31.8% in the prior fiscal first quarter.

Growth in Brand Product Sales

Brand Product sales increased 16.7% sequentially to $7.7 million, with Brand Product sales as a percentage of total revenue rising to 35.1% from 24% in the previous quarter.

Cost Reduction and Operational Efficiency

Consolidation of manufacturing facilities is expected to reduce G&A expenses by approximately $2 million annually, contributing to cost savings of $450,000 to $550,000 per quarter.

Lowlights

Revenue Decline

Revenue for the fiscal second quarter 2024 decreased to $21.8 million from $26.7 million in the same period the previous year and $27.3 million in the fiscal first quarter 2024.

Decrease in Adjusted EBITDA

Adjusted EBITDA dropped significantly to approximately $29,000 from $557,000 in the same period the previous year and $750,000 in the fiscal first quarter 2024.

Net Loss from Continued Operations

The company reported a net loss from continued operations of $2.4 million for the fiscal second quarter 2024, compared to net income of $2.7 million in the same period the previous year.

Company Guidance

During Upexi, Inc.'s fiscal second quarter 2024 earnings call, CEO Allan Marshall highlighted strategic efforts to enhance profitability despite a sequential decrease in revenue to $21.8 million from $27.3 million in the prior quarter. The company's focus on high-margin Brand Products contributed to an increase in gross profit margins to 38% from 31.8% in the previous quarter. Brand Product sales rose by 16.7% to $7.7 million, comprising 35.1% of total revenue. The company recorded positive adjusted EBITDA despite a net loss of $2.4 million, driven by strategic investments in subscription revenue and cost management, including expected annual savings of $2 million from consolidating manufacturing operations. Upexi aims to bolster growth through continued emphasis on its high-margin brand business, targeting improved gross margins and cash flow.

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.