UTStarcom (UTSI) AI Stock Analysis

• Market Cap: $22.73M
• Dividend Yield: N/A
• Average Volume (3M): 5.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -30.95%
• EPS Growth: -8.17%
• Country: US
• Employees: 219
• Sector: Technology
• Sector Strength: 87
• Industry: Communication Equipment
• EPS (TTM): -0.26
• Shares Outstanding: 9,470,255
• 10 Day Avg. Volume: 7,002
• 30 Day Avg. Volume: 5,721
• 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: -1.00
• Enterprise Value/Revenue: -1.52
• Enterprise Value/Gross Profit: -5.30
• Enterprise Value/Ebitda: 3.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: ―

UTStarcom faces significant financial challenges with declining revenue and persistent losses, reflected in a low financial performance score. Technical analysis suggests short-term momentum but caution due to longer-term challenges and overbought indicators. The valuation is unattractive due to a negative P/E ratio, highlighting high investment risk. The overall score is impacted by financial difficulties, despite some technical momentum.

UTStarcom Business Overview & Revenue Model

Company Description

UTStarcom Holdings Corp. operates as a telecom infrastructure provider to develop technology for bandwidth from cloud-based services, mobile, streaming, and other applications in China, India, Japan, Taiwan, and internationally. The company's products include packet transport network, packet aggregation network, multi-services access network, fiber to the X, carrier Wi-Fi solutions, and software defined network controller products. It serves telecommunications and cable service providers. The company was founded in 1991 and is based in Hangzhou, the People's Republic of China.

How the Company Makes Money

UTStarcom makes money primarily through the sale of its telecommunications infrastructure products and solutions to network operators and service providers globally. The company's revenue model is based on the sale of hardware equipment, software licenses, and related services. Key revenue streams include the deployment and maintenance of packet optical transport solutions, broadband access products, and software-defined networking technologies. Additionally, the company may earn from long-term service agreements and partnerships with major telecommunications providers, which can involve joint development projects or the integration of UTStarcom's solutions into larger network deployments.

UTStarcom Financial Statement Overview

Summary

UTStarcom's financial performance is challenged by declining revenues and persistent net losses, indicating operational inefficiencies. The balance sheet shows low leverage with a high equity ratio, but negative cash flow trends highlight potential liquidity risks. Immediate focus on improving profitability and operations is necessary.

Income Statement

The company exhibits a declining revenue trend with a significant decrease from $65.82M in 2019 to $15.75M in 2023. Gross profit margins have fluctuated, reflecting operational challenges. Net income has been consistently negative, indicating persistent profitability issues. The EBIT and EBITDA margins are also negative, suggesting operating inefficiencies.

Balance Sheet

UTStarcom maintains a relatively healthy balance sheet with a high equity ratio of 66.3% in 2023, indicating low leverage. The debt-to-equity ratio is modest at 0.055, highlighting limited debt obligations. However, decreasing stockholders' equity over the years could pose a concern if this trend continues.

Cash Flow

The cash flow situation is challenging, with negative operating cash flow in 2023 compared to positive figures in previous years. Free cash flow has also turned negative, indicating pressure on liquidity. The operating cash flow to net income ratio is not favorable due to persistent net losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.88M	15.75M	14.03M	15.92M	24.31M
Gross Profit	2.91M	4.39M	2.67M	-1.09M	3.53M
EBITDA	-7.06M	-6.58M	-4.18M	-4.95M	-24.88M
Net Income	-4.37M	-3.85M	-5.11M	-6.25M	-23.68M
Balance Sheet
Total Assets	68.20M	77.48M	88.92M	108.22M	118.72M
Cash, Cash Equivalents and Short-Term Investments	50.90M	49.97M	54.50M	53.80M	36.32M
Total Debt	1.59M	2.84M	3.12M	4.91M	1.47M
Total Liabilities	22.97M	26.10M	31.56M	39.82M	41.32M
Stockholders Equity	45.23M	51.38M	57.36M	68.40M	77.40M
Cash Flow
Free Cash Flow	-4.62M	-4.73M	7.01M	18.63M	-3.52M
Operating Cash Flow	-4.46M	-4.48M	7.26M	18.98M	-3.40M
Investing Cash Flow	-158.00K	-255.00K	-250.00K	1.75M	1.98M
Financing Cash Flow	0.00	4.00K	7.00K	0.00	-374.00K

UTStarcom Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UTSI, the sentiment is Negative. The current price of 2.4 is below the 20-day moving average (MA) of 2.45, below the 50-day MA of 2.47, and below the 200-day MA of 2.56, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.97 is Neutral, neither overbought nor oversold. The STOCH value of 65.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UTSI.

UTStarcom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OCC	61 Neutral	$43.12M	―	-14.60%	―	5.77%	29.54%
Sector *	61 Neutral	$35.38B	6.84	-10.82%	1.97%	8.74%	-8.28%
AMPG	60 Neutral	$60.90M	―	-30.53%	―	58.04%	21.09%
KVHI	57 Neutral	$105.52M	―	-4.46%	―	-12.22%	71.69%
AIRG	53 Neutral	$53.80M	―	-21.97%	―	6.84%	49.74%
UTSI	49 Neutral	$22.73M	―	-9.04%	―	-30.95%	-8.17%
FKWL	―	$47.02M	―	-4.62%	―	―	―