UTStarcom (UTSI) AI Stock Analysis

• Market Cap: $23.39M
• Dividend Yield: N/A
• Average Volume (3M): 5.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -34.53%
• EPS Growth: -50.58%
• Country: US
• Employees: 219
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.41
• Shares Outstanding: 9,470,255
• 10 Day Avg. Volume: 3,968
• 30 Day Avg. Volume: 5,307
• PEG Ratio: -0.43
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 2.44
• P/FCF Ratio: -5.75
• Enterprise Value/Market Cap: -0.88
• Enterprise Value/Revenue: -2.10
• Enterprise Value/Gross Profit: -10.59
• Enterprise Value/Ebitda: 2.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• 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. (UTSI) is a global telecommunications infrastructure provider, specializing in the development, manufacture, and sale of advanced networking solutions. The company operates primarily in the telecommunications sector, offering a range of products and services including packet optical transport, broadband access, and next-generation network solutions. UTStarcom's core offerings are designed to enable network operators to deliver high-performance and reliable communication services to their customers.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.79M	10.88M	15.75M	14.03M	15.92M	24.31M
Gross Profit	1.94M	2.91M	4.39M	2.67M	-1.09M	3.53M
EBITDA	-7.65M	-7.06M	-6.58M	-4.18M	-4.95M	-24.88M
Net Income	-6.07M	-4.37M	-3.85M	-5.00M	-5.83M	-23.68M
Balance Sheet
Total Assets	62.90M	68.20M	77.48M	88.92M	108.22M	118.72M
Cash, Cash Equivalents and Short-Term Investments	40.53M	50.90M	49.97M	54.50M	53.80M	36.32M
Total Debt	1.11M	1.59M	2.84M	3.12M	4.91M	1.47M
Total Liabilities	20.69M	22.97M	26.10M	31.56M	39.82M	41.32M
Stockholders Equity	42.21M	45.23M	51.38M	57.36M	68.40M	77.40M
Cash Flow
Free Cash Flow	-6.60M	-4.62M	-4.73M	7.01M	18.63M	-3.52M
Operating Cash Flow	-6.50M	-4.46M	-4.48M	7.26M	18.98M	-3.40M
Investing Cash Flow	-98.00K	-158.00K	-255.00K	-250.00K	1.75M	1.98M
Financing Cash Flow	0.00	0.00	4.00K	7.00K	0.00	-374.00K

UTStarcom Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.47
• 50DMA: Positive
• 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 Neutral. The current price of 2.47 is below the 20-day moving average (MA) of 2.47, above the 50-day MA of 2.44, and below the 200-day MA of 2.47, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.71 is Neutral, neither overbought nor oversold. The STOCH value of 57.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UTSI.

UTStarcom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
UTSI	49 Neutral	$23.39M	-3.73	-13.41%	―	-34.53%	-50.58%
AMPG	49 Neutral	$53.66M	―	-30.53%	―	58.04%	21.09%
AIRG	47 Neutral	$49.16M	-7.04	-21.97%	―	6.84%	49.74%
INSG	47 Neutral	$190.83M	-49.07	―	―	-17.45%	76.52%
CMBM	41 Neutral	$91.51M	-0.92	―	―	―	―