UTStarcom (UTSI) AI Stock Analysis

• Market Cap: $25.29M
• Dividend Yield: N/A
• Average Volume (3M): 1.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -30.95%
• EPS Growth: -8.17%
• Country: US
• Employees: 219
• Sector: Technology
• Sector Strength: 69
• Industry: Communication Equipment
• EPS (TTM): -0.48
• Shares Outstanding: 9,470,255
• 10 Day Avg. Volume: 2,129
• 30 Day Avg. Volume: 1,580
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -0.90
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -5.17
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

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 faces significant challenges with declining revenues and persistent net losses, reflecting operational inefficiencies. While the balance sheet shows low leverage, the negative cash flow trends indicate potential liquidity issues. The company needs to address its profitability and operational challenges to improve its financial health.

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 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
15.75M	14.03M	15.92M	24.31M	65.82M
	Gross Profit
4.39M	2.67M	-1.09M	3.53M	24.36M
	EBIT
-6.81M	-4.49M	-5.23M	-23.24M	-5.83M
	EBITDA
-6.58M	-4.18M	-4.95M	-24.88M	-3.28M
	Net Income Common Stockholders
-3.85M	-5.11M	-6.25M	-23.68M	-3.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
49.97M	54.50M	53.80M	36.32M	37.06M
	Total Assets
77.48M	88.92M	108.22M	118.72M	150.83M
	Total Debt
2.84M	3.12M	4.91M	1.47M	2.30M
	Net Debt
-47.12M	-51.38M	-48.89M	-32.75M	-32.67M
	Total Liabilities
26.10M	31.56M	39.82M	41.32M	51.31M
	Stockholders Equity
51.38M	57.36M	68.40M	77.40M	99.52M
Cash Flow		Free Cash Flow
-4.73M	7.01M	18.63M	-3.52M	-24.65M
	Operating Cash Flow
-4.48M	7.26M	18.98M	-3.40M	-24.15M
	Investing Cash Flow
-255.00K	-250.00K	1.75M	1.98M	-507.00K
	Financing Cash Flow
4.00K	7.00K	0.00	-374.00K	-993.00K

UTStarcom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UTSI, the sentiment is Positive. The current price of 2.67 is above the 20-day moving average (MA) of 2.36, above the 50-day MA of 2.40, and below the 200-day MA of 2.67, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 64.53 is Neutral, neither overbought nor oversold. The STOCH value of 84.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UTSI.

UTStarcom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$10.95B	10.52	-7.07%	3.00%	7.30%	-12.04%
KVHI	52 Neutral	$98.42M	―	-7.73%	―	-14.33%	29.34%
OCC	52 Neutral	$25.17M	―	-18.07%	―	-1.72%	-1591.92%
UTSI	49 Neutral	$25.29M	―	-9.04%	―	-30.95%	-8.17%
AMPG	46 Neutral	$35.39M	―	-35.04%	―	-38.99%	-323.86%
AIRG	45 Neutral	$46.58M	―	-27.85%	―	8.14%	33.76%