UTStarcom (UTSI) AI Stock Analysis

• Market Cap: $23.68M
• Dividend Yield: N/A
• Average Volume (3M): 5.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• 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: -0.58
• Enterprise Value/Revenue: -1.41
• Enterprise Value/Gross Profit: -7.10
• Enterprise Value/Ebitda: 1.80
• 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: 50 Neutral
• Price Target: $2.50 ▲(0.00% Upside)

The score is held back primarily by weak financial performance (ongoing losses, declining revenue, and renewed cash burn) despite low balance-sheet leverage. Technicals are roughly neutral with only modest positive momentum, while valuation remains difficult to support due to negative earnings and no dividend yield provided.

Positive Factors

Low Leverage

UTStarcom's low leverage indicates a conservative capital structure, providing financial stability and flexibility to navigate operational challenges.

High Equity Ratio

A high equity ratio suggests strong financial health, reducing the risk of insolvency and providing a buffer against economic downturns.

Global Telecommunications Focus

Specialization in telecommunications infrastructure positions UTStarcom to benefit from ongoing global demand for network expansion and modernization.

Negative Factors

Declining Revenue

Persistent revenue decline indicates challenges in market competitiveness and product demand, impacting long-term growth prospects.

Negative Cash Flow

Negative cash flow pressures liquidity, limiting the company's ability to invest in growth opportunities and meet financial obligations.

Persistent Net Losses

Ongoing net losses reflect operational inefficiencies and hinder the company's ability to achieve sustainable profitability and shareholder value.

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

Core fundamentals are weak: revenue is contracting (~-15.8% in 2024) and profitability remains poor with large operating losses (operating margin around -67%) and negative net margins (about -40%). Balance sheet leverage is low (debt-to-equity ~0.04), but cash flow has turned negative again (2024 operating cash flow about -$4.5M; free cash flow about -$4.6M), increasing execution and funding risk.

Income Statement

Revenue has been volatile and is contracting most recently (2024 revenue down ~15.8% vs. 2023). Profitability remains weak: gross margin is positive (~26.7% in 2024) but the company continues to post sizable operating losses (2024 operating margin around -67%) and negative net margins (about -40% in 2024), with losses persisting across all shown years. While the 2020 loss year appears unusually severe, results have not stabilized into sustained improvement.

Balance Sheet

The balance sheet is a relative bright spot with low leverage: debt-to-equity is modest (~0.04 in 2024), indicating limited balance-sheet debt risk. However, ongoing losses translate into negative returns on equity (about -9.7% in 2024), and equity has declined versus prior years (2024 equity below 2021–2023 levels), suggesting continued erosion if profitability does not improve.

Cash Flow

Cash generation is inconsistent. After strong positive operating and free cash flow in 2021–2022, the company reverted to cash burn in 2023–2024 (2024 operating cash flow about -$4.5M and free cash flow about -$4.6M). Although 2024 free cash flow was less negative than 2023 (positive growth rate) and free cash flow roughly tracks net loss in magnitude, the return to negative cash flow raises near-term execution and funding-risk concerns if the pattern persists.

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: Positive
• Last Price: 2.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2.5 is above the 20-day moving average (MA) of 2.39, above the 50-day MA of 2.44, and above the 200-day MA of 2.46, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 53.16 is Neutral, neither overbought nor oversold. The STOCH value of 44.30 is Neutral, 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 *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AMPG	58 Neutral	$69.70M	-6.59	-27.13%	―	93.47%	37.19%
AIRG	51 Neutral	$48.37M	-7.88	-19.65%	―	-1.53%	55.08%
UTSI	50 Neutral	$23.68M	-3.77	-13.41%	―	-34.53%	-50.58%
INSG	47 Neutral	$157.72M	-40.56	―	―	-17.45%	76.52%
CMBM	41 Neutral	$44.06M	-0.44	―	―	―	―