Universal Security Instruments (UUU) AI Stock Analysis

• Market Cap: $11.17M
• Dividend Yield: N/A
• Average Volume (3M): 269.92K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.26
• Revenue Growth: -23.22%
• EPS Growth: N/A
• Country: US
• Employees: 11
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): -0.43
• Shares Outstanding: 2,312,887
• 10 Day Avg. Volume: 167,235
• 30 Day Avg. Volume: 269,921
• PEG Ratio: -0.04
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -3.93
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 1.57
• Enterprise Value/Ebitda: -6.29
• 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: 53 Neutral
• Price Target: $5.50 ▲(7.63% Upside)

The score is held back primarily by weak operating performance and a steep TTM revenue decline, plus bearish technical positioning below key moving averages. Offsetting factors include strong recent cash flow generation and a low P/E multiple that provides some valuation support.

Positive Factors

Cash Generation

The TTM rebound to roughly $6.17M in operating/free cash flow provides durable liquidity to fund working capital, modest capex, or debt reduction. Strong cash generation enhances financial flexibility through cyclical revenue periods and gives management optionality despite past volatility.

Balance Sheet Leverage

Moderate leverage and improved debt-to-equity reduce refinancing and solvency risk, giving the company capacity to absorb near-term shocks or invest selectively. A healthier balance sheet supports longer-term stability even if operating results remain uneven.

Diversified Sales Channels

Multiple go-to-market channels (retail, distributors, and OEM/private-label) lower customer concentration and smooth demand swings between replacement retail and bulk OEM orders. Structural channel diversification supports steadier revenue over housing and retail cycles.

Negative Factors

Revenue Decline

A nearly 30% TTM revenue decline reflects meaningful loss of volumes or demand and weak top-line momentum. Sustained revenue contraction undermines scale, pressures margins, and makes it harder to invest in product development or retailer programs necessary for recovery.

Weak Operating Profitability

Negative EBIT and EBITDA show the core business is not currently covering operating costs at recent sales levels, forcing reliance on non-operating items or one-offs for net income. This threatens earnings durability and increases the risk of margin deterioration if revenue stays weak.

Governance Limits on Capital Flexibility

Rejection of proposals to expand share authorization and other capital-structure changes constrains management's ability to raise equity, issue strategic securities, or deploy preferred shares. This limits strategic financing and restructuring options during a recovery or for M&A activity.

Universal Security Instruments Business Overview & Revenue Model

Company Description

Universal Security Instruments, Inc., together with its subsidiary, designs, markets, and distributes safety and security products for use in homes and businesses in the United States and internationally. It offers a line of safety alarms, including units powered by replaceable batteries, sealed batteries, and battery backup alarms; and smoke alarms, which include hearing impaired and heat alarms, as well as carbon monoxide alarms, door chimes, ventilation products, ground fault circuit interrupters, and other electrical devices under the UNIVERSAL and USI Electric trade names. The company provides its products to wholesale distributors; chain, discount, and television retailers; home center stores; catalog and mail order companies; electrical and lighting distributors, and manufactured housing companies; and other distributors. It also sells its products through independent sales organizations and sales representatives, as well as through its own sales catalogs and brochures, and website. The company was incorporated in 1969 and is headquartered in Owings Mills, Maryland.

How the Company Makes Money

Universal Security Instruments generates revenue through the sale of its safety and security products to various customer segments, including homeowners, commercial property operators, and distributors. The company primarily earns money by manufacturing and selling smoke and carbon monoxide alarms, which are distributed through retail, wholesale, and original equipment manufacturer (OEM) channels. Key revenue streams include direct sales to consumers via retail outlets and partnerships with distributors who supply these products to other businesses. The company's earnings are influenced by factors such as product demand, regulatory requirements for safety devices, and strategic partnerships that expand its market reach.

Universal Security Instruments Financial Statement Overview

Summary

Results are mixed: TTM revenue declined sharply (-28.3%) and operating profitability is weak (negative EBIT/EBITDA), but TTM net income turned positive and cash generation rebounded strongly (~$6.17M operating/free cash flow). Balance sheet leverage appears manageable, though earnings and cash flow volatility remain a key risk.

Income Statement

TTM (Trailing-Twelve-Months) revenue fell sharply (-28.3%), signaling meaningful top-line pressure. Profitability is mixed: gross margin is fairly steady around ~29–32%, but operating results weakened with negative EBIT and EBITDA in TTM, suggesting cost absorption issues. Net income is positive in TTM (7.2% net margin) after losses in 2024, but the gap between positive net income and negative operating profit raises questions about earnings quality and sustainability.

Balance Sheet

Leverage looks manageable overall: total debt is relatively modest versus equity in recent annual periods (debt-to-equity moved down from a high level in 2022 to more moderate levels in 2023–2025 annual). Equity remains positive, and returns on equity improved to positive levels in the most recent periods (including strong TTM), indicating improved profitability relative to the capital base. Key risk is that earnings volatility (losses in 2024 and weak operating profitability in TTM) could quickly pressure equity if it persists.

Cash Flow

Cash generation is a relative bright spot in TTM (operating cash flow and free cash flow of ~$6.17M, up sharply year over year), providing flexibility despite weaker operating profitability. However, cash flow performance has been inconsistent across years (negative operating/free cash flow in 2022 and 2025 annual), which lowers confidence in durability. Still, the latest TTM cash flow rebound is strong enough to support a better-than-average cash flow score.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.35M	23.56M	19.52M	22.18M	19.55M	17.52M
Gross Profit	4.90M	6.83M	5.60M	6.35M	6.03M	5.64M
EBITDA	-1.22M	566.17K	-372.13K	1.14M	248.51K	300.06K
Net Income	1.18M	500.68K	-695.79K	720.41K	-78.15K	268.34K
Balance Sheet
Total Assets	6.77M	9.82M	8.33M	8.40M	11.52M	7.50M
Cash, Cash Equivalents and Short-Term Investments	5.23M	348.07K	65.08K	151.50K	438.74K	160.60K
Total Debt	1.76M	2.11M	940.92K	1.78M	3.71M	1.27M
Total Liabilities	3.11M	4.65M	3.67M	3.04M	6.88M	2.78M
Stockholders Equity	3.66M	5.16M	4.66M	5.36M	4.64M	4.72M
Cash Flow
Free Cash Flow	6.17M	-1.05M	604.08K	1.49M	-1.86M	1.39M
Operating Cash Flow	6.17M	-1.05M	604.08K	1.49M	-1.86M	1.39M
Investing Cash Flow	2.82M	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	-4.00M	1.33M	-690.50K	-1.78M	2.14M	-1.32M

Universal Security Instruments Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.11
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UUU, the sentiment is Negative. The current price of 5.11 is below the 20-day moving average (MA) of 5.13, above the 50-day MA of 4.78, and above the 200-day MA of 3.71, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.98 is Neutral, neither overbought nor oversold. The STOCH value of 54.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UUU.

Universal Security Instruments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VRME	54 Neutral	$14.31M	-3.01	-44.14%	―	-14.21%	-20.44%
UUU	53 Neutral	$11.17M	9.49	26.86%	―	-23.22%	―
BKYI	48 Neutral	$7.86M	-0.71	-143.60%	―	-1.19%	86.72%
SUGP	44 Neutral	$8.82M	-3.01	-4.31%	―	―	―

Universal Security Instruments Corporate Events

Universal Security Instruments Shareholder Proposals Rejected

Universal Safety Products, Inc., a Maryland corporation, held an Adjourned Meeting on December 16, 2025, following previous adjournments, to vote on four key proposals related to amendments in the company’s Articles of Incorporation. These proposals included increasing authorized shares, authorizing preferred stock, authorizing class B common stock, and eliminating super-majority voting requirements. However, all four proposals were rejected by the stockholders, which may impact the company’s ability to implement strategic changes in its capital structure.

Universal Security Instruments Adjourns Stockholder Meeting Again

Universal Safety Products, Inc., a Maryland-based company, held a special meeting of stockholders on October 20, 2025, which was adjourned to November 14, 2025, to allow additional time for voting on several proposals. During the adjourned meeting, stockholders approved Proposal 3, but insufficient votes were received for other proposals, leading to a further adjournment to December 16, 2025, to solicit additional proxies. The outcome of these proposals could significantly impact the company’s governance and capital structure.