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Universal Security Instruments (UUU)
:UUU
US Market
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Universal Security Instruments (UUU) AI Stock Analysis

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UUU

Universal Security Instruments

(UUU)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
$3.00
▼(-18.70% Downside)
Action:Reiterated
Date:08/01/26
The score is primarily held down by sharply deteriorating recent financial results (large revenue decline and widening losses) and a technically weak trend (below all major moving averages). A debt-free balance sheet and positive latest-year free cash flow help, but valuation remains challenged due to losses, and recent convertible financing plus a large authorized share increase elevates dilution risk.
Positive Factors
Debt-free balance sheet
Having zero total debt materially lowers financial risk and interest costs, preserving balance-sheet flexibility to fund operations or absorb shocks. Over the coming months this durability supports liquidity management, vendor negotiations, and strategic optionality without interest burden.
Negative Factors
Severe revenue decline and losses
A ~55% revenue fall and deeply negative margins indicate significant operating stress and poor fixed-cost absorption. This scale and margin deterioration undermines sustainable profitability, complicates reinvestment, and means multi-quarter structural fixes are required to return to consistent positive earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
Having zero total debt materially lowers financial risk and interest costs, preserving balance-sheet flexibility to fund operations or absorb shocks. Over the coming months this durability supports liquidity management, vendor negotiations, and strategic optionality without interest burden.
Read all positive factors

Universal Security Instruments (UUU) vs. SPDR S&P 500 ETF (SPY)

Universal Security Instruments Business Overview & Revenue Model

Company Description
Universal Security Instruments, Inc., along with its subsidiary, specializes in the development, marketing, and distribution of essential safety and security solutions for both residential and commercial applications. The company's reach extends t...
How the Company Makes Money
UUU primarily makes money by selling home safety and security products—most notably smoke alarms and carbon monoxide alarms—into the residential market. Revenue is generated from product sales to channel partners (e.g., retailers and distributors)...

Universal Security Instruments Financial Statement Overview

Summary
Operating performance weakened sharply in the latest year (revenue down ~55% and losses expanded materially), outweighing prior pockets of profitability. The balance sheet is a relative strength with zero total debt and positive equity, and the latest period shows positive operating cash flow/free cash flow, but cash flow consistency has been uneven.
Income Statement
18
Very Negative
Balance Sheet
66
Positive
Cash Flow
44
Neutral
BreakdownJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue4.85M23.56M19.52M22.18M19.55M
Gross Profit803.39K6.83M5.60M6.35M6.03M
EBITDA-1.77M566.17K-372.13K1.14M248.51K
Net Income-2.49M500.68K-695.79K720.41K-78.15K
Balance Sheet
Total Assets4.50M9.82M8.33M8.40M11.52M
Cash, Cash Equivalents and Short-Term Investments3.47M348.07K65.08K151.50K438.74K
Total Debt600.91K2.11M940.92K1.78M3.71M
Total Liabilities1.27M4.65M3.67M3.04M6.88M
Stockholders Equity3.24M5.16M4.66M5.36M4.64M
Cash Flow
Free Cash Flow536.18K-1.05M677.59K1.49M-1.86M
Operating Cash Flow536.18K-1.05M677.59K1.49M-1.86M
Investing Cash Flow4.50M0.000.000.000.00
Financing Cash Flow-1.91M1.33M-690.50K-1.78M2.14M

Universal Security Instruments Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.69
Price Trends
50DMA
4.47
Negative
100DMA
5.30
Negative
200DMA
5.06
Negative
Market Momentum
MACD
-0.23
Negative
RSI
43.03
Neutral
STOCH
70.66
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 3.69 is above the 20-day moving average (MA) of 3.56, below the 50-day MA of 4.47, and below the 200-day MA of 5.06, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 43.03 is Neutral, neither overbought nor oversold. The STOCH value of 70.66 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
52
Neutral
$4.24M-0.59-57.42%4.37%73.29%
46
Neutral
$10.72M-3.42-61.60%-79.43%-578.85%
45
Neutral
$3.49M-1.44-17.78%5.89%-209.52%
42
Neutral
$9.44M-1.81-42.75%-40.12%-9.90%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UUU
Universal Security Instruments
3.56
0.78
28.06%
BKYI
BIO-key International
3.76
-3.69
-49.53%
IVDA
Iveda Solutions
0.37
-1.45
-79.78%
VRME
VerifyMe
0.70
-0.18
-20.27%
SUGP
SU Group Holdings Ltd
2.04
-28.41
-93.30%

Universal Security Instruments Corporate Events

Business Operations and StrategyPrivate Placements and FinancingShareholder Meetings
Universal Security Instruments Shareholders Approve Key Governance Changes
Positive
Jul 31, 2026
On July 31, 2026, Universal Safety Products, Inc. stockholders held a special meeting to vote on five proposals affecting the company’s capital structure and governance. As of the June 15, 2026 record date, 3,028,363 common shares were entit...
Private Placements and Financing
Universal Security Instruments Secures New Convertible Note Financing
Positive
Jun 12, 2026
On June 12, 2026, Universal Safety Products, Inc. entered into a Securities Purchase Agreement with SJC Lending LLC for up to $10 million in financing through the sale of up to $10.6 million in convertible promissory notes, structured in eleven tr...
Business Operations and StrategyPrivate Placements and Financing
Universal Security Instruments Fully Converts Convertible Note to Equity
Neutral
May 19, 2026
On March 11, 2026, Universal Safety Products, Inc. issued 125,000 shares of common stock upon converting $470,720 of principal and accrued interest from a convertible note originally issued on September 25, 2025. On May 15, 2026, the company furth...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 01, 2026