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Universal Security Instruments
(UUU)
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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)
Market Cap
$10.72M
Dividend YieldN/A
Average Volume (3M)269.92K
Price to Earnings (P/E)―
Beta (1Y)0.14
Revenue Growth-79.43%
EPS Growth-578.85%
CountryUS
Employees7
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)-1.04
Shares Outstanding3,028,463
10 Day Avg. Volume167,235
30 Day Avg. Volume269,921
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)4.08
Price to Sales (P/S)2.72
P/FCF Ratio24.60
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Income Statement
18
Very Negative
Balance Sheet
66
Positive
Cash Flow
44
Neutral
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.85M | 23.56M | 19.52M | 22.18M | 19.55M |
| Gross Profit | 803.39K | 6.83M | 5.60M | 6.35M | 6.03M |
| EBITDA | -1.77M | 566.17K | -372.13K | 1.14M | 248.51K |
| Net Income | -2.49M | 500.68K | -695.79K | 720.41K | -78.15K |
Balance Sheet | |||||
| Total Assets | 4.50M | 9.82M | 8.33M | 8.40M | 11.52M |
| Cash, Cash Equivalents and Short-Term Investments | 3.47M | 348.07K | 65.08K | 151.50K | 438.74K |
| Total Debt | 600.91K | 2.11M | 940.92K | 1.78M | 3.71M |
| Total Liabilities | 1.27M | 4.65M | 3.67M | 3.04M | 6.88M |
| Stockholders Equity | 3.24M | 5.16M | 4.66M | 5.36M | 4.64M |
Cash Flow | |||||
| Free Cash Flow | 536.18K | -1.05M | 677.59K | 1.49M | -1.86M |
| Operating Cash Flow | 536.18K | -1.05M | 677.59K | 1.49M | -1.86M |
| Investing Cash Flow | 4.50M | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | -1.91M | 1.33M | -690.50K | -1.78M | 2.14M |
Universal Security Instruments Technical Analysis
Negative
3.69
Price Trends
4.47
Negative
5.30
Negative
5.06
Negative
Market Momentum
-0.23
Negative
43.03
Neutral
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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 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
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.