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Universal Security Instruments (UUU)
:UUU

Universal Security Instruments (UUU) AI Stock Analysis

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Universal Security Instruments

(NYSE MKT:UUU)

Rating:54Neutral
Price Target:
Universal Security Instruments faces significant financial challenges, with negative profitability and weak cash flow generation. Despite these issues, the stock shows strong technical momentum, suggesting potential short-term trading opportunities. However, the lack of profitability and negative valuation metrics pose risks to long-term investors.

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

Universal Security Instruments Business Overview & Revenue Model

Company DescriptionUniversal Security Instruments, Inc. (UUU) is a company engaged in the development and marketing of safety and security products. The company operates primarily in the residential and commercial safety and security sectors, offering a range of products including smoke alarms, carbon monoxide alarms, and other related safety devices. Universal Security Instruments is committed to providing reliable safety solutions to protect individuals and properties from potential hazards.
How the Company Makes MoneyUniversal 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
Universal Security Instruments is experiencing financial challenges with negative profitability and cash generation issues. While the company's balance sheet shows some strengths in low leverage and equity ratio, the income statement and cash flow statement highlight operational inefficiencies and liquidity concerns.
Income Statement
35
Negative
Universal Security Instruments shows declining profitability with a negative net profit margin of -5.77% and declining gross profit margin at 24.35% TTM. Revenue growth has been inconsistent, with a recent drop of 9.28% in revenue from the previous year's annual report. The company's EBIT and EBITDA margins are negative, indicating operational challenges.
Balance Sheet
50
Neutral
The balance sheet reflects a moderately leveraged position with a debt-to-equity ratio of 0.013 in TTM. Return on equity is negative, reflecting recent net losses. The equity ratio stands at 43.39%, indicating a reasonable proportion of equity financing. The company has improved its cash position, reducing net debt significantly.
Cash Flow
40
Negative
Cash flow analysis reveals a negative trend in free cash flow growth, with the TTM showing negative free cash flow. Operating cash flow to net income ratio is negative, indicating challenges in converting sales into cash flow. The company's ability to generate cash internally is currently weak, raising concerns about liquidity.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue22.17M19.90M22.18M19.55M17.52M14.80M
Gross Profit5.40M5.81M6.35M6.03M5.64M3.76M
EBITDA-1.02M-72.13K972.57K248.51K300.06K-1.56M
Net Income-1.28M-395.79K720.41K-225.99K181.50K-2.38M
Balance Sheet
Total Assets8.40M8.54M8.40M11.52M7.50M8.18M
Cash, Cash Equivalents and Short-Term Investments151.50K65.08K151.50K438.74K160.60K93.79K
Total Debt1.78M940.92K1.78M3.71M190.03K1.89M
Total Liabilities3.04M3.58M3.04M6.88M2.78M3.73M
Stockholders Equity5.36M4.96M5.36M4.64M4.72M4.45M
Cash Flow
Free Cash Flow-358.88K604.08K1.49M-1.86M1.39M9.25K
Operating Cash Flow-358.88K604.08K1.49M-1.86M1.39M9.25K
Investing Cash Flow0.000.000.000.000.004.00M
Financing Cash Flow378.59K-690.50K-1.78M2.14M-1.32M-289.93K

Universal Security Instruments Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.02
Price Trends
50DMA
2.53
Positive
100DMA
2.22
Positive
200DMA
2.05
Positive
Market Momentum
MACD
0.15
Positive
RSI
58.04
Neutral
STOCH
42.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UUU, the sentiment is Positive. The current price of 3.02 is below the 20-day moving average (MA) of 3.04, above the 50-day MA of 2.53, and above the 200-day MA of 2.05, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 58.04 is Neutral, neither overbought nor oversold. The STOCH value of 42.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UUU.

Universal Security Instruments Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$1.07B24.4027.48%1.89%-1.05%-2.78%
SNSNT
79
Outperform
$102.64M65.29-3.47%
62
Neutral
C$6.49B9.123.44%2.90%6.99%-11.09%
MGMG
56
Neutral
$251.58M17.097.70%-2.09%
UUUUU
54
Neutral
$6.64M-26.63%5.57%-449.87%
42
Neutral
$33.54M-243.06%-5.64%35.09%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UUU
Universal Security Instruments
3.02
1.58
109.72%
SNT
Senstar Technologies
4.63
2.83
157.22%
MG
Mistras Group
8.03
0.11
1.39%
NSSC
Napco Security Technologies
29.96
-22.72
-43.13%
KSCP
Knightscope Inc Class A
4.86
-7.58
-60.93%
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: Apr 20, 2025