Universal Security Instruments (UUU) AI Stock Analysis

• Market Cap: $10.01M
• Dividend Yield: N/A
• Average Volume (3M): 269.92K
• Price to Earnings (P/E): 3.6
• Beta (1Y): -0.14
• 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: 0.70
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 1.42
• Enterprise Value/Ebitda: -5.70
• 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: 54 Neutral
• 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.

Positive Factors

Revenue Growth

The company has demonstrated a strong revenue growth rate of 28.01%, indicating successful market penetration and product demand, which is crucial for long-term business sustainability.

Low Leverage

A low debt-to-equity ratio suggests the company has a conservative capital structure, providing financial stability and flexibility to invest in growth opportunities.

Strategic Focus Shift

Shifting focus to wiring devices and bath fans could align with market demands and regulatory trends, potentially enhancing long-term revenue stability and growth.

Negative Factors

Negative Profitability

The negative net profit margin reflects ongoing operational challenges, which could hinder the company's ability to reinvest in growth and maintain competitive positioning.

Weak Cash Flow

Weak cash flow generation limits the company's ability to fund operations and growth internally, raising concerns about liquidity and financial resilience.

Declining Sales

A decline in sales due to the divestment of the smoke alarm segment and increased tariffs could impact long-term revenue streams and market competitiveness.

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

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

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

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

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.

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	8.54M	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	0.00	2.11M	940.92K	1.78M	3.71M	190.03K
Total Liabilities	3.11M	4.65M	3.58M	3.04M	6.88M	2.78M
Stockholders Equity	3.66M	5.16M	4.96M	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: 4.00
• 50DMA: Negative
• 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 4 is below the 20-day moving average (MA) of 4.30, below the 50-day MA of 4.76, and above the 200-day MA of 2.99, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 41.56 is Neutral, neither overbought nor oversold. The STOCH value of 38.04 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
SUGP	66 Neutral	$8.31M	―	-4.31%	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
UUU	54 Neutral	$10.01M	3.64	26.86%	―	-23.22%	―
VRME	48 Neutral	$11.46M	-2.69	-44.14%	―	-14.21%	-20.44%
BKYI	47 Neutral	$8.91M	―	-143.60%	―	-1.19%	86.72%
DGLY	41 Neutral	$3.15M	―	-233.66%	―	-9.62%	95.79%