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Yunhong Green CTI (YHGJ)
NASDAQ:YHGJ
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Yunhong Green CTI (YHGJ) AI Stock Analysis

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YHGJ

Yunhong Green CTI

(NASDAQ:YHGJ)

Rating:48Neutral
Price Target:
$0.50
▼(-21.88% Downside)
Yunhong Green CTI's overall stock score is primarily impacted by its financial performance challenges, including high leverage and negative profitability. Technical analysis suggests bearish trends, while valuation metrics are poor due to ongoing losses. However, recent corporate events provide some positive outlook due to strong shareholder support.

Yunhong Green CTI (YHGJ) vs. SPDR S&P 500 ETF (SPY)

Yunhong Green CTI Business Overview & Revenue Model

Company DescriptionYunhong Green CTI (YHGJ) is a leading company focused on the development and production of advanced green technologies, particularly in the field of environmental protection and energy efficiency. The company operates primarily within the environmental technology sector, offering a range of products and services including waste treatment solutions, renewable energy systems, and energy-saving equipment. YHGJ aims to promote sustainable practices and reduce carbon footprints across various industries.
How the Company Makes MoneyYunhong Green CTI generates revenue through multiple key streams. Primarily, the company earns income from the sales of its proprietary environmental technology products, which include waste management systems and energy-efficient devices. Additionally, YHGJ provides consulting services related to environmental compliance and sustainability strategies for businesses, contributing to its service revenue. The company may also engage in partnerships with governmental and private organizations to implement large-scale environmental projects, which can provide substantial funding and contracts. Furthermore, potential grants and incentives for green technology development could enhance its financial performance, allowing YHGJ to capitalize on the growing demand for eco-friendly solutions.

Yunhong Green CTI Earnings Call Summary

Earnings Call Date:Nov 12, 2024
(Q4-2023)
|
% Change Since: |
Next Earnings Date:Mar 26, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant improvements in revenue and margins, strong performance driven by automation, and strategic growth initiatives in China. However, there were minor setbacks in sales and ongoing challenges with helium pricing.
Q4-2023 Updates
Positive Updates
Strong Fourth Quarter Revenue
Fourth quarter revenue exceeded the prior year by $1.2 million, driven by improvements in foil balloons, commercial films, and balloon-inspired gifts.
Improved Gross Margins
Gross margins improved to 18% in 2023 from 17% in 2022, with a notable 24% gross margin in Q4 2023 compared to 19% in the previous year.
Increase in Net Income and Adjusted EBITDA
Reported a $1.2 million improvement in net income and a $1 million improvement in adjusted EBITDA for the full year 2023. Earnings per share increased from a $0.22 loss to a $0.01 loss.
Automation and Efficiency Gains
Implemented two manufacturing lines with robotic arms, leading to top performance and reduced labor costs. A third line is planned for 2024.
Strategic Acquisition in China
Purchased a manufacturing facility in Hubei, China, to enhance capabilities in compostable material business and strengthen ties with Yunhong family of companies.
Negative Updates
Decline in Year-to-Date Sales
Year-to-date sales were $17.8 million in 2023 compared to $18 million in 2022, indicating a slight decline.
Helium Pricing Challenges
Helium pricing continues to negatively impact the marketplace, although the effect is less severe than in the previous 18 months.
Company Guidance
During the Yunhong Green CTI earnings call for the fourth quarter of 2023, CEO Frank Cesario reported a $1.2 million improvement in net income and a $1 million rise in adjusted EBITDA, with earnings per share improving from a $0.22 loss to a $0.01 loss. The company saw a revenue increase of $1.2 million compared to the prior year, driven by improvements in foil balloons, commercial films, and balloon-inspired gifts. Fourth quarter gross margins rose to 24% from 19% the previous year. The company noted a trend shift from everyday to seasonal business and highlighted the impact of automation on reducing labor costs. COO Jana Schwan elaborated on the operational enhancements from automation and strong vendor relationships. Additionally, the company announced the acquisition of a manufacturing facility in Hubei, China, to support its compostable material business and enhance environmental sustainability.

Yunhong Green CTI Financial Statement Overview

Summary
Yunhong Green CTI shows revenue growth but struggles with profitability and high leverage. The balance sheet indicates financial risk due to significant debt levels, while cash flow improvements are overshadowed by ongoing challenges in generating positive free cash flow. The company needs to focus on improving profitability and managing debt to enhance financial health.
Income Statement
45
Neutral
Yunhong Green CTI's income statement shows a slight improvement in revenue with a 6.18% growth in the TTM period. However, the company continues to face challenges with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin remains relatively stable, but the overall profitability is hindered by consistent net losses.
Balance Sheet
40
Negative
The balance sheet reflects a high debt-to-equity ratio, indicating significant leverage, although it has improved slightly in the TTM period. The return on equity remains negative, suggesting inefficiencies in generating returns for shareholders. The equity ratio is relatively stable, but the high leverage poses a risk to financial stability.
Cash Flow
50
Neutral
Cash flow analysis reveals a positive operating cash flow in the TTM period, a recovery from previous negative figures. However, free cash flow growth is negative, and the operating cash flow to net income ratio is low, indicating challenges in converting income into cash flow. The free cash flow to net income ratio suggests some ability to cover net losses with free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue18.96M17.95M17.80M18.05M24.09M21.06M
Gross Profit3.86M3.60M3.26M3.14M3.76M3.09M
EBITDA308.00K-292.00K672.00K-634.00K-6.20M-153.22K
Net Income-1.11M-1.50M-235.00K-1.47M-8.59M-4.52M
Balance Sheet
Total Assets22.74M25.58M17.25M15.28M17.28M21.55M
Cash, Cash Equivalents and Short-Term Investments18.00K220.00K921.00K146.00K66.00K322.18K
Total Debt9.37M11.48M10.37M8.74M10.45M8.67M
Total Liabilities11.38M14.88M13.52M12.54M13.23M18.83M
Stockholders Equity11.35M10.70M3.73M2.75M4.05M3.44M
Cash Flow
Free Cash Flow233.00K-1.60M-1.34M2.21M-3.83M1.21M
Operating Cash Flow332.00K-1.27M-1.12M2.37M-3.71M1.32M
Investing Cash Flow-99.00K-331.00K-221.00K-163.00K3.38M-115.08K
Financing Cash Flow-237.00K904.00K2.11M-2.13M626.00K-2.27M

Yunhong Green CTI Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.64
Price Trends
50DMA
0.69
Negative
100DMA
0.80
Negative
200DMA
0.75
Negative
Market Momentum
MACD
-0.04
Negative
RSI
54.20
Neutral
STOCH
47.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YHGJ, the sentiment is Neutral. The current price of 0.64 is above the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.69, and below the 200-day MA of 0.75, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 54.20 is Neutral, neither overbought nor oversold. The STOCH value of 47.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for YHGJ.

Yunhong Green CTI Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$511.36M16.0220.44%6.83%7.99%13.05%
65
Neutral
$4.73B15.7637.35%2.48%-2.00%-18.50%
64
Neutral
$628.48M63.683.43%3.21%1.11%-74.94%
61
Neutral
$17.78B13.97-5.40%3.03%1.50%-15.71%
58
Neutral
$2.18B-69.06%10.99%8.39%72.18%
54
Neutral
$469.89M-6.24%10.38%-123.75%
48
Neutral
$14.71M-9.89%5.70%35.14%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
YHGJ
Yunhong Green CTI
0.64
-0.42
-39.62%
MYE
Myers Industries
16.80
2.13
14.52%
SEE
Sealed Air
32.23
-1.87
-5.48%
PACK
Ranpak Holdings
5.16
-1.93
-27.22%
KRT
Karat Packaging Inc
25.64
1.80
7.55%
AMBP
Ardagh Metal Packaging
3.64
0.55
17.80%

Yunhong Green CTI Corporate Events

Executive/Board ChangesShareholder MeetingsStock Split
Yunhong Green CTI Approves Key Proposals at Annual Meeting
Positive
Aug 27, 2025

On August 22, 2025, Yunhong Green CTI Ltd. held its Annual Meeting of shareholders where several key proposals were approved. These included the election of five directors, a reverse stock split, and the appointment of auditors for the fiscal year ending December 31, 2026. The approval of these proposals indicates strong shareholder support for the company’s strategic decisions, potentially impacting its market positioning and operational efficiency.

Executive/Board ChangesM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Yunhong Green CTI Appoints New Principal Financial Officer
Neutral
Jul 10, 2025

On July 4, 2025, Yunhong Green CTI entered into a Consulting Agreement with an independent firm to explore strategic alternatives such as new revenue sources, cost reductions, and potential mergers and acquisitions to enhance shareholder value. Subsequently, on July 8, 2025, the company appointed Sree Kommana as Principal Financial Officer to oversee financial statement filings and disclosures.

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 28, 2025