Yunhong Green CTI (YHGJ) AI Stock Analysis

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Yunhong Green CTI

(NASDAQ:YHGJ)

Rating:44Neutral

Price Target:

$1.00

▲(38.89%Upside)

Yunhong Green CTI's overall score is primarily impacted by its financial struggles, including high debt and negative profitability. The technical analysis indicates a bearish trend, and the valuation is unattractive with a negative P/E ratio. These factors outweigh any minor improvements, leading to a low overall score.

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

Market Cap

$19.01M

Dividend YieldN/A

Average Volume (3M)22.21K

Price to Earnings (P/E)―

Beta (1Y)-0.76

Revenue Growth1.21%

EPS Growth-3.80%

CountryUS

Employees52

SectorConsumer Cyclical

Sector Strength58

IndustryPackaging & Containers

Share Statistics

EPS (TTM)-0.07

Shares Outstanding26,223,625

10 Day Avg. Volume6,572

30 Day Avg. Volume22,210

Financial Highlights & Ratios

PEG Ratio0.05

Price to Book (P/B)3.52

Price to Sales (P/S)0.00

P/FCF Ratio4.39

Enterprise Value/Market Cap0.96

Enterprise Value/Revenue0.25

Enterprise Value/Gross Profit5.08

Enterprise Value/Ebitda-12.08

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Yunhong Green CTI Business Overview & Revenue Model

Company DescriptionYunhong Green CTI Ltd. develops, produces, distributes, and sells consumer products in the United States and internationally. It offers novelty products, including foil balloons; latex balloons under the Partyloons name; and inflatable latex items, which include punch balls, water bombs, and balloons twisted into shapes, and other specialty designs. The company also offers packaging films and custom film products for food, and other commercial and packaging applications; and container products, as well as assembles and sells Candy Blossom product line. It primarily serves various retail outlets, including general merchandise stores, discount and drugstore chains, grocery chains, card and gift shops, party goods stores, and florists and balloon decorators. The company sells its products directly, as well as through a network of distributors and wholesalers, retail chains, and independent sales representatives. The company was formerly known as Yunhong CTI Ltd. and changed its name to Yunhong Green CTI Ltd. in August 2023. Yunhong Green CTI Ltd. was incorporated in 1983 and is headquartered in Lake Barrington, Illinois.

How the Company Makes MoneyYunhong Green CTI makes money through the sale of its eco-friendly products to a diverse customer base, including retailers, wholesalers, and direct consumers. Its revenue model focuses on leveraging the growing demand for sustainable and biodegradable products. The company may also engage in strategic partnerships with other firms to enhance product distribution and increase market reach, thereby contributing to its earnings. Key revenue streams include product sales and potentially licensing agreements for its proprietary technologies and materials.

Yunhong Green CTI Earnings Call Summary

Earnings Call Date:Nov 12, 2024

(Q4-2023)

% Change Since: -37.39%|

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 faces significant financial challenges. Despite a slight improvement in gross profit margin and equity ratio, the company struggles with negative net income, high debt levels, and declining cash flow, which pose substantial risks to future growth.

Income Statement

Neutral

Yunhong Green CTI has shown a declining revenue trend over recent years, with a slight recovery in gross profit margin from 18.3% in 2023 to 20.1% in 2024. However, the company continues to face challenges with negative net income and EBIT margins. The revenue growth rate is minimal, indicating stagnation in top-line growth.

Balance Sheet

Neutral

The company’s debt-to-equity ratio improved as equity strengthened to $10.7M in 2024, indicating a more balanced financial structure compared to previous years. However, it still carries a significant debt burden relative to equity. The equity ratio improved from 15.6% in 2023 to 41.8% in 2024, suggesting better asset financing stability.

Cash Flow

Negative

Yunhong Green CTI experienced a decline in operating cash flow, resulting in a negative free cash flow for 2024. Although there was a cash influx from financing activities, this reliance on external funding highlights a potential cash flow instability and a need for improved operational efficiency.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
17.95M	17.80M	18.05M	24.09M	21.06M
	Gross Profit
3.60M	3.26M	3.14M	3.76M	3.09M
	EBIT
-612.00K	-399.00K	-1.12M	-506.00K	-1.04M
	EBITDA
-292.00K	672.00K	-634.00K	-6.20M	-153.22K
	Net Income Common Stockholders
-1.50M	-235.00K	-2.05M	-11.85M	-8.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
220.00K	921.00K	146.00K	66.00K	322.18K
	Total Assets
25.58M	17.25M	15.28M	17.28M	21.55M
	Total Debt
11.48M	10.37M	8.74M	10.45M	8.67M
	Net Debt
11.26M	9.45M	8.60M	10.39M	8.35M
	Total Liabilities
14.88M	13.52M	12.54M	13.23M	18.83M
	Stockholders Equity
10.70M	3.73M	2.75M	4.05M	3.44M
Cash Flow		Free Cash Flow
-1.60M	-1.34M	2.21M	-3.83M	1.21M
	Operating Cash Flow
-1.27M	-1.12M	2.37M	-3.71M	1.32M
	Investing Cash Flow
-331.00K	-221.00K	-163.00K	3.38M	-115.08K
	Financing Cash Flow
904.00K	2.11M	-2.13M	626.00K	-2.27M

Yunhong Green CTI Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.72

Price Trends

50DMA

0.92

Negative

100DMA

0.85

Negative

200DMA

0.79

Negative

Market Momentum

MACD

-0.04

Positive

RSI

43.57

Neutral

STOCH

26.48

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YHGJ, the sentiment is Negative. The current price of 0.72 is below the 20-day moving average (MA) of 0.82, below the 50-day MA of 0.92, and below the 200-day MA of 0.79, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 43.57 is Neutral, neither overbought nor oversold. The STOCH value of 26.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YHGJ.

Yunhong Green CTI Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRT	71 Outperform	$530.82M	17.63	19.64%	6.81%	6.21%	1.47%
SEE	68 Neutral	$4.54B	14.90	43.40%	2.59%	-2.45%	-16.55%
AMBP	68 Neutral	$2.46B	―	-69.06%	9.73%	4.42%	70.21%
MYE	66 Neutral	$548.40M	52.41	3.69%	3.68%	3.92%	-73.64%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
PACK	54 Neutral	$293.13M	―	-3.89%	―	10.11%	6.77%
YHGJ	44 Neutral	$19.01M	―	-17.01%	―	1.21%	-3.80%

* Consumer Cyclical Sector Average

Performance Comparison

YHGJ

Yunhong Green CTI

0.72

-0.57

-44.19%

MYE

Myers Industries

14.87

0.71

5.01%

SEE

Sealed Air

31.39

-4.32

-12.10%

PACK

Ranpak Holdings

3.56

-2.10

-37.10%

KRT

Karat Packaging Inc

26.90

0.07

0.26%

AMBP

Ardagh Metal Packaging

4.22

0.98

30.25%

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.