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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Universal Electronics Inc. (XNAS:UEIC) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
UEIC
Name:
UNIVERSAL ELECTRONICS INC. (XNAS:UEIC)
Sector:
- 21164.00K
Industry:
Consumer Electronics
CEO:
Mr. Paul Arling
Total Employees:
3,945
Our Technological Advancement Rating
Our Rating:
B
Technological advancement compared to industry is 20.60% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF UNIVERSAL ELECTRONICS INC.(UEIC) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND CONSUMER ELECTRONICS INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
21.21
One Month Price Target:
$21.34
Six Month Price Target :
$21.99
Likely Price in One Year's Time:
Ticker:
$22.78
Likely Trading Range Today Under (Normal Volatility)
$21.08
Price Upper limit ($) :
$21.29
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$19.92
This week:
$18.33
This month :
$15.44
Other Primary facts
Market Cap:
255.10M
Market Cap Classification:
Micro Cap
Number of Shares
IPO Date:
12.65M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
15.16%
-17.2%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$27.21
$24.53
$15.21
$17.89
Medium risk (<10%) entry points
Buy Call
Sell Call
$23.66
Buy Put:
Sell Put:
$23.08
$18.76
$19.34
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
UEIC
Sharpe Ratio:
-3.68%
Comparison:
UEIC, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -296.97% lower than the industry
& is -261.62% lower than the market/S&P 500 average
Average Returns/Yield of
UEIC
Daily returns:
-0.10%
Weekly returns:
-0.49%
Monthly returns:
-1.97%
Yearly returns:
16.65%
Comparison of returns:
Average annual returns/yield (last 3 years) is -241.97% below industry average
Classification:
UEIC, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.06
Statistical test of Returns:
UEIC has yielded a lower return than the market, the results are statistically significant
Volatility (measured by Standard Deviation)
Daily Volatility:
2.91%
Weekly Volatility:
6.51%
Monthly Volatility:
13.03%
Yearly Volatility:
45.13%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.70%
Volatility in last five trading days has been -75.97% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-6.08%
Weekly VaR:
-13.60%
Monthly VaR:
-27.20%
How Much Can the price of
UEIC
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-25%
Worst case (decline):
-94.21%
This translates to price declining to:
$15.87
This translates to price declining to:
$1.23
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
UEIC is a 91.95% riskier investment compared to the market/S&P 500 & is 64.44% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -13.14% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
UEIC
Beta in relation to market/S&P 500--1.10
Expected beta in 1 year's time:
0.677
Expected beta in 3 year's time:
0.957
Unlevered (debt free) Beta:
1.14
Beta in relation to Nasdaq (XNAS):
0.439
Beta in relation to all global stocks::
0.684
Beta Comparison & Analysis
Beta of competitors/peers::
1.408
Beta is -21.91% lower than peers
Average Industry Beta:
1.372
Beta is -19.82% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
7.76%
Sustainable growth rate is -87.71% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.343
Alpha is -936.79% below industry average alpha yield
Alpha is -2184% below the market average
Analysis of Cost of Capital of
UEIC
Equity cost of capital:
0.107
Equity cost of capital is -14.84% below industry mean WACC
Unlevered (without debt) cost of capital:
11.08%
Before-tax cost of debt:
-0.28%
After-tax cost of debt:
-0.22%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
-0.22%
WACC is -0.05% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$46.11
Revenue growth rate per share of (3Y):
0.99
Annual revenue growth rate is -284.10% below industry average
EPS:
-$0.38
Expected Annual growth rate of EPS (3Y):
14.47%
Expected future EPS growth rate is -28.90% lower than the Consumer Electronics industry
Free cash flow (FCF) per share:
$1.04
-
-
Debt per share
$1.17
EBITDA per share
$2.63
Valuation Analysis Today of
UEIC
P/E Ratio:
82.88
P/E Ratio of Competitors/Peers:
115.24
P/E ratio is -28.08% lower than main peers & is 408.22% higher than the industry
-
UEIC is -442.26% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
0.46
Price to sales ratio is -83.07% below the industry mean
P/B (Price to book value ratio):
0.99
Price to free cash flow: 20.31
FALSE
Net income growth rate (3Y):
-55.37%
Net income growth rate is -78.27% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
5.47%
Net debt to equity ratio:
19.17%
Debt to assets ratio:
2.82%
Net debt to assets ratio:
9.87%
Debt-to-asset ratio is -95.00% below industry average
Ability to repay debt:
Interest coverage ratio:
-112.28
Interest coverage ratio is -521.75% less than industry average
Looking forward:
Debt growth rate:
76.66%
Annual debt growth is 246% higher than industry average debt growth rate
Debt repayment rate in last quarter: 46.78%
Analysis of Key Statistics
Correlation of price movement with the market:
0.355
Statistical significance of correlation:
UEIC has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.532
Stock price is -33.39% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.532
Correlation of price movement with Nasdaq (^IXIC):
-0.034
Covariance of price movement with the market:
-0.058
Kurtosis
6.184
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.348
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
UEIC
Gross Profit Margin Ratio:
111%
Operating Profit Margin Ratio:
2.41%
Operating profit margin is -86.41% lower than the industry
Net Profit Margin Ratio:
111%
Effective Tax Rate:
165.21%
Effective tax rate is 728.59% higher than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
-1.70%
Return on equity (ROE) is -102.48% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
-0.88%
Return on assets (ROA) is -104.91% lower than the industry
Financial Leverage:
1.0x
Current Ratio:
1.49
Current ratio is -5.24% below industry average
Cash Conversion Cycle (days):
30.9
Cash conversion cycle is -71.47% below industry average
The remaining useful life of property plant & equipment is: 7.8 years
Stock based compensation to net income ratio:
-54.30%
In-depth Efficiency Analysis
Revenue generated per employee:
147.9K
Each employee generates -89% less revenue than industry average revenue per employee
EBITDA generated per employee:
8.4K
Each employee generates -97% less EBITDA than industry average revenue per employee
Profit generated per employee:
- 1.2K
Each employee generates -100% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 5.4K
Each employee generates -107% less free cash flow than industry average revenue per employee
Assets/Capital per employee
44.2K
Each employee generates -107% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- -1.69%
Growth rate in R&D investment/expenditure is -126.88% lower than the industry
Competitors/Peer firms of
UEIC
KOPIN CORPORATION (XNAS:KOPN)
ABSOLUTE SOFTWARE CORPORATION (XNAS:ABST)
MITEK SYSTEMS, INC. (XNAS:MITK)
MAXEON SOLAR TECHNOLOGIES, LTD. (XNAS:MAXN)
CASA SYSTEMS, INC. (XNAS:CASA)
RIMINI STREET, INC. (XNAS:RMNI)
AMERICAN SOFTWARE, INC. (XNAS:AMSWA)
HARMONIC INC. (XNAS:HLIT)
CLEANSPARK, INC. (XNAS:CLSK)
Current Analyst Ratings
Strong buy�8%
Buy�8%
Hold�4%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
583.47M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
420.59M
162.89M
30.78M
-
118.02M
-
-
148.80M
-
- 296.00K
26.47M
33.23M
14.08M
- 4602.00K
7.06M
11.66M
- 4602.00K
Statement of Cash Flow
Date:
Period:
6.05M
Differed Income Tax :
269.00K
Stock Based Compensation :
2.50M
Change in Working Capital :
- 23992.00K
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
120.00K
Net Cash Provided by Operating Activities:
- 17969.00K
Investments in PP&E:
- 1785.00K
Net Acquisitions:
- 939.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
53.63M
8.59M
62.22M
141.50M
139.40M
7.74M
350.85M
92.68M
49.15M
22.48M
-
7.71M
2.25M
174.27M
-
525.12M
82.55M
90.66M
9.84M
-
62.40M
235.61M
14.79M
1.83M
19.16M
-
254.77M
248.00K
327.38M
- 11675.0K
- 45597.00K
March 31, 2022 at 6:00:00 AM
569.39M
270.36M
525.12M
-
105.45M
51.8M
-
- 8897.00K
- 11621.00K
- 13000.00K
-
- 7354.00K
-
42.00M
21.65M
759.00K
- 7185.00K
53.63M
60.81M
- 17969.00K
- 3195.00K
- 21164.00K
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
UEIC
2023
2024
2025
2026
2027
$22.85
$24.54
$26.35
$28.30
$30.39