Universal Electronics Inc (UEIC) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA below its 5-year median

Universal Electronics's EV/EBITDA of 2.3 is below its 5-year median of 5.9.

P/B below the industry

Universal Electronics's price-to-book of 0.57 is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 3.01.

Trading below fair value

The share price of $6.17 is below our fair value estimate of $18.57.

Margin of safety over 20%

The price is 66.8% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -12.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -15.7% over the last twelve months; the Electronic and Other Electrical Equipment and Components, except Computer Equipment median is -3.5%.

Guidance unchanged

The latest outlook (fiscal year ending December 31, 2026 adjusted non‑GAAP diluted earnings per share, Aug 6, 2026) was maintained, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 29.2% over the last twelve months, against 28.6% a year earlier.

Return on equity under 15%

Return on equity was -5.0% over the last twelve months and averaged -13.8% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 3.4%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Universal Electronics's return on equity of -5.0% is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 0.4%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was -2.2% over the last twelve months, against a 5-year average of -6.7%.

Net margin below the industry

Universal Electronics's net margin of -2.2% is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -0.2%.

No debt

Universal Electronics has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.70 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.94; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Universal Electronics paid dividends worth 3.9% of the share price over the last twelve months.

Yield below Treasuries

The 3.9% yield is below the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Universal Electronics yields 3.9%.

Dividend stability

Fewer than five years of dividend history.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.