Company Overview
United-Guardian, Inc. operates within the Consumer Defensive sector, specifically focusing on the Household & Personal Products industry, where it develops, manufactures, sells, and markets specialty cosmetic ingredients, pharmaceutical products, medical lubricants, and sexual wellness ingredients for both domestic and international markets. The company's product portfolio includes specific offerings such as LUBRAJEL, a line of multifunctional cosmetic ingredients, alongside its broader range of medical and wellness solutions. In terms of scale, United-Guardian, Inc. holds a market capitalization of $30.14M and reports annual revenue (TTM) of $10.55M, while the number of employees is listed as N/A in available records. These financial figures indicate that the company operates as a small-cap entity with a relatively modest revenue base compared to large-cap competitors, suggesting a niche position within the specialty ingredient and pharmaceutical space rather than broad market dominance. The valuation metrics further contextualize this scale, showing a price-to-book ratio of 2.68 and a price-to-sales ratio of 2.86, which reflect how the market values its tangible assets and sales volume relative to peers in the defensive consumer sector.
Financial Health
The company generated revenue of $10.55M over the trailing twelve months, resulting in a net income of $2.11M and an EBITDA of $2.35M, revealing a cost structure where operating expenses consume a significant portion of revenue before reaching the bottom line. The gap between the $10.55M revenue and the $2.11M net income highlights the operational costs and taxes incurred, which reduce pre-tax earnings by approximately 80% before considering interest and taxes. United-Guardian, Inc. maintains a free cash flow of $845,767, indicating that the business generates sufficient cash to cover operational needs and potentially fund internal initiatives or debt obligations without relying heavily on external financing. The firm holds $8.57M in cash, while specific debt figures are not listed in the available data, creating a balance sheet profile that appears conservative given the substantial cash reserves relative to the small market cap. Liquidity is exceptionally strong, evidenced by a current ratio of 7.31, which suggests the company possesses more than seven times the current assets required to meet its short-term liabilities, providing a robust buffer against immediate financial obligations. Return on Equity stands at 18.2% and Return on Assets is 10.4%, metrics that demonstrate management's effectiveness in generating returns from shareholder equity and total asset base, respectively.
Valuation Assessment
The trailing twelve-month P/E ratio is 15.26, whereas the forward P/E is listed as N/A, implying that analysts may not have sufficient consensus on future earnings growth to project a forward multiple, or that the company's earnings trajectory is viewed with caution due to the lack of forward guidance. The price-to-book ratio of 2.68 indicates that the market values the company at a premium of roughly 168% over its book value, suggesting investors are willing to pay extra for the intangible assets, brand equity, or growth potential embedded in its specialty ingredient business. Alternative valuation metrics such as the price-to-sales ratio of 2.86 and an EV/EBITDA of 9.17 provide additional context, showing that the company trades at a premium relative to its sales and earnings before interest, taxes, depreciation, and amortization compared to typical low-margin manufacturing firms. The stock has traded between a 52-week low of $5.58 and a 52-week high of $9.88, and without a specific current share price provided in the facts, the valuation range establishes the bounds of recent market sentiment and volatility over the past year. The beta value is 1.00, indicating that the stock's price volatility moves in tandem with the broader market, offering no significant hedge against systemic risk nor amplifying market swings during periods of instability.
Growth & Income
United-Guardian, Inc. reported a revenue growth rate of 19.6% year-over-year and an earnings growth rate of 29.0% year-over-year, demonstrating that earnings are expanding at a significantly faster pace than revenue, which often points to improving operational efficiency, margin expansion, or a shift in the product mix toward higher-margin items. The company pays a dividend with a yield of 7.6%, yet the payout ratio is 139.5%, meaning the dividends paid exceed the current net income generated in the trailing twelve months. This high payout ratio relative to earnings suggests that the company is likely using cash reserves or prior retained earnings to fund dividend payments, which may not be sustainable indefinitely if earnings do not accelerate to match the payout level. Given the payout ratio exceeding 100%, the current dividend yield cannot be supported solely by current earnings, and the company may need to adjust payouts or rely on cash balances to maintain the yield. Overall, the company presents a profile of strong recent growth in profitability that contrasts with a dividend policy that currently relies on capital reserves rather than current income generation.