Company Overview
Yunhong Green CTI Ltd. operates as a developer, producer, distributor, and seller of consumer products across both the United States and international markets. The company focuses specifically on the consumer cyclical sector within the packaging and containers industry, specializing in novelty items such as foil and latex balloons, inflatable latex goods like punch balls and water bombs, and twisted balloon shapes. As a publicly traded entity with the ticker symbol YHGJ, the company maintains a market capitalization of $7.14M and generates annual revenue of $19.70M. The company employs an unspecified number of staff, which is listed as N/A in available records. These financial metrics indicate that Yunhong Green CTI Ltd. is a small-cap enterprise with a relatively modest revenue footprint, suggesting it operates with limited market dominance and is highly sensitive to shifts in consumer discretionary spending patterns typical of the packaging and novelty goods industry.
Financial Health
The company reported revenue of $19.70M over the trailing twelve months, yet it recorded a net loss of $-2,702,000, revealing a significant structural gap where operational costs and expenses substantially exceed gross profitability. Despite this net loss, the company generated positive EBITDA of $263,000, indicating that core operational activities before interest and taxes are covering their direct costs, though non-operating expenses or financing costs are driving the bottom-line deficit. The firm also reported free cash flow of $-1,407,000, which signals a lack of financial flexibility to fund internal growth initiatives or return capital to shareholders without external financing. Analyzing the margin structure, Yunhong Green CTI Ltd. holds a gross margin of 18.2%, an operating margin of 11.8%, and a negative profit margin of -12.8%. The widening disparity between the positive operating margin and the negative profit margin suggests that interest expenses or other non-operating costs are eroding operating profits to a point where the company is unprofitable on an accrual basis. On the balance sheet, the company holds $97,000 in cash against $11.13M in debt, resulting in a debt-to-equity ratio of 130.07%, which characterizes the balance sheet as highly leveraged and reliant on external funding. The current ratio stands at 1.41, indicating that the company possesses sufficient current assets to cover its short-term liabilities, though the margin of safety is not excessive given the high debt load. Return on equity is -26.3% and return on assets is -1.0%, metrics that reveal management is currently destroying shareholder value and failing to generate adequate returns on the capital deployed in the business.
Valuation Assessment
Trailing twelve-month P/E and forward P/E ratios are listed as N/A due to the company's negative earnings position, implying that traditional earnings-based valuation models are currently inapplicable and that any future earnings trajectory must be assessed once profitability is restored. The price-to-book ratio is 1.01, suggesting that the market values the company's equity at roughly equal to its book value, which often occurs with distressed or unprofitable firms where market premiums are absent. Alternative valuation metrics include a price-to-sales ratio of 0.36 and an EV/EBITDA multiple of 74.81, figures that suggest the market is pricing the company based on sales volume rather than profitability, while the high EV/EBITDA multiple reflects the significant debt load and lack of earnings relative to enterprise value. Regarding price volatility, the 52-week high is $11.50 and the 52-week low is $2.38; without a specific current share price provided in the facts to calculate an exact percentage, the valuation range demonstrates a wide trading band of $9.12. The stock exhibits a beta of 0.45, which indicates that the stock's price volatility is less than the broader market, suggesting it may move with less intensity than the overall market index during periods of economic fluctuation.
Growth & Income
Revenue growth for the year-over-year period stands at 5.3%, while earnings growth is listed as N/A due to the negative net income figure, implying that the company is expanding its top line but has not yet achieved scalable earnings growth to match this revenue expansion. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning the company retains all its earnings to fund operations or pay down debt rather than distributing income to shareholders. This non-dividend status is consistent with the company's negative net income and negative free cash flow, necessitating the reinvestment of limited resources into business continuity and debt management rather than income generation. Overall, Yunhong Green CTI Ltd. presents a growth profile characterized by modest revenue expansion and an income profile defined by a complete absence of dividend income and significant earnings challenges.