Présentation de l'entreprise
Yunhong Green CTI Ltd. operates within the consumer cyclical sector, specifically focusing on the packaging and containers industry, where it develops, produces, distributes, and sells a diverse range of consumer products across the United States and international markets. The firm's portfolio includes novelty items such as foil and latex balloons, alongside inflatable latex products like punch balls, water bombs, and twisted balloon shapes, catering to event planning and party supply needs. With a market capitalization of $7.82 million and an annual revenue of $19.70 million, the company maintains a relatively small scale in its industry, employing a workforce of 52 individuals to support its operations. This valuation indicates that the enterprise is a micro-cap entity with limited market dominance, suggesting that its financial performance is highly sensitive to fluctuations in consumer discretionary spending and specific event industry trends. The modest revenue figure relative to the market cap implies a significant valuation premium in the current pricing structure, while the small employee count highlights a lean operational model typical of niche packaging firms.
Santé financière
The company reported trailing twelve-month revenue of $19.70 million, yet it generated a net income loss of $-2,702,000, revealing a substantial disconnect between top-line sales and bottom-line profitability that points to aggressive cost structures or significant operational expenses. Despite the negative net income, the business generated positive EBITDA of $263,000, indicating that core operating cash flows remain positive before interest and tax obligations, though this figure is insufficient to cover interest costs without significant leverage. However, the free cash flow stands at $-1,407,000, which signifies that the company is burning cash rather than accumulating liquidity, thereby limiting its financial flexibility for capital expenditures or unexpected market downturns. The gross margin is recorded at 18.2%, while the operating margin sits at 11.8% and the profit margin is negative at -12.8%, illustrating that high operating costs or non-operating losses are eroding the value created from sales. On the balance sheet, Yunhong Green CTI Ltd. holds $97,000 in cash but carries $11.13 million in debt, resulting in a debt-to-equity ratio of 130.07, which characterizes the company as highly leveraged and potentially vulnerable to rising interest rates. This leverage is further contextualized by a current ratio of 1.41, suggesting that while short-term liquidity is technically sufficient to cover immediate liabilities, the margin of safety is narrow. Furthermore, the return on equity is -26.3% and the return on assets is -1.0%, metrics that reveal management's current inability to generate returns on shareholder capital or the asset base, reflecting the challenges of operating in a loss-making phase.
Évaluation de la valorisation
The trailing P/E ratio is not available due to the net loss, and the forward P/E is also not available, meaning standard earnings-based valuation metrics cannot be applied to assess the expected earnings trajectory or justify the current share price. Instead, the price-to-book ratio is 1.11, indicating that the market values the company at a slight premium over its net book value, which may reflect expectations of future asset appreciation or brand intangibles despite current losses. Alternative valuation metrics such as the price-to-sales ratio of 0.40 and the EV/EBITDA of 77.38 provide a different perspective, suggesting the stock is trading at a discount relative to sales but carries a very high multiple relative to its earnings before interest, taxes, depreciation, and amortization. The 52-week high is $11.50 and the 52-week low is $2.38, indicating that the current trading price sits significantly below the yearly peak, reflecting recent market sentiment or specific sector headwinds. The beta of 0.38 suggests that the stock exhibits low volatility relative to the broader market, moving with only 38% of the intensity of the overall index, which may offer stability to portfolios seeking lower correlation assets, although this low beta often correlates with the limited growth prospects of small-cap firms.
Growth & Income
Revenue growth year-over-year is 5.3%, whereas earnings growth is not available due to the negative net income, implying that the company is currently prioritizing revenue expansion over immediate profitability, a common strategy for firms in high-growth or capital-intensive stages. Since the company does not pay dividends, the dividend yield is not applicable and the payout ratio is 0.0%, confirming that the firm retains all earnings to reinvest into growth initiatives or to service its substantial debt obligations rather than distributing income to shareholders. The absence of a dividend program aligns with the negative profit margin of -12.8% and the negative free cash flow, necessitating a capital structure that relies on retained earnings and external financing rather than shareholder distributions. Overall, Yunhong Green CTI Ltd. presents a growth and income profile characterized by modest revenue expansion and a total lack of current income generation, requiring investors to rely on potential future turnaround scenarios rather than current cash returns.