Bedrijfsoverzicht
Universal Safety Products, Inc. is engaged in the marketing and distribution of safety and security products within the United States, offering a specialized line of safety alarm units that include replaceable batteries, sealed batteries, battery backup alarms, and smoke alarms. This operational model places the company firmly within the Industrials sector, specifically in the Building Products & Equipment industry, where it functions as a distributor rather than a manufacturer. The entity operates on a very small scale, evidenced by a market capitalization of $16.03M and a total employee count of just 11 individuals. These financial figures indicate that Universal Safety Products, Inc. is a micro-cap company with limited market presence, as the annual revenue of $10.83M suggests a niche operation that serves a specific segment of the building safety market without achieving the scale of larger industrial peers.
Financiële gezondheid
The company reported a Total Revenue of $10.83M for the trailing twelve months, yet it recorded a Net Income of $-174,082 and an EBITDA of $-2,651,765. The significant divergence between the positive revenue of $10.83M and the negative Net Income of $-174,082 reveals a cost structure where operating expenses and taxes substantially exceed gross profits, while the negative EBITDA of $-2,651,765 indicates that even before interest and taxes, the core business operations are currently generating a loss. Despite the accounting losses, the company maintains a Free Cash Flow of $5.03M, which provides a critical source of financial flexibility allowing it to fund operations or reduce debt without relying on external equity financing. The balance sheet is characterized by a Cash position of $4.29M against total Debt of $1.89M, resulting in a Debt to Equity ratio of 83.22, which suggests a highly leveraged capital structure given the small equity base. However, the Current Ratio stands at 1.70, indicating that the company holds sufficient liquid assets to cover its short-term liabilities and maintain short-term liquidity. The Return on Equity is -5.4% and the Return on Assets is -22.0%, metrics that reveal that management effectiveness has been negative in recent periods, as the company is unable to generate positive returns on the capital invested by shareholders or utilized in its asset base.
Waarderingsbeoordeling
The company presents N/A for both the P/E Ratio (TTM) and the Forward P/E, which implies that standard earnings-based valuation multiples are not applicable due to the reported losses, preventing a direct comparison with profitable peers. Consequently, the valuation relies heavily on alternative metrics, specifically a Price to Book ratio of 6.01, which indicates that the market prices the stock at a significant premium relative to its tangible book value, potentially reflecting optimism about future turnaround potential or undervalued assets. The Price to Sales ratio is recorded at 1.48, and the EV/EBITDA stands at -5.14, suggesting that valuation is being driven by revenue multiples rather than profitability or cash flow efficiency. In terms of trading range, the stock has a 52-Week High of $8.27 and a 52-Week Low of $1.67, meaning the current market price fluctuates within a wide historical band that reflects high volatility. The Beta is -0.24, a unique statistic indicating that the stock's price volatility moves inversely to the broader market, which is an unusual characteristic for an industrial security firm and suggests specific idiosyncratic risk factors.
Growth & Income
Universal Safety Products, Inc. experienced a Revenue Growth (YoY) of -99.6%, while the Earnings Growth (YoY) is listed as N/A due to the negative earnings history. The drastic contraction in revenue of -99.6% combined with the absence of positive earnings growth implies that the company is currently in a period of severe business decline or restructuring rather than expansion. As a non-dividend payer, the company has a Dividend Yield of N/A and a Payout Ratio of 0.0%, which confirms that all available cash is retained within the business to support operations and pay down debt rather than being distributed to shareholders. Since the company does not pay dividends, the growth and income profile is entirely dependent on potential future operational improvements and the ability to convert its current cash reserves into profitable operations to restore earnings growth.