Bedrijfsoverzicht
Yunhong Green CTI Ltd. functions as a developer, producer, distributor, and seller of consumer products within both the United States and international markets, with a specific focus on novelty items such as foil and latex balloons, inflatable latex goods like punch balls and water bombs, and custom-shaped twisted balloons. The enterprise operates within the Consumer Cyclical sector, specifically targeting the Packaging & Containers industry, which implies its performance is closely tied to discretionary consumer spending and seasonal demand fluctuations. This entity maintains a modest operational scale with a market capitalization of $7.50M, generating total annual revenue of $19.70M while employing a workforce of 52 individuals. These valuation and revenue figures indicate that the company occupies a niche position within the broader packaging landscape, characterized by a small market cap that reflects limited institutional ownership and a revenue stream that suggests a specialized rather than mass-market dominance in the balloon and inflatable goods segment.
Financiële gezondheid
The company reported revenue of $19.70M over the trailing twelve months, yet recorded a net income loss of $-2,702,000, creating a significant gap that reveals a cost structure where operating expenses and taxes substantially exceeded gross profits. Despite this net loss, the firm generated an EBITDA of $263,000, suggesting that core operational cash generation remains positive before financing and non-cash charges. However, the free cash flow stands at $-1,407,000, indicating that capital expenditures and working capital requirements are outpacing cash inflows, which constrains the company's financial flexibility and ability to fund organic expansion without external financing. Margin analysis shows a gross margin of 18.2%, an operating margin of 11.8%, and a profit margin of -12.8%, illustrating that while the production of packaging goods retains a healthy portion of the sales price, significant overhead costs or one-time charges erode profitability at the bottom line. On the balance sheet, Yunhong Green CTI holds $97,000 in cash against a debt obligation of $11.13M, resulting in a highly leveraged position with a debt-to-equity ratio of 130.07. This disparity between liquid assets and liabilities suggests the company relies heavily on leverage to finance its operations, increasing sensitivity to interest rate changes and cash flow interruptions. Liquidity is supported by a current ratio of 1.41, which indicates the company possesses 1.41 dollars of current assets for every dollar of current liabilities, providing a moderate buffer against short-term obligations. Return metrics further highlight financial stress, with a return on equity of -26.3% and a return on assets of -1.0%, revealing that management is currently destroying shareholder value and utilizing assets inefficiently to generate returns relative to the capital invested.
Waarderingsbeoordeling
Valuation multiples for Yunhong Green CTI Ltd. are unavailable in traditional earnings terms, as the P/E Ratio (TTM) and Forward P/E are listed as N/A due to the lack of positive net income, which prevents a direct earnings-based valuation. The price-to-book ratio stands at 1.06, indicating that the market values the company's equity at a level slightly above its accounting book value, suggesting a neutral to slightly optimistic market sentiment regarding the quality of its assets. Alternative valuation metrics provide additional context, with a price-to-sales ratio of 0.38 and an EV/EBITDA of 76.18, which suggests the stock is priced low relative to sales but commands a premium multiple relative to earnings before interest, taxes, depreciation, and amortization. The stock price has ranged between a 52-week low of $2.38 and a 52-week high of $11.00, meaning the current trading level sits at a specific point within this wide volatility range, reflecting the uncertainty surrounding future earnings potential. The beta value is recorded at 0.38, indicating that the stock's price volatility is significantly lower than that of the broader market, suggesting the asset may offer a hedge against general market downturns, although the high EV/EBITDA ratio complicates the risk-reward profile given the company's current profitability challenges.
Growth & Income
Revenue growth for the trailing twelve months is 5.3%, while earnings growth is N/A because the company is currently unprofitable, meaning earnings are not growing faster than revenue in a traditional sense but rather fluctuate with operational costs and losses. As a non-dividend payer, the company does not distribute cash to shareholders, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, implying that any retained earnings are theoretically reinvested into growth initiatives or used to service debt rather than being distributed as income. The overall growth and income profile is characterized by steady top-line expansion coupled with significant profitability headwinds and an absence of dividend income for investors seeking passive cash flow. This combination suggests the company is in a developmental phase where capital retention is prioritized over shareholder returns, relying on future operational improvements to convert current losses into sustainable profits.