- Net operating cash flow has significantly decreased to $0.29 million or 94.20% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The gross profit margin for UNIVERSAL ELECTRONICS INC is currently lower than what is desirable, coming in at 30.20%. It has decreased from the same quarter the previous year.
- UEIC's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.99 is somewhat weak and could be cause for future problems.
- The revenue growth greatly exceeded the industry average of 14.1%. Since the same quarter one year prior, revenues rose by 48.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
NEW YORK ( TheStreet) -- Universal Electronics (Nasdaq: UEIC) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow. Highlights from the ratings report include: