Universal Electronics Inc. Stock Upgraded (UEIC)

NEW YORK ( TheStreet) -- Universal Electronics (Nasdaq: UEIC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • UEIC's very impressive revenue growth greatly exceeded the industry average of 41.9%. Since the same quarter one year prior, revenues leaped by 56.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • UNIVERSAL ELECTRONICS INC has improved earnings per share by 38.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, UNIVERSAL ELECTRONICS INC increased its bottom line by earning $1.07 versus $1.05 in the prior year. This year, the market expects an improvement in earnings ($1.50 versus $1.07).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 50.6% when compared to the same quarter one year prior, rising from $4.70 million to $7.08 million.
  • Net operating cash flow has significantly increased by 332.69% to $7.21 million when compared to the same quarter last year. In addition, UNIVERSAL ELECTRONICS INC has also vastly surpassed the industry average cash flow growth rate of -72.87%.

Universal Electronics Inc. and its subsidiaries develop pre-programmed wireless control products and audio-video accessories that enhance home entertainment systems. The company has a P/E ratio of 16.3, above the average consumer durables industry P/E ratio of 14.6 and below the S&P 500 P/E ratio of 17.7. Universal has a market cap of $270 million and is part of the consumer goods sector and consumer durables industry. Shares are up 18.4% year to date as of the close of trading on Wednesday.

You can view the full Universal Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff