Universal Electronics Inc. Stock Downgraded (UEIC)

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 reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • UEIC's debt-to-equity ratio is very low at 0.06 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 0.96 is somewhat weak and could be cause for future problems.
  • The gross profit margin for UNIVERSAL ELECTRONICS INC is currently lower than what is desirable, coming in at 27.30%. It has decreased from the same quarter the previous year.
  • Net operating cash flow has significantly decreased to -$2.03 million or 808.04% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
.

Universal Electronics Inc. develops and manufactures pre-programmed wireless remote control products, audio-video accessories, and software products. The company has a P/E ratio of 11.5, below the average consumer durables industry P/E ratio of 11.7 and below the S&P 500 P/E ratio of 17.7. Universal has a market cap of $227.9 million and is part of the consumer goods sector and consumer durables industry. Shares are down 9.5% year to date as of the close of trading on Tuesday.

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