One-glance verdict
Undervalued
$25.08 our estimate vs market $5.50
Wall Street consensus: $5.00 (-80.1% lower than our fair-value estimate)
78% below our estimate, below the bear case
Fundamentals snapshot
Universal Electronics Inc.
UEIC · NMS · Technology · Consumer Electronics
Current price
$5.50
52-week range
$2.69 - $5.99
Market cap
$70.87M
Balance sheet
Healthy
-5.54x Concerning
Net cash $2.12M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
- Reward Free cash flow was positive in 7/10 years.
- Risk Return on equity was -10.2% last year — the company lost money on shareholders' equity.
What this company does
Universal Electronics Inc.
Universal Electronics Inc. makes smart home gadgets like universal remotes and thermostats that connect to your devices. Most of their money comes from selling these products to big companies that then put their own brand on them. This matters because it shows how many different kinds of homes and devices their technology can control.
How the company got here
Universal Electronics Inc. (UEI) was founded in 1986 and has grown to become a global leader in creating control and sensing technologies for the smart home. [1, 2, 6, 8, 10, 11, 15] The company's journey began with the development of universal remote controls, aiming to simplify how people interact with their electronic devices. [4, 8] Over the years, UEI has expanded its expertise through strategic acquisitions, notably in home security and automation (Ecolink in 2015) and smart thermostats (RCS Technology in 2017), broadening its product portfolio beyond entertainment controls. [1, 11] This evolution has positioned UEI as a key player in the connected home market, providing solutions for a wide range of industries including consumer electronics, climate control, and security. [2, 3, 5, 10, 12]
What it actually does
Universal Electronics Inc. designs, develops, manufactures, and ships a variety of smart home products and technology solutions. [1, 2, 7, 10] These products range from universal remote controls and voice-enabled smart home hubs to smart thermostats and wireless sensors. [1, 3, 10] UEI's technology enables devices to connect and work together seamlessly within a home network, simplifying how people interact with their electronics and manage their living environment. [2, 6, 11, 15] The company serves both well-known brands (as an original equipment manufacturer, or OEM) and sells products under its own brands, such as "One For All" for audio-video accessories. [1, 8]
Home Entertainment and Computing Control
This segment is where UEI makes its mark by creating devices that allow users to control their various entertainment and computing gadgets. [1, 5, 8] This includes designing and manufacturing universal remote controls that can operate multiple devices like TVs, soundbars, set-top boxes, and even gaming consoles. [1, 4, 5, 11] They also provide the underlying technology, such as software and chips, to major consumer electronics companies, enabling these devices to be easily controlled and to communicate with each other. [1, 5, 9] This part of the business is a significant contributor to UEI's revenue, as remote controls and related entertainment control solutions are a core part of their offerings. [1, 4, 8]
Smart Home and Security Solutions
Through brands like Ecolink, UEI offers a range of products focused on making homes smarter and more secure. [1, 2] This includes wireless sensors that detect motion, door/window openings, and environmental changes like temperature or water leaks. [1, 3, 12] They also provide smart home hubs and controllers that allow these sensors, along with other smart devices, to be managed and automated. [1, 2, 11] These solutions are sold to professional security installers, DIY consumers, and other manufacturers, contributing to the growing market for home automation and safety. [1, 5, 12]
Climate Control and Energy Management
UEI is increasingly focused on the climate control market, developing smart thermostats and connected peripherals for energy management. [1, 3, 12] Their "TIDE" line of smart thermostats, for example, helps homeowners monitor and manage their heating and cooling systems to improve energy efficiency and reduce costs. [3, 11, 15] These products often include sensors for temperature and occupancy, allowing for more intelligent and automated climate adjustments. [3, 12] This segment serves residential, commercial, and hospitality markets, as well as utilities looking to offer energy-saving solutions to their customers. [3, 5]
Software and Cloud Services
A crucial, though less visible, part of UEI's business involves providing software and cloud-based services that power many of their hardware products and those of their partners. [1, 7, 9] Their QuickSet Cloud platform, for instance, automatically identifies and configures a wide array of entertainment and smart home devices, simplifying setup and ensuring they work together. [1, 2, 7, 11, 15] This technology also enables features like voice control, remote diagnostics, and firmware updates for devices. [1, 11, 12] UEI licenses this intellectual property to other companies, making it a key revenue stream and a foundational element of their smart home ecosystem. [1, 7, 12]
What management is betting on now
Universal Electronics Inc. is strategically focusing on expanding its presence in the climate control market, driven by the increasing demand for energy-efficient and smart home solutions. [12] The company is also heavily invested in innovation, particularly in areas like energy harvesting technology and advanced sensing capabilities for smart home devices. [11, 15] Management aims to create products and technologies that simplify user interaction with complex home systems, emphasizing a user-centric approach and ensuring privacy and security by design. [11, 15] UEI is also committed to sustainability, working to reduce the environmental footprint of its products throughout their lifecycle and promoting responsible sourcing and manufacturing. [13, 14]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$4.82M
FY2024 Q4
$5.45M
FY2025 Q1
$7.94M
FY2025 Q2
$7.50M
FY2025 Q3
$9.25M
FY2025 Q4
$-4.94M
FY2026 Q1
$-1.55M
FY2026 Q2
$5.48M
Revenue
$73.24M
Net income
$1.64M
Diluted EPS
0.12
Operating cash flow
$6.30M
Free cash flow
$5.48M
Fetching…
Sources
Revenue
$79.04M
Net income
$-7.33M
Diluted EPS
-0.58
Operating cash flow
$-781.00K
Free cash flow
$-1.55M
Fetching…
Sources
Revenue
$87.75M
Net income
$-1.08M
Diluted EPS
-0.09
Operating cash flow
$-4.21M
Free cash flow
$-4.94M
Fetching…
Sources
Revenue
$90.55M
Net income
$-8.33M
Diluted EPS
-0.62
Operating cash flow
$10.13M
Free cash flow
$9.25M
Fetching…
Sources
Revenue
$97.67M
Net income
$-2.91M
Diluted EPS
-0.22
Operating cash flow
$8.72M
Free cash flow
$7.50M
Fetching…
Sources
Revenue
$92.33M
Net income
$-6.27M
Diluted EPS
-0.48
Operating cash flow
$8.98M
Free cash flow
$7.94M
Fetching…
Sources
Revenue
$110.45M
Net income
$-4.53M
Diluted EPS
-0.35
Operating cash flow
$6.48M
Free cash flow
$5.45M
Fetching…
Sources
Revenue
$102.07M
Net income
$-2.66M
Diluted EPS
-0.20
Operating cash flow
$5.66M
Free cash flow
$4.82M
Fetching…
Sources
Is it cheap or expensive?
Fair value $25.08 vs current price $5.50
Wall Street consensus is the average analyst price target: $5.00 (-80.1% lower than our fair-value estimate).
Our most-likely fair value is $25.08 a share — about 356.0% above today's price of $5.50, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $2.1M - more cash than debt. Interest coverage -5.5x.
Net debt
$-2.12M
Interest coverage
-5.54x
Universal Electronics Inc. is healthier than 0 of 1 peers on balance-sheet leverage.
Healthy
Worse cushion
Baseline
Better cushion
UEIC
BASELINE
Universal Electronics Inc.
Total debt $30.28M Interest coverage -5.54x This is the baseline the peer rows are being compared against.
What you should know
The case for and against UEIC
1 Reward
1 Risk
Rewards
-
Free cash flow was positive in 7/10 years.
Risks
-
Return on equity was -10.2% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
10.00x
P/B
0.50x
P/S
0.21x
EV/EBITDA
5.55x
PEG ratio
0.55x
Profitability
How much profit each dollar creates
Gross margin
29.9%
Operating margin
6.5%
Net margin
-4.6%
ROE
-10.2%
ROA
0.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.21x
Current ratio
1.77x
Quick ratio
1.09x
Total debt
$30.28M
Total cash
$32.40M
Growth
How the business has been compounding
Revenue TTM
$330.57M
Revenue 5Y CAGR
-11.5%
EPS TTM
-1.12
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$11.44M
Free CF TTM
$19.75M
FCF margin
6.0%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2026-08-24