One-glance verdict
Undervalued
$15.35 our estimate vs market $2.73
82% below our estimate, below the bear case
Fundamentals snapshot
Yunhong Green CTI Ltd.
YHGJ · NCM · Consumer Cyclical · Packaging & Containers
Current price
$2.73
52-week range
$2.38 - $5.85
Market cap
$7.12M
Balance sheet
Distressed
-2.33x Concerning
Net debt $8.24M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 3/10 years.
- Risk Return on equity was -29.5% last year — the company lost money on shareholders' equity.
- Risk Net debt grew 28.3% over 3 years.
- Risk Operating margin compressed from -6.2% to -8.2% over 3 years.
What this company does
Yunhong Green CTI Ltd.
Yunhong Green CTI Ltd. makes and sells fun consumer products like balloons and novelty gifts, as well as flexible films used for packaging food. Most of their money comes from selling these items to a wide range of stores, from big chains to smaller gift shops. This matters because it shows how broadly their products reach customers.
How the company got here
Yunhong Green CTI Ltd., originally known as Yunhong CTI Ltd., has been around since 1983. It started by making and selling consumer products. In August 2023, the company officially changed its name to Yunhong Green CTI Ltd., signaling a potential shift or rebranding. Headquartered in Lake Barrington, Illinois, the company has evolved over the decades, adapting its product offerings and market reach within the consumer goods sector.
What it actually does
Yunhong Green CTI Ltd. is involved in creating, manufacturing, and selling a variety of consumer products. These products range from fun novelty items like balloons and gift accessories to practical flexible films used in packaging. The company distributes these goods to a wide array of retailers, including large general merchandise stores, drugstores, grocery chains, and specialized party supply shops. They also sell to florists and balloon decorators, reaching consumers through various channels like direct sales, distributors, and independent representatives.
Novelty Products
This part of Yunhong Green CTI Ltd. focuses on creating fun and celebratory items. They produce foil and latex balloons, which are common for birthdays and parties, along with related gift items. Additionally, they make inflatable latex products such as punch balls, water bombs, and specially designed twisted balloons. These products are sold to various retail outlets that cater to gift-giving and party occasions, making up a significant portion of the company's consumer-facing business.
Flexible Films
Beyond party supplies, Yunhong Green CTI Ltd. also manufactures flexible films. These films are used for packaging food products, ensuring freshness and safety. They are also utilized for other commercial and industrial packaging needs. This segment serves businesses that require reliable packaging solutions, demonstrating the company's capability to produce more industrial-oriented goods alongside its consumer novelty items.
What management is betting on now
While specific current strategic priorities are not detailed in the provided information, the company's name change to Yunhong Green CTI Ltd. in August 2023 suggests a potential focus on sustainability or environmental initiatives, though this is not explicitly stated. Historically, the company has operated in both the novelty consumer products and flexible packaging film markets. Management likely aims to grow sales in these existing areas by expanding their retail partnerships and potentially introducing new product variations to meet evolving consumer demands and business needs.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$726.00K
FY2024 Q4
$-2.17M
FY2025 Q1
$950.00K
FY2025 Q2
$722.00K
FY2025 Q3
$560.00K
FY2026 Q1
$209.00K
FY2026 Q2
$2.30M
Revenue
—
Net income
$-543.00K
Diluted EPS
-0.22
Operating cash flow
$2.30M
Free cash flow
$2.30M
Fetching…
Sources
Revenue
—
Net income
$-341.00K
Diluted EPS
-0.15
Operating cash flow
$236.00K
Free cash flow
$209.00K
Fetching…
Sources
Revenue
—
Net income
$-1.12M
Diluted EPS
-0.69
Operating cash flow
$-2.47M
Free cash flow
—
Fetching…
Sources
Revenue
—
Net income
$-811.00K
Diluted EPS
-0.31
Operating cash flow
$586.00K
Free cash flow
$560.00K
Fetching…
Sources
Revenue
—
Net income
$-185.00K
Diluted EPS
0.01
Operating cash flow
$744.00K
Free cash flow
$722.00K
Fetching…
Sources
Revenue
—
Net income
$-416.00K
Diluted EPS
-0.02
Operating cash flow
$970.00K
Free cash flow
$950.00K
Fetching…
Sources
Revenue
—
Net income
$684.00K
Diluted EPS
0.03
Operating cash flow
$-2.14M
Free cash flow
$-2.17M
Fetching…
Sources
Revenue
—
Net income
$-1.19M
Diluted EPS
-0.05
Operating cash flow
$754.00K
Free cash flow
$726.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $15.35 vs current price $2.73
Our most-likely fair value is $15.35 a share — about 462.3% above today's price of $2.73, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $8.2M. Interest coverage -2.3x.
Net debt
$8.24M
Interest coverage
-2.33x
Yunhong Green CTI Ltd.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
YHGJ
BASELINE
Yunhong Green CTI Ltd.
Total debt $8.56M Interest coverage -2.33x This is the baseline the peer rows are being compared against.
Total debt $4.40B Interest coverage 15.87x This peer still has a real interest-payment cushion, while YHGJ does not.
Total debt $15.14B Interest coverage 3.25x This peer still has a real interest-payment cushion, while YHGJ does not.
Total debt $5.71B Interest coverage 1.47x This peer still has a real interest-payment cushion, while YHGJ does not.
Total debt $72.72M Interest coverage 19.91x This peer still has a real interest-payment cushion, while YHGJ does not.
Total debt $1.23B Interest coverage 6.72x This peer still has a real interest-payment cushion, while YHGJ does not.
What you should know
The case for and against YHGJ
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 3/10 years.
Risks
-
Return on equity was -29.5% last year — the company lost money on shareholders' equity.
-
Net debt grew 28.3% over 3 years.
-
Operating margin compressed from -6.2% to -8.2% over 3 years.
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
—
P/B
1.16x
P/S
0.37x
EV/EBITDA
-513.73x
PEG ratio
6.22x
Profitability
How much profit each dollar creates
Gross margin
16.9%
Operating margin
-8.2%
Net margin
-14.4%
ROE
-29.5%
ROA
-1.9%
Health
Liquidity and balance-sheet strength
Debt / equity
1.11x
Current ratio
1.41x
Quick ratio
0.43x
Total debt
$8.56M
Total cash
$320.00K
Growth
How the business has been compounding
Revenue TTM
$56.24M
Revenue 5Y CAGR
0.1%
EPS TTM
-1.11
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$649.00K
Free CF TTM
$-1.60M
FCF margin
-2.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2011-07-14