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UEIC: Ongoing Buybacks And Margin Stability Will Support Future Upside

Connected Home Expansion Will Drive Growth Despite Margin Risks

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UEIC
AnalystConsensusTarget
Not Invested
Published 16 May 2025

Update shared on 10 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-72.9%
7D
-3.1%

Analysts have nudged their price target for Universal Electronics modestly higher to reflect a stable fair value estimate of $4.25 per share, supported by largely unchanged views on revenue contraction, profit margins, and valuation multiples.

What's in the News

  • The board extends the existing share repurchase authorization, allowing the buyback program to continue until it is either fully executed or formally terminated by directors (Key Developments).
  • The company completes the repurchase of 221,638 shares, representing about 1.72% of outstanding stock for approximately $1.97 million, with no additional shares bought between July 1 and November 4, 2025 (Key Developments).
  • Universal Electronics issues fourth quarter 2025 guidance, projecting GAAP net sales of $82 million to $92 million, compared with $110.5 million a year earlier, and narrowing the GAAP loss per share to a range of $0.30 to $0.20 from a $0.35 loss in the prior year quarter (Key Developments).
  • The company records an unaudited impairment charge of about $1.19 million on long lived assets in the third quarter of 2025, reflecting continued rationalization of its asset base (Key Developments).
  • The board appoints long time finance executive Sui Man Raymond Ho as interim Chief Financial Officer, elevating him from his role as Senior Vice President, Finance, effective September 12, 2025 (Key Developments).

Valuation Changes

  • Fair Value Estimate unchanged at $4.25 per share, indicating a stable view of intrinsic value.
  • Discount Rate edged down slightly from 10.32% to about 10.30%, reflecting a marginally lower perceived risk profile.
  • Revenue Growth effectively unchanged at approximately negative 11.19%, signaling a consistent expectation of double digit top line contraction.
  • Net Profit Margin effectively flat at about 7.43%, suggesting no meaningful adjustment to long term profitability assumptions.
  • Future P/E nudged down slightly from about 3.92x to 3.92x, implying a marginally lower valuation multiple applied to forward earnings.

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