ASX:UBI

Stock Analysis Report

Universal Biosensors

Executive Summary

Universal Biosensors, Inc., through its subsidiary, Universal Biosensors Pty Ltd, designs and develops electrochemical cells in Australia.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Universal Biosensors's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UBI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.1%

UBI

4.4%

AU Medical Equipment

0.3%

AU Market


1 Year Return

-25.0%

UBI

-1.4%

AU Medical Equipment

-22.9%

AU Market

Return vs Industry: UBI underperformed the Australian Medical Equipment industry which returned -1.3% over the past year.

Return vs Market: UBI underperformed the Australian Market which returned -22.9% over the past year.


Shareholder returns

UBIIndustryMarket
7 Day7.1%4.4%0.3%
30 Day0%-22.1%-25.3%
90 Day-21.1%-26.9%-29.9%
1 Year-25.0%-25.0%0.4%-1.4%-19.4%-22.9%
3 Year-63.4%-63.4%18.2%12.7%-8.3%-20.8%
5 Year-36.2%-36.2%56.9%43.2%2.9%-20.3%

Price Volatility Vs. Market

How volatile is Universal Biosensors's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Universal Biosensors undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UBI (A$0.15) is trading below our estimate of fair value (A$18.72)

Significantly Below Fair Value: UBI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UBI is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: UBI is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UBI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UBI is good value based on its PB Ratio (0.6x) compared to the AU Medical Equipment industry average (3.2x).


Next Steps

Future Growth

How is Universal Biosensors forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

40.2%

Forecasted Healthcare industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Universal Biosensors has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Universal Biosensors performed over the past 5 years?

53.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UBI is currently unprofitable.

Growing Profit Margin: UBI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: UBI is unprofitable, but has reduced losses over the past 5 years at a rate of 53.3% per year.

Accelerating Growth: Unable to compare UBI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: UBI is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (14.7%).


Return on Equity

High ROE: UBI has a negative Return on Equity (-10.68%), as it is currently unprofitable.


Next Steps

Financial Health

How is Universal Biosensors's financial position?


Financial Position Analysis

Short Term Liabilities: UBI's short term assets (A$37.1M) exceed its short term liabilities (A$10.2M).

Long Term Liabilities: UBI's short term assets (A$37.1M) exceed its long term liabilities (A$7.1M).


Debt to Equity History and Analysis

Debt Level: UBI is debt free.

Reducing Debt: UBI has no debt compared to 5 years ago when its debt to equity ratio was 91.4%.


Balance Sheet

Inventory Level: UBI has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if UBI's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: UBI has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: UBI has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Universal Biosensors's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate UBI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate UBI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if UBI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UBI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of UBI's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Salesh Balak (50yo)

0.67

Tenure

AU$393,573

Compensation

Mr. Salesh Balak, BA, CA, has been the Chief Financial Officer of Universal Biosensors Inc. since November 27, 2006 and has been its Company Secretary since December 20, 2018 also its Interim Principal Exe ...


CEO Compensation Analysis

Compensation vs Market: Salesh's total compensation ($USD241.40K) is about average for companies of similar size in the Australian market ($USD245.34K).

Compensation vs Earnings: Salesh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Salesh Balak
CFO & Company Secretary0.67yrAU$393.57k0.13% A$34.0k
Judy Andrews
Director of Operations & Manufacturing Engineering1.67yrsno datano data
Ronald Chatelier
Chief Research Scientist17.92yrsAU$112.95kno data

1.7yrs

Average Tenure

Experienced Management: UBI's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Craig Coleman
Non-Executive Chairman2.58yrsAU$177.92k0.12% A$33.0k
David Hoey
Independent Non-Executive Director4yrsAU$57.60k0.32% A$85.0k
Judith Smith
Independent Non-Executive Director5yrsAU$73.90k0.056% A$15.0k
Marshall Heinberg
Independent Non-Executive Director10.17yrsAU$62.60k0.011% A$3.0k

4.5yrs

Average Tenure

60.5yo

Average Age

Experienced Board: UBI's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Universal Biosensors, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Universal Biosensors, Inc.
  • Ticker: UBI
  • Exchange: ASX
  • Founded: 2001
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: AU$26.636m
  • Shares outstanding: 177.57m
  • Website: https://www.universalbiosensors.com

Number of Employees


Location

  • Universal Biosensors, Inc.
  • 1 Corporate Avenue
  • Rowville
  • Victoria
  • 3178
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UBIASX (Australian Securities Exchange)YesNPV (CDI)AUAUDDec 2006
UBICHIA (Chi-X Australia)YesNPV (CDI)AUAUDDec 2006

Biography

Universal Biosensors, Inc., through its subsidiary, Universal Biosensors Pty Ltd, designs and develops electrochemical cells in Australia. The company focuses on the research, development, and manufacture of medical or testing devices. It uses electrochemical cell technology platform to develop point of use devices for various industries, including healthcare, food and drink, and agriculture. The company offers prothrombin time international normalized ratio coagulation test strips; and coagulation testing and calibration services, as well as distributes Siemens’ Xprecia Stride Coagulation Analyzer. It also owns, operates, and manages a hemostasis laboratory. The company was founded in 2001 and is based in Rowville, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 10:39
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.