NasdaqGM:UG

Stock Analysis Report

Executive Summary

United-Guardian, Inc. manufactures and markets cosmetic ingredients, personal care products, pharmaceuticals, medical lubricants, healthcare products, and specialty industrial products in the United States and internationally.

Rewards

Trading at 21.5% below its fair value

Risk Analysis

Dividend of 6.29% is not well covered by earnings

Does not have a meaningful market cap ($80M)



Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has United-Guardian's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

UG

-1.0%

US Personal Products

0.5%

US Market


1 Year Return

-12.9%

UG

19.4%

US Personal Products

20.3%

US Market

Return vs Industry: UG underperformed the US Personal Products industry which returned 19.4% over the past year.

Return vs Market: UG underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

UGIndustryMarket
7 Day1.7%-1.0%0.5%
30 Day-7.1%-2.0%2.0%
90 Day-9.0%7.8%9.4%
1 Year-8.0%-12.9%21.3%19.4%22.8%20.3%
3 Year42.9%18.6%68.5%59.9%50.1%40.4%
5 Year23.7%-6.4%68.9%51.4%73.1%54.1%

Price Volatility Vs. Market

How volatile is United-Guardian's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is United-Guardian undervalued compared to its fair value and its price relative to the market?

21.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UG ($17.5) is trading below our estimate of fair value ($22.3)

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


Price To Earnings Ratio

PE vs Industry: UG is poor value based on its PE Ratio (20.3x) compared to the Personal Products industry average (16.2x).

PE vs Market: UG is poor value based on its PE Ratio (20.3x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: UG is overvalued based on its PB Ratio (6.8x) compared to the US Personal Products industry average (2x).


Next Steps

Future Growth

How is United-Guardian forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.4%

Forecasted Household 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 United-Guardian 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 United-Guardian performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UG has high quality earnings.

Growing Profit Margin: UG's current net profit margins (30.7%) are lower than last year (34.4%).


Past Earnings Growth Analysis

Earnings Trend: UG's earnings have grown by 0.2% per year over the past 5 years.

Accelerating Growth: UG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UG had negative earnings growth (-17.3%) over the past year, making it difficult to compare to the Personal Products industry average (21.4%).


Return on Equity

High ROE: UG's Return on Equity (33.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is United-Guardian's financial position?


Financial Position Analysis

Short Term Liabilities: UG's short term assets ($12.7M) exceed its short term liabilities ($1.5M).

Long Term Liabilities: UG's short term assets ($12.7M) exceed its long term liabilities ($234.7K).


Debt to Equity History and Analysis

Debt Level: UG is debt free.

Reducing Debt: UG has not had any debt for past 5 years.

Debt Coverage: UG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: UG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

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


Next Steps

Dividend

What is United-Guardian's current dividend yield, its reliability and sustainability?

6.29%

Current Dividend Yield


Dividend Yield vs Market

company6.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: UG's dividend (6.29%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: UG's dividend (6.29%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: UG's dividend payments have been volatile in the past 10 years.

Growing Dividend: UG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (127.8%), UG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

10.0yrs

Average management tenure


CEO

Ken Globus (67yo)

10.4yrs

Tenure

US$422,247

Compensation

Mr. Kenneth H. Globus, also known as Ken, has been the Chairman at United-Guardian Inc. since September 2009 and its Chief Executive Officer since December 2006. Mr. Globus has been President and General C ...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD422.25K) is about average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth Globus
President10.4yrsUS$422.25k29.4% $23.6m
Robert Rubinger
Executive VP38.1yrsUS$122.79k0.11% $89.9k
Peter Hiltunen
VP & Production Manager38.1yrsUS$210.39k0.0070% $5.6k
Andrea Young
CFO, Treasurer & Controller1.8yrsno datano data
Donna Vigilante
R&D Manager and Director of Technical Services1.9yrsno datano data
Roseann LaCorte
Controller & Accounting Manager9.5yrsno datano data

10.0yrs

Average Tenure

60yo

Average Age

Experienced Management: UG's management team is seasoned and experienced (10 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenneth Globus
President10.4yrsUS$422.25k29.4% $23.6m
Robert Rubinger
Executive VP38.1yrsUS$122.79k0.11% $89.9k
Arthur Dresner
Independent Director22.8yrsUS$33.00k0.27% $213.1k
Lawrence Maietta
Independent Director26yrsUS$44.00k0.087% $70.0k
Andrew Boccone
Independent Director17.3yrsUS$29.50kno data
S. Papoulias
Independent Director3.9yrsUS$27.50kno data

20.0yrs

Average Tenure

70yo

Average Age

Experienced Board: UG's board of directors are seasoned and experienced ( 20 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.


Ownership Breakdown

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


Top Shareholders

Company Information

United-Guardian, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United-Guardian, Inc.
  • Ticker: UG
  • Exchange: NasdaqGM
  • Founded: 1942
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: US$80.401m
  • Shares outstanding: 4.59m
  • Website: https://www.u-g.com

Number of Employees


Location

  • United-Guardian, Inc.
  • 230 Marcus Boulevard
  • PO Box 18050
  • Hauppauge
  • New York
  • 11788
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UGNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJan 1980

Biography

United-Guardian, Inc. manufactures and markets cosmetic ingredients, personal care products, pharmaceuticals, medical lubricants, healthcare products, and specialty industrial products in the United States and internationally. It offers personal care products, including LUBRAJEL line of water-based moisturizing and lubricating gel formulations; LUBRAJEL II XD; ORCHID COMPLEX, an oil-soluble base for skin creams, lotions, cleansers, and other cosmetics; LUBRASLIDE and B-122 powdered lubricants used in the manufacture of pressed powders, eyeliners, and rouges; LUBRAJEL PF, a preservative-free form of LUBRAJEL; LUBRAJEL NATURAL, natural products for cosmetic use; KLENSOFT, a surfactant used in shampoos, shower gels, makeup removers, and other cosmetic formulations; and LUBRASIL, a special form of LUBRAJEL in which silicone oil is incorporated into a LUBRAJEL base. The company’s medical products comprise LUBRAJEL RR and RC lubricant gels for urinary catheters; LUBRAJEL MG to lubricate urinary catheters, pre-lubricated enema tips, and other medical devices; LUBRAJEL LC, LUBRAJEL FA, and LUBRAJEL BA, which are LUBRAJEL formulations for oral use; and LUBRAJEL FLUID to lubricate water-soluble products. Its pharmaceutical products consist of RENACIDIN, a prescription drug to prevent and dissolve calcifications in urethral catheters and the urinary bladder; and CLORPACTIN WCS-90, an antimicrobial product to treat infections in the urinary bladder. The company’s industrial products include DESELEX liquid, a sequestering and chelating agent used for manufacturing detergents; and THOROCLENS, a chlorine-based cleanser. It also conducts research and product development for the development of cosmetic and personal care products. The company markets its products through marketing partners, distributors, and wholesalers. United-Guardian, Inc. was founded in 1942 and is headquartered in Hauppauge, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:43
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.