NasdaqGS:UTSI

Stock Analysis Report

Executive Summary

UTStarcom Holdings Corp. operates as a telecom infrastructure provider to develop technology for bandwidth from cloud-based services, mobile, streaming, and other applications worldwide.


Snowflake Analysis

Mediocre balance sheet and overvalued.


Similar Companies

Share Price & News

How has UTStarcom Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.7%

UTSI

-1.9%

US Communications

0.7%

US Market


1 Year Return

0.7%

UTSI

-6.1%

US Communications

18.2%

US Market

Return vs Industry: UTSI exceeded the US Communications industry which returned -6.1% over the past year.

Return vs Market: UTSI underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

UTSIIndustryMarket
7 Day-0.7%-1.9%0.7%
30 Day3.1%-8.2%1.5%
90 Day-0.7%-9.7%5.0%
1 Year0.7%0.7%-3.9%-6.1%20.8%18.2%
3 Year47.3%47.3%37.4%28.6%45.2%35.8%
5 Year15.2%15.2%64.3%45.9%71.6%52.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is UTStarcom Holdings undervalued compared to its fair value and its price relative to the market?

1.05x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate UTSI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate UTSI's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: UTSI is good value based on its PB Ratio (1x) compared to the US Communications industry average (1.8x).


Next Steps

Future Growth

How is UTStarcom Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

0.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if UTSI's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if UTSI's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: UTSI's revenue (0.5% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: UTSI's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if UTSI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has UTStarcom Holdings performed over the past 5 years?

66.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UTSI is currently unprofitable.

Growing Profit Margin: UTSI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: UTSI is unprofitable, but has reduced losses over the past 5 years at a rate of 66.1% per year.

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

Earnings vs Industry: UTSI is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (17.3%).


Return on Equity

High ROE: UTSI has a negative Return on Equity (-1.23%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is UTStarcom Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: UTSI's short term assets ($147.0M) exceed its short term liabilities ($58.0M).

Long Term Liabilities: UTSI's short term assets ($147.0M) exceed its long term liabilities ($3.6M).


Debt to Equity History and Analysis

Debt Level: UTSI's debt to equity ratio (4.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if UTSI's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: UTSI's debt is covered by short term assets (assets are 31.8x debt).


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: Insufficient data to determine if UTSI has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if UTSI has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is UTStarcom Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate UTSI'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 UTSI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UTSI'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 UTSI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of UTStarcom Holdings's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Tim Ti (54yo)

3.9yrs

Tenure

0

Mr. Tenling Ti also known as Tim has been Chief Executive Officer and Director at UTStarcom Holdings Corp. since January 2016 and November 8, 2016 respectively. Mr. Ti has more than twenty years of busin ...


Management Age and Tenure

3.3yrs

Average Tenure

54yo

Average Age

Experienced Management: UTSI's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

58yo

Average Age

Experienced Board: UTSI's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$49,220,00005 Sep 19
Tongding Interconnection Information Co., Ltd.
EntityCompany
Shares9,200,000
Max PriceUS$5.35
BuyUS$49,220,00004 Feb 19
Tongding Interconnection Information Co., Ltd.
EntityCompany
Shares9,200,000
Max PriceUS$5.35

Ownership Breakdown

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


Management Team

  • Zhaochen Huang (56yo)

    Senior Vice President of Sales & Business Development - Japan & Korea

    • Tenure: 0.6yrs
  • Tim Ti (54yo)

    CEO & Director

    • Tenure: 3.9yrs
  • Steven Chen (46yo)

    Senior Vice President of Product Development & Technology

    • Tenure: 3.6yrs
  • Fei Wang (41yo)

    Director of Investor Relations

    • Tenure: 0yrs
  • Eric Lam (69yo)

    Vice President of Finance

    • Tenure: 3.1yrs

Board Members

  • Sean S. Shao (62yo)

    Non-Executive Director

    • Tenure: 7.2yrs
  • Jin Tong Lin (73yo)

    Independent Director

    • Tenure: 0.3yrs
  • Tim Ti (54yo)

    CEO & Director

    • Tenure: 3.9yrs
  • Wendong Zhang (42yo)

    Independent Director

    • Tenure: 2.1yrs
  • Yan Yongqing

    Chairman of the Board

    • Tenure: 0.3yrs

Company Information

UTStarcom Holdings Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: UTStarcom Holdings Corp.
  • Ticker: UTSI
  • Exchange: NasdaqGS
  • Founded: 1991
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$106.137m
  • Shares outstanding: 35.62m
  • Website: https://www.utstar.com

Number of Employees


Location

  • UTStarcom Holdings Corp.
  • 28 Hennessy Road
  • Level 6
  • Admiralty
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UTSINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2000
UT5ADB (Deutsche Boerse AG)YesCommon StockDEEURMar 2000
UTSI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 2000

Biography

UTStarcom Holdings Corp. operates as a telecom infrastructure provider to develop technology for bandwidth from cloud-based services, mobile, streaming, and other applications worldwide. The company’s prod ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:47
End of Day Share Price2019/12/10 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.