AMEX:UUU

Stock Analysis Report

Universal Security Instruments

Executive Summary

Universal Security Instruments, Inc., together with its subsidiary, designs, markets, and distributes safety and security products for use in homes and businesses in the United States and internationally.


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.0%

UUU

-10.2%

US Electronic

-10.6%

US Market


1 Year Return

-49.6%

UUU

-4.4%

US Electronic

5.2%

US Market

Return vs Industry: UUU underperformed the US Electronic industry which returned -4.4% over the past year.

Return vs Market: UUU underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

UUUIndustryMarket
7 Day-3.0%-10.2%-10.6%
30 Day-3.5%-11.8%-8.5%
90 Day2.5%-10.8%-4.6%
1 Year-49.6%-49.6%-3.4%-4.4%7.4%5.2%
3 Year-79.0%-79.0%21.2%17.8%31.7%23.2%
5 Year-88.4%-88.4%50.8%43.3%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Universal Security Instruments 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: UUU ($0.64) is trading below our estimate of fair value ($7.32)

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


Price To Earnings Ratio

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

PE vs Market: UUU 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 UUU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UUU is good value based on its PB Ratio (0.2x) compared to the US Electronic industry average (1.8x).


Next Steps

Future Growth

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

21.1%

Forecasted Tech 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 Security Instruments 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 Security Instruments performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UUU is currently unprofitable.

Growing Profit Margin: UUU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: UUU is unprofitable, but has reduced losses over the past 5 years at a rate of 13.2% per year.

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

Earnings vs Industry: UUU is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (13.1%).


Return on Equity

High ROE: UUU has a negative Return on Equity (-31.36%), as it is currently unprofitable.


Next Steps

Financial Health

How is Universal Security Instruments's financial position?


Financial Position Analysis

Short Term Liabilities: UUU's short term assets ($9.0M) exceed its short term liabilities ($8.0M).

Long Term Liabilities: UUU's short term assets ($9.0M) exceed its long term liabilities ($211.5K).


Debt to Equity History and Analysis

Debt Level: UUU's debt to equity ratio (84.2%) is considered high.

Reducing Debt: UUU's debt to equity ratio has increased from 0.02% to 84.2% over the past 5 years.


Balance Sheet

Inventory Level: UUU has a high level of physical assets or inventory.

Debt Coverage by Assets: UUU's debt is covered by short term assets (assets are 1.3x 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: Whilst unprofitable UUU has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: UUU is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 17.1% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

18.1yrs

Average board tenure


CEO

Harvey Grossblatt (73yo)

15.5yrs

Tenure

US$426,405

Compensation

Mr. Harvey B. Grossblatt has been the Chief Executive Officer of Universal Security Instruments Inc. since August 2004 and its President since June 1996 and serves as its Chief Operating Officer. Mr. Gross ...


CEO Compensation Analysis

Compensation vs Market: Harvey's total compensation ($USD426.41K) is about average for companies of similar size in the US market ($USD535.60K).

Compensation vs Earnings: Harvey's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Harvey Grossblatt
President15.5yrsUS$426.41k4.77% $70.7k
Cary Luskin
Independent Director18.1yrsUS$10.00k2.57% $38.0k
Ronald Seff
Independent Director18.1yrsUS$10.00k3.35% $49.6k
Ira Bormel
Independent Director11.6yrsUS$10.00kno data

18.1yrs

Average Tenure

65.5yo

Average Age

Experienced Board: UUU's board of directors are seasoned and experienced ( 18.1 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

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


Key Information

  • Name: Universal Security Instruments, Inc.
  • Ticker: UUU
  • Exchange: AMEX
  • Founded: 1969
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$1.480m
  • Shares outstanding: 2.31m
  • Website: https://www.universalsecurity.com

Number of Employees


Location

  • Universal Security Instruments, Inc.
  • 11407 Cronhill Drive
  • Suite A
  • Owings Mills
  • Maryland
  • 21117
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UUUAMEX (NYSE MKT LLC)YesCommon StockUSUSDJan 1980
USNDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980

Biography

Universal Security Instruments, Inc., together with its subsidiary, designs, markets, and distributes safety and security products for use in homes and businesses in the United States and internationally. The company offers a line of safety alarms, including units powered by replaceable batteries, sealed batteries, and electrical batteries with battery backup alarms; and smoke alarms, which include hearing impaired and heat alarms, as well as carbon monoxide alarms, door chimes, ventilation products, ground fault circuit interrupters, and other electrical devices. It provides its products to wholesale distributors; chain, discount, and television retailers; home center stores; catalog and mail order companies; electrical and lighting distributors, and manufactured housing companies; and other distributors. It also sells its products through approximately 40 independent sales organizations and 100 sales representatives, as well as through its own sales catalogs and brochures, and Website. Universal Security Instruments, Inc. was founded in 1969 and is headquartered in Owings Mills, Maryland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:19
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.