Every cloud has a silver lining, and it seems that Universal Stainless, a key player in the Basic Materials sector, specifically in Metals & Mining, is beginning to shine. The company, traded on NASDAQ, has been making waves with its solid fundamentals. With a total revenue of $285.9 million and a net income of $4.9 million, the company has demonstrated its potential for profitability.
Despite a debt to equity ratio of 0.40%, the company maintains a healthy net working capital of $149.9 million, showing its ability to cover short-term liabilities. Furthermore, the company's total liabilities stand at $130.6 million, a manageable figure considering its total assets.
The stock's Price to Sales ratio of 0.79X, coupled with a PE Ratio of 29.43, indicates that the stock is reasonably valued. The company's shares are also largely held by institutions, with 67.12% of shares owned by them, suggesting a strong vote of confidence from the market.
However, it's not all smooth sailing. The company has a probability of bankruptcy standing at 15.74%, a figure that investors should keep an eye on. Despite this, with a free cash flow of $12.2 million and end period cash flow of $394K, Universal Stainless seems to be on a solid financial footing.
In conclusion, Universal Stainless is showing signs of a bullish trend. Investors should consider this stock for its strong fundamentals and potential for growth. Currently, Universal Stainless' EV to Sales ratio remains relatively stable compared to the previous year. As of 07/23/2024, the Free Cash Flow Per Share is projected to increase to 1.41, while the Book Value Per Share is expected to decrease to 14.51. It's common to see price drops following significant changes in fundamental indicators. This brief overview highlights key fundamentals of Universal Stainless. We will discuss the potential for Universal Stainless to become a consistent grower in August. We currently assess Universal Stainless as overvalued, with the real value nearing 21.18 per share.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Universal Stainless income statement, its balance sheet, and the statement of cash flows. Potential Universal Stainless investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Universal Stainless investors may use each financial statement separately, they are all related. The changes in Universal Stainless's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Universal Stainless's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Universal Stainless
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Universal Stainless performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Universal Stainless shares is the value that is considered the true value of the share. If
the intrinsic value of Universal is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Universal Stainless. Please read more on our
fundamental analysis page.
How effective is Universal Stainless in utilizing its assets?
Universal Stainless Alloy reports assets on its Balance Sheet. It represents the amount of Universal resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Universal Stainless aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Metals & Mining space. To get a better handle on how balance sheet or income statements item affect Universal volatility, please check the breakdown of all its
fundamentals.
Are Universal Stainless Earnings Expected to grow?
The
future earnings power of Universal Stainless involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Universal Stainless factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Universal Stainless
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Universal
expected earnings.
Universal Stainless Gross Profit
Universal Stainless Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Universal Stainless previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Universal Stainless Gross Profit growth over the last 10 years. Please check Universal Stainless'
gross profit and other
fundamental indicators for more details.
Breaking down Universal Stainless Indicators
There are few distinct groups of Universal Stainless stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Universal is distributed among investors.
Ownership Allocation
The
market capitalization of Universal Stainless is $275.88 Million. Over half of Universal Stainless' outstanding shares are owned by
institutional holders. These institutional holders are typically referred to as corporate investors that take positions in a given instrument to benefit from reduced trade commissions. Please take into account that even companies with profitable outlook can generate negative future returns on their equity. If the true value of the company is less than the current market value, you may not be able generate positive returns on investment in the long run.
| Retail Investors26.7% | Insiders6.18% | Institutions67.12% |
| Retail Investors | 26.7 |
| Insiders | 6.18 |
| Institutions | 67.12 |
Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence Universal Stainless' decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over Universal Stainless' decisions due to their larger holdings.
| 2021 | 2022 | 2023 | 2024 (projected) |
Total Operating Expenses | 20.2M | 21.2M | 27.1M | 14.3M | Cost Of Revenue | 148.0M | 187.9M | 245.1M | 148.6M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Universal Stainless has an asset utilization ratio of 80.17 percent. This connotes that the Company is making $0.8 for each dollar of assets. An increasing asset utilization means that Universal Stainless Alloy is more efficient with each dollar of assets it utilizes for everyday operations.
| Non Current Assets Total115.2 M | | | Total Current Assets111.5 M | | Net Tangible Assets223.1 M | |
| Non Current Assets Total | 115.18 Million | 25.72 |
| Non Currrent Assets Other | (15.27 Million) | -3.41 |
| Other Current Assets | 12.28 Million | 2.74 |
| Total Current Assets | 111.46 Million | 24.89 |
| Other Assets | 1.06 Million | 0.24 |
| Net Tangible Assets | 223.1 Million | 49.82 |
| Intangible Assets | 0.0 | 0.0 |
As Warren Buffet wisely stated, "Price is what you pay, value is what you get." Universal Stainless Alloy's fundamentals suggest a promising value proposition for investors. With a PE ratio of 29.43 and a PEG ratio of 19.55, the company's stock appears to be on a bullish trend. The company's net asset value stands at a robust $356.69M, and it has managed to generate a positive operating income of $13.8M. Despite a minor loss in net interest income of $8.4M, the company's strong cash flow from operations, which stands at $25.23M, indicates a healthy financial situation. Moreover, with a target price of $36 and a current valuation of $359.23M, the potential upside is an encouraging 6.37%.
Possible August come-back of Universal?
Despite a recent increase in Universal Stainless Alloy's Information Ratio to 0.05, indicating a minor improvement in risk-adjusted performance, the stock price may face another downturn. This potential volatility could offer an opportunity for investors anticipating a recovery in August. Given the uncertain market conditions, it would be wise for investors to monitor Universal Stainless Alloy's performance closely. The company currently shows a below-average downside deviation, with an Information Ratio of 0.05 and Jensen Alpha of 0.19. Understanding market volatility trends can help investors time their trades. Proper use of volatility indicators allows traders to gauge Universal Stainless' stock risk against market volatility during both bullish and bearish trends.
The increased volatility of bear markets can directly affect Universal Stainless' stock price, causing investor stress as share values drop, often leading to portfolio rebalancing.In conclusion, Universal Stainless Alloy's stock has shown a strong advance today, which could potentially signal an upcoming upswing. Analysts have shown some confidence in the company's prospects, with one strong buy recommendation and an estimated target price range from
$15.47 to
$18.87. The company's estimated EPS for the next fiscal year is promising at $2.85. However, investors should also consider the possible downside price of $28.23. Given the current market valuation of
$30.5 and a real valuation of $21.18, there is a notable hype value of $30.19. This discrepancy may indicate overvaluation, which could lead to potential future price corrections. Therefore, while there is a possible upside price of $34.88, investors should approach with caution and make a balanced decision based on both the bullish and bearish factors..
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Universal Stainless Alloy. Please refer to our
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