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UCLOUDLINK GROUP INC (UCL) Stock Fundamental Analysis

NASDAQ:UCL - Nasdaq - US90354D1046 - ADR - Currency: USD

1.25  -0.01 (-0.79%)

Premarket: 1.23 -0.02 (-1.6%)

Fundamental Rating

5

Taking everything into account, UCL scores 5 out of 10 in our fundamental rating. UCL was compared to 22 industry peers in the Wireless Telecommunication Services industry. Both the profitability and the financial health of UCL get a neutral evaluation. Nothing too spectacular is happening here. UCL has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

UCL had positive earnings in the past year.
In the past year UCL had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: UCL reported negative net income in multiple years.
In multiple years UCL reported negative operating cash flow during the last 5 years.
UCL Yearly Net Income VS EBIT VS OCF VS FCFUCL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 0 -20M -40M -60M

1.2 Ratios

Looking at the Return On Assets, with a value of 7.07%, UCL belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
UCL's Return On Equity of 18.84% is amongst the best of the industry. UCL outperforms 90.48% of its industry peers.
UCL has a better Return On Invested Capital (12.37%) than 95.24% of its industry peers.
Industry RankSector Rank
ROA 7.07%
ROE 18.84%
ROIC 12.37%
ROA(3y)-35.63%
ROA(5y)-34.15%
ROE(3y)-141.89%
ROE(5y)-106.95%
ROIC(3y)N/A
ROIC(5y)N/A
UCL Yearly ROA, ROE, ROICUCL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 0 100 -100 200 -200

1.3 Margins

UCL's Profit Margin of 4.84% is fine compared to the rest of the industry. UCL outperforms 61.90% of its industry peers.
Looking at the Operating Margin, with a value of 4.86%, UCL is in line with its industry, outperforming 42.86% of the companies in the same industry.
With a Gross Margin value of 50.89%, UCL is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
UCL's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 4.86%
PM (TTM) 4.84%
GM 50.89%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y15.79%
GM growth 5Y6.05%
UCL Yearly Profit, Operating, Gross MarginsUCL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 -60

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5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UCL is still creating some value.
UCL has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for UCL has been increased compared to 5 years ago.
The debt/assets ratio for UCL is higher compared to a year ago.
UCL Yearly Shares OutstandingUCL Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M
UCL Yearly Total Debt VS Total AssetsUCL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M

2.2 Solvency

UCL has an Altman-Z score of -2.42. This is a bad value and indicates that UCL is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -2.42, UCL is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
The Debt to FCF ratio of UCL is 0.54, which is an excellent value as it means it would take UCL, only 0.54 years of fcf income to pay off all of its debts.
UCL has a better Debt to FCF ratio (0.54) than 95.24% of its industry peers.
UCL has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
UCL has a Debt to Equity ratio of 0.18. This is amongst the best in the industry. UCL outperforms 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 0.54
Altman-Z -2.42
ROIC/WACC1.45
WACC8.54%
UCL Yearly LT Debt VS Equity VS FCFUCL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 0 20M -20M 40M 60M

2.3 Liquidity

UCL has a Current Ratio of 1.40. This is a normal value and indicates that UCL is financially healthy and should not expect problems in meeting its short term obligations.
UCL has a Current ratio (1.40) which is comparable to the rest of the industry.
UCL has a Quick Ratio of 1.35. This is a normal value and indicates that UCL is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of UCL (1.35) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.4
Quick Ratio 1.35
UCL Yearly Current Assets VS Current LiabilitesUCL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 10.00% over the past year.
The Revenue has been growing slightly by 4.72% in the past year.
UCL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.50% yearly.
EPS 1Y (TTM)10%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)4.72%
Revenue growth 3Y-1.52%
Revenue growth 5Y-7.5%
Sales Q2Q%5.57%

3.2 Future

Based on estimates for the next years, UCL will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.36% on average per year.
Based on estimates for the next years, UCL will show a quite strong growth in Revenue. The Revenue will grow by 9.33% on average per year.
EPS Next Y95.69%
EPS Next 2Y12.36%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.91%
Revenue Next 2Y9.33%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
UCL Yearly Revenue VS EstimatesUCL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
UCL Yearly EPS VS EstimatesUCL Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -0.5 -1

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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.36, the valuation of UCL can be described as reasonable.
Based on the Price/Earnings ratio, UCL is valued a bit cheaper than 76.19% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.62. UCL is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 12.38, which indicates a correct valuation of UCL.
The rest of the industry has a similar Price/Forward Earnings ratio as UCL.
When comparing the Price/Forward Earnings ratio of UCL to the average of the S&P500 Index (22.70), we can say UCL is valued slightly cheaper.
Industry RankSector Rank
PE 11.36
Fwd PE 12.38
UCL Price Earnings VS Forward Price EarningsUCL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, UCL is valued cheaper than 100.00% of the companies in the same industry.
UCL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. UCL is cheaper than 76.19% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.39
EV/EBITDA 0.98
UCL Per share dataUCL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0.5 1 1.5 2

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
UCL's earnings are expected to grow with 12.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y12.36%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

UCL does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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UCLOUDLINK GROUP INC

NASDAQ:UCL (2/21/2025, 8:00:01 PM)

Premarket: 1.23 -0.02 (-1.6%)

1.25

-0.01 (-0.79%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)11-26 2024-11-26/bmo
Earnings (Next)03-10 2025-03-10/amc
Inst Owners17.72%
Inst Owner Change-90.73%
Ins Owners8.65%
Ins Owner ChangeN/A
Market Cap46.86M
Analysts80
Price Target9.18 (634.4%)
Short Float %2.44%
Short Ratio0.19
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)197.03%
Min EPS beat(2)98.02%
Max EPS beat(2)296.04%
EPS beat(4)3
Avg EPS beat(4)98.51%
Min EPS beat(4)-199.01%
Max EPS beat(4)296.04%
EPS beat(8)6
Avg EPS beat(8)85.87%
EPS beat(12)6
Avg EPS beat(12)-65.37%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.82%
Min Revenue beat(2)-4.25%
Max Revenue beat(2)0.61%
Revenue beat(4)2
Avg Revenue beat(4)-3.05%
Min Revenue beat(4)-8.84%
Max Revenue beat(4)0.61%
Revenue beat(8)3
Avg Revenue beat(8)-2.23%
Revenue beat(12)5
Avg Revenue beat(12)-1.41%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-5.26%
EPS NQ rev (1m)50%
EPS NQ rev (3m)50%
EPS NY rev (1m)29.17%
EPS NY rev (3m)72.22%
Revenue NQ rev (1m)-6.68%
Revenue NQ rev (3m)-6.68%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-3.61%
Valuation
Industry RankSector Rank
PE 11.36
Fwd PE 12.38
P/S 0.54
P/FCF 6.39
P/OCF 6.39
P/B 2.09
P/tB 2.14
EV/EBITDA 0.98
EPS(TTM)0.11
EY8.8%
EPS(NY)0.1
Fwd EY8.08%
FCF(TTM)0.2
FCFY15.65%
OCF(TTM)0.2
OCFY15.65%
SpS2.33
BVpS0.6
TBVpS0.58
PEG (NY)0.12
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 7.07%
ROE 18.84%
ROCE 18.37%
ROIC 12.37%
ROICexc N/A
ROICexgc N/A
OM 4.86%
PM (TTM) 4.84%
GM 50.89%
FCFM 8.39%
ROA(3y)-35.63%
ROA(5y)-34.15%
ROE(3y)-141.89%
ROE(5y)-106.95%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y15.79%
GM growth 5Y6.05%
F-Score7
Asset Turnover1.46
Health
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 0.54
Debt/EBITDA 0.74
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 136.66%
Profit Quality 173.4%
Current Ratio 1.4
Quick Ratio 1.35
Altman-Z -2.42
F-Score7
WACC8.54%
ROIC/WACC1.45
Cap/Depr(3y)89.61%
Cap/Depr(5y)87.69%
Cap/Sales(3y)1.4%
Cap/Sales(5y)1.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y95.69%
EPS Next 2Y12.36%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.72%
Revenue growth 3Y-1.52%
Revenue growth 5Y-7.5%
Sales Q2Q%5.57%
Revenue Next Year3.91%
Revenue Next 2Y9.33%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y26.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year51.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y251.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y285.18%
OCF growth 3YN/A
OCF growth 5YN/A