UCLOUDLINK GROUP INC (UCL) Stock Fundamental Analysis
NASDAQ:UCL - Nasdaq - US90354D1046 - ADR - Currency: USD
UCL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 21 industry peers in the Wireless Telecommunication Services industry. UCL has an average financial health and profitability rating. UCL does not seem to be growing, but still is valued expensively.
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.
1.2 Ratios
UCL has a Return On Assets of 5.60%. This is amongst the best in the industry. UCL outperforms 85.71% of its industry peers.
UCL's Return On Equity of 16.48% is amongst the best of the industry. UCL outperforms 80.95% of its industry peers.
UCL's Return On Invested Capital of 8.96% is fine compared to the rest of the industry. UCL outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 16.48% | ||
| ROIC | 8.96% |
ROA(3y)-10.45%
ROA(5y)-33.28%
ROE(3y)-58.54%
ROE(5y)-103.86%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
UCL has a Profit Margin (3.81%) which is in line with its industry peers.
In the last couple of years the Profit Margin of UCL has grown nicely.
UCL has a Operating Margin of 3.69%. This is comparable to the rest of the industry: UCL outperforms 42.86% of its industry peers.
In the last couple of years the Operating Margin of UCL has declined.
The Gross Margin of UCL (47.75%) is worse than 61.90% of its industry peers.
UCL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.69% | ||
| PM (TTM) | 3.81% | ||
| GM | 47.75% |
OM growth 3YN/A
OM growth 5Y-2.15%
PM growth 3YN/A
PM growth 5Y26.84%
GM growth 3Y17.9%
GM growth 5Y3.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UCL is creating some value.
UCL has more shares outstanding than it did 1 year ago.
UCL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, UCL has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -1.83, we must say that UCL is in the distress zone and has some risk of bankruptcy.
UCL has a worse Altman-Z score (-1.83) than 90.48% of its industry peers.
The Debt to FCF ratio of UCL is 1.06, which is an excellent value as it means it would take UCL, only 1.06 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.06, UCL belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that UCL is not too dependend on debt financing.
UCL has a Debt to Equity ratio of 0.37. This is amongst the best in the industry. UCL outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | -1.83 |
ROIC/WACC1.04
WACC8.65%
2.3 Liquidity
A Current Ratio of 1.34 indicates that UCL should not have too much problems paying its short term obligations.
UCL's Current ratio of 1.34 is fine compared to the rest of the industry. UCL outperforms 61.90% of its industry peers.
UCL has a Quick Ratio of 1.28. This is a normal value and indicates that UCL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.28, UCL is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
UCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 200.00%, which is quite impressive.
UCL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.89% yearly.
UCL shows a small growth in Revenue. In the last year, the Revenue has grown by 7.65%.
UCL shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -10.37% yearly.
EPS 1Y (TTM)200%
EPS 3YN/A
EPS 5Y3.89%
EPS Q2Q%-300%
Revenue 1Y (TTM)7.65%
Revenue growth 3Y7.48%
Revenue growth 5Y-10.37%
Sales Q2Q%3.43%
3.2 Future
UCL is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -49.75% yearly.
UCL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.48% yearly.
EPS Next Y-91.58%
EPS Next 2Y-49.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.96%
Revenue Next 2Y6.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.89, which indicates a rather expensive current valuation of UCL.
UCL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.50, UCL is valued at the same level.
Based on the Price/Forward Earnings ratio of 70.96, the valuation of UCL can be described as expensive.
Based on the Price/Forward Earnings ratio, UCL is valued more expensive than 80.95% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. UCL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.89 | ||
| Fwd PE | 70.96 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as UCL.
The rest of the industry has a similar Price/Free Cash Flow ratio as UCL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.81 | ||
| EV/EBITDA | 6.6 |
4.3 Compensation for Growth
A cheap valuation may be justified as UCL's earnings are expected to decrease with -49.75% in the coming years.
PEG (NY)N/A
PEG (5Y)6.15
EPS Next 2Y-49.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UCL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.1501
-0.1 (-4.65%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners17.57%
Inst Owner Change0%
Ins Owners8.51%
Ins Owner ChangeN/A
Market Cap80.91M
Analysts80
Price Target9.18 (326.96%)
Short Float %0.25%
Short Ratio0.1
Dividend
| Industry Rank | Sector 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)1
Avg EPS beat(2)-320.79%
Min EPS beat(2)-692.08%
Max EPS beat(2)50.5%
EPS beat(4)3
Avg EPS beat(4)-61.88%
Min EPS beat(4)-692.08%
Max EPS beat(4)296.04%
EPS beat(8)5
Avg EPS beat(8)-31.19%
EPS beat(12)7
Avg EPS beat(12)-6.79%
EPS beat(16)9
Avg EPS beat(16)-86.94%
Revenue beat(2)2
Avg Revenue beat(2)2.1%
Min Revenue beat(2)2%
Max Revenue beat(2)2.2%
Revenue beat(4)3
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-4.25%
Max Revenue beat(4)2.2%
Revenue beat(8)5
Avg Revenue beat(8)-1.13%
Revenue beat(12)6
Avg Revenue beat(12)-1.13%
Revenue beat(16)8
Avg Revenue beat(16)-0.79%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)100%
EPS NY rev (1m)116.67%
EPS NY rev (3m)116.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.89 | ||
| Fwd PE | 70.96 | ||
| P/S | 0.88 | ||
| P/FCF | 10.81 | ||
| P/OCF | 10.81 | ||
| P/B | 3.79 | ||
| P/tB | 3.88 | ||
| EV/EBITDA | 6.6 |
EPS(TTM)0.09
EY4.19%
EPS(NY)0.03
Fwd EY1.41%
FCF(TTM)0.2
FCFY9.25%
OCF(TTM)0.2
OCFY9.25%
SpS2.45
BVpS0.57
TBVpS0.55
PEG (NY)N/A
PEG (5Y)6.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 16.48% | ||
| ROCE | 15.43% | ||
| ROIC | 8.96% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 3.69% | ||
| PM (TTM) | 3.81% | ||
| GM | 47.75% | ||
| FCFM | 8.11% |
ROA(3y)-10.45%
ROA(5y)-33.28%
ROE(3y)-58.54%
ROE(5y)-103.86%
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 5Y-2.15%
PM growth 3YN/A
PM growth 5Y26.84%
GM growth 3Y17.9%
GM growth 5Y3.39%
F-Score6
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.06 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 130.59% | ||
| Profit Quality | 212.95% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | -1.83 |
F-Score6
WACC8.65%
ROIC/WACC1.04
Cap/Depr(3y)133.27%
Cap/Depr(5y)103.42%
Cap/Sales(3y)2.46%
Cap/Sales(5y)2.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)200%
EPS 3YN/A
EPS 5Y3.89%
EPS Q2Q%-300%
EPS Next Y-91.58%
EPS Next 2Y-49.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.65%
Revenue growth 3Y7.48%
Revenue growth 5Y-10.37%
Sales Q2Q%3.43%
Revenue Next Year5.96%
Revenue Next 2Y6.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y229.65%
EBIT growth 3YN/A
EBIT growth 5Y-12.3%
EBIT Next Year25.81%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-28.6%
FCF growth 3YN/A
FCF growth 5Y12.11%
OCF growth 1Y-28.6%
OCF growth 3YN/A
OCF growth 5Y9.78%