UCLOUDLINK GROUP INC (UCL) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:UCL - US90354D1046 - ADR

1.58 USD

+0.02 (+1.28%)

Last: 1/28/2026, 8:21:19 PM

Fundamental Rating

Taking everything into account, UCL scores 4 out of 10 in our fundamental rating. UCL was compared to 22 industry peers in the Wireless Telecommunication Services industry. UCL has only an average score on both its financial health and profitability. UCL has a valuation in line with the averages, but it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

In the past year UCL was profitable.
UCL had a negative operating cash flow in the past year.
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

The Return On Assets of UCL (11.06%) is better than 100.00% of its industry peers.
UCL has a better Return On Equity (24.79%) than 86.36% of its industry peers.
The Return On Invested Capital of UCL (15.62%) is better than 100.00% of its industry peers.

		Industry Rank	Sector Rank
ROA	11.06%
ROE	24.79%
ROIC	15.62%

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's Profit Margin of 9.23% is fine compared to the rest of the industry. UCL outperforms 68.18% of its industry peers.
UCL's Profit Margin has improved in the last couple of years.
UCL has a Operating Margin of 9.22%. This is comparable to the rest of the industry: UCL outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of UCL has declined.
With a Gross Margin value of 49.77%, UCL perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
UCL's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	9.22%
PM (TTM)	9.23%
GM	49.77%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so UCL is creating value.
Compared to 1 year ago, UCL has more shares outstanding
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

UCL has an Altman-Z score of -1.29. This is a bad value and indicates that UCL is not financially healthy and even has some risk of bankruptcy.
UCL has a Altman-Z score of -1.29. This is amonst the worse of the industry: UCL underperforms 86.36% of its industry peers.
UCL has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of UCL (0.24) is better than 81.82% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.24
Debt/FCF	N/A
Altman-Z	-1.29

ROIC/WACC1.88

WACC8.29%

2.3 Liquidity

A Current Ratio of 1.68 indicates that UCL should not have too much problems paying its short term obligations.
UCL's Current ratio of 1.68 is amongst the best of the industry. UCL outperforms 86.36% of its industry peers.
UCL has a Quick Ratio of 1.55. This is a normal value and indicates that UCL is financially healthy and should not expect problems in meeting its short term obligations.
UCL's Quick ratio of 1.55 is amongst the best of the industry. UCL outperforms 90.91% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.68
Quick Ratio	1.55

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 81.82% over the past year.
Measured over the past 5 years, UCL shows a small growth in Earnings Per Share. The EPS has been growing by 3.89% on average per year.
Looking at the last year, UCL shows a decrease in Revenue. The Revenue has decreased by -2.48% in the last year.
The Revenue for UCL have been decreasing by -10.37% on average. This is quite bad

EPS 1Y (TTM)81.82%

EPS 3YN/A

EPS 5Y3.89%

EPS Q2Q%166.67%

Revenue 1Y (TTM)-2.48%

Revenue growth 3Y7.48%

Revenue growth 5Y-10.37%

Sales Q2Q%-16.03%

3.2 Future

The Earnings Per Share is expected to decrease by -55.59% on average over the next years. This is quite bad
Based on estimates for the next years, UCL will show a decrease in Revenue. The Revenue will decrease by -0.19% on average per year.

EPS Next Y51.5%

EPS Next 2Y-55.59%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year-9.42%

Revenue Next 2Y-0.19%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.

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4. Valuation

4.1 Price/Earnings Ratio

UCL is valuated cheaply with a Price/Earnings ratio of 7.90.
Compared to the rest of the industry, the Price/Earnings ratio of UCL indicates a rather cheap valuation: UCL is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.60. UCL is valued rather cheaply when compared to this.
The Forward Price/Earnings Ratio is negative for UCL. No positive earnings are expected for the next year.

		Industry Rank	Sector Rank
PE	7.9
Fwd PE	N/A

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	-0.35

4.3 Compensation for Growth

UCL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A cheap valuation may be justified as UCL's earnings are expected to decrease with -55.59% in the coming years.