UCLOUDLINK GROUP INC (UCL) Stock Fundamental Analysis
USA - NASDAQ:UCL - US90354D1046 - ADR
2.24 USD
+0.04 (+1.82%)
UCL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 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.
UCL had a positive operating cash flow in the past year.
In multiple years UCL reported negative net income over the last 5 years.
In multiple years UCL reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 3.02%, UCL perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
UCL has a Return On Equity (8.70%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 5.00%, UCL is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.02% | ||
| ROE | 8.7% | ||
| ROIC | 5% |
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
The Profit Margin of UCL (2.19%) is comparable to the rest of the industry.
UCL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 2.19%, UCL is doing worse than 77.27% of the companies in the same industry.
In the last couple of years the Operating Margin of UCL has declined.
With a Gross Margin value of 48.48%, UCL perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
UCL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.19% | ||
| PM (TTM) | 2.19% | ||
| GM | 48.48% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UCL is destroying value.
The number of shares outstanding for UCL has been increased compared to 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
UCL has an Altman-Z score of -1.84. This is a bad value and indicates that UCL is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of UCL (-1.84) is worse than 90.91% of its industry peers.
The Debt to FCF ratio of UCL is 4.22, which is a neutral value as it means it would take UCL, 4.22 years of fcf income to pay off all of its debts.
UCL has a Debt to FCF ratio of 4.22. This is amongst the best in the industry. UCL outperforms 81.82% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that UCL is not too dependend on debt financing.
The Debt to Equity ratio of UCL (0.35) is better than 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.22 | ||
| Altman-Z | -1.84 |
ROIC/WACC0.61
WACC8.24%
2.3 Liquidity
UCL has a Current Ratio of 1.37. 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 better Current ratio (1.37) than 68.18% of its industry peers.
A Quick Ratio of 1.26 indicates that UCL should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.26, UCL is doing good in the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
UCL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.55%.
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.
UCL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.72%.
Measured over the past years, UCL shows a very negative growth in Revenue. The Revenue has been decreasing by -10.37% on average per year.
EPS 1Y (TTM)-54.55%
EPS 3YN/A
EPS 5Y3.89%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)3.72%
Revenue growth 3Y7.48%
Revenue growth 5Y-10.37%
Sales Q2Q%-13.33%
3.2 Future
The Earnings Per Share is expected to decrease by -41.98% on average over the next years. This is quite bad
Based on estimates for the next years, UCL will show a small growth in Revenue. The Revenue will grow by 6.48% on average per year.
EPS Next Y-116.83%
EPS Next 2Y-41.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.18%
Revenue Next 2Y6.48%
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.
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
A Price/Earnings ratio of 44.80 indicates a quite expensive valuation of UCL.
UCL's Price/Earnings ratio is a bit more expensive when compared to the industry. UCL is more expensive than 63.64% of the companies in the same industry.
UCL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.00.
With a Price/Forward Earnings ratio of 55.45, UCL can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, UCL is valued expensively inside the industry as 81.82% of the companies are valued cheaper.
UCL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.8 | ||
| Fwd PE | 55.45 |
4.2 Price Multiples
UCL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, UCL is valued a bit more expensive than the industry average as 72.73% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.65 | ||
| EV/EBITDA | 8.63 |
4.3 Compensation for Growth
UCL's earnings are expected to decrease with -41.98% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)11.53
EPS Next 2Y-41.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for UCL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:UCL (10/28/2025, 8:25:48 PM)
2.24
+0.04 (+1.82%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners17.5%
Inst Owner Change0%
Ins Owners8.94%
Ins Owner ChangeN/A
Market Cap84.30M
Revenue(TTM)89.28M
Net Income(TTM)1.95M
Analysts80
Price Target8.16 (264.29%)
Short Float %0.43%
Short Ratio0.13
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)24.75%
Min EPS beat(2)-0.99%
Max EPS beat(2)50.5%
EPS beat(4)2
Avg EPS beat(4)-136.14%
Min EPS beat(4)-692.08%
Max EPS beat(4)98.02%
EPS beat(8)5
Avg EPS beat(8)-6.44%
EPS beat(12)7
Avg EPS beat(12)-5.65%
EPS beat(16)8
Avg EPS beat(16)-89.12%
Revenue beat(2)1
Avg Revenue beat(2)-7.3%
Min Revenue beat(2)-16.59%
Max Revenue beat(2)2%
Revenue beat(4)2
Avg Revenue beat(4)-4.16%
Min Revenue beat(4)-16.59%
Max Revenue beat(4)2.2%
Revenue beat(8)4
Avg Revenue beat(8)-3.27%
Revenue beat(12)5
Avg Revenue beat(12)-2.9%
Revenue beat(16)7
Avg Revenue beat(16)-1.97%
PT rev (1m)0%
PT rev (3m)-11.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-66.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-300%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-16.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-11.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.8 | ||
| Fwd PE | 55.45 | ||
| P/S | 0.94 | ||
| P/FCF | 44.65 | ||
| P/OCF | 44.65 | ||
| P/B | 3.75 | ||
| P/tB | 3.84 | ||
| EV/EBITDA | 8.63 |
EPS(TTM)0.05
EY2.23%
EPS(NY)0.04
Fwd EY1.8%
FCF(TTM)0.05
FCFY2.24%
OCF(TTM)0.05
OCFY2.24%
SpS2.37
BVpS0.6
TBVpS0.58
PEG (NY)N/A
PEG (5Y)11.53
Graham Number0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.02% | ||
| ROE | 8.7% | ||
| ROCE | 8.53% | ||
| ROIC | 5% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 2.19% | ||
| PM (TTM) | 2.19% | ||
| GM | 48.48% | ||
| FCFM | 2.11% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score4
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.22 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.05% | ||
| Profit Quality | 96.67% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | -1.84 |
F-Score4
WACC8.24%
ROIC/WACC0.61
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)-54.55%
EPS 3YN/A
EPS 5Y3.89%
EPS Q2Q%-66.67%
EPS Next Y-116.83%
EPS Next 2Y-41.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.72%
Revenue growth 3Y7.48%
Revenue growth 5Y-10.37%
Sales Q2Q%-13.33%
Revenue Next Year-6.18%
Revenue Next 2Y6.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-53.65%
EBIT growth 3YN/A
EBIT growth 5Y-12.3%
EBIT Next Year25.81%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-83.5%
FCF growth 3YN/A
FCF growth 5Y12.11%
OCF growth 1Y-83.5%
OCF growth 3YN/A
OCF growth 5Y9.78%
UCLOUDLINK GROUP INC / UCL FAQ
What is the ChartMill fundamental rating of UCLOUDLINK GROUP INC (UCL) stock?
ChartMill assigns a fundamental rating of 3 / 10 to UCL.
What is the valuation status of UCLOUDLINK GROUP INC (UCL) stock?
ChartMill assigns a valuation rating of 0 / 10 to UCLOUDLINK GROUP INC (UCL). This can be considered as Overvalued.
How profitable is UCLOUDLINK GROUP INC (UCL) stock?
UCLOUDLINK GROUP INC (UCL) has a profitability rating of 4 / 10.
What is the valuation of UCLOUDLINK GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for UCLOUDLINK GROUP INC (UCL) is 44.8 and the Price/Book (PB) ratio is 3.75.
What is the financial health of UCLOUDLINK GROUP INC (UCL) stock?
The financial health rating of UCLOUDLINK GROUP INC (UCL) is 5 / 10.