UCLOUDLINK GROUP INC (UCL) Stock Fundamental Analysis
NASDAQ:UCL - Nasdaq - US90354D1046 - ADR - Currency: USD
We assign a fundamental rating of 4 out of 10 to UCL. UCL was compared to 21 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.
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 better Return On Assets (5.60%) than 85.71% of its industry peers.
UCL has a Return On Equity of 16.48%. This is amongst the best in the industry. UCL outperforms 80.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.96%, UCL is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| 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.
UCL's Profit Margin has improved in the last couple of years.
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.
Looking at the Gross Margin, with a value of 47.75%, UCL is doing worse than 61.90% of the companies in the same industry.
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
UCL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
UCL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for UCL has been increased compared to 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 -2.06, we must say that UCL is in the distress zone and has some risk of bankruptcy.
UCL's Altman-Z score of -2.06 is on the low side compared to the rest of the industry. UCL is outperformed by 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.
UCL's Debt to FCF ratio of 1.06 is amongst the best of the industry. UCL outperforms 95.24% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that UCL is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.37, UCL belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | -2.06 |
ROIC/WACC1.06
WACC8.46%
2.3 Liquidity
A Current Ratio of 1.34 indicates that UCL should not have too much problems paying its short term obligations.
UCL has a Current ratio of 1.34. This is in the better half 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.
UCL has a better Quick ratio (1.28) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 200.00% over the past year.
UCL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.89% yearly.
The Revenue has been growing slightly by 7.65% in the past year.
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)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
Based on estimates for the next years, UCL will show a very negative growth in Earnings Per Share. The EPS will decrease by -49.75% on average per year.
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-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
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.33 indicates a rather expensive valuation of UCL.
UCL's Price/Earnings ratio is a bit cheaper when compared to the industry. UCL is cheaper than 61.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, UCL is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 60.40, the valuation of UCL can be described as expensive.
Based on the Price/Forward Earnings ratio, UCL is valued expensively inside the industry as 80.95% of the companies are valued cheaper.
UCL is valuated expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.33 | ||
| Fwd PE | 60.4 |
4.2 Price Multiples
85.71% of the companies in the same industry are more expensive than UCL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UCL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.2 | ||
| EV/EBITDA | 3.81 |
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)5.23
EPS Next 2Y-49.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for UCL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:UCL (7/3/2025, 8:14:40 PM)
1.83
0 (0%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners17.57%
Inst Owner Change13.85%
Ins Owners8.51%
Ins Owner ChangeN/A
Market Cap68.87M
Analysts80
Price Target9.18 (401.64%)
Short Float %0.48%
Short Ratio0.17
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)100%
EPS NQ rev (3m)100%
EPS NY rev (1m)116.67%
EPS NY rev (3m)116.67%
Revenue NQ rev (1m)2.22%
Revenue NQ rev (3m)2.22%
Revenue NY rev (1m)1.1%
Revenue NY rev (3m)-7.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.33 | ||
| Fwd PE | 60.4 | ||
| P/S | 0.75 | ||
| P/FCF | 9.2 | ||
| P/OCF | 9.2 | ||
| P/B | 3.23 | ||
| P/tB | 3.3 | ||
| EV/EBITDA | 3.81 |
EPS(TTM)0.09
EY4.92%
EPS(NY)0.03
Fwd EY1.66%
FCF(TTM)0.2
FCFY10.87%
OCF(TTM)0.2
OCFY10.87%
SpS2.45
BVpS0.57
TBVpS0.55
PEG (NY)N/A
PEG (5Y)5.23
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 | -2.06 |
F-Score6
WACC8.46%
ROIC/WACC1.06
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%