UCLOUDLINK GROUP INC (UCL) Stock Fundamental Analysis
NASDAQ:UCL - US90354D1046 - ADR
3.36 USD
-0.06 (-1.75%)
UCL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 21 industry peers in the Wireless Telecommunication Services industry. While UCL seems to be doing ok healthwise, there are quite some concerns on its profitability. UCL does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year UCL was profitable.
UCL had a positive operating cash flow in the past year.
In multiple years UCL reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: UCL reported negative operating cash flow in multiple years.
1.2 Ratios
UCL has a better Return On Assets (3.02%) than 61.90% of its industry peers.
UCL's Return On Equity of 8.70% is in line compared to the rest of the industry. UCL outperforms 57.14% of its industry peers.
UCL has a Return On Invested Capital of 5.00%. This is comparable to the rest of the industry: UCL outperforms 57.14% of its industry peers.
| 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
With a Profit Margin value of 2.19%, UCL perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
In the last couple of years the Profit Margin of UCL has grown nicely.
UCL has a Operating Margin of 2.19%. This is amonst the worse of the industry: UCL underperforms 80.95% of its industry peers.
UCL's Operating Margin has declined in the last couple of years.
UCL has a Gross Margin of 48.48%. This is in the lower half of the industry: UCL underperforms 61.90% of its industry peers.
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.
The debt/assets ratio for UCL is higher compared to a year ago.
2.2 Solvency
UCL has an Altman-Z score of -1.21. This is a bad value and indicates that UCL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -1.21, UCL is doing worse than 85.71% of the companies in the same industry.
UCL has a debt to FCF ratio of 4.22. This is a neutral value as UCL would need 4.22 years to pay back of all of its debts.
UCL's Debt to FCF ratio of 4.22 is amongst the best of the industry. UCL outperforms 80.95% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that UCL is not too dependend on debt financing.
UCL has a Debt to Equity ratio of 0.35. This is amongst the best in the industry. UCL outperforms 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.22 | ||
| Altman-Z | -1.21 |
ROIC/WACC0.58
WACC8.58%
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's Current ratio of 1.37 is fine compared to the rest of the industry. UCL outperforms 61.90% of its industry peers.
UCL has a Quick Ratio of 1.26. 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 1.26 is fine compared to the rest of the industry. UCL outperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for UCL have decreased strongly by -54.55% in the last 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.
UCL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.72%.
The Revenue for UCL have been decreasing by -10.37% on average. This is quite bad
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 -49.75% on average over the next years. This is quite bad
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 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
With a Price/Earnings ratio of 67.20, UCL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of UCL indicates a slightly more expensive valuation: UCL is more expensive than 71.43% of the companies listed in the same industry.
UCL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.90.
Based on the Price/Forward Earnings ratio of 110.89, the valuation of UCL can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UCL indicates a slightly more expensive valuation: UCL is more expensive than 76.19% of the companies listed in the same industry.
UCL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.2 | ||
| Fwd PE | 110.89 |
4.2 Price Multiples
UCL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. UCL is more expensive than 76.19% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UCL indicates a slightly more expensive valuation: UCL is more expensive than 76.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.97 | ||
| EV/EBITDA | 18.99 |
4.3 Compensation for Growth
UCL's earnings are expected to decrease with -49.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)17.29
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 |
NASDAQ:UCL (9/3/2025, 2:16:54 PM)
3.36
-0.06 (-1.75%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners17.57%
Inst Owner Change-14.13%
Ins Owners8.51%
Ins Owner ChangeN/A
Market Cap126.45M
Analysts80
Price Target8.16 (142.86%)
Short Float %1.86%
Short Ratio0.29
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)-11.11%
PT rev (3m)-11.11%
EPS NQ rev (1m)-66.67%
EPS NQ rev (3m)-60%
EPS NY rev (1m)0%
EPS NY rev (3m)116.67%
Revenue NQ rev (1m)-16.6%
Revenue NQ rev (3m)-21.07%
Revenue NY rev (1m)-11.45%
Revenue NY rev (3m)-10.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.2 | ||
| Fwd PE | 110.89 | ||
| P/S | 1.42 | ||
| P/FCF | 66.97 | ||
| P/OCF | 66.97 | ||
| P/B | 5.63 | ||
| P/tB | 5.76 | ||
| EV/EBITDA | 18.99 |
EPS(TTM)0.05
EY1.49%
EPS(NY)0.03
Fwd EY0.9%
FCF(TTM)0.05
FCFY1.49%
OCF(TTM)0.05
OCFY1.49%
SpS2.37
BVpS0.6
TBVpS0.58
PEG (NY)N/A
PEG (5Y)17.29
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
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-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 | -1.21 |
F-Score4
WACC8.58%
ROIC/WACC0.58
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-91.58%
EPS Next 2Y-49.75%
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%