Universal Safety Products, Inc. (NYSE: UUU)

Sector: Industrials Industry: Building Products & Equipment CIK: 0000102109
Market Cap 9.97 Mn
P/B 2.72
P/E 8.47
P/S 0.61
ROIC (Qtr) -21.88
Div Yield % 0.00
Rev 1y % (Qtr) -89.45
Total Debt (Qtr) 1.76 Mn
Debt/Equity (Qtr) 0.48
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About

Investment thesis

Bull case

  • Strong operating cash flow of 6.17M provides robust 3.50x coverage of total debt 1.76M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 5.23M provide 2.97x coverage of short-term debt 1.76M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 6.17M provides exceptional 45.69x coverage of interest expenses 135060, showing strong debt service capability.
  • Strong tangible asset base of 6.77M provides 3.84x coverage of total debt 1.76M, indicating robust asset backing and low credit risk.
  • Free cash flow of 11.13M provides exceptional 82.37x coverage of interest expense 135060, showing strong debt service ability.

Bear case

  • Operating cash flow of 6.17M provides thin coverage of dividend payments of (2.31M) with a -2.67 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 5.23M provide limited coverage of acquisition spending of (1.68M), which is -3.11x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 11.13M provides weak coverage of capital expenditures of (4.96M), with a -2.25 ratio suggesting additional external financing needs for growth initiatives.
  • Free cash flow of 11.13M represents just -6.60x of debt issuance (1.69M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • R&D investment of 415566 represents just 0.07x of SG&A expenses of 5.82M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer comparison

Companies in the Building Products & Equipment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TT Trane Technologies plc 104.89 Bn 35.94 4.92 4.62 Bn
2 JCI Johnson Controls International plc 91.64 Bn 26.98 3.82 9.71 Bn
3 CARR CARRIER GLOBAL Corp 56.66 Bn 38.18 2.61 12.25 Bn
4 LII Lennox International Inc 19.91 Bn 24.71 3.83 1.77 Bn
5 CSL Carlisle Companies Inc 17.50 Bn 23.63 3.49 2.88 Bn
6 MAS Masco Corp /De/ 15.94 Bn 19.68 2.11 3.17 Bn
7 OC Owens Corning 13.83 Bn 13.90 1.63 5.61 Bn
8 WMS Advanced Drainage Systems, Inc. 13.26 Bn 28.18 4.44 1.45 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.91 2.00
EV to Cash from Ops. EV/CFO 1.00 13.48
EV to Debt EV to Debt 3.49 10.94
EV to EBIT EV/EBIT 4.28 24.16
EV to EBITDA EV/EBITDA -5.22 -11.14
EV to Free Cash Flow [EV/FCF] EV/FCF 0.55 46.78
EV to Market Cap EV to Market Cap 0.62 1.12
EV to Revenue EV/Rev 0.38 2.81
Price to Book Value [P/B] P/B 2.72 4.24
Price to Earnings [P/E] P/E 8.47 47.40
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.51 0.80
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 11.22
Dividend per Basic Share Div per Share (Qtr) 0.00 0.71
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 10.90
Interest Coverage Int. cover (Qtr) 10.62 111.58
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -24.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 2,131.28 61.26
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.67
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 494.81 -186.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -542.84 -57.93
EBIT Growth (1y) % EBIT 1y % (Qtr) 545.81 -102.26
EBT Growth (1y) % EBT 1y % (Qtr) 346.13 -299.15
EPS Growth (1y) % EPS 1y % (Qtr) 321.74 -598.34
FCF Growth (1y) % FCF 1y % (Qtr) 434.64 89.70
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -13.56 -3.62
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 2.41 0.88
Cash Payout Ratio Cash Payout (Qtr) 1.90 0.13
Cash Ratio Cash Ratio (Qtr) 1.68 1.57
Current Ratio Curr Ratio (Qtr) 2.18 3.42
Debt to Equity Ratio Debt/Equity (Qtr) 0.48 0.79
Interest Cover Ratio Int Coverage (Qtr) 10.62 111.58
Times Interest Earned Times Interest Earned (Qtr) 10.62 111.58
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 9.80 3.54
EBIT Margin % EBIT Margin % (Qtr) 8.78 1.23
EBT Margin % EBT Margin % (Qtr) 7.95 -1.76
Gross Margin % Gross Margin % (Qtr) 30.00 28.65
Net Profit Margin % Net Margin % (Qtr) 7.20 -3.80