Universe Pharmaceuticals Inc (UPC) Stock Analysis
Verdict: AVOID
Shrinking revenue (-22.3% YoY) and negative FCF outweigh a cash-backed balance sheet, keeping UPC a speculative value trap.
Investment score: 29/100
Analysis as of
Is Universe Pharmaceuticals Inc stock worth reviewing? AI model thesis
The AI model rates UPC as an AVOID due to severe top-line erosion (-22.3% YoY) and ongoing cash burn (-$5.05M operating cash flow), despite its raw cash balance exceeding market capitalization.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 30/100 (weight 15%)
- Technical Momentum: 35/100 (weight 15%)
- Earnings Quality: 15/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 20/100 (weight 10%)
- Risk-Adjusted Return: 20/100 (weight 15%)
Universe Pharmaceuticals Inc opportunities and risks
What speaks for UPC
- Cash balance of $33.59M exceeds total market cap ($23.92M)
What speaks against UPC
- Accelerating top-line revenue decline from $47.98M in FY2021 to $17.86M in FY2025 (-62.8% drop)
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| UPC | n/a | 0.2x | 11.6x | 35.9% | -10.9% | -427.9% |
| BGM | n/a | 2.1x | n/a | 12.8% | -44.2% | 1.4% |
| ZYBT | n/a | 5.3x | n/a | 8.3% | -89.0% | 9.3% |
| CPHI | n/a | 7.5x | n/a | -9.3% | -114.3% | -0.8% |
| SXTC | n/a | 0.5x | 3.1x | 44.4% | -290.7% | -387.3% |
| CHME | n/a | 0.0x | n/a | 0.0% | 0.0% | 0.0% |
| Peer median | n/a | 2.1x | n/a | 8.3% | -89.0% | 0.0% |
Frequently asked questions about Universe Pharmaceuticals Inc (UPC)
Is UPC stock a good investment?
The cached TradeMates AI model rates Universe Pharmaceuticals Inc as AVOID with an investment score of 29/100. The AI model rates UPC as an AVOID due to severe top-line erosion (-22.3% YoY) and ongoing cash burn (-$5.05M operating cash flow), despite its raw cash balance exceeding market capitalization. This is algorithmic model output, not personal investment advice.
Is UPC stock a buy?
The TradeMates model verdict for UPC is AVOID with an investment score of 29/100. Treat this as a model signal to review, not a personal buy recommendation.