Education
About Us
Working with TipRanks
Follow Us
uCloudlink Group, Inc. (UCL)
NASDAQ:UCL
Top Page
uCloudlink Group
(NASDAQ:UCL)
62Neutral
uCloudlink Group (UCL) vs. S&P 500 (SPY)
Market Cap
$45.31M
Dividend YieldN/A
Average Volume (3M)88.22K
Price to Earnings (P/E)10.8
Beta (1Y)-0.10
Revenue Growth4.73%
EPS Growth16.29%
CountryUS
Employees393
SectorCommunication Services
Sector Strength82
IndustryTelecommunications
Share Statistics
EPS (TTM)0.11
Shares Outstanding25,284,350
10 Day Avg. Volume77,921
30 Day Avg. Volume88,218
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)N/A
Price to Sales (P/S)0.52
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
uCloudlink Group Business Overview & Revenue Model
Company DescriptionUcloudlink Group Inc provides mobile data connectivity and portable WiFi services. The business operates under uCloudlink 1.0, which focuses on cross-border travelers that need mobile data connectivity services across different countries. Under uCloudlink 2.0, provides mobile data connectivity services to local users across different MNOs in a single country.
How the Company Makes MoneyuCloudlink Group (UCL) generates revenue through multiple streams, primarily focusing on the sale of its mobile broadband devices and data connectivity services. The company leverages its patented cloud SIM technology to offer data packages that allow users to access mobile internet without the need for multiple SIM cards, thus providing a more cost-effective and convenient solution for international travelers and businesses. Additionally, uCloudlink partners with various telecom operators and service providers to expand its network coverage and enhance service offerings, further driving its revenue. The company also earns from licensing its technology and collaborating with other technology firms to integrate its solutions into their products.
uCloudlink Group Financial Statement Overview
Summary
uCloudlink Group is showing signs of financial recovery, with improved profitability and cash flow metrics. While the income statement reflects a positive trajectory, the balance sheet and cash flow statements suggest stability and better cash management. Continued focus on revenue growth and maintaining financial discipline could enhance overall performance.Income Statement
The company shows a strong recovery with positive net income and improved margins in the TTM period, reflecting a turnaround from previous losses. Gross profit margin is healthy at around 50.9%, and EBIT and EBITDA margins have improved. However, revenue growth is modest, and past volatility indicates potential risk.62
Positive
Balance Sheet
The balance sheet highlights a moderate debt-to-equity ratio due to a relatively low debt level, suggesting manageable leverage. Return on equity has improved significantly due to positive net income. However, the equity ratio indicates reliance on liabilities, which could pose risks if not managed carefully.58
Neutral
Cash Flow
Cash flow statements indicate strong operating cash flow relative to net income, supporting financial sustainability. There is positive free cash flow growth, suggesting improved cash management. The company has turned around its cash flow profile compared to previous years, but further consistent performance is needed.66
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 87.41M | 85.58M | 71.46M | 73.82M | 89.57M | 158.38M | Gross Profit |
| 44.48M | 41.97M | 32.53M | 21.83M | 28.30M | 64.92M | EBIT |
| 5.32M | 2.59M | -19.19M | -45.91M | -70.54M | 5.51M | EBITDA |
| 5.64M | 3.78M | -18.19M | -43.73M | -60.68M | 10.11M | Net Income Common Stockholders |
| 4.23M | 2.81M | -19.93M | -46.33M | -63.41M | 5.21M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 30.98M | 30.98M | 26.81M | 20.65M | 41.37M | 37.51M | Total Assets |
| 56.61M | 56.61M | 45.93M | 67.13M | 97.25M | 90.10M | Total Debt |
| 7.67M | 7.67M | 3.06M | 3.18M | 3.70M | 6.66M | Net Debt |
| -15.71M | -15.71M | -11.86M | -4.69M | -18.29M | -30.66M | Total Liabilities |
| 40.55M | 40.55M | 36.64M | 47.03M | 40.86M | 70.63M | Stockholders Equity |
| 16.05M | 16.05M | 9.29M | 20.09M | 56.39M | 19.47M |
| Cash Flow | Free Cash Flow | ||||
| 3.07M | 4.44M | 3.98M | -22.62M | -3.77M | 2.93M | Operating Cash Flow |
| 7.33M | 6.51M | 4.40M | -21.74M | -2.04M | 5.76M | Investing Cash Flow |
| -1.91M | -240.00K | -162.00K | -935.00K | -35.44M | -3.27M | Financing Cash Flow |
| 1.57M | 2.51M | 3.54M | 735.00K | 26.68M | 1.53M |
uCloudlink Group Technical Analysis
Negative
1.21
Price Trends
1.42
Negative
1.37
Negative
1.44
Negative
Market Momentum
-0.03
Negative
43.53
Neutral
13.36
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UCL, the sentiment is Negative. The current price of 1.21 is below the 20-day moving average (MA) of 1.27, below the 50-day MA of 1.42, and below the 200-day MA of 1.44, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 13.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UCL.
uCloudlink Group Risk Analysis
uCloudlink Group disclosed 66 risk factors in its most recent earnings report. uCloudlink Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
uCloudlink Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $923.22M | 16.28 | 130.82% | ― | -0.79% | -64.40% | |
65 Neutral | $337.28M | ― | 0.20% | ― | 12.76% | ― | |
62 Neutral | $45.31M | 10.79 | 20.94% | ― | 4.73% | 16.29% | |
61 Neutral | $3.68B | ― | -0.54% | 0.90% | -3.80% | 83.27% | |
59 Neutral | $29.20B | 0.14 | -12.92% | 4.06% | 2.18% | -51.74% | |
56 Neutral | $2.10B | ― | -3.97% | ― | -20.02% | -193.84% | |
52 Neutral | $320.57M | ― | -5.13% | 4.53% | -1.03% | -204.03% |
* Communication Services Sector Average
Performance Comparison
UCL
uCloudlink Group
1.29
-0.27
-17.31%
ATNI
ATN International
20.36
-10.47
-33.96%
CALX
Calix
32.45
-1.62
-4.75%
SIFY
Sify Technologies
4.72
-3.38
-41.73%
GOGO
Gogo
6.95
-2.38
-25.51%
TDS
Telephone & Data Systems
34.76
18.94
119.72%
uCloudlink Group Earnings Call Summary
Earnings Call Date: Nov 26, 2024 | % Change Since: -11.68% | Next Earnings Date: Mar 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments such as revenue growth, market expansion, and new product launches, offset by challenges including decreased gross margins, higher operating expenses, and stagnant net income.Highlights
Revenue Growth
Revenue increased by 5.6% year-over-year to USD 25.2 million, aligning with company expectations.
Market Expansion
The GlobalMe ecosystem expanded into various sectors beyond travel, strengthening its presence in mainland China and Japan.
Product Launches and Innovations
New products such as next-generation portable WiFi with HyperConn solutions and GlobalMe Life series were introduced, with significant market exposure gained through trade shows.
ALL SIM Solution
Preparation for the commercial launch of the ALL SIM solution, which combines OTA SIM, eSIM, and cloud SIM technologies, aiming to overcome traditional limitations in mobile connectivity.
Financial Position
The company maintained a solid balance sheet with cash and cash equivalents increasing to USD 27.7 million.
Lowlights
Gross Margin Decrease
Overall gross margin decreased to 48.4% from 51.2% in the same period of the previous year. Product gross margins saw a significant drop from 40.1% to 23.1%.
Increased Operating Expenses
Total operating expenses increased to USD 9.7 million, up from USD 8.7 million, representing a higher percentage of total revenue.
Net Income Stagnation
Net income slightly decreased to USD 3.4 million from USD 3.5 million in the same period of 2023.
Company Guidance
In the third quarter 2024 earnings call for UCLOUDLINK Group Inc. (UCL), the company provided guidance indicating a robust financial outlook for the upcoming quarter. Revenue is projected to be between USD 25 million and USD 30 million, representing a substantial increase of 15.2% to 38.2% from the same period in 2023. The company reported a year-over-year revenue growth of 5.6% in Q3, reaching USD 25.2 million, with net income at USD 3.4 million and a positive net cash inflow from operations of USD 2.0 million. Additional metrics highlighted include a gross margin of 48.4%, with gross margins on services rising to 60%. Furthermore, the company's average daily active terminal (DAT) was 320,452, showcasing significant engagement with its data connectivity services. UCL aims to continue its market expansion and product development, particularly with the anticipated commercial launch of its innovative ALL SIM solution, which is expected to enhance connectivity and user convenience across various devices.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.