Universal Electronics Inc.
Universal Electronics, Inc. was founded in 1986 and is currently headquartered in Cypress, Ca with 1,843 employees. UEI sells pre-programmed universal wireless control products, including remote controls, wireless keyboards, and gaming controls in the USA, Europe, Australia, New Zealand, South Africa, the` Middle East, Mexico, Asia, and Latin America. With the development of software and firmware, the company's devices can virtually control all infrared capable televisions, DVD players, VCRs, cable converters, CD players, audio components, and satellite receivers. Its primary customers include original equipment manufacturers (OEM), cable and satellite service providers, custom installers, and personal computing clients. UEI has several brand names but the most known is All For One. UEI also markets a line of home safety and automation products under the Eversafe brand name. In November 2010, UEI acquired the China-based company Enson Assets Limited. UEI competes with Harman International Industries, DTS, Philips Consumer Electronics, Universal Remote Control, Contec, Logitech, Sensata Technlogies, AMX, and others. Analysis
When analyzing a company's financial statements, various ratios are used to determine how the company is performing in relation to its past performance, its budgeted performance, industry benchmarks, and to other comparable companies. An analysis of Universal Electronics Inc.’s financial position indicates that the state of the organization is strong. UEI has #1 market share in the global remote control market. The company has over 65% market share in universal remotes for US subscription broadcasters and 30% market share globally. Opportunities exist that will fast forward its future growth through investing in new projects that will result in more value for the organization. For instance, with the integration of Enson Assets Limited, UEI will be able to decrease 3rd party supplier purchases and utilize the existing factories of Enson. UEI plans to further penetrate the growing subscription broadcasting markets of Asia and Latin America. Currently, Universal Electronics Inc. has a market cap of $403.6million. Its shares are traded around $27.32 with a P/E ratio of 25.18 and P/S ratio of 1.22. Over the past 5 years, Universal Electronics Inc. had an annual average earnings growth of 6.87%, which is on the higher end compared to some of its competitors as indicated in the chart below.
Harman International Industries Inc.
SENSATA TECHNOLOGIES 5-yr Earnings Growth
Furthermore, overall net sales grew 4.5% from $317.6 million in 2009 to $331.8 million in 2010, due to the acquisition of Enson Assets Limited in November 2010. The acquisition added a large number of customers, contributed to increased sales, and $25.0 million in revenue in 2010. Without the acquisition of Enson, revenue decreased 3.4% from $317.6 million in 2009 to $306.8 million for 2010. This decrease was due to the loss of sales of one of UEI’s primary customers. Net sales in UEI’s business to business segment of subscription broadcasting, OEM, and computing companies were ~ 85% of net sales for 2010 compared to ~83% for 2009. Net sales in UEI’s business to consumer segment (One For All® retail, private label, custom installers, and direct import) were ~15% of net sales for 2010 compared to ~17% for 2009. The 2010 net sales in the business to consumer segment were negatively impacted by the weakening of the Euro and the British Pound compared to the U.S. dollar, which resulted in a decrease in net sales of ~$1.4 million. Source: http://www.faqs.org/sec-filings/110316/UNIVERSAL-ELECTRONICS-INC_10-K/#ixzz1KQQDujo5 Asset Management/Efficiency
The table below compares some of UEI’s efficiency/asset management ratios to the industry.
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