Universal Security Instruments, Inc. (UUU) AI Stock Analysis

Universal Security Instruments, Inc., along with its subsidiary, specializes in the design, marketing, and distribution of safety and security products for residential and commercial applications. Its product lineup features smoke alarms, carbon monoxide detectors, heat alarms, door chimes, ventilation products, and ground fault circuit interrupters sold under the UNIVERSAL and USI Electric brands. Founded in 1969 and based in Owings Mills, Maryland, the company operates with 7 employees. It distributes units through wholesale distributors, retail chains, home centers, electrical suppliers, mail-order catalogs, independent sales representatives, and its proprietary direct-to-consumer e-commerce platform.

Universal Security Instruments has faced significant top-line volatility over recent periods. Revenue grew 11.6% to $19.5M in FY2022 and 13.4% to $22.2M in FY2023, before declining 12.0% in FY2024 to $19.5M. Sales rebounded 20.7% to $23.6M in FY2025, generating net income of $500,684 with a gross margin of 29.0%. However, FY2026 revenue fell 79.4% to $4.8M, causing an operating margin of -96.0% and net income of -$2.5M. The 5-year revenue compound annual growth rate through FY2026 stands at -22.7%. For the trailing twelve months, revenue was $1.1M, with quarterly revenue falling 97.1% year-over-year in the quarter ended June 30, 2026.

As of June 30, 2026, the company held $3.7M in cash and short-term investments alongside total debt of $709,240, yielding a net cash balance of $3.0M. Total assets stood at $4.9M against shareholders' equity of $3.5M, supporting a debt-to-equity ratio of 0.20 and a current ratio of 3.39. In FY2026, operating cash flow and free cash flow both reached $536,185, while dividends paid totaled $2.3M. Over the five-year period, the company's share count expanded by 27.0%.

At a share price of $5.29, Universal Security Instruments holds a market capitalization of $16.0M and an enterprise value of $11.3M. The stock trades at a price-to-sales multiple of 10.6x and an EV-to-EBITDA ratio of 65.1x, both significantly higher than the median of its US-listed Industrials peers, which post a price-to-sales ratio of 1.5x and an EV-to-EBITDA ratio of 13.9x. The stock also carries a price-to-book multiple of 4.1x. Over the past year, shares gained 3.1%, trailing the 16.8% return of the S&P 500 benchmark. Over five years, the stock rose 30.9% versus 83.0% for the S&P 500.

Universal Security Instruments is scheduled to report its next earnings on November 18, 2026. Over the last four quarters, the company recorded 1 earnings per share beat against expectations. Coverage for the micro-cap company remains very limited, with no consensus analyst price targets, recommendation tallies, or forward earnings per share estimates published in the reporting data. Investors will monitor upcoming filings to assess whether the company can reverse its recent quarterly earnings contraction of 72.9%.

This page is an AI-written research summary of Universal Security Instruments, Inc. (UUU). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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