United-Guardian, Inc.: Gathering momentum, can it sustain its performance?

United-Guardian, Inc. relative valuation is OVERVALUED and it has a fundamental analysis score of 66.

Our analysis is based on comparing United-Guardian, Inc. with the following peers – Johnson & Johnson, International Flavors & Fragrances Inc., Pfizer Inc., C. R. Bard, Inc., Senomyx, Inc., Stepan Company, Ashland Global Holdings, Inc., Teleflex Incorporated and Juniper Pharmaceuticals, Inc. (JNJ-US, IFF-US, PFE-US, BCR-US, SNMX-US, SCL-US, ASH-US, TFX-US and JNP-US).

United-Guardian, Inc. has shown excellent performance overall, both over the last one year as well as over the last month. In fact, United-Guardian, Inc.’s price momentum over the last month, at 24.61% has been better than that over the last year, which was 2.90%. Also from a peer group perspective, United-Guardian, Inc. has performed better, since the peer group performance was 2.87% over the last month.

Company Snapshot

  • Compared to peers, relative underperformance over the last year is in contrast with the more recent outperformance.
  • It currently trades at a Price/Book ratio of (5.61).
  • The market expects UG-US to grow at about the same rate as the peers and to maintain the median returns it currently generates.
  • UG-US has relatively high profit margins while operating with median asset turns.
  • Compared with its chosen peers, the company’s annual revenues and earnings change at a slower rate, implying a lack of strategic focus and/or lack of execution success.
  • UG-US‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • The company’s relatively high pre-tax margin suggests tight control on operating costs versus peers.
  • While UG-US‘s revenues growth has been below the peer median in the last few years, the market still gives the stock a P/E ratio that is around peer median and seems to see the company as a long-term strategic bet.
  • The company’s level of capital investment seems appropriate to support the company’s growth.
  • UG-US currently does not have any debt.
  • Our analysis rates United-Guardian, Inc. as OVERVALUED relative to its peers.

Share Price Performance

Compared to peers, relative underperformance over the last year is in contrast with the more recent outperformance.

UG-US‘s share price performance of 2.90% over the last 12 months is below its peer median but its 30-day trend in share price performance of 24.61% is better than the peer median. This recent rising stock price may herald a change in relative share price performance.

Share Price Performance

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Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

United-Guardian, Inc.’s price of USD 17.75 is greater than CapitalCube’s implied price of USD 11.69. At this level, CapitalCube believes that United-Guardian, Inc. is overvalued. Over the last 52 week period, the stock has fluctuated between USD 13.52 and USD 18.05.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

United-Guardian, Inc. manufactures and markets cosmetic ingredients, personal care products, pharmaceuticals, medical lubricants, health care products, and specialty industrial products. It also conducts research and product development, primarily related to the development of new and unique cosmetic and personal care products. The company focuses on the development of products that fill unmet market needs, have unique properties, and use proprietary technology that it sometimes protects with patents. United-Guardian was founded on September 14, 1987 and is headquartered in Hauppauge, NY.

Disclaimer

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