United Guardian Inc. ($UG) Stock Analysis

This week I took a look at United Guardian Inc., a micro-cap stock whose ticker is $UG. UG closed for trading on 4/24/20 at $14.70/share, with a Price/Earnings (ttm) of 14.1.

United Guardian Inc. UG’s Stock Fundamentals

UG’s P/B (ttm) is 6.35, and they offer an attractive 7.48% Dividend Yield. Their Beta is low, at 0.09, which is to be expected as their Market Cap is ~$67.53M, so they most likely move on their own news, with some sector momentum included.

An interesting observation I made here is that they have little-to-no debt, and while they only have $7.92M Total Cash (mrq), their higher-than-average Dividend Payout Ratio of 106% may have more options than other companies who face similarly high Payout Ratios.

They have 26.47% Institutional Ownership, which also makes sense given their small size does not enable larger investors to make as large of a profit based on their limited lot size.

Comparing United Guardian Inc. UG’s Stock With The Consumer Staples Sector

United Guardian Inc.’s Stock Fundamentals are very attractive when compared to the Consumer Staples Sector averages.

UG’s Price/Share is 66% less than the sector average, with a 49.8% lower P/E (ttm) & 92.6% lower P/B than the average for the sector.

United Guardian Inc. UG's Stock Fundamentals Compared To The Consumer Staples Sector Averages

Their Dividend Yield is 99.5% higher than the sector average, and although their Payout Ratio is 573% above average, it’s limited debt offer more flexibility in how they can approach fixing this should the problem persist long-term.

As a very small micro-cap stock, their Estimated Market Cap is 99.6% lower than average, and their Total Cash (mrq) is 98.9% lower than the averages.

As a result, UG’s stock % Institutional Ownership is 42% lower than the Consumer Staples Sector average, and their Beta is 87.5% lower than average.

United Guardian Inc. UG’s Stock Fundamentals Compared To The Personal Products Industry

United Guardian Inc. offers many advantageous fundamentals when compared to the Personal Products Industry averages.

Their Price/Share is 15.8% lower than average, with a 20.2% lower P/E (ttm) & 59.2% P/B.

An interesting stat I came across while looking at these numbers was that UG’s EPS Growth for last quarter is +138.46% Y-o-Y, while the rest of the sector declined 26.2%.

UG’s Dividend Yield is 7.94% higher than the Industry average, with their % Institutional Ownership 24.6% lower.

Much like when compared to their sector averages, UG’s Dividend Payout Ratio is 920% higher than the Personal Products Industry average, and their Market Cap is 99% less than average, with a 98% less than average Total Cash amount.

United Guardian Inc. UG’s Technicals & Chart

UG’s stock 10-Day Moving Average is 13.99, with their 50-Day MA at 14.70 & their 200-Day MA at 17.96.

While I’m not involved in the stock, it may become interesting once it gets between $12-12.50/share.

United Guardian Inc.’s Stock Growth Story

Since they became publicly traded on 3/17/1980, UG has grown by 163.77% including dividends collected, but not including the value of their three historic stock splits.

They do not explicitly outperform the S&P 500 or NASDAQ Indexes as they are a much smaller company than most, however, they do offer positive growth & a good return for a small sized position.

United Guardian Inc. UG's Stock Performance Vs. The S&P 500, All-Time

They also continue to return value to their shareholders by paying out their dividend twice per year.

United Guardian Inc. UG's Stock Performance Vs. NASDAQ Index - All Time

Tying It All Together

UG’s stock offers a lot of interesting fundamental growth opportunities. When compared to their sector & industry they are below almost all of the averages that we examined.

Another excellent point that is becoming even more important in economic times like these is their low-level/lack of debt.

This is increasingly rare, and if they’re able to provide a 7%+ cushion via yield, they are strategically ready to weather more storms than most other companies.

As mentioned before, I am not in this name, but would consider building a position once they re-enter the $12-12.50/share range.

United Guardian Inc. Stock may be worth looking at pending additional research.

For More Notes:

*** I Do not own any shares of UG Stock ***

Advanced Emissions Solutions Inc. $ADES Stock Analysis

This week I had a look into Advanced Emissions Solutions Stock, which trades under the ticker $ADES. ADES is a micro-cap stock that offers strong fundamentals & an excellent, safe dividend yield. I conducted my research over the weekend on 4/20/20, when the price was at $6.66, and all numbers in this article are reflective of that date.

ADES Stock Offers Strong Fundamentals

Advanced Emissions Solutions Inc. ADES Stock Fundamentals

ADES trades at a P/E (ttm) of 3.5 & a P/B of 1.13, with a Beta of 0.9. These are very attractive levels, especially when compared to the averages of their Sector, Industry & Sub-Industry (below).

Their lower than average Beta ensure less volatility, with steady growth coming mostly from company performance, given that it is a Micro-Cap with an Estimated Market Cap of $122.3M.

Given the market fallout from COVID-19, there has been a noticeable shift into stocks that have great fundamentals, good, sustainable dividends & low-levels of debt in comparisson to their cash levels.

ADES’s Total Cash (mrq) is $12.08M, with a Total Debt (mrq) of $49.56M & a Debt/Equity (ttm) of 45.76.

Despite their small size limiting the potential for larger investors, ADES still has a 68.82% Institutional Ownership.

Examining ADES’s Stock Dividend

One of their most appealing fundamentals is their generous 15.01% Dividend Yield, which is paid out quarterly. What is especially appealing about it is that their Payout Rate is 49.99%, showing that they should be able to maintain that high level of interest payments to holders of their stock. In turbulent times this is especially helpful, as it provides a performance cushion if you intend to hold it for the entire year.

How ADES Stock Compared To Other Materials Sector Stocks

Advanced Emissions Systems Inc.'s Fundamentals Compared To The Materials Sector Averages

ADES stock costs 51% less than the average Materials Sector stock, trading at an 85% lower Price-To-Earnings Ratio (ttm), and 56% less than their Price To Book Value.

Their Dividend Yield is 230%+ better than the average Materials Sector stock, with a 4.15% better Debt/Equity (ttm) Ratio & a 57% higher than average % Institutional Ownership, all very strong metrics.

Their Payout Ratio is higher than the average, but still is maintable, which shouldn’t worry investors, and as mentioned earlier, as they are a Micro-Cap stock their Market Cap is 96% less than average, as is their Total Cash.

Materials Sector Stock Average Fundamental Metrics

How Advanced Emissions Solution Stock Compares To Other Chemical Industry Stocks

Advanced Emissions Solutions Inc. ADES Stock Fundamentals Compared To The Chemical Industry Averages

When compared to the Chemical Industry average metrics, ADES has a 80% lower price/share, with an 81% lower P/E (ttm), a 48% lower P/B, and a fantastic 193% higher Dividend Yield, paying out 37% higher than average.

Their Beta is 28% less than average, partially because they are 97% smaller by Market Cap than the average Chemical Industry stock.

Despite this, as their Debt/Equity is 37% partnered with the above advantages, they have 21% more Institutional Ownership than the average Chemicals industry stock.

Chemicals Industry Average Stock Fundamental Metrics

ADES Stock Vs. Specialty Chemicals Sub-Industry Stock Fundamentals

Advanced Emissions Solution Inc. ADES Stock Fundamentals Vs. The Specialty-Chemicals Sub-Industry Average Fundamental Metrics

ADES is also a much stronger player than the average Specialty Chemicals Sub-Industry stock. Price/Share is 86% less, with an 83% less P/E(ttm) & a 59% less P/B.

Their Dividend is 362% higher than the average Specialty Chemicals stock, with 14% higher Institutional Ownership & 59% better Debt/Equity (ttm).

Their 31% lower Beta makes these numbers especially appealing in these tough times for the market.

Specialty-Chemicals Sub-Industry Average Fundamental Metrics

ADES Stock’s Historic Performance Vs. The S&P 500 & NASDAQ

Advanced Emissions Systems Inc. ADES's Stock Performance Vs. The S&P 500 Since It Began Trading

ADES Stock has grown 56.41% since it first started trading on 1/23/04, and for 3 years (12 quarterly payouts) it has yielded a dividend of ~15%, totaling 101.5% in growth.

The S&P 500 has grown 150% over that same period, however when you compare the charts and consider the fundamentals & company type, there is a lot of opportunity to outperform.

The NASDAQ has grown 307% in that time.

Advanced Emissions Systems Inc. ADES's Stock Performance Vs. The NASDAQ Since It Began Trading

Examining ADES Stock’s Technical Metrics & Chart

Advanced Emissions Systems Inc. ADES's Technicals & Stock Chart

ADES’s 10-Day Moving Average is $6.42, with its 50-day Moving Average at $8.21 & it’s 200-Day Moving Average of $11.24.

This is weaker than the average across its Sector & Industries, which is why it is a good time to begin looking at an entry-point while it establishes it’s bottom in weakness.

Overall Assessment Of ADES

I like the fundamentals of ADES, especially when compared to it’s peers. While it’s technicals aren’t looking too great, neither are the rest of the markets’, and it appears that this is an opportunity to buy a fundamentally strong company at a great discount.

After finishing my research I placed a Buy order to fill at $6/share, which filled yesterday morning around 11:30 AM.

I plan to hold onto this for a while, as it’s 15%+ dividend yield is a great safety cushion given these volatile times if I hold onto it for the year.

Plus, a micro-cap name like this just needs a couple of big headlines to takeoff running, as typically these companies are lesser known to most traders/investors, which provides extra strength once they make the news for good reason and everyone comes piling in.

*** Please note that as mentioned above I have a long position in this stock, and always conduct your own due-diligence before marking investments & trades ***

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