Universal Electronics: A High-Risk/High-Reward Turnaround Play

Summary

• Sales have decreased significantly since 2020 and are expected to decline again in 2024.
• Profit margins are currently depressed due to lower volumes and inflationary pressures.
• The company now plans to expand its presence in the HVAC industry to replace lost sales in the video services industry.
• The balance sheet is robust, as the company has enough resources to withstand current headwinds for a long time.
• The recent share price decline represents a good opportunity for those investors with enough patience and risk tolerance.