Universe Pharmaceuticals

UPC

Drug Manufacturers - Specialty & Generic · Healthcare

Price

$4.45

-0.10 (-2.20%)

Market Cap

$2.8M

Exchange

NASDAQ Global Market

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Share count falling — buybacks

−34.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 5K (2021) → 3K (2025)

Universe Pharmaceuticals Inc. is a small Chinese pharmaceutical company that makes and sells traditional Chinese medicine (TCM) products. Its medicines are mainly designed for older patients and focus on conditions common in aging populations, such as pain, bone health, and circulation issues. The company sells its products primarily in China through hospitals, pharmacies, and distributors.

Universe Pharmaceuticals earns money by manufacturing and selling its TCM products directly to healthcare channels across China. It is a very small company with a market cap near zero, which signals significant financial stress. The company is currently losing money at the operating level, meaning it spends more running the business than it earns, and its negative return on capital raises concerns about long-term viability. The key risk facing the business is its ability to scale revenue and reach profitability in a crowded Chinese pharmaceutical market where larger, better-funded competitors dominate distribution and brand recognition.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-14.1% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-100.1% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$671,761/ year

↓ Declining (-78% vs prior year)

3.8% of revenue

Below sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

22.9%ownership

Insiders own a meaningful stake in the company

Cash Runway

~13 months

$34M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Adequate runway but may need to raise capital within 2 years

Revenue declining

Universe Pharmaceuticals's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

36.0%

Modest — 36.0% gross margin

Operating Margin

-6.8%

Losing money on operations — -6.8%

ROCE

-0.9%

Weak — -0.9% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-43.6%

Shrinking sales (-43.6% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-37.2%

Burning cash (-37.2%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.16

Conservative — low debt load (0.16)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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