United-Guardian Inc. Common Stock (UG)

FairStock Score: 79/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am drawn to small, understandable businesses with high returns on capital and clean balance sheets. United-Guardian, with 23 employees, sells specialty ingredients for cosmetics, medical lubricants and personal care. At the close on 2026-10-13, the price was $6.86 and the market cap was $31.5M. The FairStock numbers show a P/E of 12.70, P/B of 2.71, ROE of 21.35%, ROCE of 10.81%, and a 10.8% free-cash-flow yield. The Altman Z-Score of 12.17 and Piotroski F-Score of 6/9 suggest reasonable financial health. The dividend yield is 8.75%, so cash returns are a real part of the story. But I must weigh consistency. In fiscal 2025, ended 2025-12-31, revenue was $10.5M and net income was $2.1M, down from fiscal 2024 revenue of $12.2M and net income of $3.3M; diluted EPS fell to $0.46 from $0.71. The provided Lynch category is SLOW GROWER — Shrinking, with profit down 8.6% a year over five years and revenue down 0.8%. Recent results are better: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $3.1M, net income was $728,579, and diluted EPS was $0.16, versus fiscal Q2 2025 revenue of $2.8M, net income of $626,826, and diluted EPS of $0.14. Valuation is not Graham-cheap: the Graham Number is $5.54, leaving a -23.83% margin of safety at $6.86. PEG of 0.28 looks low, but shrinking long-term profits make that less reliable. This looks like a niche, cash-generative business that needs to prove growth is back.

In plain English: United-Guardian makes specialty ingredients for cosmetics, medical lubricants, and personal-care products, and it is a very small company with only 23 employees. The business is profitable and has a high dividend, and the most recent quarter improved from a year earlier, but full-year results have weakened from 2024 to 2025. At $6.86, the price looks fair to a little high compared with a conservative estimate of what its earnings and assets support, not clearly cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer