Universal Safety Products Inc

Universal Safety Products Inc maintains a debt-free capital structure, evidenced by a debt-to-equity ratio of 0.0 and total equity of $5.16 million against total assets of $9.82 million. Liquidity is constrained, with cash and equivalents totaling $348,074 and a negative operating cash flow of -$1.05 million, resulting in a low liquidity risk assessment. The company trades at a market capitalization of $15.94 million, with a price-to-earnings ratio of 31.83 and an EV/EBITDA of 38.77, reflecting a premium valuation relative to its small asset base.

Profitability metrics show a return on equity of 9.7% and a return on assets of 5.1%, derived from a net income of $500,684 on revenue of $23.56 million. The gross profit stands at $6.83 million, yielding a gross margin of approximately 29%, while operating income is thin at $402,049, indicating high operating leverage or expense intensity relative to sales. Without cohort median data for direct comparison, these returns appear modest for a utility-adjacent business, particularly given the negative cash conversion.

The company’s revenue mix and geographic exposure are not detailed in the available segment or geography data. The absence of disclosed segment breakdowns prevents an analysis of revenue concentration or regional dependency, leaving the specific drivers of the $23.56 million revenue stream opaque beyond the general Electric Utilities classification.

Growth trajectory cannot be assessed due to the absence of historical period data. The financial snapshot provides only the latest normalized period figures, with no five-year annual or eight-quarter quarterly trends available to evaluate revenue or net income momentum.

Risk assessment indicates low liquidity and low dilution risk, with no immediate filing-based flags detected. The company has no debt, eliminating interest rate risk, but the negative operating cash flow poses a sustainability concern if not offset by external financing or asset sales. The low dilution risk is supported by the identical basic and diluted share counts of 2,312,887.

Recent events highlight a significant insider transaction, with an insider purchasing $1.96 million of shares on the open market, a volume 117.91 times their trailing median transaction size. This substantial open-market buy, filed on 2026-05-15, signals strong internal confidence despite the company’s liquidity constraints. IR observations confirm the existence of subsidiaries including Universal Safety Electric, Inc, D-U Merger Sub, Inc, and Universal DEFI, LLC.