Applied UV, Inc. (AUVI - Get Rating) in Mount Vernon, NY develops, acquires, and commercializes technology that addresses air purification and infection control in the healthcare, hospitality, commercial, municipal, and residential markets in the United States, Canada, and Europe. It operates through Disinfection and Hospitality segments. The company offers science-based solutions and products in air purification under the Airocide brand, and disinfection of hard surfaces under the Lumicide brand. It manufactures and supplies fine decorative framed mirrors, framed arts, and bathroom vanities.

Although AUVI’s $3.36 million in net sales for the first quarter ended March 31, 2022, increased 45.1% year-over-year, it came in below Wall Street’s $3.71 million estimate. Furthermore, it reported an $0.18 loss per share versus the $0.16 consensus estimate loss. Moreover, the stock has missed consensus EPS estimates in each of the trailing four quarters.

The company’s inability to meet analyst estimates and continuing losses are reflected in its stock price. AUVI has declined 85.7% in price over the past nine months and 87.5% over the past year to close the last trading session at $0.97. It is currently trading 92% below its 52-week high of $12.15, which it hit on June 16, 2021.

Here is what could influence AUVI’s performance in the upcoming months:

Disappointing Financials

AUVI’s operating expenses increased 161.2% year-over-year to $4.29 million for the first quarter, ended March 31, 2022. The company’s net loss widened 59.7% year-over-year to $1.64 million. Also, its loss per share widened 33.3% year-over-year to $0.16. In addition, its operating loss widened 336.9% year-over-year to $3.14 million.

Top-line Growth May Not Translate into Bottom Line Improvement.

While analysts expect the company’s revenue to increase 57.2% and 43.1%, respectively, in fiscal 2022 and 2023, AUVI’s EPS is expected to remain negative. However, the loss is expected to decline in the coming quarters.

Lower-than-industry Profitability

AUVI’s trailing-12-month net income margin and EBITDA margin are negative compared to the 6.76% and 13.30% respective industry average. And its trailing-12-month levered FCF margin is negative compared to the 3.54% industry average. Furthermore, the stock’s trailing-12-month ROA is negative compared to the 5.40% industry average.

POWR Ratings Reflect Bleak Prospects

AUVI has an overall D rating, which equates to a Sell in our POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. AUVI has an F grade for Quality, which is in sync with its 0.43% trailing-12-month asset turnover ratio, which is 46.4% lower than the industry average of 0.80%.

AUVI is ranked #140 out of 166 stocks in the D-rated Medical – Devices & Equipment industry. Click here to access AUVI’s growth, Value, Momentum, Stability, and sentiment ratings.

Click here to check out our Software Industry Report for 2022

Bottom Line

Shares of AUVI are currently trading below their 50-day and 200-day moving averages of $1.33 and $3.64, respectively, indicating a downtrend. The company’s EPS is expected to remain negative in its fiscal 2022 and 2023. Furthermore, given its weak fundamentals and lower-than-industry profitability, AUVI does not appear to be a good bet now.

How Does Applied UV, Inc. (AUVI) Stack Up Against Its Peers?

AUVI has an overall POWR Rating of D, which equates to a Sell rating. Therefore, one might want to consider investing in other Medical – Devices & Equipment stocks with an A (Strong Buy) or B (Buy) rating, such as FONAR Corporation (FONR - Get Rating), Abbott Laboratories (ABT - Get Rating), and Shandong Weigao Group Medical Polymer Company Limited (SHWGY - Get Rating).

AUVI shares were trading at $0.99 per share on Wednesday morning, up $0.02 (+2.06%). Year-to-date, AUVI has declined -63.33%, versus a -16.11% rise in the benchmark S&P 500 index during the same period.

About the Author: Dipanjan Banchur

Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets. More...

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