| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 24.19 | 236 |
| Intrinsic value (DCF) | 4.97 | -31 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 13.88 | 92 |
United-Guardian, Inc. (NASDAQ: UG) is a specialty chemical company that develops, manufactures, and markets innovative cosmetic ingredients, pharmaceuticals, medical lubricants, and industrial products. Founded in 1942 and headquartered in Hauppauge, New York, the company operates in the Consumer Defensive sector, specifically within the Household & Personal Products industry. United-Guardian’s flagship LUBRAJEL line of water-based moisturizing and lubricating gels is widely used in cosmetics, medical devices, and personal care products. The company also produces pharmaceutical solutions like RENACIDIN for urinary tract calcification treatment and CLORPACTIN WCS-90 for antimicrobial applications. With a strong focus on R&D, United-Guardian maintains a niche but profitable position in the market, distributing its products through marketing partners and wholesalers globally. Its diversified product portfolio and proprietary formulations make it a key player in specialty chemicals, catering to both consumer and medical markets.
United-Guardian presents a stable investment opportunity with consistent profitability, zero debt, and a dividend yield of ~2.5% (based on a $0.70 annual dividend and recent share price). The company’s niche focus on specialty chemicals provides pricing power, while its diversified product lines mitigate sector-specific risks. However, its small market cap (~$37M) and limited revenue growth (FY revenue: $12.2M) may deter large institutional investors. The stock’s low beta (0.93) suggests lower volatility relative to the market, appealing to conservative investors. Key risks include reliance on third-party distributors and exposure to regulatory changes in cosmetics and pharmaceuticals.
United-Guardian’s competitive advantage lies in its proprietary formulations (e.g., LUBRAJEL, ORCHID COMPLEX) and long-standing relationships in niche markets. Unlike mass-market personal care giants, UG focuses on high-margin specialty ingredients, avoiding direct competition with commoditized products. Its pharmaceutical segment (e.g., RENACIDIN) benefits from regulatory barriers to entry, though growth is constrained by the niche application. The company’s lack of debt and strong cash flow ($3.5M operating cash flow in FY) provide financial flexibility, but its R&D budget is modest compared to larger peers, limiting breakthrough innovation. UG’s small scale also restricts global distribution reach, relying heavily on partners. Competitively, it outperforms in formulation expertise but lags in brand recognition and marketing firepower versus multinational rivals.