| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 151.88 | 3794 |
| Intrinsic value (DCF) | 2.44 | -37 |
| Graham-Dodd Method | 1.37 | -65 |
| Graham Formula | n/a |
Yunhong Green CTI Ltd. (NASDAQ: YHGJ) is a consumer products company specializing in novelty and packaging solutions, including foil and latex balloons, inflatable items, and custom film packaging. Operating in the Packaging & Containers sector, the company serves retail outlets such as general merchandise stores, discount chains, and party goods suppliers. Formerly known as Yunhong CTI Ltd., the company rebranded in 2023 to reflect its commitment to sustainability. With a market cap of approximately $22 million, Yunhong Green CTI distributes products both directly and through wholesalers, targeting the consumer cyclical market. Despite challenges in profitability, the company maintains a niche presence in the balloon and packaging film industry, leveraging its Partyloons brand and custom film applications for food and commercial use. Headquartered in Lake Barrington, Illinois, Yunhong Green CTI continues to navigate competitive pressures while exploring growth in eco-friendly product lines.
Yunhong Green CTI presents a high-risk, speculative investment opportunity due to its small market cap, negative earnings, and operating cash flow. The company’s low beta (0.19) suggests minimal correlation with broader market volatility, but its financials reveal persistent losses ($1.5M net income deficit in FY2023) and limited liquidity ($220K cash). While its niche in novelty balloons and packaging films offers differentiation, reliance on cyclical retail demand and debt burden ($11.5M total debt) pose significant risks. Investors should monitor potential turnaround efforts under its rebranded sustainability focus, but the absence of dividends and weak cash flow generation temper near-term appeal.
Yunhong Green CTI competes in a fragmented market with low barriers to entry, where scale and cost efficiency are critical. Its competitive advantage lies in specialized balloon products (e.g., Partyloons) and custom film packaging, catering to niche retail and commercial clients. However, the company’s small size limits economies of scale compared to larger packaging peers, and its reliance on third-party distributors weakens margin control. The 2023 rebranding to 'Green CTI' hints at a sustainability pivot, but tangible eco-friendly product differentiation remains unproven. Competitors with broader product portfolios and stronger balance sheets dominate shelf space in retail channels, while Yunhong’s debt-heavy capital structure restricts R&D or M&A-driven growth. Its survival hinges on carving out defensible niches (e.g., seasonal balloon demand) or securing strategic partnerships to offset operational inefficiencies.