At a time where research into radioactive devices is still heavily financed, US Nuclear Corp (OTCMKTS:UCLE) is in a position to take over a vast part of the market.
News of its high potential is quickly spreading across the market leading to a boost in its share price to an all-time high of $4.35.
In this piece, we cover the details of its latest business deals which have triggered more positive reactions and its possible future outlook.
Take a look at the stock’s movement in the last year:
US Nuclear Corp. was established in February 2012 and its head office is located in Canoga Park, California. The company specializes in the design, building, and manufacturing of radiation monitoring and safety equipment. It delivers a complete set of radiation discovery instruments and services to its customers and client industries which range from government agencies, emergency medical technicians, universities, local and state hospitals, nuclear reactor plants as well as the military.
Some its offerings include Radiation Water Monitors, Vehicle Monitors, Radon Switch Products, AD Aerial Radiation Detection, Air and Water Monitors, Personnel Monitors, Alpha, Beta, Gamma, and Tritium Monitors, Exit Monitors and Room Monitors among other numerous products like software systems and Port Security equipment. The firm carries out its operations through the Overhoff and Optron divisions. The Overhoff division is situated in Milford, Ohio while the Optron segment is situated in Canoga Park, California.
For more information on the company, visit our previous post here.
About a week ago, it was reported that the firm had received requests for new tritium monitoring equipment from leading oil and gas servicing giant Schlumberger worth an estimated $93,000 and Korea Hydro & Nuclear Power worth about $0.3 million an order from two clients which totaled up to $0.4 million. In both situations, the user decided to US Nuclear’s products as replacements for its competitor’s products. The subsidiary of US Nuclear, Overhoff Technology Corporation, which handles the manufacturing of tritium monitors, delivers the highest set of tritium monitors globally and has developed a reputation based on its history of reliability and high performance. Established in 1972, Overhoff Technology has a lot more experience than any other tritium manufacturer globally. Its specialty is in building and designing tritium monitors, which has enables the firm to perfect the technique of assembling this complicated and technical equipment. Besides this, Overhoff is presently the only firm within the United States which deals in the manufacture of tritium monitors.
The Tritium monitoring devices are needed for any situations where tritium is to be used or is present, as a health and safety measure to ensure the protection of users as well as the public. Some of these uses for the product include manufacturing of self-powered lighting sources, biomedical and academic research, tritium processing facilities, nuclear power reactors and weapons, nuclear fusion and water treatment/groundwater monitoring. The need correctly measure the amount of tritium concentration in these applications is critical, hence the high demand for reliable monitors which have a good track record of high performance such as Overhoff.
At the end of 2016, the firm recorded revenues of $2.1 million, a drop of 21% from the revenues of the last year. Noticeably, this figure is only the third highest revenue recorded in the last four years, the highest figures of $2.65 million were recorded in the previous year, reversing a decrease in revenues for the company. However, it is anticipated that the market demand for US Nuclear Corporation’s products will continue to increase and boost sales revenues in the coming years.
However, the firm only recorded cost of sales of $1.3 million, an insignificant increase from the previous year. A pointer that the firm may have lost some of its production efficiency in its sales operations given that revenues dipped between both years.
In line with the cost of sales, SG&A expenses jumped by 14%, while the firm incurred non-recurring expenses of $1.24 million during the year. With no major additional income, while there were increases in sales and administrative costs and other costs, operating loss for the year was recorded at $1.59 million, a turnaround from the previous year’s profit of $0.4 million. Net loss for the year was $1.6million.
The statement of financial position reveals that the firm is not too highly geared. On its books, its total debt is worth an estimated $1.2 million, leading to stable debt to equity ratio of 0.92. It also has a liquidity ratio of 2, which can be considered acceptable for its industry.
UCLE is strategically positioned to be the only US-based producer of radioactive-based touring devices. Hence the size of its client base is vast and runs across many industries.
Disclosure: We have no position in UCLE and have not been compensated for this article.