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what it is
United-Guardian makes specialty gels, health products, and a niche drug ingredient business from one New York facility.
how it gets paid
FY2025 net sales ~$10.5M vs. ~$12.2M in FY2024 (−13%). Management cited weaker cosmetic-ingredient demand (notably distributor inventory) while pharmaceutical and medical-lubricant lines grew.
what just happened
FY2025 net income ~$2.11M; diluted EPS ~$0.46 vs. ~$0.71 in FY2024 (GlobeNewswire earnings release, Mar 27, 2026).
At a glance
C++ balance sheet — some cracks in the foundation
55/100 earnings predictability — expect surprises
15.2x trailing p/e — the market's not buying it — or you found a deal
7.5% dividend yield — cash in your pocket every quarter
~16% ROA on FY2025 net income — asset-light, tiny base
xvary composite: 35/100 — weak
What they do
United-Guardian makes specialty gels, health products, and a niche drug ingredient business from one New York facility.
UG wins by being tiny and specialized. Its core LUBRAJEL line is the company’s most important product family, sold through six marketing partners, with Ashland as the largest, so your customers already know where to find it. Return on capital was 27.4% in fiscal 2024. Return on capital → profit earned on money used in the business → so this niche operation squeezes a lot out of a small asset base.
How they make money
~$10.5M
FY2025 net sales · −13% vs. FY2024
Pharmaceuticals (incl. Renacidin®)
~$5.4M
+15% YoY (mix)
Cosmetic ingredients
~$3.1M
down YoY
Medical lubricants & other
~$2.1M
med. lubes +4%
The products that matter
Renacidin® and drug wholesalers
Pharmaceuticals
~51% of FY2025 sales · +15% YoY
Mix shifted here in FY2025 while cosmetics softened—management highlighted formulary/PBM progress for Renacidin® in the Mar 2026 release.
mix driver
distributed cosmetic ingredients
Cosmetic Ingredients
~29% of FY2025 sales
Ashland inventory overhang and softer China demand hurt orders; management cites new distribution agreements as a potential recovery lever.
headwind line
contract manufacturing demand
Medical Lubricants
+4% YoY (company commentary)
Small dollars, but positive in FY2025 while cosmetics declined—helps offset concentration in any single end market.
offset
Key numbers
~14.5x
trailing p/e
~$6.68 stock ÷ ~$0.46 FY2025 EPS—micro-cap liquidity and lumpy distributor orders still matter more than the multiple.
~21%
FY2025 op. margin
Income from operations ~$2.24M on ~$10.55M net sales per FY2025 income statement in the Mar 27, 2026 release.
~49%
FY2025 gross margin
Gross profit ~$5.14M on ~$10.55M sales—high gross margin is the economic signature; operating leverage is tiny in dollar terms.
7.5%
dividend yield
Dividend yield → cash paid to shareholders as a percent of the stock price → so you are being paid while you wait, assuming earnings keep covering it.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 4 — safer than 20% of stocks
- price stability 25 / 100
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for UG right now.
source: institutional data · return history unavailable
What just happened
reported results
Revenue hit $8M and EPS reached $0.32, which is wild against a company with only $12M of estimated full-year revenue.
EDGAR shows latest-quarter revenue up 235% vs. prior year and EPS up 433% vs. prior year. Deadpan fact bomb: one quarter produced two-thirds of the company’s estimated full-year sales.
$8M
revenue
$0.32
eps
29.9%
operating margin
the number that mattered
$8M matters most because that single quarter equals about 66.7% of the company’s $12M full-year revenue estimate.
source: company earnings report, 2026
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What could go wrong
If you are here for the 7.5% yield, the real risks are not abstract. They are a small revenue base, a delayed product launch, cost pressure, and a payout that already runs ahead of trailing operating cash flow.
high
Dividend coverage pressure
Trailing operating cash flow is $1.91M while the annual dividend costs about $2.3M.
That means the payout is asking for more cash than operations recently produced. If you own UG for income, this is the first crack to watch.
high
Tariff-driven cost inflation
Chemical input costs are projected to rise 8%–15% across the industry due to tariffs.
In a business with a 50.6% gross margin and only $12M of annual revenue, even a few points of margin compression matter quickly.
med
Weakness in cosmetic ingredients
The largest disclosed segment is $8.0M and down 18%, while medical lubricants and specialty industrial were flat.
That is concentration risk in plain English. If the core line keeps shrinking, the rest of the portfolio is too small to offset it.
med
Single-catalyst delay
Natrajel has been postponed to 2026, removing the clearest near-term launch from the story.
For a company with roughly $10M–$12M in revenue, one delay can stall the whole growth narrative. You are left with yield, not acceleration.
The business has real margin strength, but a 50.6% gross margin does not solve a $1.91M cash flow line supporting a $2.3M dividend or a core segment that is down 18%.
source: institutional data · regulatory filings · risk analysis
Pay attention to
catalyst
Natrajel launch timing
The sexual wellness line is now a 2026 story. If it slips again, the growth case gets even thinner and you are left leaning harder on the dividend.
cash flow
dividend coverage
Trailing operating cash flow is $1.91M versus a $2.3M annual dividend. You want that relationship to reverse, not widen.
margin
tariff pass-through
Raw material inflation of 8%–15% only stays manageable if UG can pass through enough of it to defend the 50.6% gross margin.
segment trend
cosmetic ingredients demand
The largest disclosed segment is $8.0M and down 18%. If that line is still shrinking at the next update, the rest of the story matters much less.
Analyst rankings
earnings predictability
55 / 100
in human-speak, analysts do not see this as a clean, steady earnings story.
risk rank
4
Safer than 20% of stocks. Translation: this sits in the riskier part of the market, which is common for microcaps and still worth saying out loud.
source: institutional data
Institutional activity
institutional ownership data for UG is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$7
current price
n/a
target midpoint · n/a from current
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