United Labels (ULC) AI Stock Analysis

United Labels

(XETRA:ULC)

Select Model

Rating:50Neutral

Price Target:EUR 0.80▲(9.29% Upside)

Action:reiterated

Date:09/30/26

United Labels scores in the lower-middle range. The dominant driver is financial performance: margins and net profit have improved markedly and leverage has fallen sharply, but revenue has contracted for three straight years, equity is a thin 14% of assets, and reported profits are barely converting into cash (€0.19M operating cash flow versus €1.23M net income). Technicals add to the caution, with the price below all key moving averages and a negative MACD. The main offset is valuation — a P/E near 5x prices in much of the risk — though no dividend is paid. This remains a higher-risk small-cap where stabilizing sales and improving cash conversion are the key to any re-rating.

Positive Factors

Improved ProfitabilityThe move from losses to positive earnings indicates a meaningful improvement in operating performance. A positive TTM net margin gives the company greater capacity to fund operations internally, absorb business volatility, and build earnings power if profitability is maintained.

Negative Factors

Declining RevenueA multi-period revenue decline raises a durable concern about demand momentum and the company’s ability to expand its licensed product business. Continued top-line contraction could limit operating leverage, reduce scale benefits, and eventually pressure the improved earnings profile.

United Labels (ULC) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 5.54M
Dividend Yield: ―
Average Volume (3M): 3,615
Price to Earnings (P/E): 4.6
Beta (1Y): 0.26
Revenue Growth: 4.81%
EPS Growth: ―
Country: Germany
Employees: 36
Sector: General
Sector Strength: 55
Industry: Leisure

United Labels Business Overview & Revenue Model

Company Description

UNITEDLABELS Aktiengesellschaft manufactures and sells branded products for media/entertainment industry in Germany and internationally. It offers cups, bowls, plates, breakfast sets, lunch boxes, water bottles, thermos mugs, bags, backpacks, gym bag...

United Labels Financial Statement Overview

Summary

A genuine profitability turnaround is undermined by a weak financial structure. Operating margin has expanded from under 1% in 2021 to 7.4% TTM and net profit reached €1.23M, but revenue has now declined for three consecutive years (roughly €24.8M in 2023 to €20.5M TTM, -4.1%), and gross margin swings widely between 27% and 37%. The balance sheet is improving — debt-to-equity down to 1.6x from 8.0x in 2021 — yet equity funds only about 14% of the €31.5M asset base, leaving a thin cushion. The biggest concern is cash conversion: operating cash flow of just €0.19M against €1.23M of net income, with free cash flow of €0.31M versus €6.3M of debt, indicating profits are being absorbed by inventory and receivables. Direction of travel is positive, but resilience and cash quality remain low.

Income Statement

58Neutral

Balance Sheet

44Neutral

Cash Flow

33Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.47M	21.54M	22.45M	24.82M	22.34M	17.97M
Gross Profit	7.23M	6.28M	8.33M	6.76M	6.94M	4.94M
EBITDA	2.53M	2.47M	2.05M	1.58M	1.60M	909.75K
Net Income	1.23M	1.11M	156.20K	632.25K	444.68K	-212.79K
Balance Sheet
Total Assets	31.51M	27.69M	26.98M	20.95M	24.60M	18.43M
Cash, Cash Equivalents and Short-Term Investments	47.31K	602.25K	413.60K	762.48K	263.53K	128.27K
Total Debt	6.29M	6.86M	8.04M	7.61M	7.29M	7.73M
Total Liabilities	27.02M	23.57M	24.21M	18.25M	22.38M	17.45M
Stockholders Equity	4.47M	4.10M	2.75M	2.68M	2.20M	966.60K
Cash Flow
Free Cash Flow	306.00K	278.00K	705.00K	583.00K	1,004	1.06M
Operating Cash Flow	191.00K	278.00K	1.63M	800.00K	1,721	1.59M
Investing Cash Flow	-218.00K	-333.00K	-788.00K	-217.00K	-717	-533.00K
Financing Cash Flow	79.00K	243.00K	-1.19M	-85.00K	-868	-1.17M

United Labels Technical Analysis

Technical Analysis SentimentNegative

Last Price0.73

Price Trends

50DMA0.92Negative

100DMA0.96Negative

200DMA1.04Negative

Market Momentum

MACD-0.04Negative

RSI43.41Neutral

STOCH70.37Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ULC, the sentiment is Negative. The current price of 0.73 is below the 20-day moving average (MA) of 0.81, below the 50-day MA of 0.92, and below the 200-day MA of 1.04, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 70.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:ULC.

United Labels Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

DE:ULC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
DE:ULC	50Neutral	EUR 5.54M	4.63	30.69%	―	4.81%	―
DE:NVM	46Neutral	EUR 77.45M	-29.56	-2.92%	―	-2.97%	-111.12%

* General Sector Average

Performance Comparison

DE:ULC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:ULC	United Labels	0.80	-0.32	-28.57%
DE:WFA	Weng Fine Art AG	3.22	-1.34	-29.39%
DE:NVM	Novem Group SA	1.80	-1.18	-39.60%
DE:DE10	Deufol SE	3.74	-1.31	-25.94%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 30, 2026

United Labels AI Stock Analysis