Applied UV, Inc. (AUVIQ)

Applied UV, Inc. - Comprehensive Overview

Company Profile

History & Background

Applied UV, Inc. (Nasdaq: AUVI) is a pathogen elimination company founded in 2012. The company develops innovative, sustainable, and mercury-free disinfection technologies. Previously known as Munn Works Inc., the company re-branded to Applied UV, Inc. in November 2018 to better reflect its core focus.

Business Areas

Applied UV focuses primarily on two key business areas:

1. Air & Surface Disinfection: The Airocide® air purification and disinfection technology uses ultraviolet light to eliminate airborne pathogens, including viruses, bacteria, and mold, in hospitals, hotels, schools, and commercial buildings.
2. Water & Wastewater Disinfection: The company's water disinfection systems utilize ultraviolet technology and advanced oxidation processes (AOPs), eliminating pathogens and contaminants from drinking water and industrial process waters.

Leadership & Structure

• CEO - Max Munn
• President & COO - Salim Husainy
• CFO - Michael Leigh
• CTO - David Lytle
• Chairman & Founder - James A. Munn
• Board of Directors: David A. Jones (Lead Director), James A. Munn, Max L. Munn, R. Scott Reid, Michael A. Starnes

Top Products & Market Share

Products

1. Airocide® Air Purifiers & Disinfection System: This technology uses wavelengths of ultraviolet light to kill airborne pathogens, offering an alternative to HEPA filtration.
2. AOP Water Disinfection Systems: These advanced oxidation systems leverage UV technology and chemical oxidants for water disinfection.

Market Share

• Airocide's market share in air purification is small compared to larger players like IQAir and Austin Air. However, the unique approach and potential health benefits position the technology for future growth.
• In the water disinfection space, Applied UV faces competition from industry leaders like Evoqua Water Technologies, Siemens, and Trojan Technologies.

Total Addressable Market

The global air purification market was estimated at USD 11.22 Billion in 2022 and is projected to reach USD 17.42 Billion by 2032. The water purification market is significantly larger, reaching USD 90 billion in the same year, projected to grow to USD 152.9 Billion by 2033.

Financial Performance

Revenue & Profitability:

Applied UV's recent financials indicate revenue and profitability growth.

• 3rd Quarter 2023: Revenue was $4 million, up 25% year over year.
• 9-Month 2023: Total Revenue of $9.2 million, compared with $7.5 million in 9 months 2022, indicating a rise of 22.7%.
• Net Income is negative, with a loss of -$3.2 million in the 3rd Quarter of 2023 and -$7 million for the 9 months in 2023, but the company has shown a steady decrease in net loss over the past several quarters.

Profit Margins:

• Gross margin for the 9 months of 2023 is 38%, compared with 37.2% in 9 Months 2022, indicating slight improvement.
• Earning per Share (EPS) negative for 2023, but improving from the previous year, indicating a step towards potential future profitability.

Cash flow & balance sheet:

• Cash and cash equivalents of approximately $20.2 million as of September 30, 2023, providing financial flexibility.
• Debt to equity ratio of 4.2 as per 2022, higher compared to Industry peers, highlighting a need for cautious financial management.

Dividends and Shareholder Returns

• Applied UV has no history of dividend payouts, considering the focus on growth investments.
• Shareholder return for 1 year is -20.27%, 5 years - 40.22% and 10 years - 45.52% (as of November 7th, 2023), showing negative return but with a slight upward trend.

Growth Trajectory

Historical growth analysis:

Applied UV has experienced revenue growth in recent years, but profitability remains elusive. The growing market and unique product offerings suggest potential future growth.

Future growth projections:

Market expansion, new product launches (including a new generation air purifier), and potential strategic partnerships could contribute to future growth.

Market Dynamics

The disinfection technologies market, including air and water purification, experiences continuous innovation and regulatory changes. Environmental concerns, healthcare, and hygiene trends drive growth in the sector, creating opportunities for innovative companies like Applied UV.

Key competitors:

• Air Purification: IQAir (IQAIRF), Coway (CPWAY.KS), Austin Air
• Water Purification: Evoqua Water Technologies (EVQT), Siemens (SIEGY), Trojan Technologies (TTTU.V), Xylem Inc (XYL)

Market shares and competitive analysis indicate that Applied UV is a niche player with potential to gain traction in specific market segments through its innovative technology.

Key Challenges and Opportunities

Key Challenges:

• Scaling production to meet growing market demands
• Competing with established players with larger market shares and resources.
• Maintaining profitability and achieving consistent revenue growth.
• Regulatory changes impacting the adoption of disinfection technologies

Key Opportunities

• Expanding into international markets
• Introducing innovative new products
• Collaborating with strategic partners to strengthen distribution and market reach
• Capitalize on the growing focus on indoor and environmental hygiene

Recent acquisitions

There are no recent acquisitions by Applied UV within the past 3 years.

AI-Based Fundamental Rating:

Based on publicly available information, the AI-based fundamental rating for Applied UV is between 6-7.

Justification:

The rating considers factors like revenue growth potential, market dynamics, disruptive technology approach, and financial health with an emphasis on future potential. While there are profitability challenges, the company has strong leadership, innovative products, and a large addressable market.

Sources & Disclaimer

• Disclaimer: The information provided should not be considered financial advice. Investing involves risks, and you are strongly encouraged to conduct your due diligence before making investment decisions.
• Sources: This analysis is based on publicly available data from Applied UV's website, SEC filings, press releases, industry publications, and financial news sources, including Reuters, Yahoo Finance, and Google Finance, as of November 7th 2023.