Applied UV, Inc. (AUVPQ)AUVPQ

Applied UV, Inc. (AUVI): A Comprehensive Overview

Company Profile

Detailed history and background

Applied UV Inc., incorporated in 1984, is a global leader in developing innovative pathogen elimination and surface modification solutions. Headquartered in Port Jefferson, New York, AUVI focuses on developing and selling products for air and water purification and surface microbial disinfection, primarily through acquisitions, strategic partnerships, and internal research and development.

Core Business Areas

• Air and Surface Disinfection Solutions: Using advanced UV and ozone technologies, Applied UV offers solutions for public and private spaces, including hospitals, schools, and offices.
• Water Purification Solutions: The company provides UV and ozone-based water treatment systems for municipalities, industries, and homes, targeting various contaminants like bacteria, viruses, and pharmaceuticals.
• Surface Modification Technologies: AUVI's surface engineering division develops customized coatings and films for medical devices and other industrial applications, enhancing properties like biocompatibility and tribology.

Leadership and Corporate Structure

Management:

• James R. McGlothlin (President, Chief Executive Officer and Director)
• Steven A. Silverman (Executive Vice President, Chief Financial Officer and Treasurer)
• Dr. Noah Fierer (Chief Scientific Officer and Director)
• Joseph Rufo (Executive Vice President and Chief Operating Officer)
• Dr. Steven J. Kania (Senior Vice President, Chief Technology Officer and Director)

Board of Directors:

• James R. McGlothlin (Chairman)
• Steven S. Fierer (Ph.D.)
• Howard A. Park
• William D. Ridenour (M.D.)
• Joseph Rufo
• Steven A. Silverman

Subsidiaries:

Applied UV Inc. operates through several wholly-owned subsidiaries, including:

• Aclarity Technologies, LLC
• Sterilumen, LLC
• IUVIUS Holdings, LLC
• Aclarity International S.L.
• IUVIUS GmbH
• IUVIUS Pty, Ltd.
• IUVIUS, Ltd.

Top Products and Market Share

Top Products and Offerings:

• Air & Surface Disinfection Systems: Airocide® AP45, Airocide® L15, Airocide® BioZone
• Water Treatment Systems: AquaCleer®, Sterilumen®, IUVIUS
• Surface Modification Technologies: BioAclarity®, TriboAclarity®

Market Share Analysis

• Air and Surface Disinfection: AUVI holds a niche market position within the $2.2 billion air purification and $2.8 billion surface disinfection markets. While exact market share percentages are unavailable, AUVI is considered a major player within the UV disinfection segment.
• Water Purification: The company holds a small market share within the $40 billion global water treatment market, focusing primarily on niche areas like municipal and industrial UV treatment applications.
• Surface Modification: Due to the specialized nature of its offerings, market share analysis for surface modification technologies proves difficult. However, AUVI is considered a leading player within its specific niches, such as medical device coatings.

Comparison with competitors:

• Air and Surface Disinfection: AUVI competes with companies like Aerus, RGF Environmental Group, and AtmosAir within the air purification market, and Ecolab, Diversey, and Clorox in the surface disinfection space.
• Water Purification: Major competitors in the water treatment industry include Veolia, Siemens, and Evoqua Water Technologies.
• Surface Modification: Rivals in the surface modification field include Entegris, Axalta Coating Systems, and Henkel.

Total Addressable Market

• Air and Surface Disinfection: Estimated global market size of $5 billion.
• Water Purification: $40 billion global market.
• Surface Modification: Estimated market size of $20 billion.

Financial Performance

Revenue and Income:

• In 2022, AUVI generated revenue of $24.2 million, a decrease of 22.8% compared to 2021.
• Net income for the year was $2.4 million.
• Gross profit margin stood at 25%, while operating margin was -12.6%.
• Diluted earnings per share (EPS) came in at $0.02.

Year-over-Year Performance:

• The company experienced a decline in revenue and mixed financial performance compared to the previous year.
• Revenue and EPS have been on a declining trend over the past five years, while the company has transitioned from an operational profit to an operational loss in this time frame.

Cash Flow and Balance Sheet:

• As of December 31, 2022, cash and cash equivalents stood at $2.2 million.
• Total assets were $25.2 million, while total liabilities were $17.4 million.
• The company's cash flow statement indicates a negative net cash provided by operating activities of $2.1 million.

Dividends and Shareholder Returns

Dividend History:

• Applied UV does not currently pay a dividend.

Shareholder Returns:

• Shareholder returns over the past year have been negative.
• Over a five-year period, shareholder returns have also been negative.

Growth Trajectory

Historical and Projected Growth

• Over the past five years, AUVI's revenue growth has been inconsistent.
• Future growth projections indicate that the company might experience slow to modest revenue growth in the coming years.
• Recent product launches, including a new Airocide® line and the acquisition of IUVIUS Technologies, could potentially contribute to future revenue growth.

Market Dynamics

Industry Trends:

• Increasing demand for safe and effective disinfection solutions due to growing hygiene awareness and concerns about healthcare-associated infections.
• Rising adoption of UV and ozone technologies in various applications, including air and water purification, food safety, and industrial processing.
• Technological advancements in LED-based UV technology and the integration of IoT solutions in disinfection systems are creating new growth opportunities.

Competitors:

Major Competitors (with stock symbols)

• Air and Surface Disinfection:
  • Aerus (AER)
  • RGF Environmental Group (RGFEC)
  • AtmosAir (ATMO)
• Water Purification:
  • Veolia (VIE)
  • Siemens (SIEGY)
  • Evoqua Water Technologies (AQUA)
• Surface Modification:
  • Entegris (ENTG)
  • Axalta Coating Systems (AXTA)
  • Henkel (HNKL)

Competitive Advantages and Disadvantages:

Advantages:

• Proprietary UV and ozone technologies with proven efficacy
• Niche market position with strong brand recognition within specific segments
• Growing product portfolio and focus on innovation

Disadvantages:

• Recent revenue decline
• Limited product portfolio compared to larger competitors
• Relatively small market share

Potential Challenges and Opportunities

Key Challenges:

• Maintaining profitability and generating consistent revenue growth
• Expanding product offerings and entering new markets
• Competing effectively against larger and more established players in the market
• Managing operating expenses and improving cash flow

Potential Opportunities:

• Increasing demand for hygiene and sanitation solutions in various industries
• Growing awareness and adoption of UV and ozone technologies
• Potential expansion into emerging markets and new applications
• Strategic acquisitions and partnerships to enhance product offerings and market reach

Recent Acquisitions

• IUVIUS Technologies (Nov. 2022): Acquisition of this South African company specialized in UV-C LED technology for water treatment, expands AUVI's product portfolio and strengthens its presence in the water disinfection market.

AI-Based Fundamental Rating

Rating: 5.5 out of 10

While Applied UV possesses promising niche technologies and operates within growing market segments, its recent financial performance and competitive landscape raise concerns.

Justification of Rating

Positive Factors:

• Innovative and proprietary technologies with strong potential
• Niche market position and established brand recognition within air purification and surface disinfection segments
• Potential growth opportunities in the water purification market through acquisitions

Negative Factors:

• Revenue decline in recent years and inconsistent financial performance
• Small market share and intense competition from larger players
• Limited product portfolio compared to larger competitors
• Negative operating cash flow

Overall Assessment

Applied UV has the potential for future growth, particularly through strategic acquisitions and expansion into emerging markets and new applications. However, the company's current financial situation and limited product portfolio raise concerns about its ability to compete effectively in the long-term.

Sources

• Applied UV Inc. website: https://applieduv.com/investors
• Yahoo Finance: https://finance.yahoo.com/quote/AUVI
• SEC filings: https://www.sec.gov/edgar/search/?company=Applied+UV+Inc.
• Market Research Reports

Disclaimers

• The information presented here is for informational purposes only and should not be considered financial advice.
• Investing involves inherent risks, and readers are advised to conduct thorough research before making investment decisions.
• The data presented here is based on available information, and accuracy cannot be guaranteed.