Updated April 2025
Utah Medical Products delivers specialized medical devices for women’s health, neonatal care, and certain surgical procedures—with remarkable consistency. It’s the kind of business that quietly goes about its work, generating healthy margins and holding onto very little debt.
That quiet stability has a way of attracting long-term investors who appreciate financial discipline and reliable returns. With a relatively small market cap and a tightly focused product portfolio, UTMD operates in niche segments with real, ongoing demand. It’s not trying to be everything to everyone, and that’s exactly what makes it appealing to a certain type of investor—especially those who value dividends.
So while it might not be a flashy name, there’s substance here. Let’s unpack what’s been going on recently and see why dividend-focused investors might want to pay attention.
Recent Events
UTMD’s share price hasn’t had a great year. Over the past 12 months, the stock has dropped nearly 19%, falling from a high near $77 to hover around its 52-week low at $55. That kind of move is hard to ignore, especially for investors watching closely.
The main culprit? Revenue and earnings have both taken a hit. Year-over-year, revenue is down by more than 25%, and earnings dropped over 32%. That might send up red flags at first glance, but looking deeper, it’s not as bad as it seems.
For one, profitability is still rock solid. Net margins remain just under 34%, and operating margins are even stronger at nearly 36%. This company isn’t struggling to make money—it’s just dealing with a temporary slowdown. And unlike many small-cap firms, UTMD has a balance sheet that looks more like a savings account. With $83 million in cash and less than half a million in debt, the company is in an enviable financial position.
That kind of balance sheet gives management breathing room, and it also gives shareholders something else: confidence in the dividend.
Key Dividend Metrics
🪙 Forward Yield: 2.19%
📈 5-Year Average Yield: 1.38%
📊 Payout Ratio: 30.43%
💵 Annual Dividend (Forward): $1.22
📆 Next Dividend Date: April 3, 2025
📉 Dividend Decline in Share Price: -18.63% in the past year
📊 Cash per Share: $25.28
⚖️ Debt/Equity Ratio: 0.29%
These metrics tell the story of a company that isn’t chasing growth at all costs—it’s focused on returning capital in a sustainable way. The yield isn’t sky-high, but it’s solid, and it comes with a level of safety that’s tough to match.
Dividend Overview
At first glance, a 2.19% yield might not seem like anything special. But it starts to look more interesting when you compare it to the company’s five-year average yield of just 1.38%. That increase isn’t because the dividend has shot up—it’s because the stock price has come down, making the current yield more attractive for income-focused investors.
And it’s not just about the percentage. The payout ratio sits right around 30%, which is a very comfortable level. There’s plenty of room to keep paying the dividend, even if earnings stay under pressure for a while. Add in that massive cash reserve and virtually no debt, and UTMD has all the ingredients for steady payouts.
The dividend itself isn’t flashy. It’s not doubling every few years or shooting up by double digits. What it is, though, is consistent. Reliable. And not at all forced. The company is only paying out what it can comfortably afford, and it’s not putting its long-term flexibility at risk just to keep investors happy in the short term.
That kind of approach doesn’t always win popularity contests, but it does tend to deliver solid results over time.
Dividend Growth and Safety
This is where UTMD starts to shine. The company’s dividend growth history is modest but dependable, matching its overall business strategy. Management hasn’t pushed to raise the dividend aggressively, but they’ve kept it moving in the right direction—and more importantly, they’ve kept it safe.
The numbers back that up. With over $11 million in free cash flow last year and just $4 million in annual dividend payments, UTMD is operating with a wide margin of safety. That free cash cushion means the company isn’t stretching to maintain its dividend. It’s just part of the plan.
And let’s not forget the company’s balance sheet. With a debt-to-equity ratio under 1% and more than $25 in cash per share, UTMD doesn’t need to scramble for liquidity. If things get tough, they have options—and that’s exactly the kind of thing income investors like to see.
There’s also something comforting about a company that doesn’t overpromise. UTMD isn’t chasing aggressive growth or making bold proclamations about the future. They’re running a tight ship, focusing on what they know, and returning cash when they can.
For those looking for a high-flying yield or rapid dividend growth, this stock probably isn’t it. But for patient investors who care more about long-term consistency and balance sheet strength, UTMD checks a lot of the right boxes.
Analyst Ratings
🔻 Utah Medical Products, Inc. (UTMD) has recently seen its analyst rating downgraded. TheStreet adjusted its assessment of the company from a “b-” to a “c+” rating. This shift reflects increased concern about the company’s recent financial results, particularly the notable drop in revenue and earnings over the past year. A nearly 26% year-over-year revenue decline and over 32% drop in earnings have raised red flags about short-term performance.
📉 The downgrade isn’t necessarily a reflection of poor management or long-term outlook, but rather a response to the current financial softness. With the stock price hovering near its 52-week low and year-over-year declines weighing on investor sentiment, analysts are taking a more cautious stance for now.
🔍 As for a consensus price target, UTMD doesn’t have wide analyst coverage due to its small size and specialized market focus. That makes it harder to pin down a single consensus figure, but the downgrade suggests analysts believe the stock may remain under pressure until there’s evidence of a turnaround in top-line growth or a rebound in earnings momentum.
Earning Report Summary
Utah Medical Products, Inc. (UTMD) recently reported its financial results for the year ending December 31, 2024, and there were a few key takeaways worth noting. The numbers show a pullback compared to the previous year, but there are still some solid fundamentals underneath.
Revenue and Earnings Take a Step Back
The company brought in $40.9 million in revenue over the year, which was down nearly 19% from where it stood the year before. That kind of drop definitely gets attention, especially for a company that’s used to steady performance. The dip flowed through to the bottom line as well—net income landed at $13.9 million, which is about 17% lower than last year.
Earnings per share came in at $3.96, a drop from the $4.58 reported the prior year. It’s a noticeable step down, but not unexpected given the pressure on revenues. That said, UTMD still managed to hold profit margins steady at 34%, which is a strong showing given the top-line softness. It speaks to the company’s ability to manage costs and maintain efficiency even when sales are off.
Cash Position Remains a Bright Spot
One area that stands out in a good way is UTMD’s balance sheet. The company ended the year with just under $83 million in cash, a healthy buffer by any standard—especially for a business this size. There’s barely any debt to speak of, which puts the company in a flexible position going forward. They can reinvest, return cash to shareholders, or simply ride out a slower cycle without breaking a sweat.
So while the earnings report clearly shows some headwinds, especially on the revenue side, there’s a sense that UTMD is still fundamentally sound. They’re not dealing with operational chaos or financial strain. It looks more like a company managing through a slower patch with discipline and patience.
Chart Analysis
Downward Price Trend
Looking at the past year, the stock has been on a steady decline. From a high near $77 last summer, it has slid down to just above $55, hitting fresh lows as we head into April. Both the 50-day and 200-day moving averages are trending lower, which confirms that the longer-term momentum has been negative. The 50-day remains below the 200-day, reinforcing the downtrend and suggesting that the market hasn’t seen a shift in sentiment yet.
Price action over the last few months shows a series of lower highs and lower lows, a classic sign of continued selling pressure. Even during periods where the price tried to bounce, those rallies were short-lived and failed to break above resistance levels. The volume during these attempts hasn’t shown any conviction either, with no major spikes to suggest large-scale buying interest.
Volume and RSI Insight
Volume has remained relatively muted through most of the year, with occasional spikes that don’t appear to follow through with trend reversals. This kind of behavior usually points to a lack of strong institutional support at current levels. It’s more a story of slow, persistent selling than panic-driven drops.
The RSI (Relative Strength Index) dipped below 30 on a few occasions, signaling the stock was oversold, but these oversold levels haven’t resulted in any sustained move higher. More recently, the RSI has been hovering around the mid-40s, which means it’s not quite oversold or overbought—just in a sort of limbo, reflecting the uncertainty in price direction.
From a broader perspective, this chart reflects a cautious market view. While there’s no major breakdown, there’s also little sign of strength or momentum returning. A turnaround would need to see a price base forming, ideally with stronger volume and a push above the 50-day moving average. Until then, this one is still in a technical downtrend.
Management Team
At the helm of Utah Medical Products, Inc. (UTMD) is Kevin L. Cornwell, who serves as Chairman, President, CEO, and Secretary. Cornwell has played a major role in steering the company’s direction over the years, bringing both long-term vision and hands-on leadership to the table. His presence has added a layer of consistency that is often rare in small-cap companies.
Supporting Cornwell is Brian L. Koopman, who holds the role of Chief Financial Officer and Controller. Koopman oversees the company’s financial management, helping ensure UTMD maintains its historically disciplined approach to cash flow and capital allocation.
The board of directors includes professionals with experience across the medical, business, and financial sectors, including names like Carrie Leigh and James H. Beeson. Their combined oversight helps shape strategic planning and risk management in a business where compliance, quality, and precision matter deeply.
The leadership team stands out for its stability. This continuity has helped the company remain focused on long-term performance rather than chasing short-term gains, and that philosophy is woven into how UTMD runs its operations and communicates with shareholders.
Valuation and Stock Performance
Over the last year, UTMD’s stock has taken a noticeable step back, down about 18% from its previous levels. The share price has moved steadily lower, touching new 52-week lows as recent earnings and revenue growth came under pressure. Still, for investors looking at fundamentals, there are a few compelling valuation signals here.
The stock trades at a price-to-earnings (P/E) ratio of about 14, which is fairly modest for a consistently profitable company in the medical device space. It suggests the market may be undervaluing the business relative to its earnings power, especially considering the high margins UTMD continues to deliver.
One of the more interesting features is the company’s beta—currently around 0.06. That points to very low volatility compared to the broader market. For investors looking to hold through market cycles, that kind of stability can be attractive.
Then there’s the dividend. At 2.15%, the yield isn’t sky-high, but it is reliable, with a payout ratio just over 30%. That’s well within a healthy range and signals that management is keeping the dividend in line with actual earnings strength, not pushing payouts beyond what the business can comfortably support.
While recent stock performance has reflected a more cautious view from the market, the underlying financials and valuation metrics suggest there’s still something solid at the core of this business.
Risks and Considerations
There are a few key risks worth considering when looking at UTMD. One of the most immediate is the company’s recent financial softness. Revenues dropped nearly 19% and net income fell by around 17% over the past year. While margins remain strong, shrinking top-line figures naturally raise questions about what’s driving the slowdown.
The medical device space also comes with its fair share of regulatory hurdles. UTMD must continuously meet strict requirements from agencies in the U.S. and abroad. Regulatory delays, changes in standards, or compliance issues could slow down product rollout or hurt margins. Even with a good track record, these risks are always part of the operating environment.
There’s also the reality of competition. While UTMD plays in specific, niche categories within women’s health and neonatal care, it still competes against much larger players. Those companies often have deeper pockets and larger sales forces, which can affect UTMD’s ability to grow its share of the market.
Another consideration is the company’s size. With a relatively small market cap and limited analyst coverage, the stock can be thinly traded. That sometimes leads to price moves that don’t necessarily reflect the fundamentals. It also means investors may not get the kind of insights or visibility they would with larger names in the same sector.
Each of these factors doesn’t necessarily undermine the long-term story, but they do add complexity to the investment case.
Final Thoughts
Utah Medical Products, Inc. offers a blend of financial strength, operational consistency, and shareholder-friendly policies that are easy to respect. The leadership team has been stable and focused, running the company with a long-term mindset. Its balance sheet is one of the strongest in its peer group, and its dividend policy is both disciplined and consistent.
At the same time, the company is not without its challenges. Recent revenue declines, a competitive medical landscape, and the constant weight of regulatory oversight can’t be ignored. UTMD will need to show that it can return to growth mode or at least stabilize its sales trajectory in the coming quarters to regain investor confidence.
What stands out, though, is the way the company handles its business. There’s no overreach, no excessive debt, and no signs of reckless expansion. It’s a measured approach—and for many, that can be exactly what they’re looking for in a long-term holding. The future will depend on how well UTMD adapts, but the foundation it’s built on remains intact.