Ultimate Products (LSE:ULTP) is a UK stock that has a P/E ratio of only 7.7. Also, the stock is at its 52-week low, which has forced many to wonder if they should consider buying this stock or not!
In just 2025 alone, the Ultimate Products' market cap has declined by almost 45%. Also, the share price of Ultimate Products is at a multi-week low, which also doesn't inspire any confidence.
key reason behind such a low P/E was the decline in the stock prices. To give you some perspective, the P/E of the UK market is around 18.7. So, we could say that the Ultimate Products shares are available at almost a 60% discount.
The Ultimate Products isn't one of those that could be called a household name. However, they have many brands which are popular in the UK, such as Salter and Russell Hobbs.
The company is also involved in the development and distribution of audio devices, household appliances, heating systems, and so on. Their products are also available in all the popular supermarkets of the UK and abroad.
But the problem with this company is that most of its products are classified as discretionary purchases. So, when consumers are trying to avoid spending on unnecessary stuff, it hurts the company's bottom line.
That's why the Ultimate Products had to issue a profit warning, which caused the stock to crash by 30% in a single day. Another big risk for the Ultimate Products is the tariffs, which are also expected to stay like this for 2 or more years.
So for now, the sales and the profitability of the Ultimate Products are at risk, which is also translating into a lower stock price.
With all things considered, experts believe that the sales and earnings of Ultimate Products will remain weak in 2026 and 2027. So, it doesn't make sense to invest in a stock at least for the next 1-2 years or until things turn around.