UBIQUITI INC (UI) Stock Fundamental Analysis
NYSE:UI - New York Stock Exchange, Inc. - US90353W1036 - Common Stock - Currency: USD
Taking everything into account, UI scores 6 out of 10 in our fundamental rating. UI was compared to 51 industry peers in the Communications Equipment industry. Both the health and profitability get an excellent rating, making UI a very profitable company, without any liquidiy or solvency issues. UI has a decent growth rate and is not valued too expensively. This makes UI very considerable for quality investing!
1. Profitability
1.1 Basic Checks
UI had positive earnings in the past year.
UI had a positive operating cash flow in the past year.
UI had positive earnings in each of the past 5 years.
Of the past 5 years UI 4 years had a positive operating cash flow.
1.2 Ratios
UI has a better Return On Assets (37.58%) than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 153.17%, UI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
UI has a Return On Invested Capital of 66.16%. This is amongst the best in the industry. UI outperforms 100.00% of its industry peers.
UI had an Average Return On Invested Capital over the past 3 years of 54.25%. This is significantly above the industry average of 11.66%.
The last Return On Invested Capital (66.16%) for UI is above the 3 year average (54.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 37.58% | ||
| ROE | 153.17% | ||
| ROIC | 66.16% |
ROA(3y)34.71%
ROA(5y)44.98%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)54.25%
ROIC(5y)69.47%
1.3 Margins
Looking at the Profit Margin, with a value of 20.69%, UI belongs to the top of the industry, outperforming 98.00% of the companies in the same industry.
UI's Profit Margin has declined in the last couple of years.
UI has a better Operating Margin (27.79%) than 98.00% of its industry peers.
In the last couple of years the Operating Margin of UI has declined.
UI has a Gross Margin (39.85%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of UI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.79% | ||
| PM (TTM) | 20.69% | ||
| GM | 39.85% |
OM growth 3Y-12.87%
OM growth 5Y-6.12%
PM growth 3Y-17.64%
PM growth 5Y-8.16%
GM growth 3Y-7.24%
GM growth 5Y-3.68%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so UI is creating value.
UI has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, UI has less shares outstanding
UI has a better debt/assets ratio than last year.
2.2 Solvency
UI has an Altman-Z score of 18.05. This indicates that UI is financially healthy and has little risk of bankruptcy at the moment.
UI's Altman-Z score of 18.05 is amongst the best of the industry. UI outperforms 96.00% of its industry peers.
UI has a debt to FCF ratio of 0.53. This is a very positive value and a sign of high solvency as it would only need 0.53 years to pay back of all of its debts.
UI's Debt to FCF ratio of 0.53 is fine compared to the rest of the industry. UI outperforms 78.00% of its industry peers.
UI has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
UI has a worse Debt to Equity ratio (1.31) than 82.00% of its industry peers.
Although UI does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 0.53 | ||
| Altman-Z | 18.05 |
ROIC/WACC7.03
WACC9.41%
2.3 Liquidity
UI has a Current Ratio of 2.22. This indicates that UI is financially healthy and has no problem in meeting its short term obligations.
UI has a better Current ratio (2.22) than 64.00% of its industry peers.
A Quick Ratio of 0.98 indicates that UI may have some problems paying its short term obligations.
UI has a Quick ratio of 0.98. This is in the lower half of the industry: UI underperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.26% over the past year.
UI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.51% yearly.
UI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.58%.
The Revenue has been growing by 10.67% on average over the past years. This is quite good.
EPS 1Y (TTM)42.26%
EPS 3Y-15.62%
EPS 5Y3.51%
EPS Q2Q%65.22%
Revenue 1Y (TTM)14.58%
Revenue growth 3Y0.53%
Revenue growth 5Y10.67%
Sales Q2Q%29.02%
3.2 Future
The Earnings Per Share is expected to grow by 16.02% on average over the next years. This is quite good.
Based on estimates for the next years, UI will show a quite strong growth in Revenue. The Revenue will grow by 8.39% on average per year.
EPS Next Y46.52%
EPS Next 2Y21.04%
EPS Next 3Y16.02%
EPS Next 5YN/A
Revenue Next Year15.37%
Revenue Next 2Y12.43%
Revenue Next 3Y8.39%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 43.01 indicates a quite expensive valuation of UI.
UI's Price/Earnings is on the same level as the industry average.
UI is valuated rather expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
UI is valuated quite expensively with a Price/Forward Earnings ratio of 37.20.
The rest of the industry has a similar Price/Forward Earnings ratio as UI.
The average S&P500 Price/Forward Earnings ratio is at 22.68. UI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.01 | ||
| Fwd PE | 37.2 |
4.2 Price Multiples
UI's Enterprise Value to EBITDA ratio is in line with the industry average.
66.00% of the companies in the same industry are more expensive than UI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.08 | ||
| EV/EBITDA | 33.47 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
UI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as UI's earnings are expected to grow with 16.02% in the coming years.
PEG (NY)0.92
PEG (5Y)12.25
EPS Next 2Y21.04%
EPS Next 3Y16.02%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, UI is not a good candidate for dividend investing.
UI's Dividend Yield is a higher than the industry average which is at 11.69.
With a Dividend Yield of 0.70, UI pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
The dividend of UI is nicely growing with an annual growth rate of 19.28%!
UI has been paying a dividend for over 5 years, so it has already some track record.
UI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)19.28%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
32.62% of the earnings are spent on dividend by UI. This is a low number and sustainable payout ratio.
The dividend of UI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.62%
EPS Next 2Y21.04%
EPS Next 3Y16.02%
319.98
-17.41 (-5.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners4.02%
Inst Owner Change6.68%
Ins Owners93.09%
Ins Owner Change-40.26%
Market Cap19.36B
Analysts43.64
Price Target344.76 (7.74%)
Short Float %6.45%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend2.4
Dividend Growth(5Y)19.28%
DP32.62%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.45%
Min EPS beat(2)3.44%
Max EPS beat(2)27.46%
EPS beat(4)2
Avg EPS beat(4)2.05%
Min EPS beat(4)-20.34%
Max EPS beat(4)27.46%
EPS beat(8)2
Avg EPS beat(8)-13.68%
EPS beat(12)4
Avg EPS beat(12)-9.71%
EPS beat(16)6
Avg EPS beat(16)-10.15%
Revenue beat(2)2
Avg Revenue beat(2)8.1%
Min Revenue beat(2)2.16%
Max Revenue beat(2)14.05%
Revenue beat(4)2
Avg Revenue beat(4)3.07%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)14.05%
Revenue beat(8)2
Avg Revenue beat(8)-2.95%
Revenue beat(12)5
Avg Revenue beat(12)-2.51%
Revenue beat(16)7
Avg Revenue beat(16)-2.89%
PT rev (1m)8.86%
PT rev (3m)96.51%
EPS NQ rev (1m)-11.26%
EPS NQ rev (3m)-0.51%
EPS NY rev (1m)-5.7%
EPS NY rev (3m)12.08%
Revenue NQ rev (1m)7.34%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)5.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.01 | ||
| Fwd PE | 37.2 | ||
| P/S | 9 | ||
| P/FCF | 25.08 | ||
| P/OCF | 24.77 | ||
| P/B | 66.64 | ||
| P/tB | 67.43 | ||
| EV/EBITDA | 33.47 |
EPS(TTM)7.44
EY2.33%
EPS(NY)8.6
Fwd EY2.69%
FCF(TTM)12.76
FCFY3.99%
OCF(TTM)12.92
OCFY4.04%
SpS35.55
BVpS4.8
TBVpS4.75
PEG (NY)0.92
PEG (5Y)12.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 37.58% | ||
| ROE | 153.17% | ||
| ROCE | 79.53% | ||
| ROIC | 66.16% | ||
| ROICexc | 80.41% | ||
| ROICexgc | 80.85% | ||
| OM | 27.79% | ||
| PM (TTM) | 20.69% | ||
| GM | 39.85% | ||
| FCFM | 35.88% |
ROA(3y)34.71%
ROA(5y)44.98%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)54.25%
ROIC(5y)69.47%
ROICexc(3y)66.97%
ROICexc(5y)98.27%
ROICexgc(3y)67.77%
ROICexgc(5y)99.81%
ROCE(3y)65.21%
ROCE(5y)83.51%
ROICexcg growth 3Y-31.39%
ROICexcg growth 5Y-8.8%
ROICexc growth 3Y-30.97%
ROICexc growth 5Y-8.74%
OM growth 3Y-12.87%
OM growth 5Y-6.12%
PM growth 3Y-17.64%
PM growth 5Y-8.16%
GM growth 3Y-7.24%
GM growth 5Y-3.68%
F-Score6
Asset Turnover1.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 0.53 | ||
| Debt/EBITDA | 0.62 | ||
| Cap/Depr | 47.68% | ||
| Cap/Sales | 0.45% | ||
| Interest Coverage | 11.01 | ||
| Cash Conversion | 126.45% | ||
| Profit Quality | 173.46% | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 18.05 |
F-Score6
WACC9.41%
ROIC/WACC7.03
Cap/Depr(3y)96.32%
Cap/Depr(5y)167.52%
Cap/Sales(3y)0.83%
Cap/Sales(5y)1.17%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)42.26%
EPS 3Y-15.62%
EPS 5Y3.51%
EPS Q2Q%65.22%
EPS Next Y46.52%
EPS Next 2Y21.04%
EPS Next 3Y16.02%
EPS Next 5YN/A
Revenue 1Y (TTM)14.58%
Revenue growth 3Y0.53%
Revenue growth 5Y10.67%
Sales Q2Q%29.02%
Revenue Next Year15.37%
Revenue Next 2Y12.43%
Revenue Next 3Y8.39%
Revenue Next 5YN/A
EBIT growth 1Y13.44%
EBIT growth 3Y-12.41%
EBIT growth 5Y3.89%
EBIT Next Year39.88%
EBIT Next 3Y15.69%
EBIT Next 5YN/A
FCF growth 1Y394.66%
FCF growth 3Y-3.74%
FCF growth 5Y16.23%
OCF growth 1Y342.69%
OCF growth 3Y-4%
OCF growth 5Y15.87%