UBIQUITI INC (UI) Stock Fundamental Analysis
NYSE:UI - New York Stock Exchange, Inc. - US90353W1036 - Common Stock
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. UI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. UI is not valued too expensively and it also shows a decent growth rate. This makes UI very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year UI was profitable.
In the past year UI had a positive cash flow from operations.
UI had positive earnings in each of the past 5 years.
UI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of UI (33.70%) is better than 100.00% of its industry peers.
UI has a better Return On Equity (207.40%) than 100.00% of its industry peers.
The Return On Invested Capital of UI (56.58%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UI is significantly above the industry average of 11.02%.
The 3 year average ROIC (54.25%) for UI is below the current ROIC(56.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.7% | ||
| ROE | 207.4% | ||
| ROIC | 56.58% |
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
UI has a Profit Margin of 19.36%. This is amongst the best in the industry. UI outperforms 96.08% of its industry peers.
In the last couple of years the Profit Margin of UI has declined.
The Operating Margin of UI (26.78%) is better than 98.04% of its industry peers.
UI's Operating Margin has declined in the last couple of years.
UI has a Gross Margin of 39.07%. This is comparable to the rest of the industry: UI outperforms 49.02% of its industry peers.
In the last couple of years the Gross Margin of UI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.78% | ||
| PM (TTM) | 19.36% | ||
| GM | 39.07% |
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.
The number of shares outstanding for UI remains at a similar level compared to 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 19.29. This indicates that UI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of UI (19.29) is better than 98.04% of its industry peers.
The Debt to FCF ratio of UI is 0.79, which is an excellent value as it means it would take UI, only 0.79 years of fcf income to pay off all of its debts.
UI has a better Debt to FCF ratio (0.79) than 76.47% of its industry peers.
A Debt/Equity ratio of 2.80 is on the high side and indicates that UI has dependencies on debt financing.
With a Debt to Equity ratio value of 2.80, UI is not doing good in the industry: 84.31% of the companies in the same industry are doing better.
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 | 2.8 | ||
| Debt/FCF | 0.79 | ||
| Altman-Z | 19.29 |
ROIC/WACC5.77
WACC9.81%
2.3 Liquidity
UI has a Current Ratio of 2.54. This indicates that UI is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.54, UI is doing good in the industry, outperforming 62.75% of the companies in the same industry.
A Quick Ratio of 1.32 indicates that UI should not have too much problems paying its short term obligations.
UI has a Quick ratio of 1.32. This is in the lower half of the industry: UI underperforms 60.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
UI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.34%, which is quite good.
Measured over the past 5 years, UI shows a small growth in Earnings Per Share. The EPS has been growing by 3.51% on average per year.
The Revenue has been growing slightly by 5.78% in the past year.
The Revenue has been growing by 10.67% on average over the past years. This is quite good.
EPS 1Y (TTM)14.34%
EPS 3Y-15.62%
EPS 5Y3.51%
EPS Q2Q%45.58%
Revenue 1Y (TTM)5.78%
Revenue growth 3Y0.53%
Revenue growth 5Y10.67%
Sales Q2Q%18.84%
3.2 Future
The Earnings Per Share is expected to grow by 20.25% on average over the next years. This is a very strong growth
UI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.39% yearly.
EPS Next Y55.38%
EPS Next 2Y28.63%
EPS Next 3Y20.25%
EPS Next 5YN/A
Revenue Next Year14.82%
Revenue Next 2Y12.08%
Revenue Next 3Y8.39%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 63.51, which means the current valuation is very expensive for UI.
UI's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. UI is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 42.76, the valuation of UI can be described as expensive.
UI's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of UI to the average of the S&P500 Index (24.44), we can say UI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.51 | ||
| Fwd PE | 42.76 |
4.2 Price Multiples
UI's Enterprise Value to EBITDA ratio is in line with the industry average.
UI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. UI is cheaper than 62.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.09 | ||
| EV/EBITDA | 44.58 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of UI may justify a higher PE ratio.
A more expensive valuation may be justified as UI's earnings are expected to grow with 20.25% in the coming years.
PEG (NY)1.15
PEG (5Y)18.09
EPS Next 2Y28.63%
EPS Next 3Y20.25%
5. Dividend
5.1 Amount
With a yearly dividend of 0.58%, UI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 9.90, UI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.58, UI pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
On average, the dividend of UI grows each year by 19.28%, which is quite nice.
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
UI pays out 37.18% of its income as dividend. This is a sustainable payout ratio.
UI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP37.18%
EPS Next 2Y28.63%
EPS Next 3Y20.25%
UBIQUITI INC
NYSE:UI (1/21/2025, 8:04:00 PM)
After market: 415.35 0 (0%)415.35
+8.74 (+2.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners4.02%
Inst Owner Change0.39%
Ins Owners93.09%
Ins Owner Change0%
Market Cap25.12B
Analysts43.64
Price Target316.71 (-23.75%)
Short Float %5.98%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend2.4
Dividend Growth(5Y)19.28%
DP37.18%
Div Incr Years0
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.56%
Min EPS beat(2)-2.35%
Max EPS beat(2)27.46%
EPS beat(4)1
Avg EPS beat(4)-3.36%
Min EPS beat(4)-20.34%
Max EPS beat(4)27.46%
EPS beat(8)2
Avg EPS beat(8)-9.01%
EPS beat(12)3
Avg EPS beat(12)-12.46%
EPS beat(16)6
Avg EPS beat(16)-7.94%
Revenue beat(2)1
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-3.7%
Max Revenue beat(2)2.16%
Revenue beat(4)1
Avg Revenue beat(4)-2.36%
Min Revenue beat(4)-7.71%
Max Revenue beat(4)2.16%
Revenue beat(8)2
Avg Revenue beat(8)-4.66%
Revenue beat(12)4
Avg Revenue beat(12)-4.55%
Revenue beat(16)7
Avg Revenue beat(16)-2.27%
PT rev (1m)0%
PT rev (3m)80.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.74%
EPS NY rev (1m)0%
EPS NY rev (3m)18.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.51 | ||
| Fwd PE | 42.76 | ||
| P/S | 12.46 | ||
| P/FCF | 36.09 | ||
| P/OCF | 35.5 | ||
| P/B | 133.5 | ||
| P/tB | 136.23 | ||
| EV/EBITDA | 44.58 |
EPS(TTM)6.54
EY1.57%
EPS(NY)9.71
Fwd EY2.34%
FCF(TTM)11.51
FCFY2.77%
OCF(TTM)11.7
OCFY2.82%
SpS33.33
BVpS3.11
TBVpS3.05
PEG (NY)1.15
PEG (5Y)18.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.7% | ||
| ROE | 207.4% | ||
| ROCE | 68.01% | ||
| ROIC | 56.58% | ||
| ROICexc | 71.45% | ||
| ROICexgc | 71.88% | ||
| OM | 26.78% | ||
| PM (TTM) | 19.36% | ||
| GM | 39.07% | ||
| FCFM | 34.52% |
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 Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 0.79 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 57.1% | ||
| Cap/Sales | 0.57% | ||
| Interest Coverage | 8.25 | ||
| Cash Conversion | 126.3% | ||
| Profit Quality | 178.35% | ||
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 19.29 |
F-Score6
WACC9.81%
ROIC/WACC5.77
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)14.34%
EPS 3Y-15.62%
EPS 5Y3.51%
EPS Q2Q%45.58%
EPS Next Y55.38%
EPS Next 2Y28.63%
EPS Next 3Y20.25%
EPS Next 5YN/A
Revenue 1Y (TTM)5.78%
Revenue growth 3Y0.53%
Revenue growth 5Y10.67%
Sales Q2Q%18.84%
Revenue Next Year14.82%
Revenue Next 2Y12.08%
Revenue Next 3Y8.39%
Revenue Next 5YN/A
EBIT growth 1Y-2%
EBIT growth 3Y-12.41%
EBIT growth 5Y3.89%
EBIT Next Year39.88%
EBIT Next 3Y15.69%
EBIT Next 5YN/A
FCF growth 1Y138.16%
FCF growth 3Y-3.74%
FCF growth 5Y16.23%
OCF growth 1Y127.19%
OCF growth 3Y-4%
OCF growth 5Y15.87%