UBIQUITI INC (UI) Stock Fundamental Analysis
NYSE:UI - New York Stock Exchange, Inc. - US90353W1036 - Common Stock - Currency: USD
UI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 49 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. While showing a medium growth rate, UI is valued expensive at the moment. With these ratings, UI could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
UI had positive earnings in the past year.
In the past year UI had a positive cash flow from operations.
Each year in the past 5 years UI has been profitable.
UI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 37.58%, UI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
UI has a Return On Equity of 153.17%. This is amongst the best in the industry. UI outperforms 100.00% of its industry peers.
UI's Return On Invested Capital of 66.16% is amongst the best of the industry. UI outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UI is significantly above the industry average of 10.99%.
The 3 year average ROIC (54.25%) for UI is below the current ROIC(66.16%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 20.69%, UI belongs to the best of the industry, outperforming 97.96% of the companies in the same industry.
In the last couple of years the Profit Margin of UI has declined.
UI has a Operating Margin of 27.79%. This is amongst the best in the industry. UI outperforms 97.96% 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.
Compared to 1 year ago, UI has about the same amount of shares outstanding.
UI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for UI has been reduced compared to a year ago.
2.2 Solvency
UI has an Altman-Z score of 16.03. This indicates that UI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 16.03, UI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of UI is 0.53, which is an excellent value as it means it would take UI, only 0.53 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.53, UI is in the better half of the industry, outperforming 79.59% of the companies in the same industry.
A Debt/Equity ratio of 1.31 is on the high side and indicates that UI has dependencies on debt financing.
With a Debt to Equity ratio value of 1.31, UI is not doing good in the industry: 79.59% 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 | 1.31 | ||
| Debt/FCF | 0.53 | ||
| Altman-Z | 16.03 |
ROIC/WACC6.83
WACC9.69%
2.3 Liquidity
A Current Ratio of 2.22 indicates that UI has no problem at all paying its short term obligations.
The Current ratio of UI (2.22) is better than 61.22% of its industry peers.
UI has a Quick Ratio of 2.22. This is a bad value and indicates that UI is not financially healthy enough and could expect problems in meeting its short term obligations.
UI has a Quick ratio of 0.98. This is in the lower half of the industry: UI underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
UI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.26%, which is quite impressive.
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 grown by 14.58% in the past year. This is quite good.
UI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.67% yearly.
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 small growth in Revenue. The Revenue will grow by 7.30% on average per year.
EPS Next Y46.52%
EPS Next 2Y21.04%
EPS Next 3Y16.02%
EPS Next 5YN/A
Revenue Next Year19.64%
Revenue Next 2Y10.06%
Revenue Next 3Y7.3%
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 39.25 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 27.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 33.96, UI can be considered very expensive at the moment.
UI's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.85, UI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.25 | ||
| Fwd PE | 33.96 |
4.2 Price Multiples
UI's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as UI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.89 | ||
| EV/EBITDA | 28.59 |
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.
The decent profitability rating of UI may justify a higher PE ratio.
UI's earnings are expected to grow with 16.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)11.18
EPS Next 2Y21.04%
EPS Next 3Y16.02%
5. Dividend
5.1 Amount
With a yearly dividend of 0.81%, UI is not a good candidate for dividend investing.
The stock price of UI dropped by -33.22% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
UI's Dividend Yield is a higher than the industry average which is at 3.74.
Compared to an average S&P500 Dividend Yield of 2.51, UI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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
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%
NYSE:UI (4/22/2025, 1:49:57 PM)
292.05
+4.51 (+1.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners4.12%
Inst Owner Change3.99%
Ins Owners93.06%
Ins Owner Change-40.26%
Market Cap17.67B
Analysts43.64
Price Target337.62 (15.6%)
Short Float %7.24%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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)0%
PT rev (3m)6.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.7%
Revenue NQ rev (1m)1.94%
Revenue NQ rev (3m)9.42%
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)4.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.25 | ||
| Fwd PE | 33.96 | ||
| P/S | 8.21 | ||
| P/FCF | 22.89 | ||
| P/OCF | 22.61 | ||
| P/B | 60.82 | ||
| P/tB | 61.54 | ||
| EV/EBITDA | 28.59 |
EPS(TTM)7.44
EY2.55%
EPS(NY)8.6
Fwd EY2.94%
FCF(TTM)12.76
FCFY4.37%
OCF(TTM)12.92
OCFY4.42%
SpS35.55
BVpS4.8
TBVpS4.75
PEG (NY)0.84
PEG (5Y)11.18
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 | 16.03 |
F-Score6
WACC9.69%
ROIC/WACC6.83
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 Year19.64%
Revenue Next 2Y10.06%
Revenue Next 3Y7.3%
Revenue Next 5YN/A
EBIT growth 1Y13.44%
EBIT growth 3Y-12.41%
EBIT growth 5Y3.89%
EBIT Next Year34.83%
EBIT Next 3Y13.07%
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%