UNITI GROUP INC (UNIT) Stock Fundamental Analysis
NASDAQ:UNIT - Nasdaq - US91325V1089 - REIT - Currency: USD
UNIT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 29 industry peers in the Specialized REITs industry. There are concerns on the financial health of UNIT while its profitability can be described as average. UNIT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
UNIT had positive earnings in the past year.
In the past year UNIT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: UNIT reported negative net income in multiple years.
UNIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UNIT has a worse Return On Assets (1.73%) than 64.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.15%, UNIT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UNIT is significantly above the industry average of 5.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.73% | ||
| ROE | N/A | ||
| ROIC | 13.15% |
ROA(3y)-0.04%
ROA(5y)-2.5%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.37%
ROIC(5y)12.57%
1.3 Margins
With a Profit Margin value of 7.82%, UNIT is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of UNIT has grown nicely.
UNIT has a Operating Margin of 52.02%. This is in the better half of the industry: UNIT outperforms 78.57% of its industry peers.
In the last couple of years the Operating Margin of UNIT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.02% | ||
| PM (TTM) | 7.82% | ||
| GM | N/A |
OM growth 3Y1.78%
OM growth 5Y5.53%
PM growth 3Y-11.11%
PM growth 5Y58.02%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UNIT is still creating some value.
The number of shares outstanding for UNIT has been increased compared to 1 year ago.
Compared to 5 years ago, UNIT has more shares outstanding
UNIT has a better debt/assets ratio than last year.
2.2 Solvency
UNIT has an Altman-Z score of -0.59. This is a bad value and indicates that UNIT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.59, UNIT is doing worse than 89.29% of the companies in the same industry.
UNIT has a debt to FCF ratio of 489.06. This is a negative value and a sign of low solvency as UNIT would need 489.06 years to pay back of all of its debts.
The Debt to FCF ratio of UNIT (489.06) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 489.06 | ||
| Altman-Z | -0.59 |
ROIC/WACC1.57
WACC8.4%
2.3 Liquidity
A Current Ratio of 0.14 indicates that UNIT may have some problems paying its short term obligations.
With a Current ratio value of 0.14, UNIT is not doing good in the industry: 96.43% of the companies in the same industry are doing better.
UNIT has a Quick Ratio of 0.14. This is a bad value and indicates that UNIT is not financially healthy enough and could expect problems in meeting its short term obligations.
UNIT's Quick ratio of 0.14 is on the low side compared to the rest of the industry. UNIT is outperformed by 96.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
UNIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1133.33%, which is quite impressive.
The Earnings Per Share has been growing by 57.27% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 1.48% in the past year.
UNIT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.99% yearly.
EPS 1Y (TTM)1133.33%
EPS 3Y-1.74%
EPS 5Y57.27%
EPS Q2Q%-30.77%
Revenue 1Y (TTM)1.48%
Revenue growth 3Y1.97%
Revenue growth 5Y1.99%
Sales Q2Q%2.68%
3.2 Future
UNIT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.31% yearly.
UNIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.27% yearly.
EPS Next Y32.26%
EPS Next 2Y22.57%
EPS Next 3Y80.97%
EPS Next 5Y45.31%
Revenue Next Year3.94%
Revenue Next 2Y3.63%
Revenue Next 3Y3.43%
Revenue Next 5Y3.27%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.22 indicates a correct valuation of UNIT.
Based on the Price/Earnings ratio, UNIT is valued cheaper than 89.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.75, UNIT is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.51, which indicates a very decent valuation of UNIT.
92.86% of the companies in the same industry are more expensive than UNIT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.44, UNIT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 11.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UNIT indicates a rather cheap valuation: UNIT is cheaper than 100.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, UNIT is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 115.87 | ||
| EV/EBITDA | 7.64 |
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.
A more expensive valuation may be justified as UNIT's earnings are expected to grow with 80.97% in the coming years.
PEG (NY)0.47
PEG (5Y)0.27
EPS Next 2Y22.57%
EPS Next 3Y80.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.23%, UNIT is a good candidate for dividend investing.
UNIT's Dividend Yield is a higher than the industry average which is at 4.49.
Compared to an average S&P500 Dividend Yield of 2.30, UNIT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
5.2 History
The dividend of UNIT decreases each year by -9.28%.
UNIT has paid a dividend for at least 10 years, which is a reliable track record.
UNIT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.28%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
118.78% of the earnings are spent on dividend by UNIT. This is not a sustainable payout ratio.
DP118.78%
EPS Next 2Y22.57%
EPS Next 3Y80.97%
5.63
-0.11 (-1.92%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners88.23%
Inst Owner Change0.85%
Ins Owners2.31%
Ins Owner Change8.01%
Market Cap1.37B
Analysts74.55
Price Target5.92 (5.15%)
Short Float %5.11%
Short Ratio6.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
Yearly Dividend0.46
Dividend Growth(5Y)-9.28%
DP118.78%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-35.15%
Min EPS beat(2)-50.15%
Max EPS beat(2)-20.15%
EPS beat(4)1
Avg EPS beat(4)-17.69%
Min EPS beat(4)-50.15%
Max EPS beat(4)36.4%
EPS beat(8)3
Avg EPS beat(8)50.75%
EPS beat(12)6
Avg EPS beat(12)0.66%
EPS beat(16)7
Avg EPS beat(16)-12.92%
Revenue beat(2)0
Avg Revenue beat(2)-1.89%
Min Revenue beat(2)-2.45%
Max Revenue beat(2)-1.33%
Revenue beat(4)0
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)-0.26%
Revenue beat(8)0
Avg Revenue beat(8)-2.35%
Revenue beat(12)0
Avg Revenue beat(12)-2.15%
Revenue beat(16)1
Avg Revenue beat(16)-1.93%
PT rev (1m)0%
PT rev (3m)1.75%
EPS NQ rev (1m)198.18%
EPS NQ rev (3m)198.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.34%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 11.51 | ||
| P/S | 1.18 | ||
| P/FCF | 115.87 | ||
| P/OCF | 3.75 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.64 |
EPS(TTM)0.37
EY6.57%
EPS(NY)0.49
Fwd EY8.69%
FCF(TTM)0.05
FCFY0.86%
OCF(TTM)1.5
OCFY26.68%
SpS4.78
BVpS-10.05
TBVpS-11.82
PEG (NY)0.47
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.73% | ||
| ROE | N/A | ||
| ROCE | 16.64% | ||
| ROIC | 13.15% | ||
| ROICexc | 13.74% | ||
| ROICexgc | 15.68% | ||
| OM | 52.02% | ||
| PM (TTM) | 7.82% | ||
| GM | N/A | ||
| FCFM | 1.02% |
ROA(3y)-0.04%
ROA(5y)-2.5%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.37%
ROIC(5y)12.57%
ROICexc(3y)13.7%
ROICexc(5y)12.86%
ROICexgc(3y)16.26%
ROICexgc(5y)16.26%
ROCE(3y)16.92%
ROCE(5y)15.92%
ROICexcg growth 3Y-3.72%
ROICexcg growth 5Y2.23%
ROICexc growth 3Y2.96%
ROICexc growth 5Y8.21%
OM growth 3Y1.78%
OM growth 5Y5.53%
PM growth 3Y-11.11%
PM growth 5Y58.02%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 489.06 | ||
| Debt/EBITDA | 6.29 | ||
| Cap/Depr | 112.71% | ||
| Cap/Sales | 30.41% | ||
| Interest Coverage | 1.28 | ||
| Cash Conversion | 39.78% | ||
| Profit Quality | 12.99% | ||
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | -0.59 |
F-Score7
WACC8.4%
ROIC/WACC1.57
Cap/Depr(3y)131.01%
Cap/Depr(5y)124.39%
Cap/Sales(3y)34.85%
Cap/Sales(5y)33.87%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1133.33%
EPS 3Y-1.74%
EPS 5Y57.27%
EPS Q2Q%-30.77%
EPS Next Y32.26%
EPS Next 2Y22.57%
EPS Next 3Y80.97%
EPS Next 5Y45.31%
Revenue 1Y (TTM)1.48%
Revenue growth 3Y1.97%
Revenue growth 5Y1.99%
Sales Q2Q%2.68%
Revenue Next Year3.94%
Revenue Next 2Y3.63%
Revenue Next 3Y3.43%
Revenue Next 5Y3.27%
EBIT growth 1Y5.76%
EBIT growth 3Y3.79%
EBIT growth 5Y7.62%
EBIT Next Year76.73%
EBIT Next 3Y20.31%
EBIT Next 5Y13.02%
FCF growth 1Y118.57%
FCF growth 3Y-52.87%
FCF growth 5Y-46.34%
OCF growth 1Y3.84%
OCF growth 3Y-9.77%
OCF growth 5Y-9.88%