UNITI GROUP INC (UNIT)
US91325V1089 - REIT
Overall UNIT gets a fundamental rating of 4 out of 10. We evaluated UNIT against 28 industry peers in the Specialized REITs industry. While UNIT is still in line with the averages on profitability rating, there are concerns on its financial health. UNIT may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
UNIT had positive earnings in the past year.
UNIT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: UNIT reported negative net income in multiple years.
Each year in the past 5 years UNIT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of UNIT (1.98%) is worse than 60.71% of its industry peers.
UNIT has a Return On Invested Capital of 13.03%. This is amongst the best in the industry. UNIT outperforms 96.43% of its industry peers.
UNIT had an Average Return On Invested Capital over the past 3 years of 13.11%. This is significantly above the industry average of 5.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | N/A | ||
| ROIC | 13.03% |
ROA(3y)0.24%
ROA(5y)-2.82%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.11%
ROIC(5y)11.72%
1.3 Margins
UNIT's Profit Margin of 8.69% is on the low side compared to the rest of the industry. UNIT is outperformed by 64.29% of its industry peers.
UNIT has a Operating Margin of 51.88%. This is amongst the best in the industry. UNIT outperforms 82.14% of its industry peers.
UNIT's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.88% | ||
| PM (TTM) | 8.69% | ||
| GM | N/A |
OM growth 3Y4.88%
OM growth 5Y7.85%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UNIT is creating some value.
Compared to 1 year ago, UNIT has more shares outstanding
Compared to 5 years ago, UNIT has more shares outstanding
Compared to 1 year ago, UNIT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.61, we must say that UNIT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.61, UNIT is not doing good in the industry: 92.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.61 |
ROIC/WACC1.65
WACC7.92%
2.3 Liquidity
UNIT has a Current Ratio of 0.07. 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 Current ratio of 0.07 is on the low side compared to the rest of the industry. UNIT is outperformed by 96.43% of its industry peers.
UNIT has a Quick Ratio of 0.07. 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 has a worse Quick ratio (0.07) than 96.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
UNIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 215.38%, which is quite impressive.
UNIT shows a small growth in Revenue. In the last year, the Revenue has grown by 0.99%.
UNIT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.47% yearly.
EPS 1Y (TTM)215.38%
EPS 3Y-15.66%
EPS 5Y0%
EPS Q2Q%114.71%
Revenue 1Y (TTM)0.99%
Revenue growth 3Y2.52%
Revenue growth 5Y2.47%
Sales Q2Q%0.55%
3.2 Future
Based on estimates for the next years, UNIT will show a very strong growth in Earnings Per Share. The EPS will grow by 137.87% on average per year.
The Revenue is expected to grow by 2.80% on average over the next years.
EPS Next Y1234.16%
EPS Next 2Y310.79%
EPS Next 3Y167.42%
EPS Next 5Y137.87%
Revenue Next Year0.76%
Revenue Next 2Y2.54%
Revenue Next 3Y3.11%
Revenue Next 5Y2.8%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.46, which indicates a correct valuation of UNIT.
Based on the Price/Earnings ratio, UNIT is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
UNIT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.54.
With a Price/Forward Earnings ratio of 10.90, the valuation of UNIT can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UNIT indicates a rather cheap valuation: UNIT is cheaper than 96.43% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of UNIT to the average of the S&P500 Index (23.99), we can say UNIT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 10.9 |
4.2 Price Multiples
UNIT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. UNIT is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.77 |
4.3 Compensation for Growth
UNIT's 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 167.42% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y310.79%
EPS Next 3Y167.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.77%, UNIT is a good candidate for dividend investing.
UNIT's Dividend Yield is rather good when compared to the industry average which is at 4.90. UNIT pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, UNIT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.77% |
5.2 History
The dividend of UNIT decreases each year by -28.29%.
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)-28.29%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
107.68% of the earnings are spent on dividend by UNIT. This is not a sustainable payout ratio.
DP107.68%
EPS Next 2Y310.79%
EPS Next 3Y167.42%
UNITI GROUP INC
NASDAQ:UNIT (12/24/2024, 7:43:13 PM)
After market: 5.54 +0.02 (+0.36%)5.52
+0.03 (+0.55%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners84.68%
Inst Owner Change2.96%
Ins Owners2.31%
Ins Owner Change-0.44%
Market Cap1.35B
Analysts74.55
Price Target5.81 (5.25%)
Short Float %5.47%
Short Ratio5.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.77% |
Dividend Growth(5Y)-28.29%
DP107.68%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-43.5%
Min EPS beat(2)-50.15%
Max EPS beat(2)-36.85%
EPS beat(4)2
Avg EPS beat(4)-5.54%
Min EPS beat(4)-50.15%
Max EPS beat(4)36.4%
EPS beat(8)4
Avg EPS beat(8)56.99%
EPS beat(12)7
Avg EPS beat(12)4.54%
EPS beat(16)8
Avg EPS beat(16)-11.28%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)-0.26%
Revenue beat(4)0
Avg Revenue beat(4)-2.32%
Min Revenue beat(4)-5.36%
Max Revenue beat(4)-0.26%
Revenue beat(8)0
Avg Revenue beat(8)-2.38%
Revenue beat(12)1
Avg Revenue beat(12)-1.71%
Revenue beat(16)2
Avg Revenue beat(16)-1.69%
PT rev (1m)-1.72%
PT rev (3m)-1.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.6%
EPS NY rev (1m)0.62%
EPS NY rev (3m)-14.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 10.9 | ||
| P/S | 1.16 | ||
| P/FCF | N/A | ||
| P/OCF | 3.92 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.77 |
EPS(TTM)0.41
EY7.43%
EPS(NY)0.51
Fwd EY9.17%
FCF(TTM)-0.13
FCFYN/A
OCF(TTM)1.41
OCFY25.5%
SpS4.75
BVpS-10.15
TBVpS-11.95
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | N/A | ||
| ROCE | 16.49% | ||
| ROIC | 13.03% | ||
| ROICexc | 13.15% | ||
| ROICexgc | 14.98% | ||
| OM | 51.88% | ||
| PM (TTM) | 8.69% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)0.24%
ROA(5y)-2.82%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.11%
ROIC(5y)11.72%
ROICexc(3y)13.32%
ROICexc(5y)11.97%
ROICexgc(3y)16.89%
ROICexgc(5y)15.94%
ROCE(3y)16.59%
ROCE(5y)14.84%
ROICexcg growth 3Y1.04%
ROICexcg growth 5Y6.73%
ROICexc growth 3Y7.84%
ROICexc growth 5Y11.74%
OM growth 3Y4.88%
OM growth 5Y7.85%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.34 | ||
| Cap/Depr | 119.9% | ||
| Cap/Sales | 32.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 37.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 | ||
| Altman-Z | -0.61 |
F-Score6
WACC7.92%
ROIC/WACC1.65
Cap/Depr(3y)137.66%
Cap/Depr(5y)119.12%
Cap/Sales(3y)36.4%
Cap/Sales(5y)34.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)215.38%
EPS 3Y-15.66%
EPS 5Y0%
EPS Q2Q%114.71%
EPS Next Y1234.16%
EPS Next 2Y310.79%
EPS Next 3Y167.42%
EPS Next 5Y137.87%
Revenue 1Y (TTM)0.99%
Revenue growth 3Y2.52%
Revenue growth 5Y2.47%
Sales Q2Q%0.55%
Revenue Next Year0.76%
Revenue Next 2Y2.54%
Revenue Next 3Y3.11%
Revenue Next 5Y2.8%
EBIT growth 1Y5.25%
EBIT growth 3Y7.53%
EBIT growth 5Y10.52%
EBIT Next Year73.41%
EBIT Next 3Y34.96%
EBIT Next 5Y14.7%
FCF growth 1Y-216.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-20.26%
OCF growth 3Y30.97%
OCF growth 5Y-5.67%