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 30 industry peers in the Specialized REITs industry. UNIT has a medium profitability rating, but doesn't score so well on its financial health evaluation. UNIT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year UNIT was profitable.
UNIT had a positive operating cash flow in the past year.
In multiple years UNIT reported negative net income over the last 5 years.
Each year in the past 5 years UNIT had a positive operating cash flow.
1.2 Ratios
UNIT has a Return On Assets of 1.73%. This is comparable to the rest of the industry: UNIT outperforms 46.67% of its industry peers.
With an excellent Return On Invested Capital value of 13.15%, UNIT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
UNIT had an Average Return On Invested Capital over the past 3 years of 13.37%. This is significantly above the industry average of 5.26%.
| 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
The Profit Margin of UNIT (7.82%) is worse than 60.00% of its industry peers.
In the last couple of years the Profit Margin of UNIT has grown nicely.
With a decent Operating Margin value of 52.02%, UNIT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UNIT is creating some value.
The number of shares outstanding for UNIT has been increased compared to 1 year ago.
UNIT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, UNIT has an improved debt to assets ratio.
2.2 Solvency
UNIT has an Altman-Z score of -0.61. This is a bad value and indicates that UNIT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.61, UNIT is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of UNIT is 489.06, which is on the high side as it means it would take UNIT, 489.06 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 489.06, UNIT is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 489.06 | ||
| Altman-Z | -0.61 |
ROIC/WACC1.61
WACC8.16%
2.3 Liquidity
UNIT has a Current 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.
The Current ratio of UNIT (0.14) is worse than 90.00% of its industry peers.
A Quick Ratio of 0.14 indicates that UNIT may have some problems paying its short term obligations.
UNIT has a worse Quick ratio (0.14) than 90.00% 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.
The Revenue has been growing slightly by 1.99% on average over the past years.
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
Based on estimates for the next years, UNIT will show a very strong growth in Earnings Per Share. The EPS will grow by 45.31% on average per year.
UNIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.27% yearly.
EPS Next Y-69.68%
EPS Next 2Y-86.78%
EPS Next 3Y5.01%
EPS Next 5Y45.31%
Revenue Next Year123.15%
Revenue Next 2Y76.4%
Revenue Next 3Y47.84%
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 12.86 indicates a correct valuation of UNIT.
Based on the Price/Earnings ratio, UNIT is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.78, UNIT is valued rather cheaply.
With a Price/Forward Earnings ratio of 42.42, UNIT can be considered very expensive at the moment.
UNIT's Price/Forward Earnings ratio is in line with the industry average.
UNIT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 42.42 |
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.
UNIT's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. UNIT is more expensive than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 98.01 | ||
| EV/EBITDA | 7.38 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-86.78%
EPS Next 3Y5.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.15%, UNIT has a reasonable but not impressive dividend return.
UNIT's Dividend Yield is slightly below the industry average, which is at 5.80.
Compared to an average S&P500 Dividend Yield of 2.46, UNIT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
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
UNIT pays out 118.78% of its income as dividend. This is not a sustainable payout ratio.
DP118.78%
EPS Next 2Y-86.78%
EPS Next 3Y5.01%
4.76
-0.04 (-0.83%)
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 Change0.05%
Ins Owners2.31%
Ins Owner Change8.01%
Market Cap1.16B
Analysts76.36
Price Target6.43 (35.08%)
Short Float %5.89%
Short Ratio5.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
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)9.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)518.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-77.84%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)114.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 42.42 | ||
| P/S | 1 | ||
| P/FCF | 98.01 | ||
| P/OCF | 3.17 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.38 |
EPS(TTM)0.37
EY7.77%
EPS(NY)0.11
Fwd EY2.36%
FCF(TTM)0.05
FCFY1.02%
OCF(TTM)1.5
OCFY31.54%
SpS4.78
BVpS-10.04
TBVpS-11.81
PEG (NY)N/A
PEG (5Y)0.22
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 | -0.61 |
F-Score7
WACC8.16%
ROIC/WACC1.61
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 Y-69.68%
EPS Next 2Y-86.78%
EPS Next 3Y5.01%
EPS Next 5Y45.31%
Revenue 1Y (TTM)1.48%
Revenue growth 3Y1.97%
Revenue growth 5Y1.99%
Sales Q2Q%2.68%
Revenue Next Year123.15%
Revenue Next 2Y76.4%
Revenue Next 3Y47.84%
Revenue Next 5Y3.27%
EBIT growth 1Y5.76%
EBIT growth 3Y3.79%
EBIT growth 5Y7.62%
EBIT Next Year106.27%
EBIT Next 3Y40.37%
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%