UNITI GROUP INC (UNIT) Stock Fundamental Analysis
USA - NASDAQ:UNIT - US9129321009 - Common Stock
6.49 USD
+0.23 (+3.67%)
6.49 USD
0 (0%)
UNIT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 36 industry peers in the Diversified Telecommunication Services industry. While UNIT is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, UNIT is valued expensive at the moment. Finally UNIT also has an excellent dividend rating.
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.
UNIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UNIT's Return On Assets of 0.61% is fine compared to the rest of the industry. UNIT outperforms 61.11% of its industry peers.
The Return On Invested Capital of UNIT (12.54%) is better than 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UNIT is significantly above the industry average of 6.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | N/A | ||
| ROIC | 12.54% |
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
UNIT has a Profit Margin of 2.88%. This is in the better half of the industry: UNIT outperforms 61.11% of its industry peers.
UNIT's Profit Margin has improved in the last couple of years.
UNIT has a better Operating Margin (52.35%) than 100.00% of its industry peers.
UNIT's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.35% | ||
| PM (TTM) | 2.88% | ||
| 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.
UNIT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, UNIT has more shares outstanding
Compared to 1 year ago, UNIT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.56, we must say that UNIT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.56, UNIT is not doing good in the industry: 86.11% of the companies in the same industry are doing better.
UNIT has a debt to FCF ratio of 162.01. This is a negative value and a sign of low solvency as UNIT would need 162.01 years to pay back of all of its debts.
UNIT has a worse Debt to FCF ratio (162.01) than 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 162.01 | ||
| Altman-Z | -0.56 |
ROIC/WACC1.62
WACC7.76%
2.3 Liquidity
UNIT has a Current Ratio of 0.21. 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 Current ratio (0.21) than 97.22% of its industry peers.
UNIT has a Quick Ratio of 0.21. 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 (0.21) than 97.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The earnings per share for UNIT have decreased strongly by -33.37% in the last year.
UNIT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 55.59% yearly.
Looking at the last year, UNIT shows a small growth in Revenue. The Revenue has grown by 1.49% in the last year.
Measured over the past years, UNIT shows a small growth in Revenue. The Revenue has been growing by 1.99% on average per year.
EPS 1Y (TTM)-33.37%
EPS 3Y9.23%
EPS 5Y55.59%
EPS Q2Q%92.93%
Revenue 1Y (TTM)1.49%
Revenue growth 3Y1.97%
Revenue growth 5Y1.99%
Sales Q2Q%147.26%
3.2 Future
The Earnings Per Share is expected to grow by 21.33% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 26.56% on average over the next years. This is a very strong growth
EPS Next Y-156.82%
EPS Next 2Y-72.7%
EPS Next 3Y-48.48%
EPS Next 5Y21.33%
Revenue Next Year93.79%
Revenue Next 2Y77.91%
Revenue Next 3Y47.1%
Revenue Next 5Y26.56%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.67, the valuation of UNIT can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as UNIT.
The average S&P500 Price/Earnings ratio is at 25.83. UNIT is valued slightly cheaper when compared to this.
The Forward Price/Earnings Ratio is negative for UNIT. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UNIT indicates a somewhat cheap valuation: UNIT is cheaper than 66.67% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as UNIT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.56 | ||
| EV/EBITDA | 7.23 |
4.3 Compensation for Growth
The decent profitability rating of UNIT may justify a higher PE ratio.
A cheap valuation may be justified as UNIT's earnings are expected to decrease with -48.48% in the coming years.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-72.7%
EPS Next 3Y-48.48%
5. Dividend
5.1 Amount
UNIT has a Yearly Dividend Yield of 11.03%, which is a nice return.
UNIT's Dividend Yield is rather good when compared to the industry average which is at 5.28. UNIT pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, UNIT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.03% |
5.2 History
The dividend of UNIT has a limited annual growth rate of 0.38%.
UNIT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.38%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
UNIT pays out 0.06% of its income as dividend. This is a sustainable payout ratio.
UNIT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP0.06%
EPS Next 2Y-72.7%
EPS Next 3Y-48.48%
6.49
+0.23 (+3.67%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners163.99%
Inst Owner Change-2.26%
Ins Owners2.66%
Ins Owner Change-217.72%
Market Cap960.39M
Revenue(TTM)1.17B
Net Income(TTM)34.01M
Analysts72.86
Price Target9.27 (42.84%)
Short Float %6.54%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.03% |
Yearly Dividend0.76
Dividend Growth(5Y)0.38%
DP0.06%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-103.92%
Min EPS beat(2)-252.02%
Max EPS beat(2)44.18%
EPS beat(4)1
Avg EPS beat(4)-69.53%
Min EPS beat(4)-252.02%
Max EPS beat(4)44.18%
EPS beat(8)3
Avg EPS beat(8)-80.8%
EPS beat(12)5
Avg EPS beat(12)-19.4%
EPS beat(16)8
Avg EPS beat(16)-10.84%
Revenue beat(2)0
Avg Revenue beat(2)-2.83%
Min Revenue beat(2)-3.07%
Max Revenue beat(2)-2.58%
Revenue beat(4)0
Avg Revenue beat(4)-2.36%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)-1.33%
Revenue beat(8)0
Avg Revenue beat(8)-2.43%
Revenue beat(12)0
Avg Revenue beat(12)-2.43%
Revenue beat(16)1
Avg Revenue beat(16)-2.01%
PT rev (1m)-8.66%
PT rev (3m)50.17%
EPS NQ rev (1m)5.76%
EPS NQ rev (3m)-421.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-336.93%
Revenue NQ rev (1m)3.42%
Revenue NQ rev (3m)-3.95%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-3.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | N/A | ||
| P/S | 0.81 | ||
| P/FCF | 25.56 | ||
| P/OCF | 2.56 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.23 |
EPS(TTM)0.33
EY5.08%
EPS(NY)-0.5
Fwd EYN/A
FCF(TTM)0.25
FCFY3.91%
OCF(TTM)2.54
OCFY39.14%
SpS7.98
BVpS-16.52
TBVpS-19.34
PEG (NY)N/A
PEG (5Y)0.35
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | N/A | ||
| ROCE | 15.88% | ||
| ROIC | 12.54% | ||
| ROICexc | 13.37% | ||
| ROICexgc | 15.1% | ||
| OM | 52.35% | ||
| PM (TTM) | 2.88% | ||
| GM | N/A | ||
| FCFM | 3.18% |
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%
ROICexgc growth 3Y-3.72%
ROICexgc 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 Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 162.01 | ||
| Debt/EBITDA | 6.5 | ||
| Cap/Depr | 106.17% | ||
| Cap/Sales | 28.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 40.14% | ||
| Profit Quality | 110.48% | ||
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | -0.56 |
F-Score7
WACC7.76%
ROIC/WACC1.62
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)-33.37%
EPS 3Y9.23%
EPS 5Y55.59%
EPS Q2Q%92.93%
EPS Next Y-156.82%
EPS Next 2Y-72.7%
EPS Next 3Y-48.48%
EPS Next 5Y21.33%
Revenue 1Y (TTM)1.49%
Revenue growth 3Y1.97%
Revenue growth 5Y1.99%
Sales Q2Q%147.26%
Revenue Next Year93.79%
Revenue Next 2Y77.91%
Revenue Next 3Y47.1%
Revenue Next 5Y26.56%
EBIT growth 1Y3.2%
EBIT growth 3Y3.79%
EBIT growth 5Y7.62%
EBIT Next Year90.11%
EBIT Next 3Y36.83%
EBIT Next 5Y21.82%
FCF growth 1Y157.28%
FCF growth 3Y-52.87%
FCF growth 5Y-46.34%
OCF growth 1Y-11.63%
OCF growth 3Y-9.77%
OCF growth 5Y-9.88%
UNITI GROUP INC / UNIT FAQ
What is the fundamental rating for UNIT stock?
ChartMill assigns a fundamental rating of 4 / 10 to UNIT.
What is the valuation status for UNIT stock?
ChartMill assigns a valuation rating of 2 / 10 to UNITI GROUP INC (UNIT). This can be considered as Overvalued.
What is the profitability of UNIT stock?
UNITI GROUP INC (UNIT) has a profitability rating of 6 / 10.
How financially healthy is UNITI GROUP INC?
The financial health rating of UNITI GROUP INC (UNIT) is 1 / 10.
How sustainable is the dividend of UNITI GROUP INC (UNIT) stock?
The dividend rating of UNITI GROUP INC (UNIT) is 8 / 10 and the dividend payout ratio is 0.06%.