UNITI GROUP INC (UNIT) Stock Fundamental Analysis
USA - NASDAQ:UNIT - US9129321009 - Common Stock
5.975 USD
+0.11 (+1.96%)
5.9 USD
-0.07 (-1.26%)
We assign a fundamental rating of 4 out of 10 to UNIT. UNIT was compared to 36 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of UNIT while its profitability can be described as average. While showing a medium growth rate, UNIT is valued expensive at the moment. UNIT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year UNIT has reported negative net income.
In the past year UNIT had a positive cash flow from operations.
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 0.61%. This is comparable to the rest of the industry: UNIT outperforms 55.56% of its industry peers.
With an excellent Return On Invested Capital value of 12.54%, UNIT belongs to the best of the industry, outperforming 91.67% 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 6.44%.
| 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 (2.88%) which is in line with its industry peers.
UNIT's Profit Margin has improved in the last couple of years.
UNIT has a Operating Margin of 52.35%. This is amongst the best in the industry. UNIT outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of UNIT has grown nicely.
| 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
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
UNIT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for UNIT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.57, we must say that UNIT is in the distress zone and has some risk of bankruptcy.
UNIT's Altman-Z score of -0.57 is on the low side compared to the rest of the industry. UNIT is outperformed by 91.67% of its industry peers.
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 Debt to FCF ratio of 162.01. This is in the lower half of the industry: UNIT underperforms 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 162.01 | ||
| Altman-Z | -0.57 |
ROIC/WACC1.63
WACC7.71%
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.
The Current ratio of UNIT (0.21) is worse than 97.22% of its industry peers.
A Quick Ratio of 0.21 indicates that UNIT may have some problems paying its short term obligations.
UNIT's Quick ratio of 0.21 is on the low side compared to the rest of the industry. UNIT is outperformed by 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 -133.56% 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.
UNIT shows a strong growth in Revenue. In the last year, the Revenue has grown by 38.93%.
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)-133.56%
EPS 3Y9.23%
EPS 5Y55.59%
EPS Q2Q%-497.93%
Revenue 1Y (TTM)38.93%
Revenue growth 3Y1.97%
Revenue growth 5Y1.99%
Sales Q2Q%147.26%
3.2 Future
UNIT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.33% yearly.
UNIT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.56% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
UNIT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year UNIT is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than UNIT, based on the Enterprise Value to EBITDA ratio.
UNIT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.53 | ||
| EV/EBITDA | 7.17 |
4.3 Compensation for Growth
UNIT's earnings are expected to decrease with -48.48% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-72.7%
EPS Next 3Y-48.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.03%, UNIT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.85, UNIT pays a better dividend. On top of this UNIT pays more dividend than 97.22% of the companies listed in the same industry.
UNIT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)0.38%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
0.06% of the earnings are spent on dividend by UNIT. This is a low number and 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%
5.975
+0.11 (+1.96%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners163.99%
Inst Owner Change-4.85%
Ins Owners2.66%
Ins Owner Change-291.9%
Market Cap884.18M
Revenue(TTM)1.61B
Net Income(TTM)34.01M
Analysts72.86
Price Target9.27 (55.15%)
Short Float %6.69%
Short Ratio3.25
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)-264.03%
EPS NY rev (1m)-1.93%
EPS NY rev (3m)-341.51%
Revenue NQ rev (1m)4.02%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.75 | ||
| P/FCF | 23.53 | ||
| P/OCF | 2.35 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.17 |
EPS(TTM)-0.16
EYN/A
EPS(NY)-0.5
Fwd EYN/A
FCF(TTM)0.25
FCFY4.25%
OCF(TTM)2.54
OCFY42.51%
SpS7.98
BVpS-16.52
TBVpS-19.34
PEG (NY)N/A
PEG (5Y)N/A
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 | -0.57 |
F-Score7
WACC7.71%
ROIC/WACC1.63
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)-133.56%
EPS 3Y9.23%
EPS 5Y55.59%
EPS Q2Q%-497.93%
EPS Next Y-156.82%
EPS Next 2Y-72.7%
EPS Next 3Y-48.48%
EPS Next 5Y21.33%
Revenue 1Y (TTM)38.93%
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 1 / 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 5 / 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%.