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UNITI GROUP INC (UNIT) Stock Fundamental Analysis

NASDAQ:UNIT - Nasdaq - US91325V1089 - REIT - Currency: USD

5.45  -0.04 (-0.73%)

After market: 5.45 0 (0%)

Fundamental Rating

4

Taking everything into account, UNIT scores 4 out of 10 in our fundamental rating. UNIT was compared to 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

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4

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.
In the past 5 years UNIT always reported a positive cash flow from operatings.
UNIT Yearly Net Income VS EBIT VS OCF VS FCFUNIT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M 600M -600M

1.2 Ratios

The Return On Assets of UNIT (1.98%) is worse than 60.71% of its industry peers.
UNIT has a better Return On Invested Capital (13.03%) than 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 5.22%.
Industry RankSector 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%
UNIT Yearly ROA, ROE, ROICUNIT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30

1.3 Margins

With a Profit Margin value of 8.69%, UNIT is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
UNIT has a better Operating Margin (51.88%) than 82.14% of its industry peers.
UNIT's Operating Margin has improved in the last couple of years.
Industry RankSector 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
UNIT Yearly Profit, Operating, Gross MarginsUNIT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50

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0

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.
UNIT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for UNIT is higher compared to a year ago.
UNIT Yearly Shares OutstandingUNIT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
UNIT Yearly Total Debt VS Total AssetsUNIT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

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.
UNIT has a Altman-Z score of -0.61. This is amonst the worse of the industry: UNIT underperforms 92.86% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -0.61
ROIC/WACC1.54
WACC8.47%
UNIT Yearly LT Debt VS Equity VS FCFUNIT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B

2.3 Liquidity

A Current Ratio of 0.07 indicates that UNIT may have some problems paying its short term obligations.
The Current ratio of UNIT (0.07) is worse than 96.43% of its industry peers.
A Quick Ratio of 0.07 indicates that UNIT may have some problems paying its short term obligations.
With a Quick ratio value of 0.07, UNIT is not doing good in the industry: 96.43% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.07
Quick Ratio 0.07
UNIT Yearly Current Assets VS Current LiabilitesUNIT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

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5

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.
The Revenue has been growing slightly by 0.99% in the past year.
Measured over the past years, UNIT shows a small growth in Revenue. The Revenue has been growing by 2.47% on average per year.
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

UNIT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 137.87% yearly.
UNIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.80% yearly.
EPS Next Y1234.16%
EPS Next 2Y310.79%
EPS Next 3Y167.42%
EPS Next 5Y137.87%
Revenue Next Year0.76%
Revenue Next 2Y2.3%
Revenue Next 3Y2.63%
Revenue Next 5Y2.8%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
UNIT Yearly Revenue VS EstimatesUNIT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 500M 1B
UNIT Yearly EPS VS EstimatesUNIT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 1 -1 2 -2 -3

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7

4. Valuation

4.1 Price/Earnings Ratio

UNIT is valuated correctly with a Price/Earnings ratio of 13.29.
UNIT's Price/Earnings ratio is rather cheap when compared to the industry. UNIT is cheaper than 92.86% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.46, UNIT is valued rather cheaply.
UNIT is valuated reasonably with a Price/Forward Earnings ratio of 10.77.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UNIT indicates a rather cheap valuation: UNIT is cheaper than 92.86% of the companies listed in the same industry.
UNIT is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.56, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.29
Fwd PE 10.77
UNIT Price Earnings VS Forward Price EarningsUNIT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, UNIT is valued cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.76
UNIT Per share dataUNIT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 -5 -10

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.
UNIT's earnings are expected to grow with 167.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y310.79%
EPS Next 3Y167.42%

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5

5. Dividend

5.1 Amount

UNIT has a Yearly Dividend Yield of 10.51%, which is a nice return.
UNIT's Dividend Yield is rather good when compared to the industry average which is at 4.83. UNIT pays more dividend than 100.00% of the companies in the same industry.
UNIT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
Industry RankSector Rank
Dividend Yield 10.51%

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
UNIT Yearly Dividends per shareUNIT Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5 2

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%
UNIT Yearly Income VS Free CF VS DividendUNIT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M -600M
UNIT Dividend Payout.UNIT Dividend Payout, showing the Payout Ratio.UNIT Dividend Payout.PayoutRetained Earnings

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UNITI GROUP INC

NASDAQ:UNIT (1/31/2025, 8:00:01 PM)

After market: 5.45 0 (0%)

5.45

-0.04 (-0.73%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)N/A N/A
Inst Owners84.68%
Inst Owner Change0.18%
Ins Owners2.31%
Ins Owner Change-0.44%
Market Cap1.33B
Analysts74.55
Price Target5.87 (7.71%)
Short Float %5.54%
Short Ratio6.08
Dividend
Industry RankSector Rank
Dividend Yield 10.51%
Yearly Dividend0.45
Dividend Growth(5Y)-28.29%
DP107.68%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
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)0.88%
PT rev (3m)-0.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.6%
EPS NY rev (1m)0%
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 RankSector Rank
PE 13.29
Fwd PE 10.77
P/S 1.15
P/FCF N/A
P/OCF 3.87
P/B N/A
P/tB N/A
EV/EBITDA 7.76
EPS(TTM)0.41
EY7.52%
EPS(NY)0.51
Fwd EY9.29%
FCF(TTM)-0.13
FCFYN/A
OCF(TTM)1.41
OCFY25.83%
SpS4.75
BVpS-10.15
TBVpS-11.95
PEG (NY)0.01
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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
WACC8.47%
ROIC/WACC1.54
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 2Y2.3%
Revenue Next 3Y2.63%
Revenue Next 5Y2.8%
EBIT growth 1Y5.25%
EBIT growth 3Y7.53%
EBIT growth 5Y10.52%
EBIT Next Year73.37%
EBIT Next 3Y31.01%
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%