UNITI GROUP INC (UNIT) Stock Fundamental Analysis
USA - NASDAQ:UNIT - US9129321009 - Common Stock
6.42 USD
-0.46 (-6.69%)
6.46 USD
+0.04 (+0.62%)
UNIT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 35 industry peers in the Diversified Telecommunication Services industry. UNIT has a medium profitability rating, but doesn't score so well on its financial health evaluation. UNIT shows excellent growth, but is valued quite expensive already. 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.
Each year in the past 5 years UNIT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of UNIT (0.61%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 12.54%, UNIT belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UNIT is significantly above the industry average of 6.32%.
| 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 comparable to the rest of the industry.
In the last couple of years the Profit Margin of UNIT has grown nicely.
UNIT has a better Operating Margin (52.35%) than 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
UNIT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
UNIT has a better debt/assets ratio than last year.
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: 85.71% 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.
With a Debt to FCF ratio value of 162.01, UNIT is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 162.01 | ||
| Altman-Z | -0.56 |
ROIC/WACC1.63
WACC7.7%
2.3 Liquidity
A Current Ratio of 0.21 indicates that UNIT may have some problems paying its short term obligations.
With a Current ratio value of 0.21, UNIT is not doing good in the industry: 97.14% of the companies in the same industry are doing better.
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 Quick ratio of 0.21. This is amonst the worse of the industry: UNIT underperforms 97.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
UNIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 276.33%, which is quite impressive.
Measured over the past years, UNIT shows a very strong growth in Earnings Per Share. The EPS has been growing by 55.59% on average per year.
The Revenue has been growing slightly by 1.94% in the past year.
The Revenue has been growing slightly by 1.99% on average over the past years.
EPS 1Y (TTM)276.33%
EPS 3Y9.23%
EPS 5Y55.59%
EPS Q2Q%-157.14%
Revenue 1Y (TTM)1.94%
Revenue growth 3Y1.97%
Revenue growth 5Y1.99%
Sales Q2Q%1.96%
3.2 Future
The Earnings Per Share is expected to grow by 9.65% on average over the next years. This is quite good.
Based on estimates for the next years, UNIT will show a very strong growth in Revenue. The Revenue will grow by 27.43% on average per year.
EPS Next Y-104.12%
EPS Next 2Y-63.81%
EPS Next 3Y-22.29%
EPS Next 5Y9.65%
Revenue Next Year92.11%
Revenue Next 2Y78.24%
Revenue Next 3Y46.87%
Revenue Next 5Y27.43%
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 decreasing.
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
With a Price/Earnings ratio of 25.68, UNIT can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as UNIT.
UNIT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
UNIT is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.68 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UNIT is valued a bit cheaper than 62.86% of the companies in the same industry.
UNIT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.28 | ||
| EV/EBITDA | 7.33 |
4.3 Compensation for Growth
UNIT has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as UNIT's earnings are expected to decrease with -22.29% in the coming years.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-63.81%
EPS Next 3Y-22.29%
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 5.03. UNIT pays more dividend than 97.14% of the companies in the same industry.
UNIT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| 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
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-63.81%
EPS Next 3Y-22.29%
6.42
-0.46 (-6.69%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners88.77%
Inst Owner Change-2.74%
Ins Owners2.47%
Ins Owner Change-217.72%
Market Cap950.03M
Analysts75
Price Target10.15 (58.1%)
Short Float %N/A
Short Ratio2.01
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)64.41%
PT rev (3m)64.41%
EPS NQ rev (1m)-286.27%
EPS NQ rev (3m)-186.4%
EPS NY rev (1m)-117.5%
EPS NY rev (3m)-129.31%
Revenue NQ rev (1m)-2.33%
Revenue NQ rev (3m)-22.09%
Revenue NY rev (1m)-2.64%
Revenue NY rev (3m)-9.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.68 | ||
| Fwd PE | N/A | ||
| P/S | 0.8 | ||
| P/FCF | 25.28 | ||
| P/OCF | 2.53 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.33 |
EPS(TTM)0.25
EY3.89%
EPS(NY)-0.35
Fwd EYN/A
FCF(TTM)0.25
FCFY3.96%
OCF(TTM)2.54
OCFY39.56%
SpS7.98
BVpS-16.52
TBVpS-19.34
PEG (NY)N/A
PEG (5Y)0.46
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%
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 Turnover0.21
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
WACC7.7%
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)276.33%
EPS 3Y9.23%
EPS 5Y55.59%
EPS Q2Q%-157.14%
EPS Next Y-104.12%
EPS Next 2Y-63.81%
EPS Next 3Y-22.29%
EPS Next 5Y9.65%
Revenue 1Y (TTM)1.94%
Revenue growth 3Y1.97%
Revenue growth 5Y1.99%
Sales Q2Q%1.96%
Revenue Next Year92.11%
Revenue Next 2Y78.24%
Revenue Next 3Y46.87%
Revenue Next 5Y27.43%
EBIT growth 1Y3.2%
EBIT growth 3Y3.79%
EBIT growth 5Y7.62%
EBIT Next Year110.84%
EBIT Next 3Y34.14%
EBIT Next 5Y24.82%
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%