Ubiquiti Inc (NYSE:UI) Fits Key Standards for Growth Investing

A methodical way to approach growth investing can help investors find companies with good prospects for expansion. One such system comes from Louis Navellier's "The Little Book That Makes You Rich," which lists eight particular standards for choosing excellent growth stocks. This plan concentrates on companies showing positive earnings revisions, good sales growth, widening margins, and high returns on equity, along with other basic strengths. By using these filters in an organized way, investors can search for businesses that display several traits of winning growth companies.

Fitting the Little Book Standards

Ubiquiti Inc (NYSE:UI) shows good agreement with Navellier's growth plan in a number of important areas. The company's basic performance indicates it has many of the traits the system favors for finding good growth possibilities.

• Positive Earnings Revisions: Analysts have raised next-quarter EPS estimates by 38.6% over the last three months, showing increasing belief in near-term profitability. This upward change is important because it frequently comes before actual earnings that beat expectations.
• Consistent Earnings Surprises: Ubiquiti has beaten earnings predictions in all of the last four quarters, with an average beat of 33.2%. This history of exceeding estimates suggests management runs the company well and possibly sets careful targets.
• Good Sales Growth: The company displays notable revenue growth with 33.4% year-over-year growth and 49.6% quarter-over-quarter growth. Speeding up sales are central to Navellier's system, pointing to market share increases and good product demand.
• Widening Operating Margins: Operating margins have widened by 25.7% over the last year, getting to 32.5%. This gain shows the company's capacity to increase revenue while improving efficiency, a main sign of quality growth.
• Good Cash Flow Generation: Free cash flow increased 18.5% year-over-year, giving financial room to pay for operations, put money into growth, or give money back to shareholders without needing outside funds.
• Notable Earnings Growth: Ubiquiti reported 86.7% year-over-year EPS growth and 103.4% quarter-over-quarter growth, displaying large momentum in profitability.
• Positive Earnings Momentum: Current quarterly EPS growth is much higher than growth from the same quarter one year ago, showing speeding up earnings momentum.
• Outstanding Return on Equity: The company reaches a noteworthy 106.5% return on equity, well above the system's lowest limit and displaying very efficient use of shareholder money.

Basic Evaluation Summary

A full fundamental analysis of Ubiquiti shows a varied but mostly good view. The company grades very well on profitability measures, with top-tier returns on assets, equity, and invested capital. Its health score is also good, backed by no existing debt and good solvency figures. However, the price looks high with raised P/E ratios, although this could be reasonable given the company's better profitability. Growth measures display notable past performance, though analysts expect more moderate growth in the future.

Investment Points

While Ubiquiti fits many of Navellier's growth standards, investors should think about the whole situation. The company's high price needs belief that good growth will persist. The communications equipment field stays competitive, and keeping present growth speeds and margin levels is a continuing test. The company's basic strengths in profitability and financial health give a good base, but future results will rely on performance in shifting market environments.

For investors wanting to use this system to find similar chances, the full screening template is ready for more study and personalization.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.