UBIQUITI INC (UI) Stock Fundamental Analysis
NYSE:UI - US90353W1036 - Common Stock
524.31 USD
-10.84 (-2.03%)
520.99 USD
-3.32 (-0.63%)
Taking everything into account, UI scores 5 out of 10 in our fundamental rating. UI was compared to 48 industry peers in the Communications Equipment industry. While UI has a great profitability rating, there are some minor concerns on its financial health. UI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
UI had positive earnings in the past year.
UI had a positive operating cash flow in the past year.
UI had positive earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: UI reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of UI (42.30%) is better than 100.00% of its industry peers.
UI has a better Return On Equity (125.93%) than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 114.11%, UI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UI is significantly above the industry average of 13.48%.
The last Return On Invested Capital (114.11%) for UI is above the 3 year average (54.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 42.3% | ||
| ROE | 125.93% | ||
| ROIC | 114.11% |
ROA(3y)34.71%
ROA(5y)44.98%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)54.25%
ROIC(5y)69.47%
1.3 Margins
Looking at the Profit Margin, with a value of 23.65%, UI belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
In the last couple of years the Profit Margin of UI has declined.
The Operating Margin of UI (30.70%) is better than 97.92% of its industry peers.
In the last couple of years the Operating Margin of UI has declined.
UI has a Gross Margin of 42.16%. This is comparable to the rest of the industry: UI outperforms 56.25% of its industry peers.
UI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.7% | ||
| PM (TTM) | 23.65% | ||
| GM | 42.16% |
OM growth 3Y-12.87%
OM growth 5Y-6.12%
PM growth 3Y-17.64%
PM growth 5Y-8.16%
GM growth 3Y-7.24%
GM growth 5Y-3.68%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), UI is creating value.
UI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
UI has an Altman-Z score of 26.86. This indicates that UI is financially healthy and has little risk of bankruptcy at the moment.
UI has a Altman-Z score of 26.86. This is amongst the best in the industry. UI outperforms 97.92% of its industry peers.
There is no outstanding debt for UI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | 26.86 |
ROIC/WACC11.17
WACC10.22%
2.3 Liquidity
UI has a Current Ratio of 1.39. This is a normal value and indicates that UI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.39, UI is doing worse than 70.83% of the companies in the same industry.
UI has a Quick Ratio of 1.39. This is a bad value and indicates that UI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.63, UI is doing worse than 89.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 87.22% over the past year.
Measured over the past years, UI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.21% on average per year.
EPS 1Y (TTM)87.22%
EPS 3Y21.35%
EPS 5Y13.21%
EPS Q2Q%105.17%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%49.6%
3.2 Future
The Earnings Per Share is expected to decrease by -3.72% on average over the next years.
UI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.31% yearly.
EPS Next Y-12.84%
EPS Next 2Y-3.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.06%
Revenue Next 2Y2.31%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 47.71, which means the current valuation is very expensive for UI.
The rest of the industry has a similar Price/Earnings ratio as UI.
UI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.14.
UI is valuated quite expensively with a Price/Forward Earnings ratio of 54.74.
The rest of the industry has a similar Price/Forward Earnings ratio as UI.
When comparing the Price/Forward Earnings ratio of UI to the average of the S&P500 Index (22.80), we can say UI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.71 | ||
| Fwd PE | 54.74 |
4.2 Price Multiples
UI's Enterprise Value to EBITDA is on the same level as the industry average.
UI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.31 | ||
| EV/EBITDA | 44.33 |
4.3 Compensation for Growth
UI has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as UI's earnings are expected to decrease with -3.72% in the coming years.
PEG (NY)N/A
PEG (5Y)3.61
EPS Next 2Y-3.72%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UI has a yearly dividend return of 0.62%, which is pretty low.
UI's Dividend Yield is rather good when compared to the industry average which is at 3.80. UI pays more dividend than 81.25% of the companies in the same industry.
With a Dividend Yield of 0.62, UI pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
On average, the dividend of UI grows each year by 19.36%, which is quite nice.
UI has been paying a dividend for over 5 years, so it has already some track record.
UI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)19.36%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
26.38% of the earnings are spent on dividend by UI. This is a low number and sustainable payout ratio.
DP26.38%
EPS Next 2Y-3.72%
EPS Next 3YN/A
524.31
-10.84 (-2.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners4.81%
Inst Owner Change5.16%
Ins Owners93.06%
Ins Owner Change20.33%
Market Cap31.72B
Analysts43.64
Price Target350.37 (-33.18%)
Short Float %13.05%
Short Ratio4.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend2.41
Dividend Growth(5Y)19.36%
DP26.38%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.64%
Min EPS beat(2)3.44%
Max EPS beat(2)47.85%
EPS beat(4)3
Avg EPS beat(4)19.1%
Min EPS beat(4)-2.35%
Max EPS beat(4)47.85%
EPS beat(8)3
Avg EPS beat(8)0.78%
EPS beat(12)5
Avg EPS beat(12)-1.15%
EPS beat(16)6
Avg EPS beat(16)-7.33%
Revenue beat(2)2
Avg Revenue beat(2)10.97%
Min Revenue beat(2)7.89%
Max Revenue beat(2)14.05%
Revenue beat(4)3
Avg Revenue beat(4)5.1%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)14.05%
Revenue beat(8)3
Avg Revenue beat(8)-0.85%
Revenue beat(12)6
Avg Revenue beat(12)0.01%
Revenue beat(16)7
Avg Revenue beat(16)-2.78%
PT rev (1m)0%
PT rev (3m)3.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.71 | ||
| Fwd PE | 54.74 | ||
| P/S | 13.66 | ||
| P/FCF | 43.31 | ||
| P/OCF | 42.76 | ||
| P/B | 72.72 | ||
| P/tB | 73.23 | ||
| EV/EBITDA | 44.33 |
EPS(TTM)10.99
EY2.1%
EPS(NY)9.58
Fwd EY1.83%
FCF(TTM)12.11
FCFY2.31%
OCF(TTM)12.26
OCFY2.34%
SpS38.38
BVpS7.21
TBVpS7.16
PEG (NY)N/A
PEG (5Y)3.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 42.3% | ||
| ROE | 125.93% | ||
| ROCE | 137.16% | ||
| ROIC | 114.11% | ||
| ROICexc | 160.82% | ||
| ROICexgc | 162.15% | ||
| OM | 30.7% | ||
| PM (TTM) | 23.65% | ||
| GM | 42.16% | ||
| FCFM | 31.54% |
ROA(3y)34.71%
ROA(5y)44.98%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)54.25%
ROIC(5y)69.47%
ROICexc(3y)66.97%
ROICexc(5y)98.27%
ROICexgc(3y)67.77%
ROICexgc(5y)99.81%
ROCE(3y)65.21%
ROCE(5y)83.51%
ROICexcg growth 3Y-31.39%
ROICexcg growth 5Y-8.8%
ROICexc growth 3Y-30.97%
ROICexc growth 5Y-8.74%
OM growth 3Y-12.87%
OM growth 5Y-6.12%
PM growth 3Y-17.64%
PM growth 5Y-8.16%
GM growth 3Y-7.24%
GM growth 5Y-3.68%
F-Score7
Asset Turnover1.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.46 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 43.57% | ||
| Cap/Sales | 0.41% | ||
| Interest Coverage | 17.2 | ||
| Cash Conversion | 100.98% | ||
| Profit Quality | 133.33% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 26.86 |
F-Score7
WACC10.22%
ROIC/WACC11.17
Cap/Depr(3y)96.32%
Cap/Depr(5y)167.52%
Cap/Sales(3y)0.83%
Cap/Sales(5y)1.17%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)87.22%
EPS 3Y21.35%
EPS 5Y13.21%
EPS Q2Q%105.17%
EPS Next Y-12.84%
EPS Next 2Y-3.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%49.6%
Revenue Next Year2.06%
Revenue Next 2Y2.31%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y41.36%
EBIT growth 3Y-12.41%
EBIT growth 5Y3.89%
EBIT Next Year51.34%
EBIT Next 3Y15.59%
EBIT Next 5YN/A
FCF growth 1Y778.01%
FCF growth 3Y-3.74%
FCF growth 5Y16.23%
OCF growth 1Y925%
OCF growth 3Y-4%
OCF growth 5Y15.87%