UBIQUITI INC (UI) Stock Fundamental Analysis
USA - NYSE:UI - US90353W1036 - Common Stock
655.02 USD
-41.55 (-5.96%)
655.02 USD
0 (0%)
Taking everything into account, UI scores 6 out of 10 in our fundamental rating. UI was compared to 48 industry peers in the Communications Equipment industry. UI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, UI is valued expensive at the moment. These ratings could make UI a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year UI was profitable.
In the past year UI had a positive cash flow from operations.
UI had positive earnings in each of the past 5 years.
Of the past 5 years UI 4 years had a positive operating cash flow.
1.2 Ratios
UI's Return On Assets of 48.55% is amongst the best of the industry. UI outperforms 100.00% of its industry peers.
The Return On Equity of UI (106.53%) is better than 97.92% of its industry peers.
UI's Return On Invested Capital of 94.60% is amongst the best of the industry. UI outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UI is significantly above the industry average of 12.97%.
The last Return On Invested Capital (94.60%) for UI is above the 3 year average (62.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 48.55% | ||
| ROE | 106.53% | ||
| ROIC | 94.6% |
ROA(3y)35.95%
ROA(5y)44.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)62.59%
ROIC(5y)73.02%
1.3 Margins
UI has a better Profit Margin (27.66%) than 97.92% of its industry peers.
In the last couple of years the Profit Margin of UI has remained more or less at the same level.
Looking at the Operating Margin, with a value of 32.50%, UI belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
UI's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 43.42%, UI perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
In the last couple of years the Gross Margin of UI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.5% | ||
| PM (TTM) | 27.66% | ||
| GM | 43.42% |
OM growth 3Y5.94%
OM growth 5Y-2.68%
PM growth 3Y7.31%
PM growth 5Y-1.35%
GM growth 3Y3.12%
GM growth 5Y-1.72%
2. Health
2.1 Basic Checks
UI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
UI has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, UI has less shares outstanding
Compared to 1 year ago, UI has an improved debt to assets ratio.
2.2 Solvency
UI has an Altman-Z score of 34.43. This indicates that UI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 34.43, UI belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
UI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 34.43 |
ROIC/WACC10.16
WACC9.31%
2.3 Liquidity
A Current Ratio of 1.65 indicates that UI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.65, UI is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
A Quick Ratio of 0.70 indicates that UI may have some problems paying its short term obligations.
The Quick ratio of UI (0.70) is worse than 89.58% of its industry peers.
UI does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
UI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 86.71%, which is quite impressive.
The Earnings Per Share has been growing by 13.15% on average over the past years. This is quite good.
Looking at the last year, UI shows a very strong growth in Revenue. The Revenue has grown by 33.45%.
The Revenue has been growing by 14.91% on average over the past years. This is quite good.
EPS 1Y (TTM)86.71%
EPS 3Y21.24%
EPS 5Y13.15%
EPS Q2Q%103.45%
Revenue 1Y (TTM)33.45%
Revenue growth 3Y15.01%
Revenue growth 5Y14.91%
Sales Q2Q%49.6%
3.2 Future
Based on estimates for the next years, UI will show a small growth in Earnings Per Share. The EPS will grow by 4.92% on average per year.
The Revenue is expected to grow by 5.52% on average over the next years.
EPS Next Y10.72%
EPS Next 2Y6.02%
EPS Next 3Y4.92%
EPS Next 5YN/A
Revenue Next Year15.35%
Revenue Next 2Y7.36%
Revenue Next 3Y5.52%
Revenue Next 5YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 59.76, the valuation of UI can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of UI is on the same level as its industry peers.
UI is valuated expensively when we compare the Price/Earnings ratio to 27.02, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 53.98 indicates a quite expensive valuation of UI.
Based on the Price/Forward Earnings ratio, UI is valued a bit more expensive than the industry average as 60.42% of the companies are valued more cheaply.
UI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.76 | ||
| Fwd PE | 53.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UI is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.16 | ||
| EV/EBITDA | 46.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of UI may justify a higher PE ratio.
PEG (NY)5.58
PEG (5Y)4.55
EPS Next 2Y6.02%
EPS Next 3Y4.92%
5. Dividend
5.1 Amount
With a yearly dividend of 0.46%, UI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.61, UI pays a better dividend. On top of this UI pays more dividend than 81.25% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, UI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
On average, the dividend of UI grows each year by 15.22%, which is quite nice.
UI has been paying a dividend for over 5 years, so it has already some track record.
As UI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)15.22%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
UI pays out 20.39% of its income as dividend. This is a sustainable payout ratio.
The dividend of UI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.39%
EPS Next 2Y6.02%
EPS Next 3Y4.92%
655.02
-41.55 (-5.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners5.28%
Inst Owner Change-0.03%
Ins Owners93.05%
Ins Owner Change20.33%
Market Cap39.63B
Analysts43.64
Price Target458.49 (-30%)
Short Float %12.59%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Yearly Dividend2.4
Dividend Growth(5Y)15.22%
DP20.39%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)50.98%
Min EPS beat(2)47.85%
Max EPS beat(2)54.12%
EPS beat(4)4
Avg EPS beat(4)33.22%
Min EPS beat(4)3.44%
Max EPS beat(4)54.12%
EPS beat(8)4
Avg EPS beat(8)8.39%
EPS beat(12)5
Avg EPS beat(12)1.4%
EPS beat(16)6
Avg EPS beat(16)-4.1%
Revenue beat(2)2
Avg Revenue beat(2)12.06%
Min Revenue beat(2)7.89%
Max Revenue beat(2)16.23%
Revenue beat(4)4
Avg Revenue beat(4)10.08%
Min Revenue beat(4)2.16%
Max Revenue beat(4)16.23%
Revenue beat(8)4
Avg Revenue beat(8)1.35%
Revenue beat(12)6
Avg Revenue beat(12)0.43%
Revenue beat(16)7
Avg Revenue beat(16)-1.77%
PT rev (1m)0%
PT rev (3m)30.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)38.63%
EPS NY rev (1m)26.68%
EPS NY rev (3m)26.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)13.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.76 | ||
| Fwd PE | 53.98 | ||
| P/S | 15.4 | ||
| P/FCF | 63.16 | ||
| P/OCF | 61.92 | ||
| P/B | 59.3 | ||
| P/tB | 59.54 | ||
| EV/EBITDA | 46.29 |
EPS(TTM)10.96
EY1.67%
EPS(NY)12.13
Fwd EY1.85%
FCF(TTM)10.37
FCFY1.58%
OCF(TTM)10.58
OCFY1.62%
SpS42.54
BVpS11.05
TBVpS11
PEG (NY)5.58
PEG (5Y)4.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 48.55% | ||
| ROE | 106.53% | ||
| ROCE | 110.68% | ||
| ROIC | 94.6% | ||
| ROICexc | 117.97% | ||
| ROICexgc | 118.49% | ||
| OM | 32.5% | ||
| PM (TTM) | 27.66% | ||
| GM | 43.42% | ||
| FCFM | 24.38% |
ROA(3y)35.95%
ROA(5y)44.38%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)62.59%
ROIC(5y)73.02%
ROICexc(3y)74.96%
ROICexc(5y)99.76%
ROICexgc(3y)75.34%
ROICexgc(5y)101.21%
ROCE(3y)73.23%
ROCE(5y)85.43%
ROICexcg growth 3Y5.35%
ROICexcg growth 5Y-1.09%
ROICexc growth 3Y5.84%
ROICexc growth 5Y-0.99%
OM growth 3Y5.94%
OM growth 5Y-2.68%
PM growth 3Y7.31%
PM growth 5Y-1.35%
GM growth 3Y3.12%
GM growth 5Y-1.72%
F-Score6
Asset Turnover1.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.4 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 57.47% | ||
| Cap/Sales | 0.49% | ||
| Interest Coverage | 26.94 | ||
| Cash Conversion | 74.58% | ||
| Profit Quality | 88.13% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 34.43 |
F-Score6
WACC9.31%
ROIC/WACC10.16
Cap/Depr(3y)82.63%
Cap/Depr(5y)99.53%
Cap/Sales(3y)0.73%
Cap/Sales(5y)0.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)86.71%
EPS 3Y21.24%
EPS 5Y13.15%
EPS Q2Q%103.45%
EPS Next Y10.72%
EPS Next 2Y6.02%
EPS Next 3Y4.92%
EPS Next 5YN/A
Revenue 1Y (TTM)33.45%
Revenue growth 3Y15.01%
Revenue growth 5Y14.91%
Sales Q2Q%49.6%
Revenue Next Year15.35%
Revenue Next 2Y7.36%
Revenue Next 3Y5.52%
Revenue Next 5YN/A
EBIT growth 1Y67.79%
EBIT growth 3Y21.85%
EBIT growth 5Y11.83%
EBIT Next Year20.99%
EBIT Next 3Y8.34%
EBIT Next 5YN/A
FCF growth 1Y18.49%
FCF growth 3Y20.7%
FCF growth 5Y7.87%
OCF growth 1Y18.19%
OCF growth 3Y20.01%
OCF growth 5Y6.81%