UBIQUITI INC (UI) Stock Fundamental Analysis
NYSE:UI - New York Stock Exchange, Inc. - US90353W1036 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to UI. UI was compared to 49 industry peers in the Communications Equipment industry. UI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. UI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make UI suitable for growth and quality investing!
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 each of the past 5 years.
Of the past 5 years UI 4 years had a positive operating cash flow.
1.2 Ratios
UI has a better Return On Assets (42.29%) than 100.00% of its industry peers.
UI has a better Return On Equity (125.89%) than 100.00% of its industry peers.
UI's Return On Invested Capital of 114.17% 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 13.73%.
The last Return On Invested Capital (114.17%) for UI is above the 3 year average (54.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 42.29% | ||
| ROE | 125.89% | ||
| ROIC | 114.17% |
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
UI has a better Profit Margin (23.65%) than 97.96% of its industry peers.
UI's Profit Margin has declined in the last couple of years.
The Operating Margin of UI (30.72%) is better than 97.96% of its industry peers.
UI's Operating Margin has declined in the last couple of years.
The Gross Margin of UI (42.16%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of UI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.72% | ||
| 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.
Compared to 1 year ago, UI has about the same amount of shares outstanding.
Compared to 5 years ago, UI has less shares outstanding
UI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 22.69 indicates that UI is not in any danger for bankruptcy at the moment.
UI has a better Altman-Z score (22.69) than 100.00% 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 | 22.69 |
ROIC/WACC11.65
WACC9.8%
2.3 Liquidity
A Current Ratio of 1.39 indicates that UI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.39, UI is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
A Quick Ratio of 0.63 indicates that UI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.63, UI is doing worse than 93.88% 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 56.31% over the past year.
UI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.51% yearly.
Looking at the last year, UI shows a very strong growth in Revenue. The Revenue has grown by 21.43%.
Measured over the past years, UI shows a quite strong growth in Revenue. The Revenue has been growing by 10.67% on average per year.
EPS 1Y (TTM)56.31%
EPS 3Y-15.62%
EPS 5Y3.51%
EPS Q2Q%134.38%
Revenue 1Y (TTM)21.43%
Revenue growth 3Y0.53%
Revenue growth 5Y10.67%
Sales Q2Q%34.72%
3.2 Future
Based on estimates for the next years, UI will show a very strong growth in Earnings Per Share. The EPS will grow by 20.17% on average per year.
UI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.50% yearly.
EPS Next Y69.33%
EPS Next 2Y27.74%
EPS Next 3Y20.17%
EPS Next 5YN/A
Revenue Next Year25.01%
Revenue Next 2Y12.78%
Revenue Next 3Y9.5%
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 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.
4. Valuation
4.1 Price/Earnings Ratio
UI is valuated quite expensively with a Price/Earnings ratio of 46.79.
UI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.68, UI is valued quite expensively.
UI is valuated quite expensively with a Price/Forward Earnings ratio of 44.74.
UI's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of UI to the average of the S&P500 Index (22.50), we can say UI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.79 | ||
| Fwd PE | 44.74 |
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 | 35.43 | ||
| EV/EBITDA | 36.13 |
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.
The decent profitability rating of UI may justify a higher PE ratio.
UI's earnings are expected to grow with 20.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)13.33
EPS Next 2Y27.74%
EPS Next 3Y20.17%
5. Dividend
5.1 Amount
UI has a yearly dividend return of 0.57%, which is pretty low.
UI's Dividend Yield is a higher than the industry average which is at 3.56.
Compared to an average S&P500 Dividend Yield of 2.36, UI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
On average, the dividend of UI grows each year by 19.28%, 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)19.28%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
26.44% of the earnings are spent on dividend by UI. This is a low number and sustainable payout ratio.
UI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP26.44%
EPS Next 2Y27.74%
EPS Next 3Y20.17%
NYSE:UI (5/19/2025, 1:40:26 PM)
428.58
-6.92 (-1.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners4.12%
Inst Owner Change18.15%
Ins Owners93.06%
Ins Owner Change-40.26%
Market Cap25.92B
Analysts43.64
Price Target337.62 (-21.22%)
Short Float %10.47%
Short Ratio4.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend2.4
Dividend Growth(5Y)19.28%
DP26.44%
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)-2.07%
EPS NQ rev (1m)13.78%
EPS NQ rev (3m)13.78%
EPS NY rev (1m)15.57%
EPS NY rev (3m)15.57%
Revenue NQ rev (1m)6.47%
Revenue NQ rev (3m)1.83%
Revenue NY rev (1m)4.49%
Revenue NY rev (3m)8.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.79 | ||
| Fwd PE | 44.74 | ||
| P/S | 11.17 | ||
| P/FCF | 35.43 | ||
| P/OCF | 34.98 | ||
| P/B | 59.45 | ||
| P/tB | 59.86 | ||
| EV/EBITDA | 36.13 |
EPS(TTM)9.16
EY2.14%
EPS(NY)9.58
Fwd EY2.24%
FCF(TTM)12.1
FCFY2.82%
OCF(TTM)12.25
OCFY2.86%
SpS38.38
BVpS7.21
TBVpS7.16
PEG (NY)0.67
PEG (5Y)13.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 42.29% | ||
| ROE | 125.89% | ||
| ROCE | 137.23% | ||
| ROIC | 114.17% | ||
| ROICexc | 160.9% | ||
| ROICexgc | 162.23% | ||
| OM | 30.72% | ||
| PM (TTM) | 23.65% | ||
| GM | 42.16% | ||
| FCFM | 31.52% |
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 | 41.9% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 17 | ||
| Cash Conversion | 100.77% | ||
| Profit Quality | 133.29% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 22.69 |
F-Score7
WACC9.8%
ROIC/WACC11.65
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)56.31%
EPS 3Y-15.62%
EPS 5Y3.51%
EPS Q2Q%134.38%
EPS Next Y69.33%
EPS Next 2Y27.74%
EPS Next 3Y20.17%
EPS Next 5YN/A
Revenue 1Y (TTM)21.43%
Revenue growth 3Y0.53%
Revenue growth 5Y10.67%
Sales Q2Q%34.72%
Revenue Next Year25.01%
Revenue Next 2Y12.78%
Revenue Next 3Y9.5%
Revenue Next 5YN/A
EBIT growth 1Y41.37%
EBIT growth 3Y-12.41%
EBIT growth 5Y3.89%
EBIT Next Year34.83%
EBIT Next 3Y13.07%
EBIT Next 5YN/A
FCF growth 1Y777.58%
FCF growth 3Y-3.74%
FCF growth 5Y16.23%
OCF growth 1Y924.33%
OCF growth 3Y-4%
OCF growth 5Y15.87%