UBIQUITI INC (UI) Stock Fundamental Analysis
USA - NYSE:UI - US90353W1036 - Common Stock
635.65 USD
+8.63 (+1.38%)
635.65 USD
0 (0%)
Overall UI gets a fundamental rating of 5 out of 10. We evaluated UI against 48 industry peers in the Communications Equipment industry. UI has an excellent profitability rating, but there are some minor concerns on its financial health. UI does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year UI was profitable.
UI had a positive operating cash flow in the past year.
Of the past 5 years UI 4 years were profitable.
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
UI's Return On Assets of 42.30% is amongst the best of the industry. UI outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 125.93%, UI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of UI (114.11%) is better than 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 13.71%.
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
UI has a better Profit Margin (23.65%) than 97.92% of its industry peers.
UI's Profit Margin has declined in the last couple of years.
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 (42.16%) which is comparable to the rest of the industry.
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
An Altman-Z score of 30.73 indicates that UI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 30.73, UI belongs to the top 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 | 0.46 | ||
| Altman-Z | 30.73 |
ROIC/WACC11.4
WACC10.01%
2.3 Liquidity
A Current Ratio of 1.39 indicates that UI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.39, UI is doing worse than 75.00% 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.
UI's Quick ratio of 0.63 is on the low side compared to the rest of the industry. UI is outperformed by 89.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.63 |
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.
Measured over the past years, UI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.15% on average per year.
EPS 1Y (TTM)86.71%
EPS 3Y21.24%
EPS 5Y13.15%
EPS Q2Q%103.45%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%49.6%
3.2 Future
UI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.59% yearly.
UI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.52% yearly.
EPS Next Y-12.6%
EPS Next 2Y-3.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.35%
Revenue Next 2Y7.36%
Revenue Next 3Y5.52%
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
A Price/Earnings ratio of 58.00 indicates a quite expensive valuation of UI.
UI's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of UI to the average of the S&P500 Index (27.38), we can say UI is valued expensively.
A Price/Forward Earnings ratio of 66.36 indicates a quite expensive valuation of UI.
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 (22.86), we can say UI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58 | ||
| Fwd PE | 66.36 |
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 | 52.52 | ||
| EV/EBITDA | 51.9 |
4.3 Compensation for Growth
The decent profitability rating of UI may justify a higher PE ratio.
UI's earnings are expected to decrease with -3.59% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)4.41
EPS Next 2Y-3.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UI has a yearly dividend return of 0.51%, which is pretty low.
UI's Dividend Yield is rather good when compared to the industry average which is at 3.59. UI pays more dividend than 81.25% of the companies in the same industry.
With a Dividend Yield of 0.51, UI pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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
UI pays out 26.38% of its income as dividend. This is a sustainable payout ratio.
DP26.38%
EPS Next 2Y-3.59%
EPS Next 3YN/A
635.65
+8.63 (+1.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners5.28%
Inst Owner Change5.16%
Ins Owners93.05%
Ins Owner Change20.33%
Market Cap38.46B
Analysts43.64
Price Target458.49 (-27.87%)
Short Float %13.67%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Yearly Dividend2.4
Dividend Growth(5Y)19.28%
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)30.86%
PT rev (3m)30.86%
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%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58 | ||
| Fwd PE | 66.36 | ||
| P/S | 16.56 | ||
| P/FCF | 52.52 | ||
| P/OCF | 51.85 | ||
| P/B | 88.18 | ||
| P/tB | 88.79 | ||
| EV/EBITDA | 51.9 |
EPS(TTM)10.96
EY1.72%
EPS(NY)9.58
Fwd EY1.51%
FCF(TTM)12.1
FCFY1.9%
OCF(TTM)12.26
OCFY1.93%
SpS38.38
BVpS7.21
TBVpS7.16
PEG (NY)N/A
PEG (5Y)4.41
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 | 30.73 |
F-Score7
WACC10.01%
ROIC/WACC11.4
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)86.71%
EPS 3Y21.24%
EPS 5Y13.15%
EPS Q2Q%103.45%
EPS Next Y-12.6%
EPS Next 2Y-3.59%
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 Year15.35%
Revenue Next 2Y7.36%
Revenue Next 3Y5.52%
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%