UBIQUITI INC (UI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UI - US90353W1036 - Common Stock
548.1 USD
-14.35 (-2.55%)
548.1 USD
0 (0%)
Overall UI gets a fundamental rating of 7 out of 10. We evaluated UI against 48 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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make UI suitable for 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
- With an excellent Return On Assets value of 53.13%, UI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- UI has a Return On Equity of 95.58%. This is amongst the best in the industry. UI outperforms 100.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 86.55%, UI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- UI had an Average Return On Invested Capital over the past 3 years of 62.59%. This is significantly above the industry average of 12.15%.
- The 3 year average ROIC (62.59%) for UI is below the current ROIC(86.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 53.13% | ||
| ROE | 95.58% | ||
| ROIC | 86.55% |
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 (28.72%) than 97.92% of its industry peers.
- UI's Profit Margin has been stable in the last couple of years.
- UI has a better Operating Margin (33.69%) than 97.92% of its industry peers.
- UI's Operating Margin has declined in the last couple of years.
- UI has a better Gross Margin (44.37%) than 60.42% of its industry peers.
- In the last couple of years the Gross Margin of UI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.69% | ||
| PM (TTM) | 28.72% | ||
| GM | 44.37% |
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.
- UI has less shares outstanding than it did 5 years ago.
- UI has a better debt/assets ratio than last year.
2.2 Solvency
- UI has an Altman-Z score of 35.24. This indicates that UI is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 35.24, 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 | 0.23 | ||
| Altman-Z | 35.24 |
ROIC/WACC8.74
WACC9.9%
2.3 Liquidity
- UI has a Current Ratio of 2.09. This indicates that UI is financially healthy and has no problem in meeting its short term obligations.
- With a Current ratio value of 2.09, UI perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
- A Quick Ratio of 0.91 indicates that UI may have some problems paying its short term obligations.
- With a Quick ratio value of 0.91, UI is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
- The current and quick ratio evaluation for UI is rather negative, while it does have 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 | 2.09 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 87.77% over the past year.
- UI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.15% yearly.
- UI shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.77%.
- UI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.91% yearly.
EPS 1Y (TTM)87.77%
EPS 3Y21.24%
EPS 5Y13.15%
EPS Q2Q%61.68%
Revenue 1Y (TTM)36.77%
Revenue growth 3Y15.01%
Revenue growth 5Y14.91%
Sales Q2Q%33.33%
3.2 Future
- The Earnings Per Share is expected to grow by 6.88% on average over the next years.
- Based on estimates for the next years, UI will show a small growth in Revenue. The Revenue will grow by 4.92% on average per year.
EPS Next Y17.73%
EPS Next 2Y9.28%
EPS Next 3Y6.88%
EPS Next 5YN/A
Revenue Next Year18.28%
Revenue Next 2Y13.64%
Revenue Next 3Y4.92%
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.
- 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
- A Price/Earnings ratio of 44.63 indicates a quite expensive valuation of UI.
- Based on the Price/Earnings ratio, UI is valued a bit cheaper than the industry average as 60.42% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. UI is valued rather expensively when compared to this.
- The Price/Forward Earnings ratio is 41.88, which means the current valuation is very expensive for UI.
- 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 (25.98), we can say UI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.63 | ||
| Fwd PE | 41.88 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as UI.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of UI indicates a slightly more expensive valuation: UI is more expensive than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.23 | ||
| EV/EBITDA | 34.87 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UI does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of UI may justify a higher PE ratio.
PEG (NY)2.52
PEG (5Y)3.39
EPS Next 2Y9.28%
EPS Next 3Y6.88%
5. Dividend
5.1 Amount
- UI has a yearly dividend return of 0.57%, which is pretty low.
- In the last 3 months the price of UI has falen by -25.49%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- UI's Dividend Yield is a higher than the industry average which is at 0.78.
- Compared to an average S&P500 Dividend Yield of 1.81, 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 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 19.86% 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.
DP19.86%
EPS Next 2Y9.28%
EPS Next 3Y6.88%
UBIQUITI INC / UI FAQ
What is the ChartMill fundamental rating of UBIQUITI INC (UI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to UI.
Can you provide the valuation status for UBIQUITI INC?
ChartMill assigns a valuation rating of 2 / 10 to UBIQUITI INC (UI). This can be considered as Overvalued.
Can you provide the profitability details for UBIQUITI INC?
UBIQUITI INC (UI) has a profitability rating of 8 / 10.
What is the financial health of UBIQUITI INC (UI) stock?
The financial health rating of UBIQUITI INC (UI) is 9 / 10.
Is the dividend of UBIQUITI INC sustainable?
The dividend rating of UBIQUITI INC (UI) is 5 / 10 and the dividend payout ratio is 19.86%.