UBIQUITI INC (UI) Stock Fundamental Analysis
NYSE:UI - New York Stock Exchange, Inc. - US90353W1036 - Common Stock - Currency: USD
Overall UI gets a fundamental rating of 7 out of 10. We evaluated UI against 50 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. UI is not overvalued while it is showing excellent growth. This is an interesting combination. This makes UI very considerable 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.
Each year in the past 5 years UI has been profitable.
UI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 42.29%, UI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
UI's Return On Equity of 125.89% is amongst the best of the industry. UI outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 114.17%, UI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for UI is significantly above the industry average of 13.82%.
The 3 year average ROIC (54.25%) for UI is below the current ROIC(114.17%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 23.65%, UI belongs to the best of the industry, outperforming 98.00% of the companies in the same industry.
UI's Profit Margin has declined in the last couple of years.
UI has a better Operating Margin (30.72%) than 98.00% of its industry peers.
UI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 42.16%, UI is in line with its industry, outperforming 54.00% 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so UI is creating value.
The number of shares outstanding for UI remains at a similar level compared to 1 year ago.
The number of shares outstanding for UI has been reduced compared to 5 years ago.
UI has a better debt/assets ratio than last year.
2.2 Solvency
UI has an Altman-Z score of 21.38. This indicates that UI is financially healthy and has little risk of bankruptcy at the moment.
UI has a better Altman-Z score (21.38) 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 | 21.38 |
ROIC/WACC11.41
WACC10.01%
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.
UI's Current ratio of 1.39 is on the low side compared to the rest of the industry. UI is outperformed by 70.00% of its industry peers.
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.
With a Quick ratio value of 0.63, UI is not doing good in the industry: 92.00% of the companies in the same industry are doing better.
| 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 56.31%, which is quite impressive.
Measured over the past 5 years, UI shows a small growth in Earnings Per Share. The EPS has been growing by 3.51% on average per year.
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
The Earnings Per Share is expected to grow by 20.17% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.50% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 44.20, the valuation of UI can be described as expensive.
UI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of UI to the average of the S&P500 Index (27.30), we can say UI is valued expensively.
With a Price/Forward Earnings ratio of 42.27, UI can be considered very expensive at the moment.
UI's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. UI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.2 | ||
| Fwd PE | 42.27 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as UI.
UI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.47 | ||
| EV/EBITDA | 33.56 |
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.
A more expensive valuation may be justified as UI's earnings are expected to grow with 20.17% in the coming years.
PEG (NY)0.64
PEG (5Y)12.59
EPS Next 2Y27.74%
EPS Next 3Y20.17%
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, UI is not a good candidate for dividend investing.
UI's Dividend Yield is a higher than the industry average which is at 3.40.
Compared to an average S&P500 Dividend Yield of 2.35, UI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
The dividend of UI is nicely growing with an annual growth rate of 19.28%!
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.
The dividend of UI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP26.44%
EPS Next 2Y27.74%
EPS Next 3Y20.17%
404.89
+5.27 (+1.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners4.91%
Inst Owner Change0%
Ins Owners93.06%
Ins Owner Change-11.74%
Market Cap24.49B
Analysts43.64
Price Target350.37 (-13.47%)
Short Float %9.87%
Short Ratio3.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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)3.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.78%
EPS NY rev (1m)0%
EPS NY rev (3m)15.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.2 | ||
| Fwd PE | 42.27 | ||
| P/S | 10.55 | ||
| P/FCF | 33.47 | ||
| P/OCF | 33.05 | ||
| P/B | 56.16 | ||
| P/tB | 56.55 | ||
| EV/EBITDA | 33.56 |
EPS(TTM)9.16
EY2.26%
EPS(NY)9.58
Fwd EY2.37%
FCF(TTM)12.1
FCFY2.99%
OCF(TTM)12.25
OCFY3.03%
SpS38.38
BVpS7.21
TBVpS7.16
PEG (NY)0.64
PEG (5Y)12.59
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 | 21.38 |
F-Score7
WACC10.01%
ROIC/WACC11.41
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 Year51.34%
EBIT Next 3Y15.59%
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%