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 50 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 growing strongly while it is still valued neutral. This is a good combination! 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.
Each year in the past 5 years UI has been profitable.
Of the past 5 years UI 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of UI (42.29%) is better than 100.00% of its industry peers.
UI has a better Return On Equity (125.89%) than 100.00% of its industry peers.
The Return On Invested Capital of UI (114.17%) 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 13.82%.
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's Profit Margin of 23.65% is amongst the best of the industry. UI outperforms 98.00% of its industry peers.
UI's Profit Margin has declined in the last couple of years.
UI's Operating Margin of 30.72% is amongst the best of the industry. UI outperforms 98.00% of its industry peers.
UI's Operating Margin has declined in the last couple of years.
UI has a Gross Margin of 42.16%. This is comparable to the rest of the industry: UI outperforms 54.00% of its industry peers.
UI's Gross Margin has declined in the last couple of years.
| 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
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 19.94. This indicates that UI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of UI (19.94) is better 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 | 19.94 |
ROIC/WACC11.59
WACC9.85%
2.3 Liquidity
A Current Ratio of 1.39 indicates that UI should not have too much problems paying 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.
The Quick ratio of UI (0.63) is worse than 92.00% of its industry peers.
| 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.
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.
The Revenue has grown by 21.43% in the past year. This is a very strong growth!
The Revenue has been growing by 10.67% on average over the past years. This is quite good.
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
UI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.17% yearly.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 40.46 indicates a quite expensive valuation of UI.
Compared to the rest of the industry, the Price/Earnings ratio of UI is on the same level as its industry peers.
UI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.34.
Based on the Price/Forward Earnings ratio of 38.69, the valuation of UI can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as UI.
UI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.46 | ||
| Fwd PE | 38.69 |
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.
UI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.63 | ||
| EV/EBITDA | 30.74 |
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.
UI has a very decent profitability rating, which 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)0.58
PEG (5Y)11.53
EPS Next 2Y27.74%
EPS Next 3Y20.17%
5. Dividend
5.1 Amount
UI has a yearly dividend return of 0.64%, which is pretty low.
Compared to an average industry Dividend Yield of 3.50, UI pays a bit more dividend than its industry peers.
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 | 0.64% |
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%
370.57
-6.27 (-1.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners4.91%
Inst Owner Change18.95%
Ins Owners93.06%
Ins Owner Change-40.26%
Market Cap22.42B
Analysts43.64
Price Target350.37 (-5.45%)
Short Float %9.89%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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)3.78%
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)1.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.46 | ||
| Fwd PE | 38.69 | ||
| P/S | 9.65 | ||
| P/FCF | 30.63 | ||
| P/OCF | 30.25 | ||
| P/B | 51.4 | ||
| P/tB | 51.76 | ||
| EV/EBITDA | 30.74 |
EPS(TTM)9.16
EY2.47%
EPS(NY)9.58
Fwd EY2.58%
FCF(TTM)12.1
FCFY3.26%
OCF(TTM)12.25
OCFY3.31%
SpS38.38
BVpS7.21
TBVpS7.16
PEG (NY)0.58
PEG (5Y)11.53
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 | 19.94 |
F-Score7
WACC9.85%
ROIC/WACC11.59
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%