UBIQUITI INC (UI)
US90353W1036 - Common Stock
Taking everything into account, UI scores 6 out of 10 in our fundamental rating. UI was compared to 54 industry peers in the Communications Equipment industry. UI has an excellent profitability rating, but there are some minor concerns on its financial health. UI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
UI had positive earnings in the past year.
UI had a negative 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
UI has a better Return On Assets (27.88%) than 100.00% of its industry peers.
UI has a Return On Invested Capital of 42.51%. This is amongst the best in the industry. UI outperforms 100.00% of its industry peers.
UI had an Average Return On Invested Capital over the past 3 years of 72.98%. This is significantly above the industry average of 9.88%.
The 3 year average ROIC (72.98%) for UI is well above the current ROIC(42.51%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.88% | ||
| ROE | N/A | ||
| ROIC | 42.51% |
ROA(3y)47.67%
ROA(5y)46.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)72.98%
ROIC(5y)70.87%
1.3 Margins
UI has a better Profit Margin (19.83%) than 96.30% of its industry peers.
In the last couple of years the Profit Margin of UI has grown nicely.
Looking at the Operating Margin, with a value of 28.07%, UI belongs to the top of the industry, outperforming 98.15% of the companies in the same industry.
UI's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 40.14%, UI perfoms like the industry average, outperforming 55.56% 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 | 28.07% | ||
| PM (TTM) | 19.83% | ||
| GM | 40.14% |
OM growth 3Y-8.99%
OM growth 5Y-2.63%
PM growth 3Y-10.81%
PM growth 5Y1.7%
GM growth 3Y-6.1%
GM growth 5Y-2.11%
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 about the same amout of shares outstanding than it did 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 6.37. This indicates that UI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of UI (6.37) is better than 92.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.37 |
ROIC/WACC4.4
WACC9.66%
2.3 Liquidity
UI has a Current Ratio of 3.84. This indicates that UI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of UI (3.84) is better than 81.48% of its industry peers.
UI has a Quick Ratio of 1.47. This is a normal value and indicates that UI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.47, UI is in line with its industry, outperforming 59.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.84 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The earnings per share for UI have decreased by -9.67% in the last year.
The Earnings Per Share has been growing by 9.59% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.69% in the past year.
UI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.80% yearly.
EPS 1Y (TTM)-9.67%
EPS 3Y-0.62%
EPS 5Y9.59%
EPS growth Q2Q-26.2%
Revenue 1Y (TTM)4.69%
Revenue growth 3Y14.74%
Revenue growth 5Y13.8%
Revenue growth Q2Q-5.8%
3.2 Future
Based on estimates for the next years, UI will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.70% on average per year.
Based on estimates for the next years, UI will show a small growth in Revenue. The Revenue will grow by 3.58% on average per year.
EPS Next Y10.1%
EPS Next 2Y24.64%
EPS Next 3Y16.7%
EPS Next 5YN/A
Revenue Next Year-0.45%
Revenue Next 2Y5.99%
Revenue Next 3Y3.58%
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.
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
With a Price/Earnings ratio of 21.34, UI is valued on the expensive side.
UI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.06, UI is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.39, UI is valued correctly.
Based on the Price/Forward Earnings ratio, UI is valued a bit cheaper than 70.37% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UI to the average of the S&P500 Index (20.72), we can say UI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.34 | ||
| Fwd PE | 12.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UI is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.83 |
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 decent profitability rating of UI may justify a higher PE ratio.
UI's earnings are expected to grow with 16.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.11
PEG (5Y)2.23
EPS Next 2Y24.64%
EPS Next 3Y16.7%
5. Dividend
5.1 Amount
UI has a Yearly Dividend Yield of 2.23%.
UI's Dividend Yield is rather good when compared to the industry average which is at 17.33. UI pays more dividend than 81.48% of the companies in the same industry.
UI's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
UI has been paying a dividend for over 5 years, so it has already some track record.
UI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
UI pays out 38.97% of its income as dividend. This is a sustainable payout ratio.
DP38.97%
EPS Next 2Y24.64%
EPS Next 3Y16.7%
UBIQUITI INC
NYSE:UI (5/2/2024, 7:24:39 PM)
After market: 111.63 0 (0%)111.63
+1.76 (+1.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
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Market Cap6.75B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Dividend Growth(5Y)
DP
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Surprises & Revisions
EPS beat(2)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.34 | ||
| Fwd PE | 12.39 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.11
PEG (5Y)2.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.88% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.07% | ||
| PM (TTM) | 19.83% | ||
| GM | 40.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.84 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-9.67%
EPS 3Y-0.62%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.69%
Revenue growth 3Y14.74%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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EBIT Next 5Y
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