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UNITI GROUP INC (UNIT) Stock Fundamental Analysis

NASDAQ:UNIT - Nasdaq - US91325V1089 - REIT - Currency: USD

4.38  -0.11 (-2.45%)

After market: 4.38 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to UNIT. UNIT was compared to 30 industry peers in the Specialized REITs industry. While UNIT is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, UNIT is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year UNIT was profitable.
UNIT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: UNIT reported negative net income in multiple years.
UNIT had a positive operating cash flow in each of the past 5 years.
UNIT Yearly Net Income VS EBIT VS OCF VS FCFUNIT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M 600M -600M

1.2 Ratios

UNIT has a Return On Assets of 1.18%. This is in the lower half of the industry: UNIT underperforms 60.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.71%, UNIT belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UNIT is significantly above the industry average of 5.28%.
Industry RankSector Rank
ROA 1.18%
ROE N/A
ROIC 12.71%
ROA(3y)-0.04%
ROA(5y)-2.5%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.37%
ROIC(5y)12.57%
UNIT Yearly ROA, ROE, ROICUNIT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

1.3 Margins

Looking at the Profit Margin, with a value of 5.30%, UNIT is doing worse than 60.00% of the companies in the same industry.
UNIT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 52.34%, UNIT belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Operating Margin of UNIT has grown nicely.
Industry RankSector Rank
OM 52.34%
PM (TTM) 5.3%
GM N/A
OM growth 3Y1.78%
OM growth 5Y5.53%
PM growth 3Y-11.11%
PM growth 5Y58.02%
GM growth 3YN/A
GM growth 5YN/A
UNIT Yearly Profit, Operating, Gross MarginsUNIT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UNIT is creating some value.
Compared to 1 year ago, UNIT has more shares outstanding
UNIT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for UNIT has been reduced compared to a year ago.
UNIT Yearly Shares OutstandingUNIT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
UNIT Yearly Total Debt VS Total AssetsUNIT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

UNIT has an Altman-Z score of -0.58. This is a bad value and indicates that UNIT is not financially healthy and even has some risk of bankruptcy.
UNIT has a worse Altman-Z score (-0.58) than 90.00% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -0.58
ROIC/WACC1.57
WACC8.09%
UNIT Yearly LT Debt VS Equity VS FCFUNIT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B

2.3 Liquidity

UNIT has a Current Ratio of 0.12. This is a bad value and indicates that UNIT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.12, UNIT is doing worse than 90.00% of the companies in the same industry.
A Quick Ratio of 0.12 indicates that UNIT may have some problems paying its short term obligations.
UNIT has a Quick ratio of 0.12. This is amonst the worse of the industry: UNIT underperforms 90.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.12
Quick Ratio 0.12
UNIT Yearly Current Assets VS Current LiabilitesUNIT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 333.33% over the past year.
Measured over the past years, UNIT shows a very strong growth in Earnings Per Share. The EPS has been growing by 57.27% on average per year.
Looking at the last year, UNIT shows a small growth in Revenue. The Revenue has grown by 2.44% in the last year.
Measured over the past years, UNIT shows a small growth in Revenue. The Revenue has been growing by 1.99% on average per year.
EPS 1Y (TTM)333.33%
EPS 3Y-1.74%
EPS 5Y57.27%
EPS Q2Q%-68.75%
Revenue 1Y (TTM)2.44%
Revenue growth 3Y1.97%
Revenue growth 5Y1.99%
Sales Q2Q%2.62%

3.2 Future

Based on estimates for the next years, UNIT will show a very strong growth in Earnings Per Share. The EPS will grow by 45.31% on average per year.
The Revenue is expected to grow by 3.27% on average over the next years.
EPS Next Y-80.7%
EPS Next 2Y-45.03%
EPS Next 3Y10.54%
EPS Next 5Y45.31%
Revenue Next Year111.24%
Revenue Next 2Y76.92%
Revenue Next 3Y29.37%
Revenue Next 5Y3.27%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
UNIT Yearly Revenue VS EstimatesUNIT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1B 2B 3B
UNIT Yearly EPS VS EstimatesUNIT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 1 -1 2 -2 -3

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 16.85 indicates a correct valuation of UNIT.
86.67% of the companies in the same industry are more expensive than UNIT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of UNIT to the average of the S&P500 Index (26.03), we can say UNIT is valued slightly cheaper.
UNIT is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE 16.85
Fwd PE N/A
UNIT Price Earnings VS Forward Price EarningsUNIT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -50 -100

4.2 Price Multiples

100.00% of the companies in the same industry are more expensive than UNIT, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.51
UNIT Per share dataUNIT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 -5 -10

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-45.03%
EPS Next 3Y10.54%

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3

5. Dividend

5.1 Amount

UNIT has a Yearly Dividend Yield of 3.23%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of UNIT has falen by -22.06%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
UNIT's Dividend Yield is slightly below the industry average, which is at 5.68.
Compared to an average S&P500 Dividend Yield of 2.36, UNIT pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.23%

5.2 History

The dividend of UNIT decreases each year by -9.28%.
UNIT has paid a dividend for at least 10 years, which is a reliable track record.
UNIT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.28%
Div Incr Years0
Div Non Decr Years4
UNIT Yearly Dividends per shareUNIT Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5 2

5.3 Sustainability

UNIT pays out 116.62% of its income as dividend. This is not a sustainable payout ratio.
DP116.62%
EPS Next 2Y-45.03%
EPS Next 3Y10.54%
UNIT Yearly Income VS Free CF VS DividendUNIT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M -600M
UNIT Dividend Payout.UNIT Dividend Payout, showing the Payout Ratio.UNIT Dividend Payout.PayoutRetained Earnings

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UNITI GROUP INC

NASDAQ:UNIT (5/21/2025, 8:00:01 PM)

After market: 4.38 0 (0%)

4.38

-0.11 (-2.45%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)05-06 2025-05-06/bmo
Earnings (Next)07-30 2025-07-30/bmo
Inst Owners88.23%
Inst Owner Change1.61%
Ins Owners2.31%
Ins Owner Change8.01%
Market Cap1.08B
Analysts76.36
Price Target6.43 (46.8%)
Short Float %5.38%
Short Ratio5.36
Dividend
Industry RankSector Rank
Dividend Yield 3.23%
Yearly Dividend0.46
Dividend Growth(5Y)-9.28%
DP116.62%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.01%
Min EPS beat(2)-20.15%
Max EPS beat(2)44.18%
EPS beat(4)1
Avg EPS beat(4)-15.74%
Min EPS beat(4)-50.15%
Max EPS beat(4)44.18%
EPS beat(8)3
Avg EPS beat(8)-50.12%
EPS beat(12)6
Avg EPS beat(12)2.77%
EPS beat(16)8
Avg EPS beat(16)1.14%
Revenue beat(2)0
Avg Revenue beat(2)-2.51%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)-2.45%
Revenue beat(4)0
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)-0.26%
Revenue beat(8)0
Avg Revenue beat(8)-2.57%
Revenue beat(12)0
Avg Revenue beat(12)-2.19%
Revenue beat(16)1
Avg Revenue beat(16)-2%
PT rev (1m)0%
PT rev (3m)8.62%
EPS NQ rev (1m)-42.71%
EPS NQ rev (3m)-50%
EPS NY rev (1m)-36.36%
EPS NY rev (3m)-85.41%
Revenue NQ rev (1m)0.92%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)-5.34%
Revenue NY rev (3m)103.23%
Valuation
Industry RankSector Rank
PE 16.85
Fwd PE N/A
P/S 0.92
P/FCF N/A
P/OCF 2.91
P/B N/A
P/tB N/A
EV/EBITDA 7.51
EPS(TTM)0.26
EY5.94%
EPS(NY)-0.04
Fwd EYN/A
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)1.5
OCFY34.33%
SpS4.78
BVpS-9.93
TBVpS-11.66
PEG (NY)N/A
PEG (5Y)0.29
Profitability
Industry RankSector Rank
ROA 1.18%
ROE N/A
ROCE 16.09%
ROIC 12.71%
ROICexc 13.02%
ROICexgc 14.7%
OM 52.34%
PM (TTM) 5.3%
GM N/A
FCFM N/A
ROA(3y)-0.04%
ROA(5y)-2.5%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.37%
ROIC(5y)12.57%
ROICexc(3y)13.7%
ROICexc(5y)12.86%
ROICexgc(3y)16.26%
ROICexgc(5y)16.26%
ROCE(3y)16.92%
ROCE(5y)15.92%
ROICexcg growth 3Y-3.72%
ROICexcg growth 5Y2.23%
ROICexc growth 3Y2.96%
ROICexc growth 5Y8.21%
OM growth 3Y1.78%
OM growth 5Y5.53%
PM growth 3Y-11.11%
PM growth 5Y58.02%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.22
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA 6.43
Cap/Depr 124.59%
Cap/Sales 33.63%
Interest Coverage 250
Cash Conversion 39.61%
Profit Quality N/A
Current Ratio 0.12
Quick Ratio 0.12
Altman-Z -0.58
F-Score7
WACC8.09%
ROIC/WACC1.57
Cap/Depr(3y)131.01%
Cap/Depr(5y)124.39%
Cap/Sales(3y)34.85%
Cap/Sales(5y)33.87%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)333.33%
EPS 3Y-1.74%
EPS 5Y57.27%
EPS Q2Q%-68.75%
EPS Next Y-80.7%
EPS Next 2Y-45.03%
EPS Next 3Y10.54%
EPS Next 5Y45.31%
Revenue 1Y (TTM)2.44%
Revenue growth 3Y1.97%
Revenue growth 5Y1.99%
Sales Q2Q%2.62%
Revenue Next Year111.24%
Revenue Next 2Y76.92%
Revenue Next 3Y29.37%
Revenue Next 5Y3.27%
EBIT growth 1Y4.11%
EBIT growth 3Y3.79%
EBIT growth 5Y7.62%
EBIT Next Year106.27%
EBIT Next 3Y40.37%
EBIT Next 5Y13.02%
FCF growth 1Y28.89%
FCF growth 3Y-52.87%
FCF growth 5Y-46.34%
OCF growth 1Y-10.31%
OCF growth 3Y-9.77%
OCF growth 5Y-9.88%