UNITI GROUP INC (UNIT)
US91325V1089 - REIT
We assign a fundamental rating of 3 out of 10 to UNIT. UNIT was compared to 28 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. UNIT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
UNIT had positive earnings in the past year.
In the past year UNIT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: UNIT reported negative net income in multiple years.
In the past 5 years UNIT always reported a positive cash flow from operatings.
1.2 Ratios
UNIT has a worse Return On Assets (-1.65%) than 89.29% of its industry peers.
UNIT's Return On Invested Capital of 13.10% is amongst the best of the industry. UNIT outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UNIT is significantly above the industry average of 5.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.65% | ||
| ROE | N/A | ||
| ROIC | 13.1% |
ROA(3y)0.24%
ROA(5y)-2.82%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.11%
ROIC(5y)11.72%
1.3 Margins
Looking at the Operating Margin, with a value of 49.91%, UNIT is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
UNIT's Operating Margin has improved in the last couple of years.
The Profit Margin and Gross Margin are not available for UNIT so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.91% | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3Y4.88%
OM growth 5Y7.85%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
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.
UNIT has more shares outstanding than it did 1 year ago.
UNIT has more shares outstanding than it did 5 years ago.
UNIT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.67, we must say that UNIT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of UNIT (-0.67) is worse than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.67 |
ROIC/WACC1.51
WACC8.66%
2.3 Liquidity
A Current Ratio of 0.07 indicates that UNIT may have some problems paying its short term obligations.
UNIT has a worse Current ratio (0.07) than 96.43% of its industry peers.
UNIT has a Quick Ratio of 0.07. This is a bad value and indicates that UNIT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of UNIT (0.07) is worse than 96.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
UNIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 400.00%, which is quite impressive.
The Revenue has been growing slightly by 1.87% in the past year.
Measured over the past years, UNIT shows a small growth in Revenue. The Revenue has been growing by 2.47% on average per year.
EPS 1Y (TTM)400%
EPS 3Y-15.66%
EPS 5Y0%
EPS growth Q2Q-43.48%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y2.52%
Revenue growth 5Y2.47%
Revenue growth Q2Q0.69%
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 85.73% on average per year.
UNIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.73% yearly.
EPS Next Y1521.12%
EPS Next 2Y328.29%
EPS Next 3Y180.87%
EPS Next 5Y85.73%
Revenue Next Year0.25%
Revenue Next 2Y1.63%
Revenue Next 3Y2.12%
Revenue Next 5Y3.73%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
UNIT is valuated quite expensively with a Price/Earnings ratio of 186.33.
Based on the Price/Earnings ratio, UNIT is valued a bit more expensive than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.25, UNIT is valued quite expensively.
Based on the Price/Forward Earnings ratio of 11.49, the valuation of UNIT can be described as reasonable.
UNIT's Price/Forward Earnings ratio is rather cheap when compared to the industry. UNIT is cheaper than 96.43% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, UNIT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 186.33 | ||
| Fwd PE | 11.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UNIT is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.74 |
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.
A more expensive valuation may be justified as UNIT's earnings are expected to grow with 180.87% in the coming years.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y328.29%
EPS Next 3Y180.87%
5. Dividend
5.1 Amount
UNIT has a Yearly Dividend Yield of 11.30%, which is a nice return.
UNIT's Dividend Yield is rather good when compared to the industry average which is at 5.04. UNIT pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, UNIT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.3% |
5.2 History
The dividend of UNIT decreases each year by -28.29%.
UNIT has been paying a dividend for at least 10 years, so it has a reliable track record.
UNIT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-28.29%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
UNIT has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-129.46%
EPS Next 2Y328.29%
EPS Next 3Y180.87%
UNITI GROUP INC
NASDAQ:UNIT (4/25/2024, 4:20:33 PM)
After market: 5.63 +0.04 (+0.72%)5.59
-0.12 (-2.1%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.3% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 186.33 | ||
| Fwd PE | 11.49 | ||
| 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)0.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.65% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 49.91% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| 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 Turnover0.23
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 | 0.07 | ||
| Quick Ratio | 0.07 | ||
| 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)400%
EPS 3Y-15.66%
EPS 5Y
EPS growth Q2Q
EPS Next Y1521.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.87%
Revenue growth 3Y2.52%
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
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y