UNITI GROUP INC (UNIT) Stock Fundamental Analysis
USA - NASDAQ:UNIT - US9129321009 - Common Stock
6.59 USD
-0.18 (-2.66%)
6.58 USD
-0.01 (-0.15%)
Taking everything into account, UNIT scores 4 out of 10 in our fundamental rating. UNIT was compared to 35 industry peers in the Diversified Telecommunication Services industry. While UNIT is still in line with the averages on profitability rating, there are concerns on its financial health. UNIT is valued quite expensively, but it does show have an excellent growth rating. Finally UNIT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year UNIT was profitable.
UNIT had a positive operating cash flow in the past year.
In multiple years UNIT reported negative net income over the last 5 years.
Each year in the past 5 years UNIT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of UNIT (0.61%) is comparable to the rest of the industry.
UNIT's Return On Invested Capital of 12.54% is amongst the best of the industry. UNIT outperforms 91.43% 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 6.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | N/A | ||
| ROIC | 12.54% |
ROA(3y)-0.04%
ROA(5y)-2.5%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.37%
ROIC(5y)12.57%
1.3 Margins
Looking at the Profit Margin, with a value of 2.88%, UNIT is in line with its industry, outperforming 54.29% of the companies in the same industry.
UNIT's Profit Margin has improved in the last couple of years.
UNIT has a Operating Margin of 52.35%. This is amongst the best in the industry. UNIT outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of UNIT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.35% | ||
| PM (TTM) | 2.88% | ||
| 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
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
The number of shares outstanding for UNIT has been increased compared to 5 years ago.
UNIT has a better debt/assets ratio than last year.
2.2 Solvency
UNIT has an Altman-Z score of -0.56. This is a bad value and indicates that UNIT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.56, UNIT is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
The Debt to FCF ratio of UNIT is 162.01, which is on the high side as it means it would take UNIT, 162.01 years of fcf income to pay off all of its debts.
UNIT's Debt to FCF ratio of 162.01 is on the low side compared to the rest of the industry. UNIT is outperformed by 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 162.01 | ||
| Altman-Z | -0.56 |
ROIC/WACC1.63
WACC7.7%
2.3 Liquidity
UNIT has a Current Ratio of 0.21. This is a bad value and indicates that UNIT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.21, UNIT is not doing good in the industry: 97.14% of the companies in the same industry are doing better.
UNIT has a Quick Ratio of 0.21. 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 (0.21) is worse than 97.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 276.33% over the past year.
The Earnings Per Share has been growing by 55.59% on average over the past years. This is a very strong growth
UNIT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.94%.
UNIT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.99% yearly.
EPS 1Y (TTM)276.33%
EPS 3Y9.23%
EPS 5Y55.59%
EPS Q2Q%-157.14%
Revenue 1Y (TTM)1.94%
Revenue growth 3Y1.97%
Revenue growth 5Y1.99%
Sales Q2Q%1.96%
3.2 Future
The Earnings Per Share is expected to grow by 9.65% on average over the next years. This is quite good.
The Revenue is expected to grow by 27.43% on average over the next years. This is a very strong growth
EPS Next Y-104.12%
EPS Next 2Y-63.81%
EPS Next 3Y-22.29%
EPS Next 5Y9.65%
Revenue Next Year92.11%
Revenue Next 2Y78.24%
Revenue Next 3Y46.87%
Revenue Next 5Y27.43%
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 decreasing.
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 26.36.
Compared to the rest of the industry, the Price/Earnings ratio of UNIT is on the same level as its industry peers.
UNIT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for UNIT. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.36 | ||
| Fwd PE | N/A |
4.2 Price Multiples
62.86% of the companies in the same industry are more expensive than UNIT, based on the Enterprise Value to EBITDA ratio.
UNIT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.95 | ||
| EV/EBITDA | 7.29 |
4.3 Compensation for Growth
UNIT has a very decent profitability rating, which may justify a higher PE ratio.
UNIT's earnings are expected to decrease with -22.29% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y-63.81%
EPS Next 3Y-22.29%
5. Dividend
5.1 Amount
UNIT has a Yearly Dividend Yield of 11.03%, which is a nice return.
Compared to an average industry Dividend Yield of 5.03, UNIT pays a better dividend. On top of this UNIT pays more dividend than 97.14% of the companies listed in the same industry.
UNIT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.03% |
5.2 History
The dividend of UNIT has a limited annual growth rate of 0.38%.
UNIT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.38%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
0.06% of the earnings are spent on dividend by UNIT. This is a low number and sustainable payout ratio.
The dividend of UNIT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP0.06%
EPS Next 2Y-63.81%
EPS Next 3Y-22.29%
6.59
-0.18 (-2.66%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners88.77%
Inst Owner Change-2.74%
Ins Owners2.47%
Ins Owner Change-217.72%
Market Cap975.19M
Analysts75
Price Target10.15 (54.02%)
Short Float %N/A
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.03% |
Yearly Dividend0.76
Dividend Growth(5Y)0.38%
DP0.06%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-103.92%
Min EPS beat(2)-252.02%
Max EPS beat(2)44.18%
EPS beat(4)1
Avg EPS beat(4)-69.53%
Min EPS beat(4)-252.02%
Max EPS beat(4)44.18%
EPS beat(8)3
Avg EPS beat(8)-80.8%
EPS beat(12)5
Avg EPS beat(12)-19.4%
EPS beat(16)8
Avg EPS beat(16)-10.84%
Revenue beat(2)0
Avg Revenue beat(2)-2.83%
Min Revenue beat(2)-3.07%
Max Revenue beat(2)-2.58%
Revenue beat(4)0
Avg Revenue beat(4)-2.36%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)-1.33%
Revenue beat(8)0
Avg Revenue beat(8)-2.43%
Revenue beat(12)0
Avg Revenue beat(12)-2.43%
Revenue beat(16)1
Avg Revenue beat(16)-2.01%
PT rev (1m)64.41%
PT rev (3m)64.41%
EPS NQ rev (1m)-286.27%
EPS NQ rev (3m)-186.4%
EPS NY rev (1m)-117.5%
EPS NY rev (3m)-129.31%
Revenue NQ rev (1m)-2.33%
Revenue NQ rev (3m)-22.09%
Revenue NY rev (1m)-2.64%
Revenue NY rev (3m)-9.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.36 | ||
| Fwd PE | N/A | ||
| P/S | 0.83 | ||
| P/FCF | 25.95 | ||
| P/OCF | 2.59 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.29 |
EPS(TTM)0.25
EY3.79%
EPS(NY)-0.35
Fwd EYN/A
FCF(TTM)0.25
FCFY3.85%
OCF(TTM)2.54
OCFY38.54%
SpS7.98
BVpS-16.52
TBVpS-19.34
PEG (NY)N/A
PEG (5Y)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | N/A | ||
| ROCE | 15.88% | ||
| ROIC | 12.54% | ||
| ROICexc | 13.37% | ||
| ROICexgc | 15.1% | ||
| OM | 52.35% | ||
| PM (TTM) | 2.88% | ||
| GM | N/A | ||
| FCFM | 3.18% |
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 Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 162.01 | ||
| Debt/EBITDA | 6.5 | ||
| Cap/Depr | 106.17% | ||
| Cap/Sales | 28.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 40.14% | ||
| Profit Quality | 110.48% | ||
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | -0.56 |
F-Score7
WACC7.7%
ROIC/WACC1.63
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)276.33%
EPS 3Y9.23%
EPS 5Y55.59%
EPS Q2Q%-157.14%
EPS Next Y-104.12%
EPS Next 2Y-63.81%
EPS Next 3Y-22.29%
EPS Next 5Y9.65%
Revenue 1Y (TTM)1.94%
Revenue growth 3Y1.97%
Revenue growth 5Y1.99%
Sales Q2Q%1.96%
Revenue Next Year92.11%
Revenue Next 2Y78.24%
Revenue Next 3Y46.87%
Revenue Next 5Y27.43%
EBIT growth 1Y3.2%
EBIT growth 3Y3.79%
EBIT growth 5Y7.62%
EBIT Next Year110.84%
EBIT Next 3Y34.14%
EBIT Next 5Y24.82%
FCF growth 1Y157.28%
FCF growth 3Y-52.87%
FCF growth 5Y-46.34%
OCF growth 1Y-11.63%
OCF growth 3Y-9.77%
OCF growth 5Y-9.88%