UNITI GROUP INC (UNIT) Stock Fundamental Analysis
USA - NASDAQ:UNIT - US9129321009 - Common Stock
6.01 USD
-0.1 (-1.64%)
6.01 USD
0 (0%)
UNIT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 36 industry peers in the Diversified Telecommunication Services industry. UNIT has a medium profitability rating, but doesn't score so well on its financial health evaluation. UNIT shows excellent growth, but is valued quite expensive already. UNIT also has an excellent dividend rating.
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.
UNIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of UNIT (0.61%) is comparable to the rest of the industry.
With an excellent Return On Invested Capital value of 12.54%, UNIT belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for UNIT is significantly above the industry average of 6.38%.
| 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 52.78% of the companies in the same industry.
In the last couple of years the Profit Margin of UNIT has grown nicely.
Looking at the Operating Margin, with a value of 52.35%, UNIT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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
UNIT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
UNIT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for UNIT has been increased compared to 5 years ago.
The debt/assets ratio for UNIT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.57, we must say that UNIT is in the distress zone and has some risk of bankruptcy.
UNIT has a Altman-Z score of -0.57. This is amonst the worse of the industry: UNIT underperforms 86.11% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 162.01, UNIT is doing worse than 63.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 162.01 | ||
| Altman-Z | -0.57 |
ROIC/WACC1.62
WACC7.74%
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.
UNIT has a worse Current ratio (0.21) than 97.22% of its industry peers.
A Quick Ratio of 0.21 indicates that UNIT may have some problems paying its short term obligations.
The Quick ratio of UNIT (0.21) is worse than 97.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
UNIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 276.33%, which is quite impressive.
The Earnings Per Share has been growing by 55.59% on average over the past years. This is a very strong growth
Looking at the last year, UNIT shows a small growth in Revenue. The Revenue has grown by 1.94% in the last year.
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 21.33% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 27.43% on average over the next years. This is a very strong growth
EPS Next Y-155.74%
EPS Next 2Y-64.35%
EPS Next 3Y-35.91%
EPS Next 5Y21.33%
Revenue Next Year92.11%
Revenue Next 2Y78.24%
Revenue Next 3Y46.87%
Revenue Next 5Y27.43%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.04, which indicates a rather expensive current valuation of UNIT.
The rest of the industry has a similar Price/Earnings ratio as UNIT.
UNIT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
UNIT is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.04 | ||
| Fwd PE | N/A |
4.2 Price Multiples
UNIT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UNIT is cheaper than 63.89% of the companies in the same industry.
UNIT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.67 | ||
| EV/EBITDA | 7.19 |
4.3 Compensation for Growth
The decent profitability rating of UNIT may justify a higher PE ratio.
A cheap valuation may be justified as UNIT's earnings are expected to decrease with -35.91% in the coming years.
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y-64.35%
EPS Next 3Y-35.91%
5. Dividend
5.1 Amount
UNIT has a Yearly Dividend Yield of 11.03%, which is a nice return.
The stock price of UNIT dropped by -20.01% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
UNIT's Dividend Yield is rather good when compared to the industry average which is at 5.14. UNIT pays more dividend than 100.00% of the companies in the same industry.
UNIT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| 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.
UNIT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP0.06%
EPS Next 2Y-64.35%
EPS Next 3Y-35.91%
6.01
-0.1 (-1.64%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners163.99%
Inst Owner Change-0.02%
Ins Owners2.66%
Ins Owner Change-217.72%
Market Cap889.36M
Analysts75
Price Target10.15 (68.89%)
Short Float %5.14%
Short Ratio2.2
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)0%
PT rev (3m)64.41%
EPS NQ rev (1m)-38.8%
EPS NQ rev (3m)-440.83%
EPS NY rev (1m)-1253.8%
EPS NY rev (3m)-336.93%
Revenue NQ rev (1m)-2.13%
Revenue NQ rev (3m)-7.13%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.04 | ||
| Fwd PE | N/A | ||
| P/S | 0.75 | ||
| P/FCF | 23.67 | ||
| P/OCF | 2.37 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.19 |
EPS(TTM)0.25
EY4.16%
EPS(NY)-0.36
Fwd EYN/A
FCF(TTM)0.25
FCFY4.23%
OCF(TTM)2.54
OCFY42.26%
SpS7.98
BVpS-16.52
TBVpS-19.34
PEG (NY)N/A
PEG (5Y)0.43
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 | -0.57 |
F-Score7
WACC7.74%
ROIC/WACC1.62
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-155.74%
EPS Next 2Y-64.35%
EPS Next 3Y-35.91%
EPS Next 5Y21.33%
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 Year90.11%
EBIT Next 3Y36.83%
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%