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UWL

Uniti GroupASX:UWL Stock Report

Market Cap

AU$2.7b

7D

5.5%

1Y

223.7%

Updated

20 Oct, 2021

Data

Company Financials +
UWL fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance3/6
Financial Health4/6
Dividends0/6

UWL Overview

Uniti Group Limited provides various telecommunications products and services in Australia.

Uniti Group Competitors

Telstra

ASX:TLS

AU$45.5b

TPG Telecom

ASX:TPG

AU$13.0b

Pentanet

ASX:5GG

AU$212.3m

Price History & Performance

Summary of all time highs, changes and price drops for Uniti Group
Historical stock prices
Current Share PriceAU$4.03
52 Week HighAU$1.16
52 Week LowAU$4.39
Beta0.91
1 Month Change2.03%
3 Month Change16.47%
1 Year Change223.70%
3 Year Changen/a
5 Year Changen/a
Change since IPO1,774.42%

Recent News & Updates

Oct 04
Does Uniti Group (ASX:UWL) Have A Healthy Balance Sheet?

Does Uniti Group (ASX:UWL) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Sep 16
Uniti Group Limited's (ASX:UWL) Intrinsic Value Is Potentially 19% Below Its Share Price

Uniti Group Limited's (ASX:UWL) Intrinsic Value Is Potentially 19% Below Its Share Price

Today we will run through one way of estimating the intrinsic value of Uniti Group Limited ( ASX:UWL ) by taking the...

Jun 21
We Think Uniti Group (ASX:UWL) Can Stay On Top Of Its Debt

We Think Uniti Group (ASX:UWL) Can Stay On Top Of Its Debt

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

UWLAU TelecomAU Market
7D5.5%0.5%1.7%
1Y223.7%30.5%20.2%

Return vs Industry: UWL exceeded the Australian Telecom industry which returned 30.5% over the past year.

Return vs Market: UWL exceeded the Australian Market which returned 20.2% over the past year.

Price Volatility

Is UWL's price volatile compared to industry and market?
UWL volatility
UWL Beta0.91
Industry Beta0.59
Market Beta1

Stable Share Price: UWL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: UWL's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2012250Mick Simmonshttps://www.unitigrouplimited.com

Uniti Group Limited provides various telecommunications products and services in Australia. It operates through three segments: Consumer & Business, Wholesale & Infrastructure, and Communications Platform as a Service. The Consumer & Business Enablement segment retails telecommunications products and services, including broadband and voice services across fibre access networks.

Uniti Group Fundamentals Summary

How do Uniti Group's earnings and revenue compare to its market cap?
UWL fundamental statistics
Market CapAU$2.74b
Earnings (TTM)AU$29.20m
Revenue (TTM)AU$160.48m

95.0x

P/E Ratio

17.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
UWL income statement (TTM)
RevenueAU$160.48m
Cost of RevenueAU$63.39m
Gross ProfitAU$97.09m
ExpensesAU$67.89m
EarningsAU$29.20m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.042
Gross Margin60.50%
Net Profit Margin18.19%
Debt/Equity Ratio32.1%

How did UWL perform over the long term?

See historical performance and comparison

Valuation

Is Uniti Group undervalued compared to its fair value and its price relative to the market?

94.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UWL (A$4.03) is trading above our estimate of fair value (A$3.47)

Significantly Below Fair Value: UWL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UWL is poor value based on its PE Ratio (95x) compared to the Australian Telecom industry average (58.6x).

PE vs Market: UWL is poor value based on its PE Ratio (95x) compared to the Australian market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: UWL is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: UWL is overvalued based on its PB Ratio (3.4x) compared to the AU Telecom industry average (3.2x).


Future Growth

How is Uniti Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

31.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UWL's forecast earnings growth (31% per year) is above the savings rate (1.9%).

Earnings vs Market: UWL's earnings (31% per year) are forecast to grow faster than the Australian market (11.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: UWL's revenue (18.3% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: UWL's revenue (18.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UWL's Return on Equity is forecast to be low in 3 years time (10%).


Past Performance

How has Uniti Group performed over the past 5 years?

59.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UWL has a large one-off loss of A$14.0M impacting its June 30 2021 financial results.

Growing Profit Margin: UWL's current net profit margins (18.2%) are lower than last year (27.3%).


Past Earnings Growth Analysis

Earnings Trend: UWL has become profitable over the past 5 years, growing earnings by 59.2% per year.

Accelerating Growth: UWL's earnings growth over the past year (83.4%) exceeds its 5-year average (59.2% per year).

Earnings vs Industry: UWL earnings growth over the past year (83.4%) exceeded the Telecom industry 2.1%.


Return on Equity

High ROE: UWL's Return on Equity (3.6%) is considered low.


Financial Health

How is Uniti Group's financial position?


Financial Position Analysis

Short Term Liabilities: UWL's short term assets (A$77.9M) exceed its short term liabilities (A$50.8M).

Long Term Liabilities: UWL's short term assets (A$77.9M) do not cover its long term liabilities (A$339.0M).


Debt to Equity History and Analysis

Debt Level: UWL's debt to equity ratio (32.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if UWL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: UWL's debt is well covered by operating cash flow (32.3%).

Interest Coverage: UWL's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet


Dividend

What is Uniti Group current dividend yield, its reliability and sustainability?

0.28%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate UWL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate UWL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if UWL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UWL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of UWL's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Mick Simmons

3yrs

Tenure

AU$1,690,711

Compensation

Mr. Michael Simmons, also known as Mick, B. Comm, FCPA, and ACIS, is Group Managing Director & Chief Executive Officer at Uniti Group Limited (formerly known as Uniti Wireless Limited) since October 15, 20...


CEO Compensation Analysis

Compensation vs Market: Mick's total compensation ($USD1.26M) is about average for companies of similar size in the Australian market ($USD1.40M).

Compensation vs Earnings: Mick's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: UWL's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: UWL's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 31.4%.


Top Shareholders

Company Information

Uniti Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Uniti Group Limited
  • Ticker: UWL
  • Exchange: ASX
  • Founded: 2012
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: AU$2.745b
  • Shares outstanding: 687.93m
  • Website: https://www.unitigrouplimited.com

Number of Employees


Location

  • Uniti Group Limited
  • 44 Currie Street
  • Level 1
  • Adelaide
  • South Australia
  • 5000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 07:05
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.