ASX:UWL

Stock Analysis Report

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Executive Summary

Uniti Group Limited provides Internet, and associated telecommunications products and services in Australia. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Uniti Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UWL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.9%

UWL

-1.2%

AU Telecom

0.3%

AU Market


1 Year Return

-20.3%

UWL

-17.7%

AU Telecom

-5.4%

AU Market

Return vs Industry: UWL underperformed the Australian Telecom industry which returned -17.7% over the past year.

Return vs Market: UWL underperformed the Australian Market which returned -5.4% over the past year.


Shareholder returns

UWLIndustryMarket
7 Day-1.9%-1.2%0.3%
30 Day-12.5%0.4%6.3%
90 Day-20.8%-11.2%3.7%
1 Year-17.5%-20.3%-13.9%-17.7%-2.1%-5.4%
3 Yearn/a-3.6%-17.1%18.3%3.3%
5 Yearn/a-31.3%-47.9%43.1%14.0%

Price Volatility Vs. Market

How volatile is Uniti Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UWL (A$1.26) is trading below our estimate of fair value (A$3.74)

Significantly Below Fair Value: UWL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UWL is good value based on its PE Ratio (21.7x) compared to the AU Telecom industry average (26.6x).

PE vs Market: UWL is poor value based on its PE Ratio (21.7x) compared to the Australian market (21x).


Price to Earnings Growth Ratio

PEG Ratio: UWL is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: UWL is good value based on its PB Ratio (1.3x) compared to the AU Telecom industry average (2.8x).


Next Steps

Future Growth

How is Uniti Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

34.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UWL's forecast earnings growth (34.2% per year) is above the savings rate (2.3%).

Earnings vs Market: UWL's earnings (34.2% per year) are forecast to grow faster than the Australian market (17.4% per year).

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

Revenue vs Market: UWL's revenue (34.6% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: UWL's revenue (34.6% per year) is forecast to grow faster 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 (9.2%).


Next Steps

Past Performance

How has Uniti Group performed over the past 5 years?

25.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UWL has a large one-off loss of A$5.9M impacting its June 30 2020 financial results.

Growing Profit Margin: UWL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: UWL has become profitable over the past 5 years, growing earnings by 25.6% per year.

Accelerating Growth: UWL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: UWL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Telecom industry (6.8%).


Return on Equity

High ROE: UWL's Return on Equity (3.8%) is considered low.


Next Steps

Financial Health

How is Uniti Group's financial position?


Financial Position Analysis

Short Term Liabilities: UWL's short term assets (A$199.2M) exceed its short term liabilities (A$24.4M).

Long Term Liabilities: UWL's short term assets (A$199.2M) exceed its long term liabilities (A$8.1M).


Debt to Equity History and Analysis

Debt Level: UWL is debt free.

Reducing Debt: UWL had no debt 5 years ago.

Debt Coverage: UWL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: UWL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.66%

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?

1.5yrs

Average management tenure


CEO

Mick Simmons

2yrs

Tenure

AU$934,306

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 ($USD665.01K) is about average for companies of similar size in the Australian market ($USD708.22K).

Compensation vs Earnings: Mick's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Simmons
Group MD2yrsAU$934.31kno data
Darryl Inns
Chief Financial Officer1.5yrsAU$654.13k0.12%
A$ 806.7k
Ashe-Lee Jegathesan
COO & Company Secretaryno dataAU$786.49k0.0083%
A$ 54.3k
Vaughan Bowen
Executive Director1.58yrsAU$2.28m2.04%
A$ 13.3m
Jordan Grives
Chief Executive Officer of Specialty Servicesno datano datano data
Kurt Magner
Chief Executive of Consumer & Business Enablementno datano datano data
Stephen Picton
Chief Executive of Wholesale & Infrastructure0.17yrno datano data

1.5yrs

Average Tenure

Experienced Management: UWL's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Simmons
Group MD2yrsAU$934.31kno data
Vaughan Bowen
Executive Director1.58yrsAU$2.28m2.04%
A$ 13.3m
Kathryn Gramp
Independent Non-Executive Director2.42yrsAU$237.31k0.088%
A$ 570.2k
Graeme Rodger Barclay
Independent Non-Executive Chairmanno dataAU$531.59k0.88%
A$ 5.8m
John Lindsay
Independent Non-Executive Director2.42yrsAU$237.31k0.089%
A$ 580.3k

2.0yrs

Average Tenure

Experienced Board: UWL's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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 substantially diluted in the past year, with total shares outstanding growing by 107.3%.


Top Shareholders

Company Information

Uniti Group Limited's company bio, 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$651.613m
  • Shares outstanding: 523.38m
  • Website: https://www.unitiwireless.com

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UWLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 2019
UWLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 2019

Biography

Uniti Group Limited provides Internet, and associated telecommunications products and services in Australia. It operates through three segments: Consumer & Business Enablement, Wholesale & Infrastructure, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 10:40
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.