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UNTY

Unity Bancorp NasdaqGM:UNTY Stock Report

Last Price

US$28.19

Market Cap

US$295.8m

7D

-0.2%

1Y

18.8%

Updated

15 May, 2022

Data

Company Financials +
UNTY fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends2/6

UNTY Stock Overview

Unity Bancorp, Inc. operates as the holding company for Unity Bank that provides commercial and retail banking products and services to individuals, small and medium sized businesses, and professional communities.

Unity Bancorp Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Unity Bancorp
Historical stock prices
Current Share PriceUS$28.19
52 Week HighUS$31.37
52 Week LowUS$21.32
Beta1.08
1 Month Change-0.56%
3 Month Change-2.32%
1 Year Change18.85%
3 Year Change38.39%
5 Year Change72.42%
Change since IPO484.37%

Recent News & Updates

May 12
Unity Bancorp's (NASDAQ:UNTY) Dividend Will Be Increased To US$0.11

Unity Bancorp's (NASDAQ:UNTY) Dividend Will Be Increased To US$0.11

The board of Unity Bancorp, Inc. ( NASDAQ:UNTY ) has announced that it will be increasing its dividend on the 24th of...

Mar 25

Unity Bancorp: A Local New Jersey Bank Trading At Just 9 Times Earnings

Unity Bancorp is active in New Jersey where it operates just a handful of branches. The bank's net income in 2021 was exceptionally high, thanks to the lack of loan loss provisions. UNTY retains the majority of its earnings on its balance sheet, which allows it to expand its loan book. The stock is trading at about 1.4 times its book value, but due to the low payout ratio, the book value increases fast.

Shareholder Returns

UNTYUS BanksUS Market
7D-0.2%-4.3%-2.5%
1Y18.8%-19.6%-10.4%

Return vs Industry: UNTY exceeded the US Banks industry which returned -19.6% over the past year.

Return vs Market: UNTY exceeded the US Market which returned -10.4% over the past year.

Price Volatility

Is UNTY's price volatile compared to industry and market?
UNTY volatility
UNTY Average Weekly Movement2.5%
Banks Industry Average Movement3.9%
Market Average Movement7.8%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: UNTY is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: UNTY's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1991211Jim Hugheshttps://www.unitybank.com

Unity Bancorp, Inc. operates as the holding company for Unity Bank that provides commercial and retail banking products and services to individuals, small and medium sized businesses, and professional communities. The company offers personal and business checking accounts, time deposits, money market accounts, and regular savings accounts, as well as noninterest and interest-bearing demand deposits. It also provides small business administration loans; commercial loans; and residential mortgage and consumer loans, including residential real estate, home equity lines and loans, and residential construction lines, as well as personal loans.

Unity Bancorp Fundamentals Summary

How do Unity Bancorp's earnings and revenue compare to its market cap?
UNTY fundamental statistics
Market CapUS$295.84m
Earnings (TTM)US$36.73m
Revenue (TTM)US$89.99m

8.1x

P/E Ratio

1.4x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
UNTY income statement (TTM)
RevenueUS$89.99m
Cost of RevenueUS$0
Gross ProfitUS$89.99m
Other ExpensesUS$53.26m
EarningsUS$36.73m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.50
Gross Margin100.00%
Net Profit Margin40.82%
Debt/Equity Ratio23.4%

How did UNTY perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

11%

Payout Ratio

Does UNTY pay a reliable dividends?

See UNTY dividend history and benchmarks
When do you need to buy UNTY by to receive an upcoming dividend?
Unity Bancorp dividend dates
Ex Dividend DateJun 09 2022
Dividend Pay DateJun 24 2022
Days until Ex dividend24 days
Days until Dividend pay date39 days

Does UNTY pay a reliable dividends?

See UNTY dividend history and benchmarks

Valuation

Is Unity Bancorp undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: UNTY ($28.19) is trading below our estimate of fair value ($86.81)

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


Price To Earnings Ratio

PE vs Industry: UNTY is good value based on its PE Ratio (8.1x) compared to the US Banks industry average (9.7x).

PE vs Market: UNTY is good value based on its PE Ratio (8.1x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: UNTY is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: UNTY is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.1x).


Future Growth

How is Unity Bancorp forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UNTY's forecast earnings growth (4.6% per year) is above the savings rate (1.9%).

Earnings vs Market: UNTY's earnings (4.6% per year) are forecast to grow slower than the US market (12.6% per year).

High Growth Earnings: UNTY's earnings are forecast to grow, but not significantly.

Revenue vs Market: UNTY's revenue (7.2% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: UNTY's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if UNTY's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Unity Bancorp performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


19.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: UNTY has high quality earnings.

Growing Profit Margin: UNTY's current net profit margins (40.8%) are higher than last year (35.5%).


Past Earnings Growth Analysis

Earnings Trend: UNTY's earnings have grown by 19.9% per year over the past 5 years.

Accelerating Growth: UNTY's earnings growth over the past year (37.2%) exceeds its 5-year average (19.9% per year).

Earnings vs Industry: UNTY earnings growth over the past year (37.2%) exceeded the Banks industry 20.9%.


Return on Equity

High ROE: UNTY's Return on Equity (17.1%) is considered low.


Financial Health

How is Unity Bancorp's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: UNTY's Assets to Equity ratio (9.6x) is low.

Allowance for Bad Loans: UNTY has a sufficient allowance for bad loans (230%).

Low Risk Liabilities: 96% of UNTY's liabilities are made up of primarily low risk sources of funding.

Loan Level: UNTY has an appropriate level of Loans to Assets ratio (80%).

Low Risk Deposits: UNTY's Loans to Deposits ratio (93%) is appropriate.

Level of Bad Loans: UNTY has an appropriate level of bad loans (0.6%).


Dividend

What is Unity Bancorp current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.56%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 16 2022Ex Dividend DateJun 09 2022Dividend Pay DateJun 24 202215 days from Ex DividendBuy in the next 24 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: UNTY's dividend (1.56%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: UNTY's dividend (1.56%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, UNTY has been paying a dividend for less than 10 years.

Growing Dividend: UNTY's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Earnings Coverage: With its low payout ratio (10.8%), UNTY's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.


Next Steps

Management

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

13.9yrs

Average management tenure


CEO

Jim Hughes (62 yo)

18.42yrs

Tenure

US$2,373,879

Compensation

Mr. James A. Hughes serves as President and Chief Executive Officer at Unity Bancorp, Inc. and has been its Director since 2002. He serves as President and Chief Executive Officer at Unity Bank and serves...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD2.37M) is above average for companies of similar size in the US market ($USD1.69M).

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


Leadership Team

Experienced Management: UNTY's management team is seasoned and experienced (13.9 years average tenure).


Board Members

Experienced Board: UNTY's board of directors are seasoned and experienced ( 17.9 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Unity Bancorp, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Unity Bancorp, Inc.
  • Ticker: UNTY
  • Exchange: NasdaqGM
  • Founded: 1991
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$295.844m
  • Shares outstanding: 10.49m
  • Website: https://www.unitybank.com

Number of Employees


Location

  • Unity Bancorp, Inc.
  • 64 Old Highway 22
  • Clinton
  • New Jersey
  • 8809
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/15 00:00
End of Day Share Price2022/05/13 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.