Unity Bancorp (NasdaqGM:UNTY) - Share price, News & Analysis

UNTY fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	5/6
Financial Health	6/6
Dividends	2/6

UNTY Stock Overview

Rewards

Trading at 68.1% below our estimate of its fair value

Earnings are forecast to grow 4.56% per year

Earnings grew by 37.2% over the past year

Risk Analysis

Unstable dividend track record

Unity Bancorp Competitors

Pacific Premier Bancorp

NasdaqGS:PPBI

US$2.9b

Westamerica Bancorporation

NasdaqGS:WABC

US$1.6b

TriCo Bancshares

NasdaqGS:TCBK

US$1.4b

Customers Bancorp

NYSE:CUBI

US$1.2b

Price History & Performance

Summary of all time highs, changes and price drops for Unity Bancorp
Historical stock prices
Current Share Price	US$27.66
52 Week High	US$31.37
52 Week Low	US$21.32
Beta	1.08
1 Month Change	-4.92%
3 Month Change	-3.79%
1 Year Change	13.55%
3 Year Change	31.84%
5 Year Change	70.74%
Change since IPO	473.38%

Recent News & Updates

May 12

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

	UNTY	US Banks	US Market
7D	-1.9%	-1.5%	-2.7%
1Y	13.5%	-19.9%	-12.9%

Return vs Industry: UNTY exceeded the US Banks industry which returned -19.9% over the past year.

Return vs Market: UNTY exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is UNTY's price volatile compared to industry and market?
UNTY volatility
UNTY Average Weekly Movement	2.5%
Banks Industry Average Movement	4.0%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

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

Founded	Employees	CEO	Website
1991	211	Jim Hughes	https://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 Cap	US$290.28m
Earnings (TTM)	US$36.73m
Revenue (TTM)	US$89.99m

7.9x

P/E Ratio

1.4x

P/B Ratio

Is UNTY overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
UNTY income statement (TTM)
Revenue	US$89.99m
Cost of Revenue	US$0
Gross Profit	US$89.99m
Other Expenses	US$53.26m
Earnings	US$36.73m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.50
Gross Margin	100.00%
Net Profit Margin	40.82%
Debt/Equity Ratio	23.4%

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 Date	Jun 09 2022
Dividend Pay Date	Jun 24 2022
Days until Ex dividend	17 days
Days until Dividend pay date	32 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 ($27.66) 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 (7.9x) compared to the US Banks industry average (9.7x).

PE vs Market: UNTY is good value based on its PE Ratio (7.9x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: UNTY is poor value based on its PEG Ratio (1.7x)

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 (12.5% 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 (7.8% 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 (238%).

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

1.59%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: UNTY's dividend (1.59%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: UNTY's dividend (1.59%) is low compared to the top 25% of dividend payers in the US market (4.11%).

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.

Discover strong dividend paying companies

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 ($USD2.37M) is above average for companies of similar size in the US market ($USD1.68M).

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31