NasdaqGM:UNTY

Stock Analysis Report

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Executive Summary

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. More Details


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Unity Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UNTY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

UNTY

3.1%

US Banks

-0.8%

US Market


1 Year Return

-33.9%

UNTY

-26.5%

US Banks

18.0%

US Market

Return vs Industry: UNTY underperformed the US Banks industry which returned -28.7% over the past year.

Return vs Market: UNTY underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

UNTYIndustryMarket
7 Day1.5%3.1%-0.8%
30 Day25.2%11.6%6.8%
90 Day-1.3%3.1%8.9%
1 Year-32.6%-33.9%-23.8%-26.5%20.7%18.0%
3 Year-28.1%-31.4%-16.8%-23.7%41.5%32.1%
5 Year60.2%48.8%20.3%5.4%84.6%63.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Unity Bancorp 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: UNTY ($13.66) is trading below our estimate of fair value ($34.79)

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 (6.6x) compared to the US Banks industry average (10.1x).

PE vs Market: UNTY is good value based on its PE Ratio (6.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: UNTY is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: UNTY's PB Ratio (0.9x) is in line with the US Banks industry average.


Next Steps

Future Growth

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

4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UNTY's forecast earnings growth (4.5% per year) is above the savings rate (2.2%).

Earnings vs Market: UNTY's earnings (4.5% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: UNTY's revenue (6.3% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: UNTY's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UNTY's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has Unity Bancorp performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UNTY has high quality earnings.

Growing Profit Margin: UNTY's current net profit margins (35.1%) are lower than last year (36.4%).


Past Earnings Growth Analysis

Earnings Trend: UNTY's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: UNTY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UNTY had negative earnings growth (-1.1%) over the past year, making it difficult to compare to the Banks industry average (-3.2%).


Return on Equity

High ROE: UNTY's Return on Equity (13.6%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: UNTY's Assets to Equity ratio (11.4x) is moderate.

Allowance for Bad Loans: UNTY has a sufficient allowance for bad loans (214%).

Low Risk Liabilities: 86% 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 (82%).

Low Risk Deposits: UNTY's Loans to Deposits ratio (105%) is appropriate.

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


Next Steps

Dividend

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

2.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UNTY's dividend (2.34%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: UNTY's dividend (2.34%) is low compared to the top 25% of dividend payers in the US market (4.67%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.4%), UNTY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UNTY's dividends in 3 years are forecast to be thoroughly covered by earnings (14.9% payout ratio).


Next Steps

Management

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

12.3yrs

Average management tenure


CEO

Jim Hughes (61 yo)

16.75yrs

Tenure

US$2,319,998

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 ($USD2.32M) is above average for companies of similar size in the US market ($USD589.01K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Dallas
Founder & Chairman of the Board20.17yrsUS$57.78k0.21%
$ 306.7k
James Hughes
President16.75yrsUS$2.32m1.27%
$ 1.8m
Robert Dallas
Founder & Director29.75yrsUS$45.97k0.21%
$ 299.1k
John Kauchak
Executive VP & COO18.75yrsUS$513.17k0.61%
$ 884.4k
Janice Bolomey
Chief Administrative Officer7.75yrsUS$505.91k0.31%
$ 457.1k
Stephen Rooney
First Senior VP & Chief Lending Officerno dataUS$321.54k0.095%
$ 138.8k
Laureen Cook
Senior VP0.083yrno data0.18%
$ 266.5k
David Bove
Senior VP & CTOno datano datano data
Christopher Fenimore
First VP & Chief Compliance Officerno datano datano data
Michelle Kirmser
First VP & General Counselno datano datano data
Rosemary Fellner
Senior VP & Chief Marketing Officerno datano datano data
Bridget Walsh
First VP & Human Resources Directorno datano datano data

12.3yrs

Average Tenure

61yo

Average Age

Experienced Management: UNTY's management team is seasoned and experienced (12.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Dallas
Founder & Chairman of the Board20.17yrsUS$57.78k0.21%
$ 306.7k
James Hughes
President16.75yrsUS$2.32m1.27%
$ 1.8m
Robert Dallas
Founder & Director29.75yrsUS$45.97k0.21%
$ 299.1k
Peter Maricondo
Independent Director16.25yrsUS$49.98k0.35%
$ 503.7k
Allen Tucker
Independent Vice Chairman of the Board20.17yrsUS$56.48k3.39%
$ 4.9m
Mark Brody
Independent Director18.75yrsUS$47.18k3.84%
$ 5.6m
Wayne Courtright
Independent Director16.33yrsUS$51.98k1.03%
$ 1.5m
Raj Patel
Independent Director12yrsUS$44.47k0.31%
$ 454.9k
Donald Souders
Independent Director6.5yrsUS$38.37k0.13%
$ 189.7k
Mary Gross
Independent Director9.67yrsUS$48.78k0.14%
$ 208.7k
Aaron Tucker
Independent Director5.42yrsUS$47.17k0.47%
$ 680.8k

16.3yrs

Average Tenure

65yo

Average Age

Experienced Board: UNTY's board of directors are seasoned and experienced ( 16.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Unity Bancorp, Inc.
  • Ticker: UNTY
  • Exchange: NasdaqGM
  • Founded: 1991
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$145.872m
  • Shares outstanding: 10.68m
  • Website: https://www.unitybank.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UNTYNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDNov 1995

Biography

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 comm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 00:49
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.