NasdaqGM:UNTY

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with proven track record.


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


Market Performance


7 Day Return

-4.6%

UNTY

3.7%

US Banks

1.8%

US Market


1 Year Return

-0.1%

UNTY

1.9%

US Banks

7.3%

US Market

Return vs Industry: UNTY matched the US Banks industry which returned 1.9% over the past year.

Return vs Market: UNTY underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

UNTYIndustryMarket
7 Day-4.6%3.7%1.8%
30 Day-2.4%0.2%-0.7%
90 Day-0.4%2.5%0.06%
1 Year1.3%-0.1%4.9%1.9%9.7%7.3%
3 Year80.6%73.6%51.7%41.2%46.3%36.9%
5 Year173.6%155.7%69.7%51.2%64.5%46.5%

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?

9.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: UNTY ($20.92) is trading above our estimate of fair value ($16.05)

Significantly Undervalued: UNTY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UNTY is good value based on its PE Ratio (9.9x) compared to the Banks industry average (12.6x).

PE vs Market: UNTY is good value based on its PE Ratio (9.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: UNTY is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: UNTY is overvalued based on its PB Ratio (1.5x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UNTY's forecast earnings growth (5% per year) is above the savings rate (2.7%).

Earnings vs Market: UNTY's earnings (5% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: UNTY's revenue (8.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: UNTY's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Unity Bancorp performed over the past 5 years?

25.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: UNTY's earnings have grown significantly by 25.6% per year over the past 5 years.

Accelerating Growth: UNTY's earnings growth over the past year (35.4%) exceeds its 5-year average (25.6% per year).

Earnings vs Industry: UNTY earnings growth over the past year (35.4%) exceeded the Banks industry 30.5%.


Return on Equity

High ROE: UNTY's Return on Equity (15.3%) is considered low.


Return on Assets

ROA vs Industry: UNTY has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate UNTY's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: UNTY has a low level of unsold assets or inventory.

Debt Coverage by Assets: UNTY's debt is not covered by short term assets (assets are 0.9x debt).


Financial Institutions Analysis

Asset Level: UNTY's level of assets compared to its equity is moderate.

Allowance for Bad Loans: UNTY has a sufficient allowance for bad loans.

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

Loan Level: UNTY has an acceptable proportion of non-loan assets held.

Low Risk Deposits: UNTY's loans are broadly funded by customer deposits.

Level of Bad Loans: UNTY has an appropriate level of bad loans (0.33%)


Next Steps

Dividend

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

1.53%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.5%markettop25%3.7%industryaverage3.0%forecastin3Years1.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: UNTY's dividend (1.53%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: UNTY's dividend (1.53%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.7%), 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 and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Unity Bancorp's salary, the management and board of directors tenure and is there insider trading?

15.8yrs

Average management tenure


CEO

Jim Hughes (60yo)

15.8yrs

Tenure

US$2,598,791

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 ($USD2.60M) is about average for companies of similar size in the US market ($USD1.16M).

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


Management Age and Tenure

15.8yrs

Average Tenure

62yo

Average Age

Experienced Management: UNTY's management team is seasoned and experienced (15.8 years average tenure).


Board Age and Tenure

16.5yrs

Average Tenure

65yo

Average Age

Experienced Board: UNTY's board of directors are seasoned and experienced ( 16.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$35,41026 Feb 19
Wayne Courtright
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,675
Max PriceUS$21.14
BuyUS$20,00817 Dec 18
James Hughes
EntityIndividual
Role
Chief Executive Officer
President
Shares961
Max PriceUS$20.82

Ownership Breakdown


Management Team

  • David Dallas (64yo)

    Founder & Chairman of the Board

    • Tenure: 19.2yrs
    • Compensation: US$91.27k
  • Jim Hughes (60yo)

    President

    • Tenure: 15.8yrs
    • Compensation: US$2.60m
  • Robert Dallas (72yo)

    Founder & Director

    • Tenure: 25.8yrs
    • Compensation: US$80.06k
  • John Kauchak (66yo)

    Executive VP & COO

    • Tenure: 17.8yrs
    • Compensation: US$478.84k
  • Alan Bedner (48yo)

    Executive VP & CFO

    • Tenure: 15.8yrs
    • Compensation: US$486.72k
  • Janice Bolomey (51yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 6.8yrs
    • Compensation: US$482.99k
  • David Bove

    Senior VP & CTO

    • Tenure: 0yrs
  • Rosemary Fellner

    Senior VP & Chief Marketing Officer

    • Tenure: 0yrs
  • Christopher Fenimore

    First VP & Chief Compliance Officer

    • Tenure: 0yrs
  • Michelle Kirmser

    First VP & General Counsel

    • Tenure: 0yrs

Board Members

  • Peter Maricondo (72yo)

    Director

    • Tenure: 15.3yrs
    • Compensation: US$83.87k
  • David Dallas (64yo)

    Founder & Chairman of the Board

    • Tenure: 19.2yrs
    • Compensation: US$91.27k
  • Allen Tucker (92yo)

    Vice Chairman of the Board

    • Tenure: 19.2yrs
    • Compensation: US$88.97k
  • Jim Hughes (60yo)

    President

    • Tenure: 15.8yrs
    • Compensation: US$2.60m
  • Mark Brody (66yo)

    Director

    • Tenure: 17.8yrs
    • Compensation: US$82.07k
  • Robert Dallas (72yo)

    Founder & Director

    • Tenure: 25.8yrs
    • Compensation: US$80.06k
  • Wayne Courtright (71yo)

    Director

    • Tenure: 15.3yrs
    • Compensation: US$86.37k
  • Raj Patel (64yo)

    Director

    • Tenure: 11yrs
    • Compensation: US$80.06k
  • Donald Souders (53yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: US$73.66k
  • Mary Gross (58yo)

    Director

    • Tenure: 8.7yrs
    • Compensation: US$83.07k

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$227.201m
  • Shares outstanding: 10.86m
  • 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 a range of banking products and services to individuals, small and medium sized businesses, and professional communities. Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:40
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.