NasdaqGS:UNIT

Stock Analysis Report

Executive Summary

Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of wireless infrastructure solutions for the communications industry.

Snowflake

Fundamentals

Average dividend payer and fair value.


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: UNIT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-12.4%

UNIT

-1.8%

US REITs

0.3%

US Market


1 Year Return

-69.2%

UNIT

13.1%

US REITs

12.5%

US Market

Return vs Industry: UNIT underperformed the US REITs industry which returned 13.1% over the past year.

Return vs Market: UNIT underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

UNITIndustryMarket
7 Day-12.4%-1.8%0.3%
30 Day-17.2%-2.0%4.1%
90 Day-28.0%1.3%5.6%
1 Year-67.4%-69.2%17.8%13.1%15.0%12.5%
3 Year-66.2%-74.9%37.7%20.7%49.1%39.4%
5 Yearn/a56.5%23.7%62.8%44.7%

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: UNIT ($6.06) is trading below our estimate of fair value ($50.03)

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


Price To Earnings Ratio

PE vs Industry: UNIT is good value based on its PE Ratio (34.7x) compared to the REITs industry average (38.8x).

PE vs Market: UNIT is poor value based on its PE Ratio (34.7x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: UNIT has negative assets, so we can't compare its PB Ratio to the US REITs industry average.


Next Steps

Future Growth

How is Uniti Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UNIT's forecast earnings growth (22.5% per year) is above the savings rate (2.7%).

Earnings vs Market: UNIT's earnings (22.5% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: UNIT's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: UNIT's revenue is forecast to decline over the next 3 years (-0.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Uniti Group performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UNIT has large one-off items impacting its financial results.

Growing Profit Margin: UNIT's current net profit margins (3%) are higher than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: UNIT's earnings have declined by -1.7% per year over the past 5 years.

Accelerating Growth: UNIT's earnings growth over the past year (98.6%) exceeds its 5-year average (-1.7% per year).

Earnings vs Industry: UNIT earnings growth over the past year (98.6%) exceeded the REITs industry 8.3%.


Return on Equity

High ROE: UNIT's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Uniti Group'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: UNIT has a high level of physical assets or inventory.

Debt Coverage by Assets: UNIT has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Financial Institutions Analysis

Asset Level: UNIT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if UNIT has a sufficient allowance for bad loans.

Low Risk Liabilities: UNIT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if UNIT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: UNIT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if UNIT has an appropriate level of bad loans.


Next Steps

Dividend

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

6.11%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Uniti Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company6.1%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years16.6%

Current dividend yield vs market & industry

Notable Dividend: UNIT's dividend (6.11%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: UNIT's dividend (6.11%) is in the top 25% of dividend payers in the US market (3.67%)


Stability and Growth of Payments

Stable Dividend: UNIT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: UNIT has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.4%), UNIT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UNIT's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Kenny Gunderman (48yo)

4.7yrs

Tenure

US$5,145,598

Compensation

Mr. Kenneth A. Gunderman, also known as Kenny, has been Chief Executive Officer, President and Director of Uniti Group Inc. since March 2, 2015. Mr. Gunderman has 17 years of investment banking experience  ...


CEO Compensation Analysis

Compensation vs Market: Kenny's total compensation ($USD5.15M) is above average for companies of similar size in the US market ($USD2.64M).

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


Management Age and Tenure

3.2yrs

Average Tenure

52.5yo

Average Age

Experienced Management: UNIT's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

59yo

Average Age

Experienced Board: UNIT's board of directors are considered experienced (4.4 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.2%.


Management Team

  • Mark Wallace (62yo)

    Executive VP

    • Tenure: 4.6yrs
    • Compensation: US$1.92m
  • Ron Mudry (57yo)

    Chief Revenue Officer & Senior VP

    • Tenure: 1.7yrs
    • Compensation: US$986.71k
  • Kenny Gunderman (48yo)

    President

    • Tenure: 4.7yrs
    • Compensation: US$5.15m
  • Mike Friloux

    Senior VP & CTO

    • Tenure: 3.2yrs
  • Andy Newton

    President of Uniti Fiber

    • Tenure: 2.3yrs
  • Daniel Heard (44yo)

    Executive VP

    • Tenure: 4.6yrs
    • Compensation: US$1.39m
  • Arnoud Krijt

    Senior Vice President of Corporate Development

    • Tenure: 3.3yrs
  • Lawrence Gleason

    President of Uniti Towers

    • Tenure: 3.1yrs
  • Bill DiTullio

    Vice President of Finance & Investor Relations

    • Tenure: 0yrs
  • Jennifer Ragsdale

    Senior Vice President of Human Resources

    • Tenure: 0.8yrs

Board Members

  • David Solomon (59yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$195.57k
  • Skip Frantz (66yo)

    Chairman of the Board

    • Tenure: 4.8yrs
    • Compensation: US$258.97k
  • Scott Bruce (57yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$177.01k
  • Jennifer Banner (60yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$197.88k
  • Kenny Gunderman (48yo)

    President

    • Tenure: 4.7yrs
    • Compensation: US$5.15m
  • Carmen Perez-Carlton

    Director

    • Tenure: 0.08yrs

Company Information

Uniti Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Uniti Group Inc.
  • Ticker: UNIT
  • Exchange: NasdaqGS
  • Founded: 2014
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: US$1.195b
  • Market Cap: US$1.171b
  • Shares outstanding: 197.44m
  • Website: https://www.uniti.com

Number of Employees


Location

  • Uniti Group Inc.
  • Benton Building
  • Suite 300
  • Little Rock
  • Arkansas
  • 72211
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UNITNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDApr 2015
8XCDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2015
0LJBLSE (London Stock Exchange)YesCommon SharesGBUSDApr 2015

Biography

Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of wireless infrastruc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 00:11
End of Day Share Price2019/11/11 00:00
Earnings2019/09/30
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.