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.

Rewards

Trading at 88.2% below its fair value

Earnings are forecast to grow 37.3% per year

Earnings grew by 4.9% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Average dividend payer with acceptable track record.


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

-6.5%

UNIT

-7.0%

US REITs

-2.6%

US Market


1 Year Return

-51.0%

UNIT

-23.9%

US REITs

-13.3%

US Market

Return vs Industry: UNIT underperformed the US REITs industry which returned -26.9% over the past year.

Return vs Market: UNIT underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

UNITIndustryMarket
7 Day-6.5%-7.0%-2.6%
30 Day-41.2%-26.6%-15.2%
90 Day-29.2%-27.7%-22.2%
1 Year-47.6%-51.0%-20.7%-23.9%-11.5%-13.3%
3 Year-70.4%-78.1%-6.9%-18.6%13.2%5.7%
5 Yearn/a11.1%-12.0%31.8%17.2%

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 ($5.79) is trading below our estimate of fair value ($48.98)

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


Price To Earnings Ratio

PE vs Industry: UNIT is poor value based on its PE Ratio (129.4x) compared to the REITs industry average (22.5x).

PE vs Market: UNIT is poor value based on its PE Ratio (129.4x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: UNIT is poor value based on its PEG Ratio (3.5x)


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?

37.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UNIT's forecast earnings growth (37.3% per year) is above the savings rate (1.7%).

Earnings vs Market: UNIT's earnings (37.3% per year) are forecast to grow faster than the US market (13.4% per year).

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

Revenue vs Market: UNIT's revenue (2.4% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: UNIT's revenue (2.4% 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 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?

-0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UNIT has a large one-off gain of $55.2M impacting its December 31 2019 financial results.

Growing Profit Margin: UNIT's current net profit margins (0.8%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: UNIT's earnings have declined by -0.9% per year over the past 5 years.

Accelerating Growth: UNIT's earnings growth over the past year (4.9%) exceeds its 5-year average (-0.9% per year).

Earnings vs Industry: UNIT earnings growth over the past year (4.9%) exceeded the REITs industry 4.3%.


Return on Equity

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


Next Steps

Financial Health

How is Uniti Group's financial position?


Financial Position Analysis

Short Term Liabilities: UNIT has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: UNIT has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: UNIT has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: UNIT's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: UNIT's debt is not well covered by operating cash flow (12.2%).

Interest Coverage: UNIT's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet


Next Steps

Dividend

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

6.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UNIT's dividend (6.39%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: UNIT's dividend (6.39%) is in the top 25% of dividend payers in the US market (5.82%)


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 reasonably low payout ratio (46.1%), UNIT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UNIT's dividends in 3 years are forecast to be thoroughly covered by earnings (0.3% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Kenny Gunderman (48yo)

5.08s

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 ($USD5.15M) is above average for companies of similar size in the US market ($USD3.29M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth Gunderman
President5.08yrsUS$5.15m0.29% $3.3m
Mark Wallace
Executive VP5yrsUS$1.92m0.082% $919.1k
Daniel Heard
Executive VP5yrsUS$1.39m0.060% $668.8k
Michael Friloux
Senior VP & CTO3.58yrsno datano data
Bill DiTullio
Vice President of Finance & Investor Relationsno datano datano data
Arnoud Krijt
Senior Vice President of Corporate Development3.75yrsno datano data
Jennifer Ragsdale
Senior Vice President of Human Resources1.25yrsno datano data
Ronald Mudry
Chief Revenue Officer & Senior VP2.08yrsUS$986.71kno data
Lawrence Gleason
President of Uniti Towers3.5yrsno datano data
Andy Newton
President of Uniti Fiber2.75yrsno datano data

3.6yrs

Average Tenure

52.5yo

Average Age

Experienced Management: UNIT's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenneth Gunderman
President5.08yrsUS$5.15m0.29% $3.3m
David Solomon
Independent Director4.83yrsUS$195.57k0.030% $336.2k
Francis Frantz
Independent Chairman of the Board5.25yrsUS$258.97k0.11% $1.2m
Scott Bruce
Independent Director3.83yrsUS$177.01k0.041% $462.3k
Jennifer Banner
Independent Director4.83yrsUS$197.88k0.030% $332.8k
Carmen Perez-Carlton
Director0.50yrno data0.018% $202.6k

4.8yrs

Average Tenure

58yo

Average Age

Experienced Board: UNIT's board of directors are considered experienced (4.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.4%.


Top Shareholders

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$1.117b
  • Market Cap: US$1.093b
  • Shares outstanding: 198.34m
  • 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
8XCBRSE (Berne Stock Exchange)YesCommon SharesCHCHFApr 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 infrastructure solutions for the communications industry. As of December 31, 2019, Uniti owns 6.3 million fiber strand miles, approximately 670 wireless towers, and other communications real estate throughout the United States. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 05:28
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
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.