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

Fair value with acceptable track record.

Risks

  • Uniti Group has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-6.5%

NasdaqGS:UNIT

-1.0%

US REITs

-1.9%

US Market


1 Year Return

-62.6%

NasdaqGS:UNIT

8.7%

US REITs

-3.3%

US Market

UNIT underperformed the REITs industry which returned 8.6% over the past year.

UNIT underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

UNITIndustryMarket
7 Day-6.5%-1.0%-1.9%
30 Day-9.9%2.5%-6.2%
90 Day-25.3%2.7%0.3%
1 Year-59.6%-62.6%13.6%8.7%-1.1%-3.3%
3 Year-65.2%-74.4%24.4%8.2%37.9%28.9%
5 Yearn/a57.4%24.0%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Uniti Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Uniti Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Uniti Group is good value based on earnings compared to the US REITs industry average.

Uniti Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Uniti Group earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Uniti Group has negative assets, we can't compare the value of its assets to the US REITs industry average.


Next Steps

Future Growth

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

-49.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Uniti Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Uniti Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Uniti Group's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Uniti Group's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Uniti Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Uniti Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Uniti Group performed over the past 5 years?

-8.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Uniti Group's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Uniti Group's 1-year earnings growth exceeds its 5-year average (214.9% vs -8.8%)

Uniti Group's earnings growth has exceeded the US REITs industry average in the past year (214.9% vs 16.9%).


Return on Equity

It is difficult to establish if Uniti Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

Uniti Group used its assets more efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Uniti Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Uniti Group's financial position?


Financial Position Analysis

Uniti Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Uniti Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Uniti Group has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Uniti Group's debt level has increased considering it has negative shareholder equity.

Debt is not well covered by operating cash flow (9.8%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.1x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Uniti Group has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

12.70%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Uniti Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Uniti Group's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Uniti Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Uniti Group has only been paying a dividend for 4 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (217.9x coverage).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Kenny Gunderman (48yo)

4.4yrs

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

Kenny's remuneration is about average for companies of similar size in United States of America.

Kenny's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.1yrs

Average Tenure

48yo

Average Age

The tenure for the Uniti Group management team is about average.


Board Age and Tenure

4.2yrs

Average Tenure

59yo

Average Age

The tenure for the Uniti Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Mark Wallace (62yo)

    Executive VP

    • Tenure: 4.3yrs
    • Compensation: US$1.92m
  • Ron Mudry (57yo)

    Chief Revenue Officer & Senior VP

    • Tenure: 1.4yrs
    • Compensation: US$986.71k
  • Kenny Gunderman (48yo)

    President

    • Tenure: 4.4yrs
    • Compensation: US$5.15m
  • Mike Friloux

    Senior VP & CTO

    • Tenure: 2.9yrs
  • Andy Newton

    President of Uniti Fiber

    • Tenure: 2.1yrs
  • Daniel Heard (44yo)

    Executive VP

    • Tenure: 4.3yrs
    • Compensation: US$1.39m
  • Blake Schuhmacher (41yo)

    Chief Accounting Officer

    • Tenure: 4.3yrs
  • Arnoud Krijt

    Senior Vice President of Corporate Development

    • Tenure: 3.1yrs
  • Lawrence Gleason

    President of Uniti Towers

    • Tenure: 2.8yrs
  • Bill DiTullio

    Director of Finance & Investor Relations

    • Tenure: 0.0yrs

Board Members

  • David Solomon (59yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$195.57k
  • Skip Frantz (66yo)

    Chairman of the Board

    • Tenure: 4.6yrs
    • Compensation: US$258.97k
  • Scott Bruce (57yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$177.01k
  • Jennifer Banner (60yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$197.88k
  • Kenny Gunderman (48yo)

    President

    • Tenure: 4.4yrs
    • Compensation: US$5.15m

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$1.529b
  • Market Cap: US$1.497b
  • Shares outstanding: 197.31m
  • 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 Analysis2019/08/26 01:00
End of Day Share Price2019/08/23 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.