NYSE:UI

Stock Analysis Report

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Market Cap

US$19.7b

Last Updated

2021/08/01 22:02 UTC

Data Sources

Company Financials +

Executive Summary

Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers. More Details


Snowflake Analysis

Proven track record with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: UI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: UI's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.7%

UI

0.9%

US Communications

-0.4%

US Market


1 Year Return

69.0%

UI

19.7%

US Communications

35.9%

US Market

Return vs Industry: UI exceeded the US Communications industry which returned 19.7% over the past year.

Return vs Market: UI exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

UIIndustryMarket
7 Day0.7%0.9%-0.4%
30 Day1.3%2.9%-0.3%
90 Day9.6%7.9%3.1%
1 Year70.1%69.0%22.8%19.7%38.0%35.9%
3 Year278.8%270.1%33.9%24.8%62.9%52.7%
5 Year546.1%531.1%89.7%68.5%121.3%96.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Ubiquiti undervalued compared to its fair value and its price relative to the market?

35.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UI ($313.1) is trading above our estimate of fair value ($123.42)

Significantly Below Fair Value: UI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UI is poor value based on its PE Ratio (35.7x) compared to the US Communications industry average (35.1x).

PE vs Market: UI is poor value based on its PE Ratio (35.7x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: UI is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

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


Future Growth

How is Ubiquiti forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UI's forecast earnings growth (16.9% per year) is above the savings rate (2%).

Earnings vs Market: UI's earnings (16.9% per year) are forecast to grow faster than the US market (15% per year).

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

Revenue vs Market: UI's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: UI's revenue is forecast to decline over the next 3 years (-0.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Ubiquiti performed over the past 5 years?

20.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UI has high quality earnings.

Growing Profit Margin: UI's current net profit margins (32%) are higher than last year (28.6%).


Past Earnings Growth Analysis

Earnings Trend: UI's earnings have grown significantly by 20.1% per year over the past 5 years.

Accelerating Growth: UI's earnings growth over the past year (54.7%) exceeds its 5-year average (20.1% per year).

Earnings vs Industry: UI earnings growth over the past year (54.7%) underperformed the Communications industry 89.3%.


Return on Equity

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


Financial Health

How is Ubiquiti's financial position?


Financial Position Analysis

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

Long Term Liabilities: UI 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: UI has negative shareholder equity, which is a more serious situation than a high debt level.

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

Debt Coverage: UI's debt is well covered by operating cash flow (100.1%).

Interest Coverage: UI's interest payments on its debt are well covered by EBIT (56.2x coverage).


Balance Sheet


Dividend

What is Ubiquiti current dividend yield, its reliability and sustainability?

0.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UI's dividend (0.51%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: UI's dividend (0.51%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: UI is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: UI is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: UI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of UI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

11.2yrs

Average management tenure


CEO

Robert Pera (43 yo)

17.75yrs

Tenure

US$3,698

Compensation

Mr. Robert J. Pera founded Ubiquiti Inc. (formerly known as Ubiquiti Networks, Inc.) in October 2003 and has been its Chief Executive Officer since October 2003. Mr. Pera is a Controlling Owner and Chairma...


Leadership Team

Experienced Management: UI's management team is seasoned and experienced (11.2 years average tenure).


Board Members

Experienced Board: UI's board of directors are considered experienced (7.8 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Ubiquiti Inc.
  • Ticker: UI
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$19.667b
  • Shares outstanding: 62.81m
  • Website: https://www.ui.com

Number of Employees


Location

  • Ubiquiti Inc.
  • 685 Third Avenue
  • 27th Floor
  • New York
  • New York
  • 10017
  • United States

Listings


Biography

Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers. It develops technology platforms for high-capacity distributed Internet access, unified information technolog...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:02
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/06/30


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.