NYSE:UI

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record with adequate balance sheet.


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


Market Performance


7 Day Return

4.4%

NYSE:UI

2.4%

US Communications

1.3%

US Market


1 Year Return

19.7%

NYSE:UI

0.8%

US Communications

2.0%

US Market

UI outperformed the Communications industry which returned 0.8% over the past year.

UI outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

UIIndustryMarket
7 Day4.4%2.4%1.3%
30 Day5.6%6.1%3.9%
90 Day-11.9%-6.9%3.4%
1 Year20.7%19.7%3.0%0.8%4.2%2.0%
3 Year123.3%120.7%57.5%47.6%47.2%37.6%
5 Year212.7%207.5%87.6%68.1%60.5%42.9%

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

Valuation

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

25.82x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Ubiquiti's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Ubiquiti's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Ubiquiti is good value based on earnings compared to the US Communications industry average.

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


Price Based on Expected Growth

Unable to calculate PEG ratio for Ubiquiti, we can't assess if its growth is good value.


Price Based on Value of Assets

Ubiquiti is overvalued based on assets compared to the US Communications industry average.


Next Steps

Future Growth

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

10.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ubiquiti's revenue is expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).

Ubiquiti's earnings are expected to grow by 17.6% yearly, however this is not considered high growth (20% yearly).

Ubiquiti's revenue growth is expected to exceed the United States of America market average.

Ubiquiti's earnings growth is expected to exceed the United States of America market average.

Ubiquiti's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Ubiquiti performed over the past 5 years?

12.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ubiquiti's year on year earnings growth rate has been positive over the past 5 years.

Ubiquiti's 1-year earnings growth exceeds its 5-year average (64.4% vs 12.9%)

Ubiquiti's earnings growth has exceeded the US Communications industry average in the past year (64.4% vs 22.3%).


Return on Equity

Whilst Ubiquiti made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Ubiquiti used its assets more efficiently than the US Communications industry average last year based on Return on Assets.


Return on Capital Employed

Ubiquiti has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ubiquiti's financial position?


Financial Position Analysis

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

Ubiquiti's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Ubiquiti's level of debt (499%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (21.5% vs 499% today).

Debt is well covered by operating cash flow (52.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 32.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.5x debt.


Next Steps

Dividend

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

0.26%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ubiquiti's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Ubiquiti's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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

Dividend payments have increased, but Ubiquiti only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.5x coverage).


Future Payout to Shareholders

No need to calculate the sustainability of Ubiquiti's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

6.9yrs

Average management tenure


CEO

Robert Pera (41yo)

15.9yrs

Tenure

0

Mr. Robert J. Pera founded Ubiquiti Networks, Inc. in October 2003 and has been its Chief Executive Officer since October 2003. Mr. Pera is a Controlling Owner and Chairman at Memphis Basketball, LLC. He h ...


Management Age and Tenure

6.9yrs

Average Tenure

56yo

Average Age

The average tenure for the Ubiquiti management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.9yrs

Average Tenure

51.5yo

Average Age

The tenure for the Ubiquiti board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • John Sanford (56yo)

    Chief Technology Officer

    • Tenure: 9.3yrs
    • Compensation: US$400.00k
  • Laura Kiernan

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Robert Pera (41yo)

    Founder

    • Tenure: 15.9yrs
  • Hartley Nisenbaum

    Interim CFO and Executive VP of Operations & Legal Affairs

    • Tenure: 4.4yrs
  • Kevin Radigan (60yo)

    Chief Accounting Officer & Principal Financial Officer

    • Tenure: 3.3yrs
    • Compensation: US$473.18k

Board Members

  • Ron Sege (62yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$200.00k
  • Rafael Torres (51yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$200.00k
  • Michael Hurlston (52yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: US$200.00k
  • Robert Pera (41yo)

    Founder

    • Tenure: 15.9yrs

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$8.005b
  • Shares outstanding: 68.64m
  • Website: https://www.ui.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UINYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2011
3UBDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2011
0LI9LSE (London Stock Exchange)YesCommon StockGBUSDOct 2011
3UBBRSE (Berne Stock Exchange)YesCommon StockCHCHFOct 2011

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 00:14
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.