NYSE:UI

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Acceptable track record with imperfect 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

Stable Share Price: UI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.4%

UI

0.009%

US Communications

0.06%

US Market


1 Year Return

1.3%

UI

-7.3%

US Communications

19.3%

US Market

Return vs Industry: UI exceeded the US Communications industry which returned -7.3% over the past year.

Return vs Market: UI underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

UIIndustryMarket
7 Day0.4%0.009%0.06%
30 Day-14.6%-3.7%1.7%
90 Day-25.0%4.5%9.0%
1 Year2.2%1.3%-5.4%-7.3%21.8%19.3%
3 Year197.6%193.1%32.6%24.4%49.5%39.9%
5 Year366.5%359.4%59.9%42.2%73.1%54.1%

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 compared to its fair value and its price relative to the market?

29.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UI ($145.35) is trading above our estimate of fair value ($103.3)

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 (29x) compared to the Communications industry average (24.9x).

PE vs Market: UI is poor value based on its PE Ratio (29x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UI's PEG Ratio to determine if it is good value.


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.


Next Steps

Future Growth

How is Ubiquiti forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

7.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if UI's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if UI's earnings are forecast to grow faster than the US market

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

Revenue vs Market: UI's revenue (7.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: UI's revenue (7.5% 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 UI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ubiquiti performed over the past 5 years?

15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UI has high quality earnings.

Growing Profit Margin: UI's current net profit margins (28.5%) are lower than last year (30.3%).


Past Earnings Growth Analysis

Earnings Trend: UI's earnings have grown by 15.6% per year over the past 5 years.

Accelerating Growth: UI's earnings growth over the past year (2%) is below its 5-year average (15.6% per year).

Earnings vs Industry: UI earnings growth over the past year (2%) exceeded the Communications industry -20.1%.


Return on Equity

High ROE: UI'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 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 (56%).

Interest Coverage: UI's interest payments on its debt are well covered by EBIT (18.3x coverage).


Balance Sheet

Inventory Level: UI has a high level of physical assets or inventory.

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


Next Steps

Dividend

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

0.83%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: UI's dividend (0.83%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: UI's dividend (0.83%) is low compared to the top 25% of dividend payers in the US market (3.71%).


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?

9.8yrs

Average management tenure


CEO

Robert Pera (41yo)

16.3yrs

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Robert Pera
Founder16.3yrsno data86.72% $8.2b
Kevin Radigan
Chief Accounting & Finance Officer1.1yrsUS$698.97k0.00049% $46.2k
Hartley Nisenbaum
Executive Vice President of Operations & Legal Affairs0yrsno datano data
John Sanford
Chief Technology Officer9.8yrsUS$400.00kno data
Laura Kiernan
Senior Vice President of Investor Relations0yrsno datano data

9.8yrs

Average Tenure

56yo

Average Age

Experienced Management: UI's management team is seasoned and experienced (9.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Pera
Founder16.3yrsno data86.72% $8.2b
Ronald Sege
Lead Independent Director0yrsUS$200.00kno data
Rafael Torres
Independent Director6.3yrsUS$200.00k0.015% $1.5m
Michael Hurlston
Independent Director3.5yrsUS$200.00kno data

6.3yrs

Average Tenure

51.5yo

Average Age

Experienced Board: UI's board of directors are considered experienced (6.3 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$9.432b
  • Shares outstanding: 64.89m
  • 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

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 technology, and consumer electronics for professional, home, and personal use. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, and other WLAN products, as well as offers consumer products under the Ubiquiti Labs brand name. The company also provides technology platforms, such as airMAX platform, which include proprietary protocols that contain technologies for minimizing signal noise; EdgeMAX, a software and system routing platform; airFiber, a point-to-point radio system; and UFiber GPON platform to build high speed fiber Internet networks. In addition, it offers UniFi Enterprise WLAN; UniFi Video, a video surveillance system; UniFi Switch that deliver performance, switching, and PoE+ support for enterprise networks; and UniFi Security Gateway that provide routing and network security, as well as develops AmpliFi platform, a Wi-Fi system solution for connected homes. Further, Ubiquiti Inc. offers embedded radio products; and mounting brackets, cables, and power over Ethernet adapters. It serves customers through a network of approximately 100 distributors and online retailers worldwide. The company was formerly known as Ubiquiti Networks, Inc. and changed its name to Ubiquiti Inc. in August 2019. Ubiquiti Inc. was incorporated in 2003 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:59
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
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.