Ubiquiti, Inc. (UI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Arlo Technologies, Inc.

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Ubiquiti, Inc.

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InterDigital, Inc.

Harmonic, Inc.

Motorola Solutions, Inc.

Why is Ubiquiti, Inc. ?

High Management Efficiency with a high ROE of 739.00%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.02 times

With a growth in Net Profit of 47.81%, the company declared Very Positive results in Jun 25

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at USD 640.03 MM
NET SALES(Q) Highest at USD 759.15 MM
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

With ROE of 125.89%, it has a attractive valuation with a 56.67 Price to Book Value

Over the past year, while the stock has generated a return of 70.98%, its profits have risen by 56.9% ; the PEG ratio of the company is 0.8

Market Beating Performance

The stock has generated a return of 70.98% in the last 1 year, much higher than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Ubiquiti, Inc. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ubiquiti, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ubiquiti, Inc.

56.42%

4.84

62.98%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.10%

EBIT Growth (5y)

10.74%

EBIT to Interest (avg)

23.33

Debt to EBITDA (avg)

1.02

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

2.53

Tax Ratio

17.93%

Dividend Payout Ratio

20.41%

Pledged Shares

Institutional Holding

5.87%

ROCE (avg)

143.18%

ROE (avg)

739.00%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

46.48

EV to EBIT

45.03

EV to EBITDA

44.15

EV to Capital Employed

60.87

EV to Sales

15.80

PEG Ratio

0.53

Dividend Yield

0.38%

ROCE (Latest)

135.19%

ROE (Latest)

87.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 760.51 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

NET SALES(9M)

At USD 2,336.84 MM has Grown at 28.79%

NET PROFIT(HY)

At USD 467.52 MM has Grown at 47.38%

DEBT-EQUITY RATIO (HY)

Lowest at -25.1 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.46 times

RAW MATERIAL COST(Y)

Fallen by -5.69% (YoY

CASH AND EQV(HY)

Highest at USD 671.48 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 13.23 times

DIVIDEND PER SHARE(HY)

Highest at USD 13.23

OPERATING PROFIT MARGIN(Q)

Highest at 37.48 %

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Ubiquiti, Inc.

Operating Cash Flow

Highest at USD 760.51 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Profit

At USD 467.52 MM has Grown at 47.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at -25.1 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.46 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At USD 2,336.84 MM has Grown at 28.79%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit Margin

Highest at 37.48 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at USD 671.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 13.23 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at USD 13.23

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -5.69% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales