Unity Bancorp, Inc. (UNTY) 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

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Home Bancorp, Inc.

Why is Unity Bancorp, Inc. ?

High Profitability with a Net Interest Margin of 11.05%

Strong Long Term Fundamental Strength with a 19.64% CAGR growth in Net Profits

The company has declared Positive results for the last 3 consecutive quarters

NII(Q) Highest at USD 31.37 MM
ROCE(HY) Highest at 2.06%
DIVIDEND PER SHARE(HY) Highest at USD 0

With ROA of 1.46%, it has a very attractive valuation with a 1.58 Price to Book Value

Over the past year, while the stock has generated a return of 18.21%, its profits have risen by 35.9% ; the PEG ratio of the company is 0.3

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -0.86% over the previous quarter and currently hold 4.39% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Unity Bancorp, Inc. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

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

Is Unity Bancorp, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Unity Bancorp, Inc.

18.7%

2.97

30.81%

S&P 500

20.12%

0.99

19.34%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.08%

EBIT Growth (5y)

19.87%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

10.23%

Pledged Shares

Institutional Holding

52.16%

ROCE (avg)

ROE (avg)

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

1.58

EV to EBIT

7.87

EV to EBITDA

7.67

EV to Capital Employed

1.57

EV to Sales

3.21

PEG Ratio

0.27

Dividend Yield

ROCE (Latest)

19.91%

ROE (Latest)

16.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

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

14What is working for the Company

NII(Q)

Highest at USD 31.37 MM

ROCE(HY)

Highest at 2.06%

DIVIDEND PER SHARE(HY)

Highest at USD 0

NET SALES(Q)

Highest at USD 45.87 MM

NET PROFIT(9M)

Higher at USD 46.35 MM

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 38.07 MM

ROCE(HY)

Lowest at 2.06%

GROSS NPA (%)

DIVIDEND PAYOUT RATIO(Y)

Lowest at 9.87%

CASH AND EQV(HY)

Lowest at USD 40.7 MM

Here's what is working for Unity Bancorp, Inc.

NII

Highest at USD 31.37 MM and Grown

In each period in the last five periods

MOJO Watch

The bank's income from core business is increasing

Net NPA

Net Sales

Highest at USD 45.87 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Profit

At USD 46.35 MM has Grown at 45.47%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

Higher at USD 46.35 MM

than preceding 12 month period ended Dec 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (USD MM)

Here's what is not working for Unity Bancorp, Inc.

Non Performing Loans (%)

Highest at 1.17%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are increasing

Non Performing Loans (%)

Operating Cash Flow

Lowest at USD 38.07 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 40.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend Payout Ratio

Lowest at 9.87%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)