Ubiquiti Inc. (NYSE: UI)

Sector: Technology Industry: Communication Equipment CIK: 0001511737
Market Cap 42.08 Bn
P/B 41.43
P/E 47.35
P/S 14.16
ROIC (Qtr) 79.04
Div Yield % 0.40
Rev 1y % (Qtr) 35.84
Total Debt (Qtr) 105.06 Mn
Debt/Equity (Qtr) 0.10
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About

Ubiquiti Inc., often referred to as UI, operates in the technology industry, specifically focusing on the development and manufacturing of networking equipment and solutions. The company, established in 2005 by Robert Pera, has its headquarters in New York, New York. UI's mission is to provide high-capacity distributed Internet access and unified information technology management for a wide array of applications, from small businesses to large enterprises. The company's main business activities encompass the design, development, and manufacturing...

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Investment thesis

Bull case

  • Strong operating cash flow of 716.29M provides robust 6.82x coverage of total debt 105.06M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 302.82M provide 6.39x coverage of short-term debt 47.36M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 716.29M provides exceptional 53.53x coverage of interest expenses 13.38M, showing strong debt service capability.
  • Strong tangible asset base of 1.61B provides 15.31x coverage of total debt 105.06M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 716.29M provides strong 95.42x coverage of stock compensation 7.51M, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 716.29M barely covers its investment activities of (16.79M), with a coverage ratio of -42.67, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 716.29M provides thin coverage of dividend payments of (169.39M) with a -4.23 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (16.79M) provide weak support for R&D spending of 191.10M, which is -0.09x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of 699.50M represents just -1.95x of debt issuance (358.75M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Tangible assets of 1.61B provide limited backing for working capital of 817.36M, which is 1.97x, suggesting increased operational risk in market downturns.

Product and Service Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Communication Equipment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CSCO Cisco Systems, Inc. 305.09 Bn 27.54 5.17 30.09 Bn
2 MSI Motorola Solutions, Inc. 76.26 Bn 35.40 6.53 9.63 Bn
3 CIEN Ciena Corp 42.86 Bn 347.51 8.99 1.58 Bn
4 UI Ubiquiti Inc. 42.08 Bn 47.35 14.16 0.11 Bn
5 LITE Lumentum Holdings Inc. 41.73 Bn 165.86 19.82 3.32 Bn
6 HPE Hewlett Packard Enterprise Co 28.79 Bn 7.76 1.03 22.37 Bn
7 ASTS AST SpaceMobile, Inc. 22.73 Bn -74.80 1,226.44 0.72 Bn
8 ZBRA Zebra Technologies Corp 13.26 Bn 31.65 2.46 2.66 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 26.16 2.66
EV to Cash from Ops. EV/CFO 58.73 14.95
EV to Debt EV to Debt 400.38 37.29
EV to EBIT EV/EBIT 40.34 201.55
EV to EBITDA EV/EBITDA 39.53 9.12
EV to Free Cash Flow [EV/FCF] EV/FCF 60.14 66.04
EV to Market Cap EV to Market Cap 1.00 1.10
EV to Revenue EV/Rev 14.15 32.52
Price to Book Value [P/B] P/B 41.43 6.31
Price to Earnings [P/E] P/E 47.35 12.21
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 5.25 0.64
Dividend Payout Ratio % Div Payout % (Qtr) 19.10 -19.58
Dividend per Basic Share Div per Share (Qtr) 2.80 0.23
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 24.22 5.02
Interest Coverage Int. cover (Qtr) 77.93 -10.88
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -73.26 -65.39
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 127.53 457.29
Dividend Growth (1y) % Div 1y % (Qtr) 16.67 1.57
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 82.81 67.92
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 72.30 -9.76
EBIT Growth (1y) % EBIT 1y % (Qtr) 74.51 67.42
EBT Growth (1y) % EBT 1y % (Qtr) 90.68 -72.72
EPS Growth (1y) % EPS 1y % (Qtr) 99.59 5.66
FCF Growth (1y) % FCF 1y % (Qtr) -9.35 -2.41
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 57.51 36.14
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.85 0.75
Cash Payout Ratio Cash Payout (Qtr) 0.23 0.03
Cash Ratio Cash Ratio (Qtr) 0.64 1.34
Current Ratio Curr Ratio (Qtr) 2.72 2.99
Debt to Equity Ratio Debt/Equity (Qtr) 0.10 0.46
Interest Cover Ratio Int Coverage (Qtr) 77.93 -10.88
Times Interest Earned Times Interest Earned (Qtr) 77.93 -10.88
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 35.80 -41.18
EBIT Margin % EBIT Margin % (Qtr) 35.09 -52.62
EBT Margin % EBT Margin % (Qtr) 34.64 -59.46
Gross Margin % Gross Margin % (Qtr) 45.40 38.53
Net Profit Margin % Net Margin % (Qtr) 29.90 -60.82