Uniti Group Inc. (NASDAQ: UNIT)

Sector: Real Estate Industry: REIT - Specialty CIK: 0002020795
Market Cap 1.80 Bn
P/B 2.64
P/E 1.13
P/S 1.12
ROIC (Qtr) 6.07
Div Yield % 0.00
Rev 1y % (Qtr) 147.30
Total Debt (Qtr) 9.79 Bn
Debt/Equity (Qtr) 14.38
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About

Investment thesis

Bull case

  • Operating cash flow of 415.42M provides exceptional 138471.67x coverage of minority interest expenses 3000, showing strong core operations.
  • Operating cash flow of 415.42M provides strong 19.98x coverage of stock compensation 20.79M, indicating sustainable incentive practices.
  • Strong operating cash flow of 415.42M provides 2.06x coverage of SG&A expenses 201.82M, showing efficient operational cost management.
  • Tangible assets of 9.56B provide exceptional 16.94x coverage of deferred revenue 564.60M, showing strong service capability backing.
  • Free cash flow of (72.59M) provides excellent 7258.80x coverage of dividends (10000), indicating sustainable shareholder returns.

Bear case

  • Operating cash flow of 415.42M barely covers its investment activities of (715.20M), with a coverage ratio of -0.58, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 415.42M provides thin coverage of dividend payments of (10000) with a -41541.50 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 231.90M provide limited coverage of acquisition spending of (187.16M), which is -1.24x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 415.42M provides insufficient coverage of deferred revenue obligations of 564.60M, which is 0.74x, raising concerns about future service delivery capabilities.
  • Operating cash flow of 415.42M provides minimal -2.79x coverage of tax expenses of (148.88M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the REIT - Specialty
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 EQIX Equinix Inc 93.20 Bn 69.03 10.11 22.73 Bn
2 AMT American Tower Corp /Ma/ 84.92 Bn 69.21 11.41 45.01 Bn
3 DLR Digital Realty Trust, Inc. 61.15 Bn 48.23 10.00 19.66 Bn
4 CCI Crown Castle Inc. 37.84 Bn 64.24 6.91 29.58 Bn
5 IRM Iron Mountain Inc 32.10 Bn 222.02 4.65 18.73 Bn
6 SBAC Sba Communications Corp 25.39 Bn 332.98 15.54 15.02 Bn
7 WY Weyerhaeuser Co 19.35 Bn 59.73 2.80 5.57 Bn
8 LAMR Lamar Advertising Co/New 12.52 Bn 427.65 10.32 4.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.63 1.49
EV to Assets EV to Assets 0.63 1.49
EV to Cash from Ops. EV/CFO 18.46 23.58
EV to Cash from Ops. EV/CFO 18.46 23.58
EV to Debt EV to Debt 0.78 2.74
EV to Debt EV to Debt 0.78 2.74
EV to EBIT EV/EBIT 3.69 32.67
EV to EBIT EV/EBIT 3.69 32.67
EV to EBITDA EV/EBITDA 9.06 18.09
EV to EBITDA EV/EBITDA 9.06 18.09
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 34.29 3.96
Dividend Coverage Ratio Div Coverage (Qtr) 34.29 3.96
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 112.65
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 112.65
Dividend per Basic Share Div per Share (Qtr) 0.00 3.59
Dividend per Basic Share Div per Share (Qtr) 0.00 3.59
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 187.43
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 187.43
Interest Coverage Int. cover (Qtr) 3.49 4.10
Interest Coverage Int. cover (Qtr) 3.49 4.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -45.95 12.53
Capex Growth (1y) % Capex 1y % (Qtr) -45.95 12.53
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 334.37 105.31
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 334.37 105.31
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 27.11
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 27.11
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 215.57 44.10
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 215.57 44.10
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -4.45 -3.90
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -4.45 -3.90
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.13 0.20
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.13 0.20
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.17
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.17
Cash Ratio Cash Ratio (Qtr) 0.22 0.30
Cash Ratio Cash Ratio (Qtr) 0.22 0.30
Current Ratio Curr Ratio (Qtr) 0.82 0.62
Current Ratio Curr Ratio (Qtr) 0.82 0.62
Debt to Equity Ratio Debt/Equity (Qtr) 14.38 1.20
Debt to Equity Ratio Debt/Equity (Qtr) 14.38 1.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 157.20 59.74
EBITDA Margin % EBITDA Margin % (Qtr) 157.20 59.74
EBIT Margin % EBIT Margin % (Qtr) 129.13 40.99
EBIT Margin % EBIT Margin % (Qtr) 129.13 40.99
EBT Margin % EBT Margin % (Qtr) 92.08 18.94
EBT Margin % EBT Margin % (Qtr) 92.08 18.94
Gross Margin % Gross Margin % (Qtr) 76.10 65.41
Gross Margin % Gross Margin % (Qtr) 76.10 65.41
Net Profit Margin % Net Margin % (Qtr) 98.50 14.71
Net Profit Margin % Net Margin % (Qtr) 98.50 14.71