Ubiquiti Networks (UI) AI Stock Analysis

• Market Cap: $32.38B
• Dividend Yield: 0.46%
• Average Volume (3M): 142.20K
• Price to Earnings (P/E): 44.2
• Beta (1Y): 1.25
• Revenue Growth: 33.45%
• EPS Growth: 103.34%
• Country: US
• Employees: 1,515
• Sector: Technology
• Sector Strength: 86
• Industry: Communication Equipment
• EPS (TTM): 3.54
• Shares Outstanding: 60,498,714
• 10 Day Avg. Volume: 229,251
• 30 Day Avg. Volume: 142,198
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 9.74
• Enterprise Value/Gross Profit: 22.44
• Enterprise Value/Ebitda: 29.21
• 1Y Price Target: $449.50
• Price Target Upside: -16.00% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: $577.00 ▲(7.82% Upside)

Ubiquiti Networks' strong financial performance and strategic corporate events, such as the stock buyback and record revenues, are significant positives. However, the high P/E ratio and technical indicators suggest caution due to potential overvaluation and overbought conditions.

Positive Factors

Financial performance

Ubiquiti's earnings power should put the stock within reach of $600 from the prior price target of $440.

Product expansion

Ubiquiti is on an unexpected growth course from an expanded product line and greater supply availability.

Sales strategy

Direct sales now account for 44% of the business in FY25, up from 38% the year prior, indicating a positive shift in sales strategy.

Negative Factors

Impact on margins

There could be an impact on gross margin in the June 2025 quarter due to the implantation of tariffs at the beginning of the quarter.

Tariffs

Higher shipping costs and tariffs continue to dog the business, and analyst expresses concern that tariff charges could have an outsized impact moving forward.

Ubiquiti Networks Business Overview & Revenue Model

Company Description

Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers. 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 consumer products under the Ubiquiti Labs brand name. The company also provides technology platforms, such as airMAX, 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, a plug and play fiber network technology to build high speed fiber internet networks. In addition, it offers UniFi -Enterprise WLAN, an enterprise Wi-Fi system that allows for on-site and remote management through the cloud; UniFi Protect, a video surveillance system, which provides statistical reporting and advanced analytics; UniFi Switch that deliver performance, switching, and power of Ethernet support for enterprise networks; UniFi Console, an enterprise class router and security gateway device; and UniFi Access, a door access system. Further, offers base stations, radios, backhaul equipment, and customer premise equipment; embedded radio products; antennas; and mounting brackets, cables, and power over Ethernet adapters. It serves customers through a network of approximately 100 distributors, online retailers, and direct to customers 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.

How the Company Makes Money

Ubiquiti Networks generates revenue through the sale of its hardware and software products, which primarily target service providers and enterprise customers. The company's revenue model is based on direct sales of its networking equipment, which includes routers, switches, and wireless access points. Additionally, Ubiquiti benefits from recurring revenue through software subscriptions and managed services. Key revenue streams include the sales of UniFi products, which are popular among small to medium-sized businesses and educational institutions, as well as airMAX products used by internet service providers. Partnerships with distributors and resellers also play a significant role in expanding its market reach and driving sales. Ubiquiti’s focus on cost-effective, high-quality products allows it to maintain a competitive edge and attract a diverse customer base.

Ubiquiti Networks Financial Statement Overview

Summary

Ubiquiti Networks shows strong revenue growth and profitability, with efficient operations. The balance sheet reflects improved leverage management, though risks remain due to low equity levels. Cash flow generation is stable but under pressure, highlighting the need for careful liquidity management.

Income Statement

Ubiquiti Networks has demonstrated strong revenue growth with a 10.84% increase in the latest year, indicating robust demand for its products. The company maintains healthy profitability margins, with a gross profit margin of 43.42% and a net profit margin of 27.66%. The EBIT and EBITDA margins are also solid at 32.50%, reflecting efficient operations. Overall, the income statement shows a positive growth trajectory and strong profitability.

Balance Sheet

The balance sheet shows improvement with a reduced debt-to-equity ratio of 0.43, indicating better financial leverage management compared to previous years. The return on equity is exceptionally high at 106.53%, driven by strong net income. However, the equity ratio is relatively low, suggesting potential risks if the company faces financial distress. Overall, the balance sheet reflects improved stability but still carries some risk.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth by 13.18%, which could be a concern for future liquidity. The operating cash flow to net income ratio is 0.90, indicating that cash generation is slightly lagging behind net income. However, the free cash flow to net income ratio is strong at 1.0, showing that the company is effectively converting its earnings into cash. Overall, the cash flow position is stable but shows signs of pressure.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.57B	2.57B	1.93B	1.94B	1.69B	1.90B
Gross Profit	1.12B	1.12B	739.76M	760.73M	669.81M	912.28M
EBITDA	858.18M	836.28M	518.25M	560.86M	475.95M	754.69M
Net Income	711.92M	711.92M	349.96M	407.64M	378.66M	616.58M
Balance Sheet
Total Assets	1.47B	1.47B	1.15B	1.41B	844.71M	890.99M
Cash, Cash Equivalents and Short-Term Investments	149.73M	149.73M	126.34M	114.94M	136.65M	250.74M
Total Debt	297.42M	285.01M	757.29M	1.14B	853.26M	532.30M
Total Liabilities	798.19M	798.19M	1.06B	1.52B	1.23B	888.29M
Stockholders Equity	668.26M	668.26M	95.06M	-115.73M	-382.88M	2.70M
Cash Flow
Free Cash Flow	632.87M	640.03M	529.54M	-166.36M	356.79M	593.70M
Operating Cash Flow	640.03M	640.03M	541.52M	-145.43M	370.26M	612.02M
Investing Cash Flow	-12.59M	-12.59M	-11.97M	-20.93M	-11.18M	-19.27M
Financing Cash Flow	-604.06M	-604.06M	-518.02M	144.96M	-472.27M	-485.95M

Ubiquiti Networks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 535.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UI, the sentiment is Positive. The current price of 535.15 is above the 20-day moving average (MA) of 447.19, above the 50-day MA of 428.22, and above the 200-day MA of 370.24, indicating a bullish trend. The MACD of 13.80 indicates Negative momentum. The RSI at 68.66 is Neutral, neither overbought nor oversold. The STOCH value of 97.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UI.

Ubiquiti Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSCO	80 Outperform	$265.87B	25.79	22.58%	2.37%	5.30%	3.07%
HPE	73 Outperform	$29.60B	23.19	6.39%	2.31%	11.63%	-24.41%
UI	72 Outperform	$32.38B	44.21	186.53%	0.46%	33.45%	103.34%
JNPR	71 Outperform		―		―	-2.56%	52.05%
ERIC	70 Outperform	$26.55B	15.82	19.63%	3.45%	0.98%	―
Sector *	61 Neutral	$35.62B	8.22	-10.94%	1.88%	8.86%	-10.36%
NOK	57 Neutral	$23.30B	22.13	4.31%	3.61%	-2.39%	157.33%

Ubiquiti Networks Corporate Events

Ubiquiti Networks Announces $500 Million Stock Buyback

Ubiquiti Inc. announced a $500 million stock repurchase program approved by its Board of Directors on August 21, 2025, set to expire on September 30, 2026. The program allows for the repurchase of common stock in various market conditions and transactions, with the company retaining discretion over the timing and amount of repurchases. Additionally, Ubiquiti reported record revenues of $759.2 million for the fourth quarter of fiscal 2025, ending June 30, 2025, and a full-year revenue of $2.6 billion, marking a significant increase from the previous year. The company also declared a $0.80 per share cash dividend and plans to maintain regular quarterly dividends in fiscal 2026, reflecting strong financial performance and strategic capital management.