Uniti Group (UNIT) AI Stock Analysis

• Market Cap: $1.53B
• Dividend Yield: 2.82%
• Average Volume (3M): 3.49M
• Price to Earnings (P/E): 26.2
• Beta (1Y): 0.80
• Revenue Growth: 1.95%
• EPS Growth: 353.63%
• Country: US
• Employees: 758
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Specialty
• EPS (TTM): -0.04
• Shares Outstanding: 238,554,280
• 10 Day Avg. Volume: 3,720,195
• 30 Day Avg. Volume: 3,487,086
• 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: 4.61
• Enterprise Value/Revenue: 5.97
• Enterprise Value/Gross Profit: 7.39
• Enterprise Value/Ebitda: 8.13
• 1Y Price Target: $8.75
• Price Target Upside: 41.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 53 Neutral
• Price Target: $6.50 ▲(5.01% Upside)

Uniti Group's overall score is driven by strong strategic growth in fiber infrastructure and promising hyperscaler deals, as highlighted in the earnings call. However, financial risks due to high leverage and declining cash flow, along with bearish technical indicators, weigh on the stock's attractiveness.

Positive Factors

Fiber Expansion

The strategic expansion of fiber infrastructure positions Uniti to capture significant market share in underserved areas, driving long-term revenue growth and enhancing competitive advantage.

Hyperscaler Deals

Securing long-term contracts with major hyperscalers ensures stable revenue streams and strengthens Uniti's position in the high-growth cloud services market.

Improved Capital Structure

Lower debt yields enhance financial flexibility, reducing interest expenses and supporting further investment in growth initiatives.

Negative Factors

High Leverage

High leverage limits financial flexibility and increases vulnerability to economic downturns, potentially impacting long-term stability and growth.

Declining Cash Flow

Declining cash flow generation may constrain Uniti's ability to fund operations and growth initiatives, posing a risk to long-term financial health.

Legacy Services Decline

The decline in legacy services revenue reflects a shift in market demand, necessitating strategic adaptation to maintain overall revenue growth.

Uniti Group Business Overview & Revenue Model

Company Description

Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of wireless infrastructure solutions for the communications industry. As of September 30, 2020, Uniti owns 6.7 million fiber strand miles and other communications real estate throughout the United States.

How the Company Makes Money

Uniti Group generates revenue primarily through long-term leases of its fiber optic infrastructure to telecommunications carriers and other service providers. The company's key revenue streams include recurring revenue from fiber leasing agreements, which typically span several years, and services related to the maintenance and management of these networks. Additionally, Uniti may engage in dark fiber sales, where customers lease unused fiber capacity, and lit fiber services, where the company provides fully operational connectivity solutions. Strategic partnerships with major telecommunications firms and investments in expanding fiber networks in growing markets contribute significantly to Uniti's earnings, enhancing its competitive position in the telecommunications infrastructure sector.

Uniti Group Financial Statement Overview

Summary

Uniti Group shows strong revenue growth and operational efficiency with high gross profit margins. However, challenges include low net profit margins, high leverage, negative equity, and declining free cash flow growth, posing financial risks.

Income Statement

Uniti Group's income statement shows a strong gross profit margin of 80.73% TTM, indicating efficient cost management. However, the net profit margin is low at 2.96% TTM, reflecting challenges in converting revenue into profit. Revenue growth is robust at 49.3% TTM, suggesting strong top-line expansion. EBIT and EBITDA margins are healthy, at 46.96% and 73.45% TTM, respectively, showing good operational efficiency.

Balance Sheet

The balance sheet reveals a concerning debt-to-equity ratio of -2.52 TTM, indicating high leverage and potential financial risk. The return on equity is negative at -1.42% TTM, reflecting challenges in generating returns for shareholders. The equity ratio is negative due to negative stockholders' equity, highlighting financial instability.

Cash Flow

Cash flow analysis shows a negative free cash flow growth rate of -247.62% TTM, indicating declining cash generation. The operating cash flow to net income ratio is 0.22 TTM, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is 0.10 TTM, reflecting limited cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.18B	1.17B	1.15B	1.13B	1.10B	1.07B
Gross Profit	952.79M	1.17B	695.03M	1.12B	1.10B	907.70M
EBITDA	866.81M	882.80M	642.35M	891.99M	833.92M	92.42M
Net Income	34.95M	93.41M	-81.71M	-10.49M	123.66M	-718.91M
Balance Sheet
Total Assets	5.54B	5.28B	5.03B	4.85B	4.81B	4.73B
Cash, Cash Equivalents and Short-Term Investments	240.73M	183.85M	62.26M	43.80M	58.90M	77.53M
Total Debt	6.17B	5.88B	5.63B	5.27B	5.11B	4.83B
Total Liabilities	7.99B	7.73B	7.51B	7.12B	6.92B	6.80B
Stockholders Equity	-2.44B	-2.45B	-2.49B	-2.27B	-2.13B	-2.14B
Cash Flow
Free Cash Flow	37.87M	11.86M	-63.87M	32.55M	113.30M	-159.85M
Operating Cash Flow	376.15M	366.69M	353.13M	460.12M	499.16M	157.23M
Investing Cash Flow	-335.50M	-272.20M	-411.31M	-392.02M	-321.22M	1.39M
Financing Cash Flow	126.75M	27.08M	76.64M	-78.58M	-196.57M	-223.91M

Uniti Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNIT, the sentiment is Negative. The current price of 6.19 is below the 20-day moving average (MA) of 6.57, below the 50-day MA of 7.13, and below the 200-day MA of 7.98, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 41.68 is Neutral, neither overbought nor oversold. The STOCH value of 13.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UNIT.

Uniti Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQIX	74 Outperform	77.35B	76.64	7.06%	2.32%	5.74%	-6.58%
SBAC	62 Neutral	20.86B	24.02	-17.79%	2.22%	1.82%	71.39%
WY	62 Neutral	17.71B	62.91	2.93%	3.38%	-6.57%	-62.32%
AMT	58 Neutral	90.97B	70.32	34.82%	3.42%	-9.52%	-48.20%
UNIT	53 Neutral	$1.53B	26.17	-3.72%	2.82%	1.95%	353.63%
CCI	50 Neutral	41.50B	-11.65	335.60%	5.51%	-17.95%	-398.78%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Uniti Group Corporate Events

Uniti Group Releases Financial Results for 2025

Uniti Group Inc. has released supplemental materials on its Investor Relations website detailing its financial results and business operations for the quarterly periods in 2024 and 2025. The information highlights various revenue streams, including fiber subscribers, DSL subscribers, consumer services, business services, and wholesale, along with costs and expenses, providing stakeholders with a comprehensive view of the company’s financial health and strategic positioning.

The most recent analyst rating on (UNIT) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Uniti Group stock, see the UNIT Stock Forecast page.