Uniti Group (UNIT) AI Stock Analysis

• Market Cap: $1.80B
• Dividend Yield: N/A
• Average Volume (3M): 2.42M
• Price to Earnings (P/E): 1.5
• Beta (1Y): 0.47
• Revenue Growth: 38.93%
• EPS Growth: 952.55%
• Country: US
• Employees: 758
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Specialty
• EPS (TTM): 4.92
• Shares Outstanding: 239,036,330
• 10 Day Avg. Volume: 1,855,082
• 30 Day Avg. Volume: 2,420,645
• PEG Ratio: -0.07
• Price to Book (P/B): -0.55
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 114.20
• Enterprise Value/Market Cap: 6.41
• Enterprise Value/Revenue: 9.76
• Enterprise Value/Gross Profit: 9.76
• Enterprise Value/Ebitda: 13.38
• 1Y Price Target: $6.90
• Price Target Upside: -11.88% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $8.00 ▲(2.17% Upside)

The score is held back primarily by balance-sheet risk (negative equity/high leverage) and weak free-cash-flow trend, despite strong revenue growth and margins. Technicals are supportive with a clear uptrend, valuation looks inexpensive on P/E, and the latest earnings call/corporate financing actions point to improving fiber execution and funding flexibility, tempered by churn, legacy declines, and build delays.

Positive Factors

Robust revenue growth and high margins

Sustained high revenue growth alongside very strong gross, EBIT and EBITDA margins indicates an efficient, scalable operations base. Durable margins support reinvestment in fiber builds and improve the odds of long-term cash generation as the network scales and customer mix shifts.

Scale from Windstream merger and hyperscaler demand

The Windstream merger materially enlarges Uniti’s national wholesale fiber footprint, strengthening competitive position in the multi-year wholesale market. A growing hyperscaler funnel (~13%) and higher TAM for AI/hyperscalers create durable demand tailwinds and diversified revenue opportunities.

Improved funding flexibility via securitization

Expanding use of asset-backed securitizations provides a durable, non-dilutive funding channel tied to fiber cash flows. This structure can lower immediate refinancing pressure, support multiyear capex for builds, and offer financing optionality as the company executes its fiber expansion plan.

Negative Factors

High leverage and negative equity

Negative equity and very high leverage create structural balance-sheet risk that constrains strategic flexibility. High indebtedness increases refinancing and covenant pressure as capex needs grow, raising the probability that financing costs or access could hamper long-term execution.

Weakening free cash flow generation

Sharply deteriorating free cash flow limits the company's ability to self-fund fiber rollouts and service elevated debt. Persistent FCF weakness increases reliance on securitizations or capital markets, elevating financing risk and potentially slowing organic expansion over the medium term.

Execution headwinds: permitting delays and consumer churn

Permitting delays and elevated residential churn are structural execution risks that slow build cadence and reduce customer lifetime value. These issues lengthen payback on fiber investments, pressure ARPU and margins, and could materially slow subscriber-driven revenue growth across quarters.

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 lease agreements with major telecommunications companies. The company derives its income from leasing its fiber and tower assets, which provide critical infrastructure for broadband and data services. These leases typically involve fixed monthly payments, offering a stable revenue stream. Additionally, Uniti may engage in build-to-suit arrangements, where it constructs customized infrastructure for specific clients, further enhancing its income potential. Partnerships with key telecommunications providers are essential for Uniti's business model, as they ensure a consistent demand for its services and assets, contributing significantly to the company's overall earnings.

Uniti Group Financial Statement Overview

Summary

Uniti Group shows strong revenue growth and operational efficiency, but faces challenges with profitability and high leverage. The negative equity and declining free cash flow growth pose financial risks, requiring careful management to ensure long-term stability.

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	1.18B	1.17B	992.42M	1.13B	946.11M	843.83M
EBITDA	860.98M	879.31M	889.68M	641.76M	844.93M	738.85M
Net Income	35.29M	93.41M	-81.71M	-8.28M	123.66M	-706.30M
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	155.59M	62.26M	43.80M	58.90M	77.53M
Total Debt	6.17B	5.88B	5.63B	5.27B	5.16B	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: Positive
• Last Price: 7.83
• 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 UNIT, the sentiment is Positive. The current price of 7.83 is above the 20-day moving average (MA) of 7.22, above the 50-day MA of 6.69, and above the 200-day MA of 7.00, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 69.30 is Neutral, neither overbought nor oversold. The STOCH value of 87.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UNIT.

Uniti Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQIX	73 Outperform	$78.58B	73.28	7.72%	2.47%	5.36%	-1.68%
AMT	71 Outperform	$78.89B	26.88	77.38%	3.76%	-5.33%	163.89%
SBAC	67 Neutral	$19.31B	22.81	―	2.31%	4.82%	25.24%
WY	66 Neutral	$18.55B	56.36	3.42%	3.57%	-1.64%	-37.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
UNIT	61 Neutral	$1.80B	1.54	―	―	38.93%	952.55%
CCI	45 Neutral	$36.44B	-11.17	-276.36%	5.44%	-26.56%	-369.24%

Uniti Group Corporate Events

Uniti Group Launches Major Fiber Network Securitization Offering

On January 8, 2026, Uniti Group Inc. announced that its bankruptcy-remote subsidiary Kinetic ABS Issuer LLC has launched an offering of approximately $960.1 million in secured fiber network revenue term notes, expected to be repaid by February 2031 and backed by residential fiber network assets and customer contracts in Arkansas, Georgia, Kentucky, Ohio and Texas. The structure, which also includes a planned $150 million variable funding note facility and an additional liquidity funding note facility governed under the same indenture, is aimed at supporting Uniti’s financing flexibility, with proceeds earmarked for general corporate purposes such as success-based capital spending and debt repayment; the transaction underscores Uniti’s increasing use of securitization tied to its residential fiber footprint and may influence its leverage profile and capital allocation strategy while being targeted exclusively at qualified institutional buyers and offshore investors under private offering exemptions.

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.

Uniti Group Completes $250M Fiber Network Note Offering

On October 24, 2025, Uniti Group‘s subsidiaries completed a private offering of $250 million in secured fiber network revenue term notes, marking the second issuance under the company’s securitization program. This move is expected to enhance the company’s financial flexibility, with proceeds intended for general corporate purposes, including potential capital expenditures and debt repayment, thereby potentially impacting its operational efficiency and market positioning.

The most recent analyst rating on (UNIT) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Uniti Group stock, see the UNIT Stock Forecast page.