Uniti Group (UNIT) AI Stock Analysis

• Market Cap: $1.73B
• Dividend Yield: N/A
• Average Volume (3M): 2.70M
• Price to Earnings (P/E): 1.4
• Beta (1Y): 0.43
• 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: 3,731,176
• 30 Day Avg. Volume: 2,701,786
• 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: 6.68
• Enterprise Value/Revenue: 9.76
• Enterprise Value/Gross Profit: 9.76
• Enterprise Value/Ebitda: 13.38
• 1Y Price Target: $6.60
• Price Target Upside: -7.69% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 4.36
• Revenue Forecast (FY): $2.22B

• Rating: 68 Neutral
• Price Target: $7.00 ▼(-2.10% Downside)

Uniti Group's stock score is driven by strong valuation metrics and positive corporate events, which enhance financial flexibility. However, financial performance concerns, including high leverage and declining free cash flow, weigh on the score. Technical analysis and earnings call sentiment provide moderate support, indicating potential for future growth but with notable risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and effective business operations, supporting long-term financial stability and potential for continued expansion.

Strategic Initiatives

The merger with Windstream strengthens Uniti's market position in the fiber sector, providing a larger customer base and increased market share, which can drive future growth.

Financial Flexibility

The note offering enhances financial flexibility, allowing Uniti to invest in growth opportunities and manage debt, improving its strategic positioning and operational efficiency.

Negative Factors

High Leverage

High leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns, which can impact long-term financial health and stability.

Declining Cash Flow

Declining cash flow limits the company's ability to fund operations and growth initiatives, potentially affecting its ability to sustain long-term investments and financial commitments.

Legacy Revenue Decline

The decline in legacy revenue highlights challenges in transitioning from older technologies, which may affect overall revenue stability and require strategic adjustments.

Uniti Group Business Overview & Revenue Model

Company Description

Uniti Group Inc. (UNIT) is a publicly traded real estate investment trust (REIT) focused on the acquisition, development, and operation of communications infrastructure. The company primarily serves the telecommunications and data center sectors, providing essential assets such as fiber optic networks and other related infrastructure. Uniti Group aims to support the growing demand for high-speed internet and data services across the United States through its extensive portfolio of fiber and tower assets.

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: 7.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 7.15 is above the 20-day moving average (MA) of 6.84, above the 50-day MA of 6.34, and above the 200-day MA of 7.07, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 59.99 is Neutral, neither overbought nor oversold. The STOCH value of 56.00 is Neutral, 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	$74.42B	69.59	7.72%	2.47%	5.36%	-1.68%
AMT	71 Outperform	$80.77B	27.83	77.38%	3.76%	-5.33%	163.89%
UNIT	68 Neutral	$1.73B	1.41	―	―	38.93%	952.55%
SBAC	67 Neutral	$20.31B	24.16	―	2.31%	4.82%	25.24%
WY	66 Neutral	$17.09B	51.59	3.42%	3.57%	-1.64%	-37.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CCI	45 Neutral	$37.64B	-11.49	-276.36%	5.44%	-26.56%	-369.24%

Uniti Group Corporate Events

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.

Uniti Group Announces $250 Million Note Offering

On October 9, 2025, Uniti Group Inc. announced the pricing of a $250 million offering of secured fiber network revenue term notes through its subsidiaries, Uniti Fiber ABS Issuer LLC and Uniti Fiber TRS Issuer LLC. The notes, which are expected to close on October 24, 2025, will be secured by fiber network assets in several southern U.S. states. The proceeds from this offering will be used for general corporate purposes, including potential capital expenditures and debt repayment, enhancing Uniti’s financial flexibility and positioning in the communications industry.

Uniti Group Completes $1.4 Billion Notes Offering

On October 6, 2025, Uniti Group‘s subsidiary, Windstream Services, LLC, completed a private offering of $1.4 billion in Senior Secured Notes due 2033, using the proceeds to redeem existing notes and manage related expenses. Additionally, Uniti announced a $250 million fiber network revenue term notes offering through its subsidiaries, Uniti Fiber ABS Issuer LLC and Uniti Fiber TRS Issuer LLC, secured by fiber network assets in several states. These financial maneuvers are expected to enhance Uniti’s capital structure and support its strategic initiatives, potentially impacting its market positioning and stakeholder interests.

Uniti Group Upsizes Senior Secured Notes Offering

On September 25, 2025, Uniti Group Inc. announced that its subsidiary, Windstream Services, LLC, has priced an upsized offering of $1.4 billion in senior secured notes due 2033, increased from the previously announced $900 million. The proceeds from this offering, along with a $1 billion term loan, will be used to redeem existing 10.50% senior secured notes due 2028 and cover related expenses. The redemption is contingent upon receiving at least $2.4 billion from the notes offering and term loan, with any remaining funds allocated for general corporate purposes.

Uniti Group Announces Major Refinancing Initiative

On September 24, 2025, Uniti Group Inc. announced a refinancing initiative through its subsidiary, Windstream Services, LLC, which involves an offering of $900 million in senior secured notes due 2033 and pursuing up to $1.5 billion in term loan borrowings. The proceeds will be used to redeem existing 10.50% senior secured notes due 2028 and cover related expenses, with any remaining funds allocated for general corporate purposes. This move aims to extend the maturity dates of revolving credit facilities and improve the company’s financial flexibility.