Uniti Group (UNIT) AI Stock Analysis

• Market Cap: $1.61B
• Dividend Yield: 2.82%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.93
• Revenue Growth: 1.95%
• EPS Growth: 353.63%
• Country: US
• Employees: 758
• Sector: Real Estate
• Sector Strength: 54
• Industry: REIT - Specialty
• EPS (TTM): -0.04
• Shares Outstanding: 238,554,280
• 10 Day Avg. Volume: 2,757,774
• 30 Day Avg. Volume: 1,949,566
• 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: 4.37
• Enterprise Value/Revenue: 5.97
• Enterprise Value/Gross Profit: 7.39
• Enterprise Value/Ebitda: 8.13
• 1Y Price Target: $7.86
• Price Target Upside: 16.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 56 Neutral
• Price Target: $6.50 ▼(-3.70% Downside)

Uniti Group's overall stock score is driven by strong strategic positioning and growth prospects in the fiber market, as highlighted in the earnings call and corporate events. However, financial risks due to high leverage and weak technical indicators weigh on the score.

Positive Factors

Market Demand

Management remains positive on AI-related demand for both lit and dark fiber in the tier 2 & 3 markets.

Mergers and Acquisitions

The consummation of the Windstream merger positions the company well to address key telecom themes such as FTTH deployments and Hyperscaler connectivity demand.

Negative Factors

Financial Performance

Unit traded lower after reporting mixed financials and lowering its guide for net income attributable to common shareholders and FFO.

Guidance and Projections

UNIT guided down 2025 PF EBITDA by approximately 6.5% to accelerate and reinvigorate tepid FTTH builds/adds.

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: 6.75
• 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 6.75 is below the 20-day moving average (MA) of 8.18, below the 50-day MA of 7.55, and below the 200-day MA of 8.45, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 35.49 is Neutral, neither overbought nor oversold. The STOCH value of 13.90 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	78 Outperform	$77.05B	77.07	7.54%	2.28%	5.74%	-6.58%
SBAC	71 Outperform	$23.41B	26.79	-14.67%	1.91%	1.82%	71.39%
WY	65 Neutral	$18.49B	66.68	2.85%	3.10%	-6.57%	-62.32%
AMT	64 Neutral	$95.81B	74.28	66.09%	3.25%	-9.52%	-48.20%
UNIT	56 Neutral	$1.61B	28.40	-3.72%	2.82%	1.95%	353.63%
Sector *	53 Neutral	$1.23B	2.72	-2.60%	5.67%	-2.15%	-149.23%
CCI	50 Neutral	$44.56B	33.81	-234.10%	5.65%	-17.95%	-398.78%

Uniti Group Corporate Events

Uniti Group Completes Merger with Windstream

On August 1, 2025, Uniti Group Inc. completed its merger with Windstream, resulting in both companies becoming indirect, wholly owned subsidiaries of Uniti. Following the merger, Uniti’s common stock will continue trading under the ticker ‘UNIT’ on the Nasdaq Global Select Market. The merger led to significant changes in the company’s leadership, with Kenneth A. Gunderman and Daniel L. Heard appointed as directors of Uniti, now a subsidiary of New Uniti. Additionally, Uniti plans to consolidate its and Windstream’s debt silos shortly after the merger, potentially impacting its financial structure and market positioning.

The most recent analyst rating on (UNIT) stock is a Sell with a $3.50 price target. To see the full list of analyst forecasts on Uniti Group stock, see the UNIT Stock Forecast page.

Uniti Group Nears Merger Completion with Windstream

Uniti Group has provided financial information for Windstream Holdings II, LLC, covering the quarter ending June 30, 2025. The company has made significant strides in its fiber expansion, adding 52,000 new premises and increasing fiber penetration to 28%. The company also reported a 15% year-over-year growth in fiber subscribers and a 27% increase in fiber subscriber revenue. Additionally, Uniti Group is progressing towards a planned merger with Windstream, expected to close around August 1, 2025, which could have implications for its market positioning and stakeholder interests.

The most recent analyst rating on (UNIT) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Uniti Group stock, see the UNIT Stock Forecast page.

Uniti Group Completes Conversion to Delaware Corporation

On July 29, 2025, Uniti Group Inc. completed its conversion from a Maryland corporation to a Delaware corporation, a strategic move approved by stockholders to align with the corporation laws of Delaware. This conversion, part of a broader strategy, retains all rights and obligations of the original entity, ensuring continuity in stock trading and employee benefit plans. The conversion is a precursor to Uniti’s anticipated merger with a subsidiary of New Windstream, LLC, set to finalize around August 1, 2025, following regulatory approvals. This merger is expected to result in Uniti stockholders receiving shares in the combined company, marking a significant step in Uniti’s strategic growth and market positioning.

The most recent analyst rating on (UNIT) stock is a Sell with a $3.50 price target. To see the full list of analyst forecasts on Uniti Group stock, see the UNIT Stock Forecast page.

Uniti Group Completes $600M Senior Notes Offering

On June 24, 2025, Uniti Group Inc. subsidiaries completed a private offering of $600 million in 8.625% Senior Notes due 2032. The proceeds were used to partially redeem existing 10.50% senior notes due 2028 and for general corporate purposes. This financial maneuver is expected to impact the company’s debt structure by reducing interest expenses and extending debt maturity, potentially improving its financial flexibility and positioning within the industry.

The most recent analyst rating on (UNIT) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Uniti Group stock, see the UNIT Stock Forecast page.

Uniti Group Announces $600 Million Notes Offering

On June 9, 2025, Uniti Group announced the pricing of a $600 million offering of 8.625% senior unsecured notes due 2032 by its subsidiaries. The proceeds from this offering are intended to fund the partial redemption of $500 million of their outstanding 10.50% senior notes due 2028, with the remainder used for general corporate purposes. This move is part of Uniti’s strategy to manage its debt obligations and improve its financial flexibility.

The most recent analyst rating on (UNIT) stock is a Sell with a $3.50 price target. To see the full list of analyst forecasts on Uniti Group stock, see the UNIT Stock Forecast page.

Uniti Group Announces $600 Million Senior Notes Offering

On June 9, 2025, Uniti Group Inc. announced a $600 million offering of senior notes due 2032 by its subsidiaries, with the proceeds intended to fund the partial redemption of $500 million of their outstanding 10.50% senior notes due 2028. The redemption is scheduled for June 24, 2025, and the remaining proceeds will be used for general corporate purposes. This move is part of Uniti’s strategic financial management and could impact its debt structure and financial flexibility.

The most recent analyst rating on (UNIT) stock is a Sell with a $3.50 price target. To see the full list of analyst forecasts on Uniti Group stock, see the UNIT Stock Forecast page.

Uniti Group Holds Virtual Annual Stockholders Meeting

On May 29, 2025, Uniti Group Inc. held its annual meeting of stockholders virtually, where three proposals were voted on. The stockholders elected five directors to the board, approved executive compensation, and ratified PricewaterhouseCoopers LLP as the independent auditor for 2025, reflecting continued shareholder support for the company’s leadership and financial oversight.

The most recent analyst rating on (UNIT) stock is a Sell with a $3.50 price target. To see the full list of analyst forecasts on Uniti Group stock, see the UNIT Stock Forecast page.