Unity Bancorp (UNTY) AI Stock Analysis

• Market Cap: $512.89M
• Dividend Yield: 1.09%
• Average Volume (3M): 76.54K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 1.01
• Revenue Growth: 6.99%
• EPS Growth: 12.46%
• Country: US
• Employees: 227
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 1.13
• Shares Outstanding: 10,031,119
• 10 Day Avg. Volume: 83,411
• 30 Day Avg. Volume: 76,543
• PEG Ratio: 2.07
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.11
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 1.68
• Enterprise Value/Gross Profit: 6.49
• Enterprise Value/Ebitda: 3.84
• 1Y Price Target: $49.50
• Price Target Upside: -3.19% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $55.00 ▲(7.57%Upside)

Unity Bancorp's strong financial performance and positive corporate events are the most significant strengths. The stable valuation and positive technical indicators support the overall stock score. However, the technical analysis suggests caution due to potential overbought conditions, which slightly tempers the otherwise robust outlook.

Unity Bancorp Business Overview & Revenue Model

Company Description

Unity Bancorp, Inc. is a financial services company headquartered in Clinton, New Jersey. It serves as the holding company for Unity Bank, which provides a range of financial services to individuals, small to medium-sized businesses, and professional communities. The bank operates through its network of branches across New Jersey and Pennsylvania, offering products such as personal and business checking accounts, savings accounts, money market accounts, certificates of deposit, and various loan products including commercial, small business, and residential mortgage loans.

How the Company Makes Money

Unity Bancorp makes money primarily through interest income generated from its loan products, such as commercial and residential mortgages, consumer loans, and small business loans. The company earns interest on these loans, which constitutes a significant portion of its revenue. Additionally, Unity Bancorp generates income from fees associated with its banking services, including service charges on deposit accounts, transaction fees, and other financial services. Unity Bancorp's earnings are also influenced by the interest rate environment, which affects the net interest margin— the difference between the interest income generated and the interest paid on deposits. The bank also engages in investment activities, which can contribute to its revenue through investment securities income. Strategic partnerships with local businesses and community engagement further support its growth and service offerings.

Unity Bancorp Financial Statement Overview

Summary

Unity Bancorp demonstrates strong financial health with robust revenue and profit growth. The company benefits from a debt-free position, enhancing its financial stability. Cash flows are positive and growing, albeit with room for improved cash efficiency. Overall, the company is in a strong position within the banking industry, though there are areas for potential enhancement in cash flow management and return on equity.

Income Statement

Unity Bancorp has shown strong revenue growth, increasing from $99.97 million to $155.74 million in the latest period, representing a significant revenue growth rate. The gross profit margin remains robust at 100%, indicating excellent cost management. The net profit margin also shows health at approximately 26.6%. However, the absence of EBITDA data limits the full assessment of its operational efficiency.

Balance Sheet

The balance sheet is solid with zero total debt reported in the latest period, drastically improving the debt-to-equity ratio to zero, which is a positive sign of financial stability. The equity ratio has improved to 11.1% due to increased stockholders' equity. However, the return on equity is moderately strong at 14%, indicating room for improvement in generating returns for shareholders.

Cash Flow

Unity Bancorp's free cash flow has grown, with a current free cash flow of $47.99 million, reflecting a positive trajectory. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to earnings. However, the free cash flow to net income ratio could be improved, suggesting potential for further cash efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.74M	102.22M	97.64M	88.04M	70.38M
Gross Profit	155.74M	102.22M	97.64M	88.04M	70.38M
EBITDA	0.00	0.00	0.00	0.00	0.00
Net Income	41.45M	39.71M	38.46M	36.12M	23.64M
Balance Sheet
Total Assets	2.65B	2.58B	2.44B	2.03B	1.96B
Cash, Cash Equivalents and Short-Term Investments	114.09M	112.43M	115.09M	82.53M	68.37M
Total Debt	230.81M	366.75M	393.31M	55.61M	212.73M
Total Liabilities	2.36B	2.32B	2.21B	1.83B	1.79B
Stockholders Equity	295.58M	261.43M	239.23M	205.73M	173.91M
Cash Flow
Free Cash Flow	47.29M	45.95M	41.19M	22.18M	33.19M
Operating Cash Flow	47.99M	46.91M	42.67M	23.45M	33.74M
Investing Cash Flow	-92.81M	-57.85M	-541.28M	-31.44M	-186.78M
Financing Cash Flow	30.49M	90.92M	368.59M	33.49M	214.33M

Unity Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.13
• 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 UNTY, the sentiment is Positive. The current price of 51.13 is above the 20-day moving average (MA) of 47.83, above the 50-day MA of 45.33, and above the 200-day MA of 43.19, indicating a bullish trend. The MACD of 2.30 indicates Negative momentum. The RSI at 63.05 is Neutral, neither overbought nor oversold. The STOCH value of 81.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UNTY.

Unity Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACNB	76 Outperform	$448.69M	14.74	7.44%	3.17%	22.16%	-15.57%
SHBI	76 Outperform	$548.67M	11.08	9.27%	2.92%	15.26%	160.27%
AROW	75 Outperform	$451.40M	15.96	7.25%	4.14%	11.46%	-1.07%
UNTY	74 Outperform	$512.89M	11.99	15.17%	1.09%	6.99%	12.46%
Sector *	73 Outperform	15.10B	17.77	16.30%	3.87%	8.25%	25.93%
HONE	69 Neutral	$521.21M	19.42	4.44%	2.98%	6.65%	67.14%
BCAL	66 Neutral	$525.09M	36.47	4.21%	―	60.34%	-62.91%

Unity Bancorp Corporate Events

Unity Bancorp Announces Cash Dividend for Shareholders

On May 22, 2025, Unity Bancorp announced a cash dividend of $0.14 per common share. This dividend will be payable on June 20, 2025, to shareholders who are recorded as of June 6, 2025.

The most recent analyst rating on (UNTY) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Unity Bancorp stock, see the UNTY Stock Forecast page.

Unity Bancorp Reports 2024 Financial Performance

At the 2025 Annual Meeting of Shareholders, Unity Bancorp reported its financial performance for 2024, highlighting a net income increase to $41.45 million from $39.71 million in 2023. The company also noted a strong asset quality with net charge-offs remaining low and a strategic focus on maintaining a diversified business model and strong capital management practices.