Unity Bancorp (UNTY) AI Stock Analysis

• Market Cap: $455.60M
• Dividend Yield: 1.23%
• Average Volume (3M): 43.09K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.97
• Revenue Growth: 11.38%
• EPS Growth: 36.10%
• Country: US
• Employees: 227
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.33
• Shares Outstanding: 10,033,030
• 10 Day Avg. Volume: 31,963
• 30 Day Avg. Volume: 43,089
• PEG Ratio: 1.71
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 2.68
• P/FCF Ratio: 9.25
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 4.07
• Enterprise Value/Gross Profit: 6.24
• Enterprise Value/Ebitda: 10.48
• 1Y Price Target: $60.50
• Price Target Upside: 33.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: $54.00 ▲(18.92% Upside)

Unity Bancorp's strong financial performance and attractive valuation are the primary drivers of its stock score. Despite recent challenges in free cash flow growth, the company maintains robust profitability and stable leverage. However, technical indicators suggest a bearish trend, which slightly offsets the positive financial and valuation aspects.

Unity Bancorp Business Overview & Revenue Model

Company Description

Unity Bancorp, Inc. operates as the holding company for Unity Bank that provides commercial and retail banking products and services to individuals, small and medium sized businesses, and professional communities. The company offers personal and business checking accounts, time deposits, money market accounts, and regular savings accounts, as well as noninterest and interest-bearing demand deposits. It also provides small business administration loans; commercial loans; and residential mortgage and consumer loans, including residential real estate, home equity lines and loans, and residential construction lines, as well as personal loans. the company offered its services through the Internet and nineteen branch offices located in Bergen, Hunterdon, Middlesex, Somerset, Union, and Warren counties in New Jersey, as well as Northampton County, Pennsylvania. Unity Bancorp, Inc. was incorporated in 1991 and is based in Clinton, New Jersey.

How the Company Makes Money

Unity Bancorp generates revenue primarily through interest income from loans and interest-earning assets, which constitute a significant portion of its earnings. The company provides various types of loans, including residential mortgages, commercial real estate loans, and consumer loans, which yield interest payments over their life cycles. Additionally, Unity Bancorp earns non-interest income through fees related to deposit accounts, services, and transaction fees. The bank also engages in investment activities and may earn income from securities, further diversifying its revenue streams. Strategic partnerships with local businesses and community organizations aid in expanding its customer base and enhancing service offerings, contributing positively to its financial performance.

Unity Bancorp Financial Statement Overview

Summary

Unity Bancorp exhibits strong financial health with robust revenue growth and profitability metrics. The balance sheet is stable with manageable leverage, and cash flow metrics are generally positive despite recent free cash flow growth challenges. The company is well-positioned in its industry, with a solid foundation for future growth.

Income Statement

Unity Bancorp has demonstrated strong revenue growth with a 6.31% increase in TTM, supported by healthy gross and net profit margins of 65.23% and 28.50%, respectively. The EBIT and EBITDA margins are robust at 37.25% and 38.82%, indicating efficient operational management. The consistent revenue growth trajectory and solid profitability metrics suggest a well-managed income statement.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.21, reflecting a balanced approach to leveraging. Return on equity is strong at 16.75%, indicating effective use of equity capital. However, the equity ratio is not explicitly provided, which could provide additional insights into asset financing. Overall, the balance sheet reflects stability with manageable leverage.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth by 34.40% in TTM, which is a concern. However, the operating cash flow to net income ratio is positive at 1.52%, and the free cash flow to net income ratio is healthy at 97.16%, indicating efficient cash conversion. Despite the recent decline in free cash flow growth, the company maintains strong cash flow metrics relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	177.22M	163.07M	150.72M	108.27M	95.78M	91.02M
Gross Profit	115.60M	101.99M	99.05M	93.36M	87.86M	69.54M
EBITDA	68.80M	56.97M	55.38M	54.18M	49.74M	33.03M
Net Income	50.50M	41.45M	39.71M	38.46M	36.12M	23.64M
Balance Sheet
Total Assets	2.93B	2.65B	2.58B	2.44B	2.03B	1.96B
Cash, Cash Equivalents and Short-Term Investments	305.84M	195.97M	286.54M	210.19M	301.30M	68.37M
Total Debt	387.42M	236.17M	366.75M	398.91M	55.61M	212.73M
Total Liabilities	2.61B	2.36B	2.32B	2.21B	1.83B	1.79B
Stockholders Equity	319.84M	295.58M	261.43M	239.23M	205.73M	173.91M
Cash Flow
Free Cash Flow	32.26M	47.29M	45.95M	41.19M	31.28M	21.76M
Operating Cash Flow	33.21M	47.99M	46.91M	42.67M	32.53M	22.32M
Investing Cash Flow	-208.60M	-92.81M	-57.85M	-541.28M	-40.52M	-175.36M
Financing Cash Flow	271.71M	30.49M	90.92M	368.59M	33.49M	214.33M

Unity Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45.41
• 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 UNTY, the sentiment is Negative. The current price of 45.41 is below the 20-day moving average (MA) of 47.97, below the 50-day MA of 50.00, and below the 200-day MA of 46.62, indicating a bearish trend. The MACD of -0.98 indicates Positive momentum. The RSI at 37.26 is Neutral, neither overbought nor oversold. The STOCH value of 12.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UNTY.

Unity Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNTY	―	$455.60M	8.59	17.46%	1.23%	11.38%	36.10%
NRIM	―	$485.55M	7.82	21.92%	2.89%	36.60%	92.63%
BHB	―	$489.31M	12.66	7.37%	4.20%	4.26%	-16.52%
PFIS	―	$445.16M	8.42	10.83%	5.55%	40.00%	413.87%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NFBK	―	$427.30M	10.49	5.56%	4.85%	6.08%	52.64%
PGC	―	$450.04M	13.29	5.50%	0.76%	9.16%	6.95%

Unity Bancorp Corporate Events

Unity Bancorp Announces 7% Dividend Increase

On August 21, 2025, Unity Bancorp, Inc. announced a 7% increase in its third-quarter dividend, declaring a cash dividend of $0.15 per common share, payable on September 19, 2025, to shareholders of record as of September 5, 2025. This move reflects the company’s confidence in its earnings strength and long-term growth trajectory, aiming to deliver consistent shareholder returns while maintaining a disciplined approach to capital management.

The most recent analyst rating on (UNTY) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Unity Bancorp stock, see the UNTY Stock Forecast page.