Unity Bancorp (UNTY) AI Stock Analysis

• Market Cap: $505.08M
• Dividend Yield: 1.15%
• Average Volume (3M): 38.78K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.86
• 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: 10,039,444
• 10 Day Avg. Volume: 39,617
• 30 Day Avg. Volume: 38,777
• 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: 1.43
• Enterprise Value/Revenue: 3.64
• Enterprise Value/Gross Profit: 5.93
• Enterprise Value/Ebitda: 9.90
• 1Y Price Target: $60.50
• Price Target Upside: 20.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $49.00 ▼(-2.60% Downside)

Unity Bancorp's overall stock score is driven by its strong financial performance, characterized by consistent revenue growth and solid profitability. However, the technical analysis indicates a bearish trend, which weighs down the score. The valuation suggests the stock is undervalued, providing some upside potential. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial stability.

Cash Generation

Strong cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Profitability

High profitability margins reflect efficient operations and competitive advantages, supporting sustainable long-term growth.

Negative Factors

Debt Reliance

Moderate reliance on debt could limit financial flexibility and increase risk during economic downturns, impacting long-term stability.

Operating Cash Flow Efficiency

Low operating cash flow efficiency may indicate challenges in converting income to cash, potentially affecting liquidity management.

Market Sentiment

Bearish market sentiment could reflect underlying concerns about future performance, potentially affecting investor confidence.

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 the interest income earned on loans and investments. The bank provides various loan products such as residential mortgages, commercial real estate loans, and consumer loans, which yield interest payments from borrowers. Additionally, the company earns fee-based income from services like account maintenance fees, transaction fees, and other banking services. The bank's deposit accounts, including savings and checking accounts, also play a crucial role in its funding strategy, allowing it to finance loans while maintaining a spread between interest earned and interest paid. Unity Bancorp may also engage in partnerships with local businesses and organizations, enhancing its reach and customer base, which can lead to increased revenue through cross-selling of financial products.

Unity Bancorp Financial Statement Overview

Summary

Unity Bancorp exhibits a strong financial position with consistent revenue growth, solid profitability, and improving leverage. The company's cash flow generation is robust, although there is room for enhancing operating cash flow efficiency. Overall, Unity Bancorp is well-positioned in the regional banking sector with a focus on maintaining financial stability and growth.

Income Statement

Unity Bancorp has demonstrated strong revenue growth with an 11.8% increase in TTM, supported by healthy gross and net profit margins of 61.3% and 27.2%, respectively. The EBIT and EBITDA margins are also robust at 35.5% and 36.4%, indicating efficient operational management. The consistent revenue growth trajectory and profitability metrics suggest a solid financial performance.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.72 in the TTM, reflecting a more balanced leverage compared to previous years. Return on equity is strong at 17.2%, indicating effective use of equity capital. However, the equity ratio stands at 11.6%, suggesting a moderate reliance on debt financing. Overall, the balance sheet shows stability with a focus on improving leverage.

Cash Flow

Unity Bancorp's free cash flow growth is impressive at 88.3% in the TTM, highlighting strong cash generation capabilities. The free cash flow to net income ratio is high at 97.2%, indicating efficient conversion of income to cash. However, the operating cash flow to net income ratio is low, suggesting potential areas for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	198.14M	163.07M	150.72M	108.27M	95.78M	91.02M
Gross Profit	121.53M	101.99M	99.05M	93.36M	87.86M	69.54M
EBITDA	72.86M	56.97M	55.38M	54.18M	49.74M	33.03M
Net Income	53.99M	41.45M	39.71M	38.46M	36.12M	23.64M
Balance Sheet
Total Assets	2.88B	2.65B	2.58B	2.44B	2.03B	1.96B
Cash, Cash Equivalents and Short-Term Investments	290.66M	195.97M	286.54M	210.19M	301.30M	68.37M
Total Debt	242.02M	230.81M	366.75M	398.91M	55.61M	212.73M
Total Liabilities	2.54B	2.36B	2.32B	2.21B	1.83B	1.79B
Stockholders Equity	334.02M	295.58M	261.43M	239.23M	205.73M	173.91M
Cash Flow
Free Cash Flow	60.08M	47.29M	45.95M	41.19M	31.28M	21.76M
Operating Cash Flow	61.09M	47.99M	46.91M	42.67M	32.53M	22.32M
Investing Cash Flow	-231.21M	-92.81M	-57.85M	-541.28M	-40.52M	-175.36M
Financing Cash Flow	179.10M	30.49M	90.92M	368.59M	33.49M	214.33M

Unity Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.31
• 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 50.31 is above the 20-day moving average (MA) of 47.39, above the 50-day MA of 48.34, and above the 200-day MA of 46.58, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 62.34 is Neutral, neither overbought nor oversold. The STOCH value of 87.01 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
NRIM	76 Outperform	$553.37M	8.92	21.92%	2.54%	36.60%	92.63%
BHB	68 Neutral	$500.16M	12.92	7.37%	4.20%	4.26%	-16.52%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UNTY	67 Neutral	$505.08M	9.53	17.46%	1.15%	11.38%	36.10%
NFBK	63 Neutral	$424.79M	10.42	5.56%	4.78%	6.08%	52.64%
PFIS	63 Neutral	$494.63M	9.35	10.83%	5.06%	39.98%	413.87%
PGC	62 Neutral	$436.98M	12.81	5.50%	0.74%	9.16%	6.95%

Unity Bancorp Corporate Events

Unity Bancorp Reports Strong Third Quarter Earnings

Unity Bancorp, Inc., a financial services organization headquartered in Clinton, New Jersey, operates primarily in the banking sector, providing financial services to retail, corporate, and small business customers through its branch network in New Jersey and Pennsylvania.

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.