Unity Bancorp (UNTY) AI Stock Analysis

• Market Cap: $474.57M
• Dividend Yield: 1.13%
• Average Volume (3M): 82.46K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.00
• Revenue Growth: 6.99%
• EPS Growth: 12.46%
• Country: US
• Employees: 227
• Sector: Financial
• Sector Strength: 64
• Industry: Banks - Regional
• EPS (TTM): 1.20
• Shares Outstanding: 10,031,119
• 10 Day Avg. Volume: 66,738
• 30 Day Avg. Volume: 82,462
• 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: 1.36
• Enterprise Value/Revenue: 3.86
• Enterprise Value/Gross Profit: 6.11
• Enterprise Value/Ebitda: 10.78
• 1Y Price Target: $57.50
• Price Target Upside: 20.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $55.00 ▲(14.87% 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 exhibits strong financial health with consistent revenue and profit growth, efficient operational management, and a stable financial position. The income statement reveals a positive growth trajectory and solid profitability, while the balance sheet shows financial stability and a focus on equity growth. The cash flow position is stable with good cash generation capabilities. The increase in debt warrants some attention, but the overall outlook is positive.

Income Statement

Unity Bancorp demonstrates strong revenue growth with a significant increase from $108.3 million in 2022 to $166.7 million in the TTM, showing a robust revenue growth rate. The gross profit and net profit margins have been stable, reflecting efficient cost management and profitability. The EBIT and EBITDA margins also indicate strong operational efficiency. Overall, the income statement reveals a positive growth trajectory and solid profitability.

Balance Sheet

The balance sheet is robust with a healthy equity ratio and a manageable debt-to-equity ratio, indicating financial stability and a moderate leverage position. The increase in stockholders' equity over the years reflects strong retained earnings and capital management. However, the increase in total debt over time requires monitoring. Overall, the balance sheet shows strength with a focus on equity growth and risk management.

Cash Flow

Unity Bancorp's cash flow statement demonstrates consistent generation of free cash flow and positive operating cash flow, supporting its capital expenditures and financing needs effectively. The free cash flow has shown growth, indicating efficient cash management. The operating cash flow to net income ratio is healthy, reflecting a strong conversion of profits into cash. Overall, the cash flow position is stable with good cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	166.70M	163.07M	150.72M	108.27M	95.78M	91.02M
Gross Profit	105.50M	101.99M	99.05M	93.36M	87.86M	69.54M
EBITDA	59.74M	56.97M	55.38M	54.18M	49.74M	33.03M
Net Income	43.46M	41.45M	39.71M	38.46M	36.12M	23.64M
Balance Sheet
Total Assets	2.77B	2.65B	2.58B	2.44B	2.03B	1.96B
Cash, Cash Equivalents and Short-Term Investments	302.03M	195.97M	286.54M	210.19M	301.30M	68.37M
Total Debt	253.60M	236.17M	366.75M	398.91M	55.61M	212.73M
Total Liabilities	2.46B	2.36B	2.32B	2.21B	1.83B	1.79B
Stockholders Equity	306.14M	295.58M	261.43M	239.23M	205.73M	173.91M
Cash Flow
Free Cash Flow	49.19M	47.29M	45.95M	41.19M	31.28M	21.76M
Operating Cash Flow	50.08M	47.99M	46.91M	42.67M	32.53M	22.32M
Investing Cash Flow	-172.55M	-92.81M	-57.85M	-541.28M	-40.52M	-175.36M
Financing Cash Flow	151.08M	30.49M	90.92M	368.59M	33.49M	214.33M

Unity Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 47.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 47.88 is below the 20-day moving average (MA) of 51.38, above the 50-day MA of 47.65, and above the 200-day MA of 44.61, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 40.00 is Neutral, neither overbought nor oversold. The STOCH value of 8.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UNTY.

Unity Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AROW	77 Outperform	$447.23M	14.64	7.72%	4.14%	8.36%	-2.24%
ACNB	75 Outperform	$438.11M	15.51	7.36%	3.11%	32.19%	-26.13%
UNTY	74 Outperform	$474.57M	11.22	15.17%	1.13%	6.99%	12.46%
SHBI	71 Outperform	$515.63M	9.62	9.88%	3.15%	2.66%	128.06%
BCAL	68 Neutral	$473.23M	16.90	7.44%	―	88.14%	0.09%
HONE	68 Neutral	$500.10M	17.92	4.56%	2.93%	4.47%	72.45%
Sector *	67 Neutral	$17.01B	11.65	9.80%	3.95%	10.59%	1.50%

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.