Unity Bancorp (UNTY) AI Stock Analysis

• Market Cap: $526.83M
• Dividend Yield: 1.03%
• Average Volume (3M): 51.96K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.96
• Revenue Growth: 10.57%
• EPS Growth: 31.14%
• Country: US
• Employees: 227
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 1.20
• Shares Outstanding: 10,033,030
• 10 Day Avg. Volume: 32,688
• 30 Day Avg. Volume: 51,961
• 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: 1.60
• Enterprise Value/Revenue: 4.75
• Enterprise Value/Gross Profit: 7.29
• Enterprise Value/Ebitda: 12.24
• 1Y Price Target: $59.00
• Price Target Upside: 12.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $55.00 ▲(4.84% Upside)

Unity Bancorp's strong financial performance and recent dividend increase are significant positives. The stock's valuation is attractive, though technical indicators suggest a neutral market sentiment. Overall, the company is well-positioned for future growth with a solid financial foundation.

Unity Bancorp Business Overview & Revenue Model

Company Description

Unity Bancorp, Inc. is a bank holding company based in New Jersey, primarily engaged in providing a range of financial services through its wholly-owned subsidiary, Unity Bank. The company operates in the banking sector, offering products such as personal and commercial banking services, residential and commercial loans, and various deposit accounts. Unity Bancorp serves individuals, businesses, and municipalities, focusing on community-oriented banking solutions.

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 consistent revenue and profit growth, efficient operational management, and a stable financial position. The company's ability to generate cash and manage debt effectively underscores its financial resilience. While the increase in debt warrants attention, the overall outlook is positive, with a solid foundation for future growth and profitability in the regional banking sector.

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	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	118.54M	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: Positive
• Last Price: 52.46
• 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 52.46 is above the 20-day moving average (MA) of 49.18, above the 50-day MA of 49.70, and above the 200-day MA of 45.50, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 63.85 is Neutral, neither overbought nor oversold. The STOCH value of 90.44 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
AROW	78 Outperform	$486.99M	16.12	7.72%	3.79%	8.36%	-2.24%
UNTY	75 Outperform	$526.83M	10.61	17.02%	1.03%	10.57%	31.14%
ACNB	73 Outperform	$487.27M	17.26	7.36%	2.87%	32.18%	-26.13%
SHBI	72 Outperform	$565.09M	10.50	9.88%	2.81%	2.66%	128.06%
BCAL	70 Outperform	$546.95M	19.57	7.44%	―	88.14%	0.65%
HONE	69 Neutral	$544.66M	19.48	4.56%	2.66%	5.00%	72.45%
Sector *	68 Neutral	$17.89B	12.03	10.28%	3.73%	9.80%	1.66%

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.

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.