Ubiquiti Networks (UI) AI Stock Analysis

• Market Cap: $44.50B
• Dividend Yield: 0.35%
• Average Volume (3M): 186.23K
• Price to Earnings (P/E): 62.5
• Beta (1Y): 1.21
• Revenue Growth: 33.45%
• EPS Growth: 103.34%
• Country: US
• Employees: 1,515
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 3.54
• Shares Outstanding: 60,498,714
• 10 Day Avg. Volume: 198,136
• 30 Day Avg. Volume: 186,230
• PEG Ratio: 0.34
• Price to Book (P/B): 37.26
• Price to Sales (P/S): 9.67
• P/FCF Ratio: 38.90
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 9.74
• Enterprise Value/Gross Profit: 22.44
• Enterprise Value/Ebitda: 29.21
• 1Y Price Target: $509.50
• Price Target Upside: -30.74% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $796.00 ▲(8.21% Upside)

Ubiquiti Networks' strong financial performance and bullish technical indicators are the primary drivers of its stock score. However, the high P/E ratio suggests overvaluation, which tempers the overall score. The absence of earnings call insights and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for Ubiquiti's products, enhancing its market position and supporting long-term business expansion.

Profitability Margins

Strong profitability margins reflect efficient operations and pricing power, which are crucial for sustaining competitive advantage and financial health.

Leverage Management

Improved leverage management reduces financial risk and enhances stability, providing Ubiquiti with greater flexibility to invest in growth opportunities.

Negative Factors

Equity Levels

Low equity levels can increase vulnerability to financial shocks, potentially impacting the company's ability to withstand market volatility and economic downturns.

Free Cash Flow Decline

A decline in free cash flow growth may pressure liquidity, limiting Ubiquiti's ability to invest in growth initiatives or weather financial challenges.

Cash Generation

Lagging cash generation compared to net income could signal inefficiencies in converting earnings into cash, potentially affecting liquidity and operational flexibility.

Ubiquiti Networks Business Overview & Revenue Model

Company Description

Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers. It develops technology platforms for high-capacity distributed Internet access, unified information technology, and consumer electronics for professional, home, and personal use. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, and other WLAN products, as well as consumer products under the Ubiquiti Labs brand name. The company also provides technology platforms, such as airMAX, which include proprietary protocols that contain technologies for minimizing signal noise; EdgeMAX, a software and system routing platform; airFiber, a point-to-point radio system; and UFiber GPON, a plug and play fiber network technology to build high speed fiber internet networks. In addition, it offers UniFi -Enterprise WLAN, an enterprise Wi-Fi system that allows for on-site and remote management through the cloud; UniFi Protect, a video surveillance system, which provides statistical reporting and advanced analytics; UniFi Switch that deliver performance, switching, and power of Ethernet support for enterprise networks; UniFi Console, an enterprise class router and security gateway device; and UniFi Access, a door access system. Further, offers base stations, radios, backhaul equipment, and customer premise equipment; embedded radio products; antennas; and mounting brackets, cables, and power over Ethernet adapters. It serves customers through a network of approximately 100 distributors, online retailers, and direct to customers worldwide. The company was formerly known as Ubiquiti Networks, Inc. and changed its name to Ubiquiti Inc. in August 2019. Ubiquiti Inc. was incorporated in 2003 and is headquartered in New York, New York.

How the Company Makes Money

Ubiquiti Networks generates revenue through the sale of its hardware and software products, which primarily target service providers and enterprise customers. The company's revenue model is based on direct sales of its networking equipment, which includes routers, switches, and wireless access points. Additionally, Ubiquiti benefits from recurring revenue through software subscriptions and managed services. Key revenue streams include the sales of UniFi products, which are popular among small to medium-sized businesses and educational institutions, as well as airMAX products used by internet service providers. Partnerships with distributors and resellers also play a significant role in expanding its market reach and driving sales. Ubiquiti’s focus on cost-effective, high-quality products allows it to maintain a competitive edge and attract a diverse customer base.

Ubiquiti Networks Financial Statement Overview

Summary

Ubiquiti Networks shows strong revenue growth and profitability, with efficient operations. The balance sheet reflects improved leverage management, though risks remain due to low equity levels. Cash flow generation is stable but under pressure, highlighting the need for careful liquidity management.

Income Statement

Ubiquiti Networks has demonstrated strong revenue growth with a 10.84% increase in the latest year, indicating robust demand for its products. The company maintains healthy profitability margins, with a gross profit margin of 43.42% and a net profit margin of 27.66%. The EBIT and EBITDA margins are also solid at 32.50%, reflecting efficient operations. Overall, the income statement shows a positive growth trajectory and strong profitability.

Balance Sheet

The balance sheet shows improvement with a reduced debt-to-equity ratio of 0.43, indicating better financial leverage management compared to previous years. The return on equity is exceptionally high at 106.53%, driven by strong net income. However, the equity ratio is relatively low, suggesting potential risks if the company faces financial distress. Overall, the balance sheet reflects improved stability but still carries some risk.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth by 13.18%, which could be a concern for future liquidity. The operating cash flow to net income ratio is 0.90, indicating that cash generation is slightly lagging behind net income. However, the free cash flow to net income ratio is strong at 1.0, showing that the company is effectively converting its earnings into cash. Overall, the cash flow position is stable but shows signs of pressure.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.57B	2.57B	1.93B	1.94B	1.69B	1.90B
Gross Profit	1.12B	1.12B	739.76M	760.73M	669.81M	912.28M
EBITDA	858.18M	836.28M	518.25M	560.86M	475.95M	754.69M
Net Income	711.92M	711.92M	349.96M	407.64M	378.66M	616.58M
Balance Sheet
Total Assets	1.47B	1.47B	1.15B	1.41B	844.71M	890.99M
Cash, Cash Equivalents and Short-Term Investments	149.73M	149.73M	126.34M	114.94M	136.65M	250.74M
Total Debt	297.42M	297.42M	757.29M	1.14B	853.26M	532.30M
Total Liabilities	798.19M	798.19M	1.06B	1.52B	1.23B	888.29M
Stockholders Equity	668.26M	668.26M	95.06M	-115.73M	-382.88M	2.70M
Cash Flow
Free Cash Flow	627.44M	627.44M	529.54M	-166.36M	356.79M	593.70M
Operating Cash Flow	640.03M	640.03M	541.52M	-145.43M	370.26M	612.02M
Investing Cash Flow	-12.59M	-12.59M	-11.97M	-20.93M	-11.18M	-19.27M
Financing Cash Flow	-604.06M	-604.06M	-518.02M	144.96M	-472.27M	-485.95M

Ubiquiti Networks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 735.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UI, the sentiment is Positive. The current price of 735.63 is above the 20-day moving average (MA) of 699.80, above the 50-day MA of 613.09, and above the 200-day MA of 434.35, indicating a bullish trend. The MACD of 31.79 indicates Positive momentum. The RSI at 62.52 is Neutral, neither overbought nor oversold. The STOCH value of 46.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UI.

Ubiquiti Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSCO	79 Outperform	$279.21B	27.74	22.65%	2.31%	5.30%	3.07%
ERIC	76 Outperform	$31.87B	12.72	25.45%	3.08%	1.04%	―
UI	71 Outperform	$44.50B	62.55	186.53%	0.35%	33.45%	103.34%
NOK	69 Neutral	$34.17B	35.45	4.03%	2.51%	5.05%	115.92%
HPE	69 Neutral	$30.60B	29.29	5.37%	2.21%	14.39%	-38.96%
ZBRA	68 Neutral	$15.70B	29.18	15.87%	―	19.12%	138.53%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Ubiquiti Networks Corporate Events

Ubiquiti Inc. Reports Strong Fiscal 2025 Results

Ubiquiti Inc. is a global leader in networking technology, providing professional networking products powered by its UISP and UniFi software platforms, serving over 200 countries. The company recently announced its financial results for the fourth quarter and full fiscal year 2025, showcasing record revenues and significant growth. Ubiquiti reported fourth-quarter revenues of $759.2 million and full-year revenues of $2.6 billion, marking a substantial increase from the previous year. The company’s GAAP diluted EPS for the quarter was $4.41, while the non-GAAP diluted EPS stood at $3.54. Ubiquiti’s financial performance was driven by strong growth in its Enterprise Technology platform, which contributed significantly to the revenue increase. The company also declared a cash dividend of $0.80 per share and announced a new stock repurchase program worth up to $500 million. Looking ahead, Ubiquiti aims to continue its growth trajectory, with plans to maintain regular quarterly cash dividends and further enhance shareholder value through strategic initiatives.

Ubiquiti Networks Announces $500 Million Stock Buyback

Ubiquiti Inc. announced a $500 million stock repurchase program approved by its Board of Directors on August 21, 2025, set to expire on September 30, 2026. The program allows for the repurchase of common stock in various market conditions and transactions, with the company retaining discretion over the timing and amount of repurchases. Additionally, Ubiquiti reported record revenues of $759.2 million for the fourth quarter of fiscal 2025, ending June 30, 2025, and a full-year revenue of $2.6 billion, marking a significant increase from the previous year. The company also declared a $0.80 per share cash dividend and plans to maintain regular quarterly dividends in fiscal 2026, reflecting strong financial performance and strategic capital management.

The most recent analyst rating on (UI) stock is a Buy with a $440.00 price target. To see the full list of analyst forecasts on Ubiquiti Networks stock, see the UI Stock Forecast page.