Want to see UNTY full AI Analyst Report?
Top Page
Unity Bancorp
(NASDAQ:UNTY)
Select Model
Select Model
Rating:71Outperform
Price Target:
$65.00
â–²(10.58% Upside)
Action:Reiterated
Date:09/10/26
UNTY scores well primarily on financial performance (strong margins, solid ROE, and positive cash generation), supported by an attractive low P/E valuation. The main offset is elevated fundamental volatility risk from the sharp reported TTM revenue decline, while technicals are largely neutral. Corporate events are modestly supportive due to the one-time tax-credit earnings lift and the dividend increase.
Positive Factors
Strong profitability
High net and EBIT margins, together with consistently strong returns on equity, indicate substantial earnings power for a regional bank. If these profitability levels remain durable, Unity can build capital internally, support lending growth, and withstand ordinary shifts in funding or credit conditions.
Negative Factors
Sharp TTM revenue decline
The steep reported top-line contraction creates a material earnings-stability concern even though margins remain healthy. If revenue does not normalize, weaker operating scale could reduce future profitability, constrain reinvestment, and make recent earnings power less dependable over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability
High net and EBIT margins, together with consistently strong returns on equity, indicate substantial earnings power for a regional bank. If these profitability levels remain durable, Unity can build capital internally, support lending growth, and withstand ordinary shifts in funding or credit conditions.
Read all positive factors
Unity Bancorp (UNTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$584.78M
Dividend Yield1.1%
Average Volume (3M)57.63K
Price to Earnings (P/E)9.5
Beta (1Y)0.83
Revenue Growth9.90%
EPS Growth14.13%
CountryUS
Employees242
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.15
Shares Outstanding10,042,578
10 Day Avg. Volume53,705
30 Day Avg. Volume57,632
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)1.50
Price to Sales (P/S)2.75
P/FCF Ratio11.70
Enterprise Value/Market Cap1.35
Enterprise Value/Revenue3.98
Enterprise Value/Gross Profit5.81
Enterprise Value/Ebitda8.30
Forecast
1Y Price Target
$68.00Price Target Upside15.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)5.94
Revenue Forecast (FY)$141.59M
Unity Bancorp Business Overview & Revenue Model
Company Description
As the parent entity of Unity Bank, Unity Bancorp, Inc. delivers a comprehensive range of commercial and retail banking solutions, catering to individual consumers, small and mid-sized enterprises, and professional organizations. Its product portf...
How the Company Makes Money
Unity Bancorp primarily makes money through traditional community-banking activities conducted by Unity Bank. The largest driver is net interest income: the bank earns interest and fees on loans (such as commercial real estate, commercial and indu...
Unity Bancorp Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 198.73M | 188.41M | 163.07M | 150.72M | 108.27M | 95.78M |
| Gross Profit | 136.01M | 127.87M | 101.99M | 99.05M | 93.36M | 87.86M |
| EBITDA | 95.31M | 78.32M | 56.97M | 55.38M | 54.18M | 49.74M |
| Net Income | 61.61M | 57.95M | 41.45M | 39.71M | 38.46M | 36.12M |
Balance Sheet | ||||||
| Total Assets | 3.25B | 2.97B | 2.65B | 2.58B | 2.44B | 2.03B |
| Cash, Cash Equivalents and Short-Term Investments | 352.93M | 340.53M | 195.97M | 286.54M | 210.19M | 301.30M |
| Total Debt | 261.41M | 266.08M | 230.81M | 366.75M | 398.91M | 55.61M |
| Total Liabilities | 2.86B | 2.62B | 2.36B | 2.32B | 2.21B | 1.83B |
| Stockholders Equity | 388.47M | 345.63M | 295.58M | 261.43M | 239.23M | 205.73M |
Cash Flow | ||||||
| Free Cash Flow | -18.26M | 44.34M | 47.29M | 45.95M | 41.19M | 31.28M |
| Operating Cash Flow | -16.99M | 44.91M | 47.99M | 46.91M | 42.67M | 32.53M |
| Investing Cash Flow | -207.22M | -256.84M | -92.81M | -57.85M | -541.28M | -40.52M |
| Financing Cash Flow | 271.05M | 248.01M | 30.49M | 90.92M | 368.59M | 33.49M |
Unity Bancorp Technical Analysis
Positive
58.78
Price Trends
57.42
Positive
57.46
Positive
55.15
Positive
Market Momentum
0.14
Negative
59.80
Neutral
89.25
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 58.78 is above the 20-day moving average (MA) of 55.69, above the 50-day MA of 57.42, and above the 200-day MA of 55.15, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 59.80 is Neutral, neither overbought nor oversold. The STOCH value of 89.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UNTY.
Unity Bancorp Risk Analysis
Unity Bancorp disclosed 27 risk factors in its most recent earnings report. Unity Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Unity Bancorp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $306.12M | 11.79 | 9.48% | 3.12% | -2.70% | 296.51% | |
71 Outperform | $584.78M | 9.47 | 16.83% | 1.10% | 9.90% | 14.13% | |
69 Neutral | $482.21M | 11.20 | 9.52% | 1.69% | 1.35% | 3.54% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $811.59M | 15.62 | 7.65% | 0.44% | 10.63% | 59.91% | |
64 Neutral | $388.72M | 8.20 | 13.90% | 2.30% | 8.56% | 40.25% | |
45 Neutral | $263.54M | -7.72 | -5.77% | 5.60% | -17.41% | -674.10% |
* Financial Sector Average
UNTY
Unity Bancorp
57.93
10.68
22.59%
BCBP
BCB Bancorp
8.53
0.68
8.62%
PKBK
Parke Bancorp
32.95
11.82
55.93%
PGC
Peapack-Gladstone Financial
45.91
19.52
73.97%
FRBA
First Bank
19.36
3.84
24.74%
BPRN
Bank of Princeton
44.83
15.46
52.62%
Unity Bancorp Corporate Events
Business Operations and StrategyFinancial Disclosures
Unity Bancorp Boosts Earnings with Federal Tax Credits
Positive
Sep 10, 2026
On September 10, 2026, Unity Bancorp, Inc. purchased approximately $27.6 million of transferable federal investment tax credits for about $25.1 million, equating to roughly $0.91 per dollar of credit. The company plans to use these credits primari...
Business Operations and StrategyDividends
Unity Bancorp Raises Quarterly Dividend, Signals Confidence
Positive
Aug 20, 2026
On August 20, 2026, Unity Bancorp announced that its Board of Directors approved a 6% increase in the third quarter cash dividend to $0.17 per common share. The dividend is payable on September 17, 2026, to shareholders of record as of September 3...
Executive/Board Changes
Unity Bancorp Announces Passing of Founding Board Director
Negative
Aug 7, 2026
Unity Bancorp, Inc. announced on August 7, 2026, the passing of director and founding member Robert (“Bobby”) H. Dallas II, who had served on the board since the bank’s inception and was instrumental in its evolution from a commu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.