Ubiquiti Networks (UI) AI Stock Analysis

• Market Cap: $38.46B
• Dividend Yield: 0.41%
• Average Volume (3M): 189.36K
• Price to Earnings (P/E): 53.3
• Beta (1Y): 1.25
• 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: 148,028
• 30 Day Avg. Volume: 189,364
• 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: 0.65
• Enterprise Value/Revenue: 9.74
• Enterprise Value/Gross Profit: 22.44
• Enterprise Value/Ebitda: 29.21
• 1Y Price Target: $492.00
• Price Target Upside: -22.60% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: $577.00 ▼(-9.23% Downside)

Ubiquiti Networks' strong financial performance and strategic corporate events, such as the stock buyback and record revenues, are significant positives. However, the high P/E ratio and technical indicators suggest caution due to potential overvaluation and overbought conditions.

Positive Factors

Revenue Growth

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

Stock Buyback Program

The $500 million stock buyback reflects confidence in future cash flows and can enhance shareholder value by reducing share count, boosting EPS.

Dividend Increase

Increasing dividends signals strong cash flow and management's commitment to returning value to shareholders, indicating financial stability and growth.

Negative Factors

Low Equity Levels

Low equity levels can pose financial risks, limiting the company's ability to absorb shocks and potentially affecting long-term financial health.

Cash Flow Pressure

Declining free cash flow growth may strain liquidity, impacting the company's ability to invest in growth opportunities and meet financial obligations.

Debt Levels

While leverage management has improved, maintaining debt at current levels could still pressure financial flexibility, affecting long-term strategic initiatives.

Ubiquiti Networks Business Overview & Revenue Model

Company Description

Ubiquiti Networks, Inc. (UI) is a technology company that specializes in wireless communication products and solutions for enterprises and service providers. Founded in 2005, the company focuses on providing high-performance broadband solutions for both indoor and outdoor applications. Ubiquiti operates primarily in the technology sector, offering a range of products including wireless access points, routers, and security cameras, as well as software solutions for network management. Its core product lines include the UniFi series for enterprise networking and the airMAX series for fixed wireless broadband systems.

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	632.87M	640.03M	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: 635.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 635.65 is above the 20-day moving average (MA) of 572.45, above the 50-day MA of 490.12, and above the 200-day MA of 390.89, indicating a bullish trend. The MACD of 42.69 indicates Negative momentum. The RSI at 74.70 is Negative, neither overbought nor oversold. The STOCH value of 90.20 is Negative, 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
HPE	77 Outperform	32.97B	31.88	5.11%	2.08%	14.39%	-38.96%
CSCO	73 Outperform	269.65B	26.97	22.19%	2.38%	5.30%	3.07%
UI	72 Outperform	$38.46B	53.31	186.53%	0.41%	33.45%	103.34%
ERIC	69 Neutral	27.18B	16.10	20.02%	3.38%	0.98%	0.00%
ZBRA	69 Neutral	16.20B	30.10	15.15%	―	19.12%	138.53%
NOK	62 Neutral	25.38B	24.44	6.18%	3.27%	-2.39%	157.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Ubiquiti Networks Corporate Events

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.