Uniti Group (NASDAQ: UNIT), a key player in the REIT-Specialty industry, has been making significant strides in the stock market, potentially poised to outpace Power REIT (NYSE: PW). As of July 22, 2023, Uniti Group has a valuation market value of $5.07, with a naive expected forecast value of $5.22, hinting at a possible upside price of $10.19. Despite a negative profit margin of 7% and a book value of -$9.84, the company's EBITDA stands at a robust
$880.4M. Uniti Group's gross profit is an impressive
$975.4M, backed by a quarterly revenue growth of 4.2%. However, the company reported a loss in quarterly earnings growth of 3.4%. The firm's total cash from operating activities amounted to
$460.1M, but it experienced a decrease in cash of $15.1M, primarily due to total cash from financing activities registering a loss of $83.2M. With 6 analysts holding and 1 suggesting a strong sell, the Wall Street target price for Uniti Group is $5.56, with the lowest estimated target price being $3. The company's short ratio stands at 5.44, indicating a potential downside price of $0.24. Despite the challenges, Uniti Group's revenue per share of $4.837 and cash and short-term investments of $43.8M provide a solid foundation for future growth. Many prudent traders are currently steering clear of the equity real estate investment trusts (REITs) sector. Given this, it seems logical to delve deeper into Uniti Group and comprehend its standing against Power REIT and other comparable entities. We will dissect some of the competitive aspects of both Uniti and Power.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Uniti or Gaming is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Uniti dividends
A dividend is the distribution of a portion of Uniti earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Uniti dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Uniti one year expected dividend income is about USD0.35 per share.
At this time, Uniti's
Dividends Paid is comparatively stable compared to the past year.
Dividend Yield is likely to gain to 0.10 in 2024, whereas
Dividend Payout Ratio is likely to drop
(1.38) in 2024.
Investing in dividend-paying stocks, such as Uniti Group is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Uniti must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Uniti. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Uniti's Liquidity
Uniti
financial leverage refers to using borrowed capital as a funding source to finance Uniti Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Uniti financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Uniti's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Uniti's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Uniti's total debt and its cash.
Correlation Between Uniti and Gaming Leisure Properties
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Uniti together with similar or unrelated positions with a negative correlation. For example, you can also add Gaming Leisure to your portfolio. If Gaming Leisure is not perfectly correlated to Uniti it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Uniti, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Uniti and Gaming Leisure in your portfolio? Please note if you are using this as a pair-trade strategy between Uniti and Gaming Leisure, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between UNIT and GLPI for more information.
Breaking down the case for Uniti
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now go over Uniti revenue. Based on the latest financial disclosure, Uniti Group reported 1.13
B of revenue. This is 25.57% lower than that of the Equity Real Estate Investment Trusts (REITs) sector and significantly higher than that of the
Real Estate industry. The revenue for all United States stocks is 88.04% higher than that of Uniti. As for Power REIT we see revenue of 8.52
M, which is much higher than that of the Real Estate
| UNIT | 1.13 Billion | 99.25 |
| Sector | 0.0 | 0.0 |
| PW | 8.52 Million | 0.75 |
Uniti Group (NASDAQ: UNIT) is in a heated race with Power REIT (NYSE: PW) in the stock market. With a substantial number of shares shorted at 20.43M, Uniti Group is making a strong case for itself.
The company's current ratio stands at 0.60X, indicating a somewhat precarious liquidity position, which is somewhat offset by a net asset value of
$4.85B. The company's PEG ratio of 0.586 suggests that it may be undervalued given its EPS growth. Uniti Group's EBITDA of
$891.99M further strengthens its financial position, while an operating margin of 0.51% shows the company's efficiency in converting sales into profit. However, the company's EPS estimate for the current year is only $0.27, a figure that is dwarfed by its total debt of $5.27B. The company's five-year return stands at 9.30%, suggesting a decent long-term performance. However, with a beta of 1.39, the stock is more volatile than the market, which could pose a risk for potential investors. The company's risk-adjusted performance of 0.1153 further highlights this volatility. In conclusion, while Uniti Group has some strong financial indicators, its high debt and volatility make it a risky investment. However, with a potential upside of 9.97, it could still surpass Power REIT in the stock market race. .
Will Uniti continue to gain?
The latest information ratio for Uniti Group, standing at 0.14, signals a relatively low level of risk in relation to potential returns. This implies that the company has been managing its financial resources effectively, which could potentially lead to further gains. However, investors should closely monitor market trends and the company's
future performance to ensure sustained growth. Uniti Group exhibits above-average downside volatility for the selected time frame. We recommend that investors further examine Uniti Group to ensure that all
market timing and asset allocation strategies align with the estimation of Uniti's future alpha. Understanding various
market volatility trends can often assist investors in timing the market. The proper use of volatility indicators allows traders to gauge Uniti's stock risk against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly affect
Uniti's stock price, causing stress for investors as they witness their shares' value decline.
This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, Uniti Group's stock presents a mixed bag for investors as we move into August. With a valuation market value of
$5.07 and a real value of
$5.15, the stock is currently trading close to its intrinsic value. The analyst overall consensus is a 'Hold', with 6 holds, 2 strong buys, and 1 strong sell out of 9 estimates. The analyst target price estimated value stands at $6.472, indicating a potential upside. However, investors should also consider the possible downside price of $0.24. While the highest estimated target price is an attractive $10, the lowest estimate is a mere $3, suggesting considerable uncertainty. Therefore, while there may be potential for gains, investors should approach Uniti Group with caution. .
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Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
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