Ubiquiti Inc. (UI)
Technology · NYQ · US
Fundamentals
Valuation and ratings
Ubiquiti Inc. trades at USD543.92, close to the USD609.45 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 89 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 34.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Ubiquiti Inc.
Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers in North America, Europe, the Middle East, Africa, Asia Pacific, South America. The company 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 related software; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, door access systems, and other WLAN products. It also provides technology platforms, such as UniFi Cloud Gateway, an Enterprise class internet and security gateway device; UniFi Wi-Fi, an enterprise Wi-Fi system; UniFi Protect, a video surveillance platform; UniFi Switch that deliver performance, switching, and power of ethernet support for enterprise networks; UniFi Access, a door access solution; UniFi Talk, a plug-and-play phone system and VoIP subscription service, as well as UniFi Connect and its AmpliFi platform. In addition, the company offers airMAX, which include proprietary protocols that contain technologies for minimizing signal noise; airFiber, a wireless backhauls point-to-point radio system; UFiber GPON, a plug and play fiber network technology to build high speed fiber internet networks; and Wave, a technology platform. Further, the company provides base stations, radios, backhaul equipment, and customer premise equipment; embedded radio products; and antennas. It serves customers through a network of distributors, online retailers, and direct to customers through webstores. 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.
UI passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
8 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$173.03M · 0.3% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$145.07M · 0.1% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$98.82M · 0.1% of book
- Joel Greenblatt, Gotham Asset Management, LLC$36.07M · 0.1% of book
- Ken Griffin, CITADEL ADVISORS LLC$2.53M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Ubiquiti Inc. (UI) undervalued?
Against our discounted cash flow estimate of USD609.45, UI at USD543.92 is 12% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own UI?
8 of the institutions we track reported a position in UI in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is UI's P/E ratio?
UI trades at 34.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for UI, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.