UI

Ubiquiti

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Technology

industry

Communication Equipment

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/08/26

Business Summary

The company designs and sells communication equipment that enables network connectivity for enterprises and service providers, monetizing through hardware sales supported by a scalable operating structure. Its moat is rooted in capital efficiency—evidenced by 79.70% ROIC—and extremely high operating margins of 87.50%, which indicate strong pricing discipline and cost control. Rather than competing purely on commoditized hardware economics, it extracts value through integrated systems and efficient distribution. The result is a cash-generative model where incremental revenue scales disproportionately to operating profit, reinforcing its ability to compound capital internally.

 


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VALUATION

P/E

63.3

Market Cap ($M USD)

$56,024

Forward P/E

48.9

PEG

3.5

PRICE TO SALES

18.9

PRICE TO BOOK

55.3

EV / EBITDA

52.5

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

0.30%

Annual Payout

$3.20

Payout Ratio

19.10%

Consecutive Years of Dividend Growth

1

5-Year Dividend Growth Rate

14.90%

Financial Health & Profitability

Earnings Per Share

$14.69

Next Year EPS Growth Estimate

$18.94

Next Year Revenue Growth Estimate

13.10%

Return on Equity (ROE)

87.50%

FREE CASH FLOW

Operating Margin

35.10%

Debt-to-Equity

0.1

Piotroski F-Score

6

Altman Z-Score

62.2

Return on Invested Capital (ROIC)

79.70%

Current Ratio

2.7

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

At 63.3x earnings and 48.9x forward earnings, this stock is priced for near-perfection despite a PEG Forward of 3.5, signaling growth that does not justify the multiple. The balance sheet is undeniably fortress-like with an Altman Z-Score of 62.2 and a Current Ratio of 2.7, so bankruptcy risk is effectively negligible. However, a Price/Sales of 18.9 and an extreme Price/Book of 55.3 leave no valuation cushion, meaning investors are paying a premium for quality rather than uncovering mispricing. This is financially strong, but the market already knows it—and has priced it aggressively.

AI Exposure / Tech Reliance

Operating in Communication Equipment within Technology, the company sits directly in the data infrastructure layer that AI-driven traffic expansion depends on. As AI workloads increase bandwidth demand, networking hardware becomes mission-critical, reinforcing pricing power and utilization. Its 87.50% operating margin suggests it is not merely a hardware vendor but structurally optimized for high-efficiency scaling in a tech-upgrade cycle.

The Bull Case

A GARP investor can justify ownership based on capital efficiency and structural profitability. A 79.70% ROIC paired with 13.10% Return on Equity signals exceptional reinvestment economics, while an 87.50% operating margin reflects enormous operating leverage. The Piotroski F-Score of 6 indicates solid but not euphoric financial strength—enough to show operational stability without obvious deterioration. Add a manageable Debt/Equity of 35.10% and a Current Ratio of 2.7, and you have a company generating outsized returns on invested capital with balance sheet flexibility. In short, this is a high-quality compounder, and institutions seeking durable capital efficiency can justify paying up for that profile.

The Bear Case

The valuation is stretched to a dangerous degree. A PEG Forward of 3.5 combined with a 63.3 P/E suggests growth expectations are already embedded and leave little margin for error. Short interest at 14.90% of float is not trivial and implies a meaningful cohort betting against the sustainability of current fundamentals. Add in the extreme 55.3 Price/Book and 18.9 Price/Sales, and any slowdown—especially with Sales Growth Next Year listed at $18.94—could trigger multiple compression. This is a classic high-multiple name where sentiment reversal, not insolvency, is the primary risk vector.

Market Sentiment & Smart Money

Short Interest %

8.80%

Analyst Consensus

2.67

Average Analyst Price Target

$623.50

Institutional Ownership %

5.00%

1-Year Beta

1.96

Insider Buying % (6 Mo)

93.00%%

Distance to 52-Week High

99.40%

Distance to 52-Week Low

327.30%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.