Ubiquiti Shareholders See 16% CAGR Over Last Five Years, Despite 38% Share Price Drop
June 20, 2023
🌧️Trending News
The past five years have seen Ubiquiti Inc ($NYSE:UI). shareholders experience strong returns, with the company achieving a 16% Compound Annual Growth Rate (CAGR).
However, despite these returns, the company’s share price has seen a 38% drop in the same time frame, leading to understandable concerns from shareholders. Ubiquiti Inc. is a technology company specializing in products and solutions for enterprise and carrier networks. The company’s product portfolio includes wireless systems, routers, switches, and internet of things (IoT) solutions. Ubiquiti Inc. also offers cloud management software and services that allow customers to manage their networks remotely and securely. The company also provides a suite of enterprise-class network management solutions designed to make it easier for businesses to manage their networks. In an effort to increase profitability, Ubiquiti Inc. is focused on expanding its product portfolio and leveraging its global network to provide better solutions for its customers. The company has also recently launched a number of new products, such as its line of UniFi Wi-Fi access points, which have been well received by customers. With these new offerings, Ubiquiti Inc. seeks to position itself as a leader in the enterprise networking sector. Despite share prices falling 38%, Ubiquiti Inc. shareholders have seen a strong return over the past five years, with a 16% CAGR. However, it remains to be seen if the company will be able to sustain this growth in the face of market volatility. In the long run, investors will be watching closely to see how Ubiquiti Inc. fares and whether its new product offerings will be able to increase shareholder value.
Analysis
At GoodWhale, we’ve taken a comprehensive look at UBIQUITI INC‘s fundamentals to make an assessment. We’ve rated it as a medium risk investment, taking into account various financial and business aspects. We’ve identified two risk warnings in their income sheet and balance sheet that investors should be aware of. If you’re interested in learning more, register with us to gain full access to our analysis. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ubiquiti Inc. More…
| Total Revenues | Net Income | Net Margin |
| 1.89k | 396.47 | 20.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ubiquiti Inc. More…
| Operations | Investing | Financing |
| -89.89 | -16.11 | 114.21 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ubiquiti Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.38k | 1.56k | -3.05 |
Key Ratios Snapshot
Some of the financial key ratios for Ubiquiti Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.7% | 3.6% | 27.1% |
| FCF Margin | ROE | ROA |
| -5.7% | -148.3% | 23.3% |
Peers
The company offers its services to residential, business and government customers in more than 140 countries. Ubiquiti has a strong presence in the Americas, Europe, Asia-Pacific and Africa. The company’s main competitors are Ceragon Networks Ltd, Eutelsat Communications and Saf Tehnika.
– Ceragon Networks Ltd ($NASDAQ:CRNT)
Ceragon Networks Ltd is a leading global provider of wireless backhaul solutions that enable mobile operators and other wireless service providers to deliver voice and data services. The company’s solutions are based on its proprietary IP-based wireless technology and are designed to meet the challenges of the most demanding backhaul applications. Ceragon’s solutions have been deployed in more than 150 countries and support over 2,000 customers, including many of the world’s largest mobile operators.
– Eutelsat Communications ($OTCPK:EUTLF)
Eutelsat Communications is a leading satellite operator, providing reliable and secure satellite-based connectivity to fixed and mobile customers around the world. The company has a market cap of 2.29B as of 2022 and a Return on Equity of 9.77%. Eutelsat Communications is headquartered in Paris, France.
– Saf Tehnika ($BER:VTZ)
Saf Tehnika is a publicly traded company with a market capitalization of $38.02 million as of 2022. The company has a return on equity of 29.08%. Saf Tehnika is a provider of critical communications solutions for mission-critical applications in government, defense, public safety, and utility markets worldwide. The company’s products and solutions are used by customers in more than 100 countries.
Summary
Ubiquiti Inc. is a communications technology company that offers enterprise networking solutions. Over the last five years, Ubiquiti’s shareholders have earned a 16% compound annual growth rate (CAGR).
However, the company’s stock price has dropped 38%, raising concerns among investors. On the same day, the stock price dropped, suggesting that investors were selling their shares out of fear or uncertainty. For those considering investing in Ubiquiti Inc., it is important to closely monitor company performance and news to evaluate the prospects of this technology company. Researching the competitive landscape and analyzing financial statements should also be carried out to gain a better understanding of Ubiquiti’s investment potential.
