Ubiquiti Inc. Common Stock (UI)

FairStock Score: 69/100 — STEADY

Key Financials

Strengths

• Generates $517 million in annual free cash flow (0.8% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 136.1% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.11, providing financial flexibility
• Altman Z-Score of 65.0 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($74) with negative 1269% margin of safety—limited downside protection

AI Analysis

Ubiquiti Inc. Common Stock is a large-cap technology company valued at $61.7 billion. The business generates $3.0 billion in annual revenue with a 7.9% net margin and $517 million in free cash flow. From a quality standpoint, Ubiquiti shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 65.0 confirms fortress-level solvency. On valuation, the stock is commanding a steep 70.8x multiple, with trades far above its Graham Number ($74) with no margin of safety. Growth dynamics show revenue growing at 35.8% and profit growth of 70.8%. Our composite FairStock Score of 60/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Ubiquiti's 36% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $517 million in annual free cash flow (0.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 71x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer