Ubiquiti Inc (UI) Stock Analysis
Verdict: WATCH (do not buy)
Surging 27% growth and 36% operating margins face severe valuation pressure with stock 22% above $489 consensus and high analyst sell bias.
Investment score: 46/100
Analysis as of
Is Ubiquiti Inc stock worth reviewing? AI model thesis
The model score of 46/100 falls in the HOLD range. The central thesis and factor breakdown explain the assessment.
7-factor investment score
- Valuation: 30/100 (weight 20%)
- Financial Health: 85/100 (weight 15%)
- Technical Momentum: 40/100 (weight 15%)
- Earnings Quality: 75/100 (weight 15%)
- Insider Sentiment: 35/100 (weight 10%)
- Analyst Consensus: 20/100 (weight 10%)
- Risk-Adjusted Return: 30/100 (weight 15%)
Ubiquiti Inc opportunities and risks
What speaks for UI
- Industry-Leading Operating Margin Profile
What speaks against UI
- Severe Valuation Overhang vs Target Prices and DCF
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| UI | 37.5x | 11.0x | 30.1x | 46.2% | 29.3% | 2.5% |
| CSCO | 32.6x | 6.8x | 22.7x | 64.5% | 21.0% | 3.1% |
| ANET | 63.3x | 24.3x | 49.7x | 63.0% | 38.4% | 2.0% |
| LITE | n/a | 23.7x | n/a | 41.7% | -230.1% | 0.8% |
| MSI | 36.0x | 6.3x | 22.5x | 50.0% | 17.4% | 3.5% |
| CIEN | 79.4x | 8.6x | 51.2x | 44.1% | 10.9% | 1.4% |
| Peer median | 36.0x | 8.6x | 22.7x | 50.0% | 17.4% | 2.0% |
Frequently asked questions about Ubiquiti Inc (UI)
Is UI stock a good investment?
The cached TradeMates AI model rates Ubiquiti Inc as WATCH (do not buy) with an investment score of 46/100. The model score of 46/100 falls in the HOLD range. The central thesis and factor breakdown explain the assessment. This is algorithmic model output, not personal investment advice.
Is UI stock a buy?
The TradeMates model verdict for UI is WATCH (do not buy) with an investment score of 46/100. Treat this as a model signal to review, not a personal buy recommendation.