Develops networking technology platforms for high-capacity distributed Internet access. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
Average growth of 18% a year over the last 4 years. Every year shown ended in profit.
Executive selling isn’t always bad news; people sell for personal reasons too. Still, the thin buying side is worth noting.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit power and business quality lead the class.
Debt is low and cash is strong; the finances stand solid.
Clearly below the class average.
Sales are growing strongly for its sector.
Clearly below the class average.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
Price Momentum: The stock has lagged the market in recent months; investor interest is weak right now.
The stock trades 48% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 29% — that slice of every sale is the company’s cushion in hard quarters.
Over the last 4 years, sales grew about 18% a year on average.
There is $611.2M in the vault; even if every debt were paid off, $531.2M would remain.
The company’s market value is 36 times its annual profit. Even a small disappointment could hit the price hard.
The stock trades 13% above the average analyst price target.
On our five-subject report card, UI sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: UI is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.