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Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
74.7%
Sector: -1.4%
Dividend Analysis audit
GROWTH
0.39%
Trailing Yield
$0.39
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
26%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Ubiquiti Inc. (UI) receives a "Hold" rating with a composite score of 46.7/100, ranked #560 out of 4446 stocks. Key factor scores: Quality 50/100, Value 40/100, Momentum 72/100. This is quantitative analysis only — not investment advice.
Ubiquiti Inc. (UI) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Ubiquiti Inc. Do?
Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers. It develops technology platforms for high-capacity distributed Internet access, unified information technology, and consumer electronics for professional, home, and personal use. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, and other WLAN products, as well as consumer products under the Ubiquiti Labs brand name. The company also provides technology platforms, such as airMAX, which include proprietary protocols that contain technologies for minimizing signal noise; EdgeMAX, a software and system routing platform; airFiber, a point-to-point radio system; and UFiber GPON, a plug and play fiber network technology to build high speed fiber internet networks. In addition, it offers UniFi -Enterprise WLAN, an enterprise Wi-Fi system that allows for on-site and remote management through the cloud; UniFi Protect, a video surveillance system, which provides statistical reporting and advanced analytics; UniFi Switch that deliver performance, switching, and power of Ethernet support for enterprise networks; UniFi Console, an enterprise class router and security gateway device; and UniFi Access, a door access system. Further, offers base stations, radios, backhaul equipment, and customer premise equipment; embedded radio products; antennas; and mounting brackets, cables, and power over Ethernet adapters. It serves customers through a network of approximately 100 distributors, online retailers, and direct to customers worldwide. The company was formerly known as Ubiquiti Networks, Inc. and changed its name to Ubiquiti Inc. in August 2019. Ubiquiti Inc. was incorporated in 2003 and is headquartered in New York, New York. Ubiquiti Inc. (UI) is classified as a large-cap stock in the Technology sector, specifically within the Electronic Equipment industry. The company is led by CEO Robert J. Pera and employs approximately 1,380 people, headquartered in NEW YORK, New York. With a market capitalization of $49.8B, UI is one of the prominent companies in the Technology sector.
Ubiquiti Inc. (UI) Stock Rating — Hold (April 2026)
As of April 2026, Ubiquiti Inc. receives a Hold rating with a composite score of 46.7/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.UI ranks #560 out of 4,446 stocks in our coverage universe. Within the Technology sector, Ubiquiti Inc. ranks #39 of 584 stocks, placing it in the top 10% of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
UI Stock Price and 52-Week Range
Ubiquiti Inc. (UI) currently trades at $908.17. The stock gained $0.94 (0.1%) in the most recent trading session. The 52-week high for UI is $810.00, which means the stock is currently trading 12.1% from its annual peak. The 52-week low is $255.00, putting the stock 256.1% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is UI Overvalued or Undervalued? — Valuation Analysis
Ubiquiti Inc. (UI) carries a value factor score of 40/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 66.76x, compared to the Technology sector average of 45.27x — a premium of 47%. The price-to-book ratio stands at 49.87x, versus the sector average of 3.16x. The price-to-sales ratio is 18.01x, compared to 1.06x for the average Technology stock. On an enterprise value basis, UI trades at 52.79x EV/EBITDA, versus 12.79x for the sector.
Overall, UI's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Ubiquiti Inc. Profitability — ROE, Margins, and Quality Score
Ubiquiti Inc. (UI) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 74.7%, compared to the Technology sector average of -1.4%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 47.2% versus the sector average of -1.0%.
On a margin basis, Ubiquiti Inc. reports gross margins of 44.4%, compared to 50.9% for the sector. The operating margin is 33.9% (sector: -0.5%). Net profit margin stands at 26.7%, versus -1.5% for the average Technology stock. Revenue growth is running at 48.1% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
UI Debt, Balance Sheet, and Financial Health
Ubiquiti Inc. has a debt-to-equity ratio of 5.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 2.72x, indicating strong short-term liquidity. Total debt on the balance sheet is $48M.
UI has a beta of 1.30, meaning it is more volatile than the broader market — a $10,000 investment in UI would be expected to move 29.7% more than the S&P 500 on any given day. The stability factor score for Ubiquiti Inc. is 40/100, reflecting average volatility within the normal range for its sector.
Ubiquiti Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Ubiquiti Inc. reported revenue of $2.81B and earnings per share (EPS) of $3.86. Net income for the quarter was $759M. Gross margin was 44.4%. Operating income came in at $960M.
In Q2 2026, Ubiquiti Inc. reported revenue of $815M and earnings per share (EPS) of $3.86. Net income for the quarter was $234M. Gross margin was 45.9%. Revenue grew 35.8% year-over-year compared to Q2 2025. Operating income came in at $293M.
In Q1 2026, Ubiquiti Inc. reported revenue of $734M and earnings per share (EPS) of $3.44. Net income for the quarter was $208M. Gross margin was 46.0%. Revenue grew 33.3% year-over-year compared to Q1 2025. Operating income came in at $262M.
In FY 2025, Ubiquiti Inc. reported revenue of $2.57B and earnings per share (EPS) of $11.77. Net income for the quarter was $712M. Gross margin was 43.4%. Revenue grew 33.4% year-over-year compared to FY 2024. Operating income came in at $836M.
Over the past 8 quarters, Ubiquiti Inc. has demonstrated a growth trajectory, with revenue expanding from $1.93B to $2.81B. Investors analyzing UI stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
UI Dividend Yield and Income Analysis
Ubiquiti Inc. (UI) currently pays a dividend yield of 0.4%. At this yield, a $10,000 investment in UI stock would generate approximately $$39.00 in annual dividend income. With a net margin of 26.7%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
UI Momentum and Technical Analysis Profile
Ubiquiti Inc. (UI) has a momentum factor score of 72/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 23/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 15/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
UI vs Competitors — Technology Sector Ranking and Peer Comparison
Comparing UI against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full UI vs S&P 500 (SPY) comparison to assess how Ubiquiti Inc. stacks up against the broader market across all factor dimensions.
UI Next Earnings Date
No upcoming earnings date has been announced for Ubiquiti Inc. (UI) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy UI? — Investment Thesis Summary
Ubiquiti Inc. presents a balanced picture with arguments on both sides. Price momentum is positive at 72/100, suggesting the trend favors buyers.
In summary, Ubiquiti Inc. (UI) earns a Hold rating with a composite score of 46.7/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on UI stock.
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Institutional Research Dossier
Ubiquiti Inc. (UI) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Ubiquiti Inc. (UI), driven by a balanced assessment of its impressive growth and profitability against a backdrop of high valuation multiples and potential risks. While Ubiquiti has demonstrated strong revenue growth and exceptional profitability metrics like ROE and operating margins, its premium valuation relative to the technology sector and concerns surrounding its capital allocation strategy warrant caution.
The company's innovative networking solutions and efficient business model are undeniable strengths, but the sustainability of its growth trajectory and the potential for increased competition necessitate a neutral stance. Investors should closely monitor Ubiquiti's ability to maintain its competitive edge, manage its supply chain effectively, and navigate the evolving technological landscape to justify its current valuation.
Business Strategy & Overview
Ubiquiti operates as a developer and seller of networking technology solutions, targeting service providers, enterprises, and consumers. The company's core strategy revolves around offering disruptive pricing on high-performance networking equipment, primarily through its UniFi and airMAX product lines. These products cater to a wide range of applications, from enterprise-grade Wi-Fi networks to fixed wireless broadband infrastructure.
Ubiquiti's business model is characterized by a lean operational structure, relying heavily on community-driven support and direct-to-consumer sales channels. This approach allows the company to maintain lower overhead costs compared to traditional networking equipment vendors. The company's product pipeline appears to be focused on expanding its UniFi ecosystem with new offerings in areas such as security, access control, and IoT devices, aiming to create a more comprehensive and integrated networking platform.
The company's strategic positioning involves targeting underserved segments of the networking market, particularly small and medium-sized businesses and emerging markets, where price sensitivity is a key factor. By offering competitive pricing and user-friendly management interfaces, Ubiquiti has gained significant market share in these segments. However, the company faces increasing competition from established players like Cisco and Arista Networks, as well as emerging vendors offering similar value propositions.
Ubiquiti's success is also tied to its ability to manage its supply chain effectively and maintain product quality. The company's reliance on contract manufacturers and global supply chains exposes it to potential disruptions and quality control issues. Furthermore, the company's focus on innovation and new product development is crucial for maintaining its competitive edge in the rapidly evolving networking technology market.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
48.1%
Sector: 14.2%
+238% VS SCTR
Economic Moat Analysis
Ubiquiti's economic moat is currently assessed as Narrow. While the company has established a strong brand reputation and a loyal customer base, its competitive advantages are not insurmountable. The primary source of Ubiquiti's moat lies in its efficient scale and brand recognition within specific niches of the networking equipment market.
The company's ability to offer high-performance products at competitive prices has created a cost advantage that allows it to capture market share from larger, more established competitors. This cost advantage is partly attributable to its lean operational structure and direct-to-consumer sales model. However, this advantage could be eroded by increased competition and potential supply chain disruptions.
Ubiquiti's UniFi ecosystem also contributes to its moat by creating switching costs for customers who have invested in the platform. Once customers have deployed UniFi access points, switches, and security gateways, they may be reluctant to switch to a competing platform due to the cost and complexity of migrating their network infrastructure. However, these switching costs are not as high as those associated with enterprise-grade networking solutions from vendors like Cisco.
The company's brand recognition and community-driven support also provide a competitive advantage. Ubiquiti has cultivated a strong online community of users who provide technical support and feedback, which helps to improve product quality and customer satisfaction. However, this community-driven support model is not unique to Ubiquiti and can be replicated by competitors.
Overall, Ubiquiti's narrow moat is based on a combination of cost advantages, switching costs, and brand recognition. However, the company's competitive advantages are not as strong as those of companies with wide moats, and its market position could be challenged by increased competition and technological changes. The company needs to continue to innovate and expand its product offerings to strengthen its moat and maintain its competitive edge.
Financial Health & Profitability
Ubiquiti's financial health exhibits a mixed picture. The company demonstrates strong profitability and revenue growth, but its balance sheet and cash flow generation require closer examination. Revenue growth has been impressive, with a 48.1% increase compared to the sector average of 14.0%. The quarterly data shows consistent revenue growth from Q1 2024 ($463.08M) to Q2 2026 ($814.87M), indicating strong demand for its products.
Profitability metrics are also robust. The company's ROE of 74.7% significantly exceeds the sector average of -1.5%, indicating efficient use of equity. Operating and net margins of 33.9% and 26.7%, respectively, are also substantially higher than the sector averages of -0.5% and -1.5%, highlighting Ubiquiti's operational efficiency and pricing power.
However, the company's high P/E ratio of 198.3x compared to the sector average of 45.3x suggests that the market has priced in significant future growth. The EV/EBITDA multiple of 39.6x, also significantly higher than the sector average of 13.0x, reinforces this view. The company's debt-to-equity ratio of 5.00 is relatively low compared to the sector average of 43.00, indicating a conservative capital structure.
The absence of Free Cash Flow (FCF) data in the provided information is a concern. While the company has reported positive net income, the lack of FCF data makes it difficult to assess its ability to generate cash from operations and fund future investments. The current ratio of 2.72 indicates strong liquidity, suggesting that the company has sufficient current assets to cover its current liabilities.
Overall, Ubiquiti's financial health is characterized by strong revenue growth, high profitability, and a conservative capital structure. However, the lack of FCF data and the high valuation multiples warrant caution. Investors should closely monitor the company's cash flow generation and its ability to sustain its growth trajectory to justify its current valuation.
Valuation Assessment
Ubiquiti's valuation presents a complex picture. On one hand, the company's exceptional growth and profitability metrics might justify a premium valuation. On the other hand, the current multiples appear stretched compared to its peers and the broader technology sector, suggesting potential overvaluation. The P/E ratio of 198.3x is significantly higher than the sector median of 45.3x, indicating that investors are paying a substantial premium for each dollar of earnings.
Similarly, the EV/EBITDA multiple of 39.6x is considerably higher than the sector median of 13.0x, suggesting that the company's enterprise value is richly valued relative to its earnings before interest, taxes, depreciation, and amortization. These high multiples imply that the market expects Ubiquiti to sustain its high growth rates and maintain its profitability margins in the future.
However, the sustainability of these high growth rates is uncertain. The networking equipment market is highly competitive, and Ubiquiti faces increasing competition from established players and emerging vendors. Furthermore, the company's reliance on a lean operational structure and direct-to-consumer sales model could make it vulnerable to supply chain disruptions and pricing pressures.
Without Free Cash Flow (FCF) data, it's difficult to assess the company's intrinsic value using discounted cash flow analysis. However, based on the available information, it appears that Ubiquiti's stock is currently expensive relative to its growth, its history, and its sector. The market has already priced in significant future growth, leaving little room for error. Therefore, a Hold rating is warranted, as the potential upside is limited by the high valuation multiples.
Risk & Uncertainty
Ubiquiti faces several specific risks that could impact its future performance. One of the primary risks is increasing competition in the networking equipment market. Established players like Cisco and Arista Networks, as well as emerging vendors, are offering similar value propositions, which could erode Ubiquiti's market share and pricing power.
Another significant risk is supply chain disruptions. The company relies on contract manufacturers and global supply chains, which are vulnerable to disruptions caused by geopolitical events, natural disasters, and trade disputes. These disruptions could lead to increased costs, delays in product delivery, and reduced revenue.
The company's reliance on a lean operational structure and direct-to-consumer sales model also exposes it to potential risks. This model requires efficient inventory management and logistics, and any disruptions in these areas could negatively impact sales and profitability. Furthermore, the company's community-driven support model could be vulnerable to changes in user behavior and online platform policies.
Another risk is related to the company's capital allocation strategy. The lack of FCF data raises concerns about the company's ability to generate cash from operations and fund future investments. If the company is unable to generate sufficient cash flow, it may need to raise capital through debt or equity financing, which could dilute existing shareholders or increase its leverage.
Bulls Say / Bears Say
The Bull Case
BULL VIEWUbiquiti's disruptive pricing and innovative products will continue to drive strong revenue growth and market share gains in the underserved segments of the networking market.
BULL VIEWThe company's lean operational structure and direct-to-consumer sales model will enable it to maintain high profitability margins and generate strong returns on equity.
BULL VIEWUbiquiti's expanding UniFi ecosystem will create switching costs for customers and strengthen its competitive advantage in the enterprise networking market.
The Bear Case
BEAR VIEWUbiquiti's high valuation multiples are unsustainable, and the stock is vulnerable to a significant correction if the company fails to meet the market's lofty expectations.
BEAR VIEWIncreasing competition in the networking equipment market will erode Ubiquiti's market share and pricing power, leading to lower revenue growth and profitability.
BEAR VIEWThe company's reliance on contract manufacturers and global supply chains exposes it to significant risks of disruptions and quality control issues.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score UI and 4,400+ other equities.
Ubiquiti Inc. exhibits a 859% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
47.2%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
44.4%
Sector: 50.9%
Operating Margin
Core business profitability
33.9%
Sector: -0.5%
Net Margin
Bottom-line profitability
26.7%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $39 annually in dividends at the current trailing rate.
