WinstonWınston
Back
Ubiquiti logo

Ubiquiti

UI
80
Communication Equipment · Technology
Price
$545.95
+2.03 (+0.37%)
Market Cap
$33.04B
Winston Score
80
Winston is happy
A high-quality business with solid fundamentals.

Share count falling — buybacks

−4.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 63.1M (2021) → 60.5M (2025)

Ubiquiti makes networking equipment — things like Wi-Fi routers, antennas, security cameras, and internet switches. Its products are sold to small businesses, internet service providers, and IT professionals who need reliable, affordable networking gear. The company is known for brands like UniFi and airMax, and it competes in a market dominated by much larger players like Cisco and Netgear.

Ubiquiti makes money by selling hardware directly, mostly through a network of distributors and online channels rather than a traditional sales force. It operates globally, with significant revenue coming from outside the United States, and its lean cost structure — no large sales team, minimal marketing — helps explain its unusually high profit margins. The main risk is that the company depends heavily on a small number of distributors and has faced past scrutiny over cybersecurity incidents, which could damage trust with its core IT-focused customer base.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+18.7% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+29.9% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$170M/ year

↑ Rising (+6% vs prior year)

6.6% of revenue

Below sector average (15%)

R&D investment increasing — building for the future

Insider Activity

93.0%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$369M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Ubiquiti is a rare growth stock that's already generating positive cash flow while growing at 19%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin
47.0%
Healthy — 47.0% gross margin
Operating Margin
36.9%
Excellent — 36.9% operating margin
ROCE
23.1%
Exceptional — 23.1% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales YoY
+29.7%
Fast-growing sales (29.7% YoY)
EPS YoY
+74.2%
Earnings growing fast (74.2% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Cash Conversion
75%
Modest — 75% of profit becomes cash
FCF Margin
22.0%
Converts sales into free cash efficiently (22.0%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

Debt / Equity
0.05
Conservative — low debt load (0.05)
Interest Cover
98.70x
Comfortably covers interest (98.7x)

Interest coverage above 8. Profits cover interest many times over.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

P/E Ratio (TTM)
36.1x
Pricey — P/E 36.1

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+4.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (36.1 → 31.7)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend Yield
0.59%
Small dividend — 0.59% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+33.3%
Dividend growing fast (33.3% YoY)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free
🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.
Start free trial