Unity Bancorp is OVERVALUED at 22.78 per share with modest projections ahead.
Unity Bancorp appears to be very steady, given 3 months investment horizon.
Unity Bancorp owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.13, which indicates the firm had 0.13% of return per unit of risk over the last 3 months. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for Unity Bancorp, which you can use to evaluate the future volatility of the company. Please review Unity Bancorp's Semi Deviation of 1.17,
coefficient of variation of 1207.12, and Risk Adjusted Performance of 0.07 to confirm if our risk estimates are consistent with your expectations.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Unity Bancorp income statement, its balance sheet, and the statement of cash flows. Potential Unity Bancorp investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Unity Bancorp investors may use each financial statement separately, they are all related. The changes in Unity Bancorp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Unity Bancorp's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Unity Bancorp
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Unity Bancorp performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Unity Bancorp shares is the value that is considered the true value of the share. If
the intrinsic value of Unity is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Unity Bancorp. Please read more on our
fundamental analysis page.
How effective is Unity Bancorp in utilizing its assets?
Unity Bancorp reports assets on its Balance Sheet. It represents the amount of Unity resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Unity Bancorp aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Regional Banks space. To get a better handle on how balance sheet or income statements item affect Unity volatility, please check the breakdown of all its
fundamentals.
Are Unity Bancorp Earnings Expected to grow?
The
future earnings power of Unity Bancorp involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Unity Bancorp factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Unity Bancorp
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Unity
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Unity Bancorp earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Unity Bancorp dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Unity one year expected dividend income is about USD0.32 per share.
At this time, Unity Bancorp's
Dividends Paid is fairly stable compared to the past year.
Dividend Paid And Capex Coverage Ratio is likely to rise to 8.68 in 2024, whereas
Dividend Yield is likely to drop 0.01 in 2024.
Investing in dividend-paying stocks, such as Unity Bancorp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Unity Bancorp must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Unity Bancorp. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Unity Bancorp Gross Profit
Unity Bancorp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Unity Bancorp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Unity Bancorp Gross Profit growth over the last 10 years. Please check Unity Bancorp's
gross profit and other
fundamental indicators for more details.
Detailed Perspective On Unity Bancorp
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Unity Bancorp is not uncomon. There are few distinct groups of Unity Bancorp stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Unity is distributed among investors.
Ownership Allocation
Unity Bancorp maintains a total of 10.42 Million outstanding shares. Unity Bancorp maintains significant amount of outstanding shares owned by
insiders. An
insider is usually defined as a CEO, other corporate executive, director, or
institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
| Retail Investors22.15% | Insiders29.95% | Institutions47.9% |
| Retail Investors | 22.15 |
| Insiders | 29.95 |
| Institutions | 47.9 |
| 2020 | 2021 (projected) |
Net Income | 23.64 M | 25.51 M | Gross Profit | 37.1 M | 31.78 M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Unity Bancorp has an asset utilization ratio of 7.45 percent. This suggests that the company is making $0.0745 for each dollar of assets. An increasing asset utilization means that Unity Bancorp is more efficient with each dollar of assets it utilizes for everyday operations.
| Goodwill | 1.82 Million | 19.63 |
| Tax Assets | 7.44 Million | 80.37 |
Will Unity Bancorp current rise continue?
Current Information Ratio is up to 0.07. Price may slide again. Unity Bancorp has relatively low volatility with skewness of 0.7 and kurtosis of 1.03. However, we advise all investors to independently investigate Unity Bancorp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Unity Bancorp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Unity Bancorp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Conclusion on Unity Bancorp
While some other companies within the banks—regional industry are still a little expensive, even after the recent corrections, Unity Bancorp may offer a potential longer-term growth to investors. On the whole, as of the 15th of October 2021, our analysis shows that Unity Bancorp moves slightly opposite to the market. The company is
overvalued and projects
below average chance of financial distress for the next 2 years. Our present 90 days buy vs. sell advice on the company is
Hold.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Unity Bancorp. Please refer to our
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