2024-04-11 11:09:54 ET
Summary
- Ubiquiti Inc. has seen significant stock growth over the past 10 years, with a surge of more than 170% and a +500% increase since going public.
- The company is focused on improving its enterprise technology, including gateway devices and wireless product security, which has led to revenue increases in the past.
- Ubiquiti's lean organizational structure and minimal sales force allow for cost savings and a substantial cash balance for research and development.
Thesis
in this article, I'm rating wireless equipment company, Ubiquiti ( UI ) as a hold despite the stock losing almost 60% (YoY), and I expect it to reach its fair value within two years; since it is undertaking an ambitious roadmap towards improving its enterprise technology including its gateway devices and security of its wireless products that will add revenue in the long run.
Q2 2024 saw new product launches including the Unifi Express (home network devices) which according to my analysis have always led to subsequent revenue increases. On the management side, Ubiquiti has an impressive business structure with a minimal sales force (mostly distributors), system engineers, and the CEO. This model in the long run will leave a substantial cash balance for research and development (R&D) which is the core of the business. The company is also increasing its direct sales to both distributors and customers especially on its e-commerce platforms as they maintain disruptive prices that help keep up with the competition....
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Ubiquiti Inc: New Products And High Level Performance Expected Into 2025