Summary: On Sale
This is a step-by-step stock review to answer the question, is Ubiquiti (UI) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Ubiquiti (UI) stock a good buy?
1. Ubiquiti Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founded in 2003 by Robert Pera, Ubiquiti Inc. is a technology company based in New York City.
- Initial Goal: Develop innovative wireless networking products for underserved markets.
- First Product: Launched a high-performance Wi-Fi solution, the PowerStation, in 2005.
- Rapid Growth: Gained popularity with cost-effective, high-performance networking equipment.
- IPO Milestone: Went public in 2011, listed on NASDAQ under the ticker UBNT.
- Product Range: Expanded to include UniFi, airMAX, EdgeMAX, and AmpliFi product lines for enterprise and home use.
- Global Reach: Operates in over 180 countries with a vast network of distributors and service providers.
- Innovations: Pioneered in wireless technology, offering scalable and reliable solutions for Wi-Fi, routing, switching, and surveillance.
- Community Engagement: Strong user community, Ubiquiti Community, contributes to product development and support.
- Awards and Recognition: Known for disruptive innovation and high-quality, affordable networking solutions.
- Customer Focus: Committed to providing powerful networking technology accessible to both professionals and enthusiasts.
- Mission: Democratize network technology by delivering advanced, affordable solutions worldwide.
- Future Vision: Continue to innovate in wireless and wired networking, ensuring connectivity and access for all.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: watch
- Score: 50/100
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Ubiquiti (UI) makes money:
- Hardware Sales: Ubiquiti makes money selling networking hardware like access points, routers, switches, and surveillance gear.
- Software and Licensing: Generates revenue selling software licenses for networking products with extra features and support.
- Subscription Services: Offers cloud management, security features, and remote monitoring on a subscription basis.
- Accessories: Sells mounting kits, antennas, and power adapters for its hardware.
- Professional Services: Provides consulting, training, and setup help for Ubiquiti solutions.
- Warranty and Support: Earns revenue from warranty extensions, tech support, and maintenance contracts.
- Cloud Services: Generates revenue from cloud services like network management and remote access.
- Custom Development: Offers tailored networking solutions for specific customer needs.
- Certification Programs: Provides paid courses and certifications for IT professionals to manage Ubiquiti products.
- Market Expansion: Increases revenue by entering new markets and offering new networking solutions worldwide.
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Ubiquiti (UI) stacks up against other companies.
- Motorola Solutions, Inc. (MSI) – 78
- Hewlett Packard Enterprise Company. (HPE) – 67
- Ciena Corporation. (CIEN) – 61
- Satixfy Communications Ltd. (SATX) – 61
- Ubiquiti Inc. (UI) – 50
- Knowles Corporation. (KN) – 44
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Founding Ubiquiti: Robert Pera started Ubiquiti Networks in 2005, focusing on affordable wireless networking products.
- Innovative Products: Developed airMAX, UniFi, and AmpliFi lines, revolutionizing wireless communication.
- Disruptive Business Model: Pera sold directly to consumers and small businesses, cutting costs and increasing accessibility.
- Rapid Growth: Under his leadership, Ubiquiti grew quickly in the global networking market.
- IPO Success: Led Ubiquiti through a successful IPO in 2011, boosting visibility and financial resources.
- Global Expansion: Expanded Ubiquiti’s presence in many international markets.
- High Profit Margins: Maintained strong financial health with efficient operations and a lean business structure.
- Technology and Innovation: Focused on innovation in wireless networking and IoT solutions.
- Empowering Users: Empowered small businesses with affordable, high-quality networking solutions.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of is Ubiquiti (UI) 64/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Ubiquiti (UI) stock a good buy?
Some of the top questions investors can have is Ubiquiti (UI) stock a good buy or should I buy Ubiquiti (UI) stock?
Ubiquiti, known for its high-performance networking products, represents a strong investment opportunity. The company’s innovative solutions, such as the airMAX, UniFi, and AmpliFi lines, cater to a broad range of customers, from small businesses to large enterprises. Ubiquiti’s direct-to-consumer model eliminates traditional sales channels, reducing costs and increasing profitability.
Financially, Ubiquiti has shown robust growth, maintaining high profit margins and strong revenue performance. The company’s global expansion and commitment to continuous innovation keep it competitive in the fast-evolving tech landscape.
However, potential investors should consider risks such as market competition, supply chain disruptions, and technological advancements by competitors. Despite these challenges, Ubiquiti’s innovative products, efficient business model, and strong financial performance make it a compelling investment for those seeking growth in the networking and technology sector.
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To truly know if Ubiquiti (UI) is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
If you found this stock review interesting, you may also like this review on Fortinet.