Ubiquiti

Communication Equipment · Technology

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Exceptional

Growth

Exceptional

Cash Flow

Exceptional

Stability

Good

Valuation

Mixed

Dividends

Good

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Winston Score History

The full picture

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.

Growth Profile

For growth stock investors

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

Revenue Growth

+23.5% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+6.6% YoY

YoY Growth Rate

Slow EPS growth

Insider Activity

93.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$611M 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 23%. 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.

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Quality

Profit per sale

Gross Margin

45.8%

Healthy — 45.8% gross margin

Profit after running costs

Operating Margin

36.3%

Excellent — 36.3% operating margin

Return on the money invested

ROCE

82.3%

Exceptional — 82.3% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth

Sales YoY

+27.2%

Fast-growing sales (+27.2% YoY)

Profit growth

EPS YoY

+34.8%

Earnings growing fast (+34.8% YoY)

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

How steady the profit is

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

97%

Turns 97% of profit into real cash

Spare cash per sale

FCF Margin

27.8%

Converts sales into free cash efficiently (27.8%)

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

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

100.00x

Comfortably covers interest (100.0x)

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

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Valuation

Price vs profit

P/E Ratio (TTM)

35.2x

no trend

Pricey — P/E 35.2

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

Cheaper or dearer next year

P/E vs Forward

+1.6

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend

Dividend Yield

0.55%

no trend

Small dividend — 0.55% yield

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

Dividend record

Dividend Growth

+33.3%

no trend

Dividend growing fast (33.3% YoY)

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