Margin Breakdown
0.42
Profit Margin
0.6
EBITDA Margin
| EBITDA Margin | 0.6 | |
| Gross Margin | 0.89 | |
| Profit Margin | 0.42 |
Our projection for Unity Bancorp (USA Stocks:UNTY) in February
 | By Raphi Shpitalnik | Macroaxis Story |
Unity Bancorp (UNTY) appears to be a potential buying opportunity amid the current market adjustment. The company's Sortino Ratio, a measure used to gauge risk-adjusted return, stands at a respectable 0.07, indicating that the stock has a decent potential for profit when considering its downside risk. Moreover, the firm's Market Risk Adjusted Performance is at 0.23, suggesting that the stock has been performing well in comparison to the inherent risk. However, investors should be aware of the company's Total Risk Alpha of -0.2, which signifies a potential loss when the market performs poorly. Despite this, the stock's Accumulation Distribution of 314.5 points towards a strong buying pressure. Overall, Unity Bancorp could be a promising investment, provided investors are comfortable with the associated risks.
Key Takeaways
Unity Bancorp has a beta of 1.2061, indicating a high sensitivity to market returns. This means that as the market fluctuates, Unity Bancorp's returns are expected to follow suit. The beta indicator is a useful tool for investors to gauge whether Unity Bancorp's movements align with the overall market, and to assess its volatility or risk level in comparison to a selected benchmark. In simpler terms, if Unity Bancorp's deviation from the market is minimal, it doesn't significantly contribute to the risk of the portfolio, but it also doesn't enhance the potential returns.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Rifka Kats
Unity Bancorp (NASDAQ:UNTY), a regional bank with a market valuation of $28.17, is presenting a potential buying opportunity amid the current market adjustment. The bank's stock, with a typical day price of $28.22, has been showing signs of resilience despite the market's volatility. Analysts have a consensus 'Buy' rating on the stock, with one analyst even setting a high target price of $34. The bank's EPS estimate for the current year stands at $3.76, indicating a strong financial performance. Furthermore, with a payout ratio of 0.126, Unity Bancorp demonstrates a commitment to returning value to its shareholders. Currently, Unity Bancorp's Earnings per Diluted Share remains relatively stable compared to the previous year. The Enterprise Value over EBIT is projected to increase to 7.49 in 2024, while the Revenue Per Employee is expected to decrease slightly above $360.5K in the same year. The primary objective of this article is to provide investors with our perspective on Unity for February. We aim to forecast the value of Unity Bancorp for investors.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Unity Bancorp. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Unity Bancorp
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Unity Bancorp's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Unity Bancorp's Liquidity
Unity Bancorp financial leverage refers to using borrowed capital as a funding source to finance Unity Bancorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Unity Bancorp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Unity Bancorp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Unity Bancorp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Unity Bancorp's total debt and its cash.
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
Unity Bancorp has relatively low volatility with skewness of 0.93 and kurtosis of 2.1. 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 bullish 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.
"Buy low, sell high" is a classic investment adage that may apply to Unity Bancorp (UNTY) as it presents a potential buying opportunity amid market adjustment. The bank's stock is currently trading at a typical day price of $28.22, which is below its 52-week high of $29.88 and Wall Street's target price of $30.67, suggesting room for growth. Unity Bancorp's financial health is robust, with a net asset of $2.44B and a net income of $39.89M. The bank's operating margin stands at 0.54%, and it has a healthy cash flow from operations of $55.12M. Despite a probability of bankruptcy at 46.70%, the bank's risk-adjusted performance of 0.1084 and a beta of 1.05 indicate a moderate level of risk relative to the market. Therefore, investors seeking to capitalize on market adjustments might consider Unity Bancorp as a viable option. .
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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 Raphi Shpitalnik do not own shares of Unity Bancorp. Please refer to our Terms of Use for any information regarding our disclosure principles.