Unity Bancorp (UNTY) AI Stock Analysis

• Market Cap: $408.94M
• Dividend Yield: 1.3%
• Average Volume (3M): 36.39K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 1.02
• Revenue Growth: 6.99%
• EPS Growth: 12.46%
• Country: US
• Employees: 227
• Sector: Financial
• Sector Strength: 77
• Industry: Banks - Regional
• EPS (TTM): 4.26
• Shares Outstanding: 10,057,597
• 10 Day Avg. Volume: 38,656
• 30 Day Avg. Volume: 36,388
• PEG Ratio: 0.77
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.05
• Price to Cash Flow (P/CF): 4.60
• P/FCF Ratio: 3.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $52.50
• Price Target Upside: 25.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Unity Bancorp exhibits strong financial health, primarily driven by significant revenue and profit growth, alongside a debt-free balance sheet. Technical indicators suggest a neutral to slightly bearish short-term outlook. Valuation metrics indicate the stock is fairly valued with a modest dividend yield. The absence of recent earnings call data limits further analysis.

Unity Bancorp Business Overview & Revenue Model

Company Description

Unity Bancorp, Inc. operates as the holding company for Unity Bank that provides commercial and retail banking products and services to individuals, small and medium sized businesses, and professional communities. The company offers personal and business checking accounts, time deposits, money market accounts, and regular savings accounts, as well as noninterest and interest-bearing demand deposits. It also provides small business administration loans; commercial loans; and residential mortgage and consumer loans, including residential real estate, home equity lines and loans, and residential construction lines, as well as personal loans. the company offered its services through the Internet and nineteen branch offices located in Bergen, Hunterdon, Middlesex, Somerset, Union, and Warren counties in New Jersey, as well as Northampton County, Pennsylvania. Unity Bancorp, Inc. was incorporated in 1991 and is based in Clinton, New Jersey.

How the Company Makes Money

Unity Bancorp generates revenue primarily through interest income from its loan portfolio and investment securities. The company offers a variety of loans, including commercial real estate loans, residential mortgages, consumer loans, and small business loans, which constitute a significant portion of its interest income. Additionally, Unity Bancorp earns non-interest income from service charges, fees related to its deposit accounts, and other financial services. The bank's focus on community banking allows it to maintain strong relationships with local businesses and individuals, contributing to its stable customer base and consistent revenue streams. Furthermore, strategic partnerships and investments in digital banking technologies enhance customer experience and operational efficiency, supporting the company's profitability.

Unity Bancorp Financial Statement Overview

Summary

Unity Bancorp demonstrates strong financial health with robust revenue and profit growth. The company benefits from a debt-free position, enhancing its financial stability. Cash flows are positive and growing, albeit with room for improved cash efficiency. Overall, the company is in a strong position within the banking industry, though there are areas for potential enhancement in cash flow management and return on equity.

Income Statement

Unity Bancorp has shown strong revenue growth, increasing from $99.97 million to $155.74 million in the latest period, representing a significant revenue growth rate. The gross profit margin remains robust at 100%, indicating excellent cost management. The net profit margin also shows health at approximately 26.6%. However, the absence of EBITDA data limits the full assessment of its operational efficiency.

Balance Sheet

The balance sheet is solid with zero total debt reported in the latest period, drastically improving the debt-to-equity ratio to zero, which is a positive sign of financial stability. The equity ratio has improved to 11.1% due to increased stockholders' equity. However, the return on equity is moderately strong at 14%, indicating room for improvement in generating returns for shareholders.

Cash Flow

Unity Bancorp's free cash flow has grown, with a current free cash flow of $47.99 million, reflecting a positive trajectory. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to earnings. However, the free cash flow to net income ratio could be improved, suggesting potential for further cash efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
155.74M	99.97M	97.64M	87.33M	74.96M
	Gross Profit
155.74M	99.97M	97.64M	87.33M	74.96M
	EBIT
154.13M	52.99M	62.06M	48.13M	31.12M
	EBITDA
0.00	0.00	54.18M	49.74M	33.03M
	Net Income Common Stockholders
41.45M	39.71M	38.46M	36.12M	23.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
114.09M	112.43M	115.09M	82.53M	70.31M
	Total Assets
2.65B	2.58B	2.44B	2.03B	1.93B
	Total Debt
230.81M	366.75M	393.31M	50.31M	250.31M
	Net Debt
50.38M	171.97M	373.61M	24.26M	228.71M
	Total Liabilities
2.36B	2.32B	2.21B	1.83B	1.76B
	Stockholders Equity
295.58M	261.43M	239.23M	205.73M	169.23M
Cash Flow		Free Cash Flow
47.99M	45.95M	41.19M	22.18M	33.19M
	Operating Cash Flow
47.99M	46.91M	42.67M	23.45M	33.74M
	Investing Cash Flow
-92.81M	-57.85M	-541.28M	-31.44M	-186.78M
	Financing Cash Flow
30.49M	90.92M	368.59M	33.49M	214.33M

Unity Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNTY, the sentiment is Positive. The current price of 42 is above the 20-day moving average (MA) of 40.74, below the 50-day MA of 43.26, and above the 200-day MA of 39.77, indicating a neutral trend. The MACD of -0.52 indicates Negative momentum. The RSI at 52.95 is Neutral, neither overbought nor oversold. The STOCH value of 69.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UNTY.

Unity Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNTY	74 Outperform	$408.94M	9.54	15.17%	1.30%	6.99%	12.46%
ACNB	74 Outperform	$423.82M	10.78	10.97%	3.15%	14.82%	0.62%
AROW	66 Neutral	$396.54M	13.37	7.61%	4.63%	16.37%	0.52%
SHBI	66 Neutral	$413.51M	9.40	8.34%	3.87%	30.29%	103.33%
Sector *	62 Neutral	$11.85B	9.13	8.11%	79.54%	12.80%	-5.24%
HONE	61 Neutral	$401.05M	14.01	4.73%	3.45%	11.49%	82.82%
BCAL	57 Neutral	$408.27M	65.87	1.36%	―	41.74%	-85.66%