Recent News
On February 2, 2026 Ax Wireless filed a complaint with the U.S. International Trade Commission and a related District Court action alleging infringement of several Wi‑Fi 6 patents and seeking a limited exclusion order; Ubiquiti disclosed the filings in its regulatory reports and intends to defend the actions. The company announced a cash dividend of $0.80 per share payable in late February 2026 and noted a material credit facility maturity at the end of March 2026 in recent filings.
Technical Analysis
Directional indicators show conviction: DI+ at 30.93 is increasing while DI‑ at 10.26 is decreasing, which together indicate a bullish directional tilt supporting the stock’s current valuation premium.
ADX at 38.05 indicates a strong trend strength; that strength amplifies the price bias implied by the directional indicators and raises the probability of trend-following continuation over the near term.
MACD has crossed above its signal line (MACD 39.65 vs signal 28.77), signaling bullish momentum that aligns with the DI+/DI‑ setup and supports near-term upward pressure on price relative to the WMDST valuation.
MRO at 39.05 shows a peak-and-reversal, indicating price sits above the modeled target and therefore carries an elevated potential for a corrective move; this contrasts with the MACD signal and suggests momentum may require confirmation from price action.
RSI at 56.53 and increasing reflects positive momentum without overbought extremes, leaving room for additional upside before typical RSI overbought bands exert resistance.
Price sits above key moving averages: close $726.30 versus the 12‑day EMA $691.69 (increasing), 20‑day average $677.42, 50‑day $593.85 and 200‑day $542.08, which collectively shows multi‑horizon technical support. Bollinger bands place the stock inside the upper band range with the 1‑stddev upper at $752.95 and a defined support near the super trend lower at $660.26. Volume runs below recent averages, implying momentum currently lacks broad participation and heightening the sensitivity to event-driven volume shocks.
Fundamental Analysis
Revenue grew 22.79% year‑over‑year while quarter‑over‑quarter revenue fell 4.31%, reflecting strong annual demand but some sequential normalization. Operating margin (EBIT margin) stands at 35.95%, an increase of 20.59 percentage points year‑over‑year and above the industry peer mean of 21.67% and median of 25.14%, signaling superior margin capture versus typical peers.
EPS came in at $3.88 versus an estimate of $3.08, producing an EPS surprise of 25.97%, and operating cash flow of $263.91 million supports free cash flow of $260.28 million. Free cash flow yield equals 0.75%, below the industry peer mean of 1.52%, indicating cash generation on an absolute basis but a lower yield relative to peers.
Capital structure remains conservative: total debt $116.40 million yields debt‑to‑assets 7.24% and debt‑to‑equity 11.46%, both below the industry peer means; interest coverage near 184.33x far exceeds the industry peer mean and signals negligible near‑term servicing pressure from existing interest obligations.
Liquidity metrics show current ratio 2.72 and quick ratio 1.30, with cash and short‑term investments at $302.82 million; inventory days and a cash conversion cycle of ~125 days remain elevated versus the industry peer mean, pointing to working capital concentration that can amplify sensitivity to demand shifts.
Valuation: WMDST values the stock as over‑valued. Market multiples carry clear premiums—trailing P/E ~147.7x, P/S ~42.55x and P/B ~34.14—while forward metrics (forward P/E ~124.7x, forward PS ~138.8x) also reflect elevated expectation priced into the shares. The high margins and strong cash flow explain part of the premium, but low free cash flow yield relative to the industry peer mean and concentrated governance ownership constitute material valuation offsets. The company disclosed the Ax Wireless ITC action and a credit facility maturity in filings; those events present identifiable downside catalysts that could compress multiples if outcomes trade unfavorably.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-06 |
| NEXT REPORT DATE: | 2026-05-08 |
| CASH FLOW | Begin Period Cash Flow | $ 177.2 M |
| Operating Cash Flow | $ 263.9 M | |
| Capital Expenditures | $ -3.63 M | |
| Change In Working Capital | $ 18.7 M | |
| Dividends Paid | $ -48.40 M | |
| Cash Flow Delta | $ 125.6 M | |
| End Period Cash Flow | $ 302.8 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 814.9 M | |
| Forward Revenue | $ 249.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 440.9 M | |
| Depreciation | $ 4.5 M | |
| Depreciation and Amortization | $ 4.5 M | |
| Research and Development | $ 50.8 M | |
| Total Operating Expenses | $ 522.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 374.0 M | |
| EBITDA | $ 297.4 M | |
| EBIT | $ 292.9 M | |
| Operating Income | $ 292.9 M | |
| Interest Income | — | |
| Interest Expense | $ 1.6 M | |
| Net Interest Income | $ -1.59 M | |
| Income Before Tax | $ 291.3 M | |
| Tax Provision | $ 57.7 M | |
| Tax Rate | 19.8 % | |
| Net Income | $ 233.6 M | |
| Net Income From Continuing Operations | $ 233.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 3.08 | |
| EPS Actual | $ 3.88 | |
| EPS Difference | $ 0.80 | |
| EPS Surprise | 25.974 % | |
| Forward EPS | $ 4.74 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.6 B | |
| Intangible Assets | $ 1.9 M | |
| Net Tangible Assets | $ 1.0 B | |
| Total Current Assets | $ 1.3 B | |
| Cash and Short-Term Investments | $ 302.8 M | |
| Cash | $ 302.8 M | |
| Net Receivables | $ 214.4 M | |
| Inventory | $ 674.7 M | |
| Long-Term Investments | $ 5.3 M | |
| LIABILITIES | ||
| Accounts Payable | $ 249.8 M | |
| Short-Term Debt | $ 47.4 M | |
| Total Current Liabilities | $ 475.5 M | |
| Net Debt | — | |
| Total Debt | $ 116.4 M | |
| Total Liabilities | $ 592.6 M | |
| EQUITY | ||
| Total Equity | $ 1.0 B | |
| Retained Earnings | $ 995.8 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 16.79 | |
| Shares Outstanding | 60.500 M | |
| Revenue Per-Share | $ 13.47 | |
| VALUATION | Market Capitalization | $ 34.7 B |
| Enterprise Value | $ 34.5 B | |
| Enterprise Multiple | 115.952 | |
| Enterprise Multiple QoQ | -20.654 % | |
| Enterprise Multiple YoY | -0.074 % | |
| Enterprise Multiple IPRWA | high: 400.421 UI: 115.952 mean: 87.659 median: 65.64 low: -373.159 |
|
| EV/R | 42.323 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.584 | |
| Asset To Liability | 2.714 | |
| Debt To Capital | 0.103 | |
| Debt To Assets | 0.072 | |
| Debt To Assets QoQ | -39.461 % | |
| Debt To Assets YoY | 251.018 % | |
| Debt To Assets IPRWA | high: 0.352 mean: 0.242 median: 0.232 UI: 0.072 low: 0.03 |
|
| Debt To Equity | 0.115 | |
| Debt To Equity QoQ | -46.713 % | |
| Debt To Equity YoY | 36.376 % | |
| Debt To Equity IPRWA | high: 3.018 mean: 0.638 median: 0.599 UI: 0.115 low: 0.032 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 34.143 | |
| Price To Book QoQ | -27.452 % | |
| Price To Book YoY | -53.637 % | |
| Price To Book IPRWA | UI: 34.143 high: 23.793 median: 5.824 mean: 5.796 low: 1.018 |
|
| Price To Earnings (P/E) | 147.714 | |
| Price To Earnings QoQ | -20.694 % | |
| Price To Earnings YoY | -4.786 % | |
| Price To Earnings IPRWA | high: 283.513 UI: 147.714 mean: 78.846 median: 36.548 low: -106.255 |
|
| PE/G Ratio | 12.169 | |
| Price To Sales (P/S) | 42.552 | |
| Price To Sales QoQ | -19.917 % | |
| Price To Sales YoY | 19.34 % | |
| Price To Sales IPRWA | UI: 42.552 high: 18.342 median: 18.342 mean: 16.815 low: 0.784 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 124.715 | |
| Forward PE/G | 10.274 | |
| Forward P/S | 138.774 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.078 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.526 | |
| Asset Turnover Ratio QoQ | 5.972 % | |
| Asset Turnover Ratio YoY | 2.658 % | |
| Asset Turnover Ratio IPRWA | UI: 0.526 high: 0.274 mean: 0.131 median: 0.122 low: 0.075 |
|
| Receivables Turnover | 3.545 | |
| Receivables Turnover Ratio QoQ | 18.356 % | |
| Receivables Turnover Ratio YoY | 1.17 % | |
| Receivables Turnover Ratio IPRWA | UI: 3.545 high: 2.582 median: 2.582 mean: 2.394 low: 0.581 |
|
| Inventory Turnover | 0.651 | |
| Inventory Turnover Ratio QoQ | 11.261 % | |
| Inventory Turnover Ratio YoY | -9.284 % | |
| Inventory Turnover Ratio IPRWA | high: 1.567 median: 1.567 mean: 1.458 UI: 0.651 low: 0.558 |
|
| Days Sales Outstanding (DSO) | 25.74 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 124.986 | |
| Cash Conversion Cycle Days QoQ | -6.928 % | |
| Cash Conversion Cycle Days YoY | -11.88 % | |
| Cash Conversion Cycle Days IPRWA | high: 173.426 UI: 124.986 mean: 51.215 median: 48.986 low: -46.177 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.997 | |
| CapEx To Revenue | -0.004 | |
| CapEx To Depreciation | -0.801 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.0 B | |
| Net Invested Capital | $ 1.1 B | |
| Invested Capital | $ 1.1 B | |
| Net Tangible Assets | $ 1.0 B | |
| Net Working Capital | $ 817.4 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.637 | |
| Current Ratio | 2.719 | |
| Current Ratio QoQ | 29.815 % | |
| Current Ratio YoY | 22.221 % | |
| Current Ratio IPRWA | high: 2.753 UI: 2.719 mean: 1.093 median: 0.927 low: 0.733 |
|
| Quick Ratio | 1.3 | |
| Quick Ratio QoQ | 43.386 % | |
| Quick Ratio YoY | 32.445 % | |
| Quick Ratio IPRWA | high: 2.62 UI: 1.3 mean: 0.922 median: 0.832 low: 0.59 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.391 | |
| Cost Of Debt | 0.865 % | |
| Interest Coverage Ratio | 184.33 | |
| Interest Coverage Ratio QoQ | 124.108 % | |
| Interest Coverage Ratio YoY | 1079.305 % | |
| Interest Coverage Ratio IPRWA | UI: 184.33 high: 10.689 median: 10.689 mean: 9.697 low: -2.863 |
|
| Operating Cash Flow Ratio | 0.592 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 56.773 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 4.827 | |
| Dividend Payout Ratio | 0.207 | |
| Dividend Rate | $ 0.80 | |
| Dividend Yield | 0.001 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 7.912 % | |
| Revenue Growth | 11.052 % | |
| Revenue Growth QoQ | -430.601 % | |
| Revenue Growth YoY | 22.786 % | |
| Revenue Growth IPRWA | UI: 11.052 % high: 10.874 % mean: 2.382 % median: 1.431 % low: -3.918 % |
|
| Earnings Growth | 12.139 % | |
| Earnings Growth QoQ | -637.124 % | |
| Earnings Growth YoY | 85.555 % | |
| Earnings Growth IPRWA | high: 116.667 % UI: 12.139 % mean: 6.176 % median: -13.889 % low: -130.769 % |
|
| MARGINS | ||
| Gross Margin | 45.897 % | |
| Gross Margin QoQ | -0.187 % | |
| Gross Margin YoY | 11.365 % | |
| Gross Margin IPRWA | high: 79.561 % median: 65.477 % mean: 61.2 % UI: 45.897 % low: 32.386 % |
|
| EBIT Margin | 35.945 % | |
| EBIT Margin QoQ | 0.777 % | |
| EBIT Margin YoY | 20.588 % | |
| EBIT Margin IPRWA | high: 38.385 % UI: 35.945 % median: 25.136 % mean: 21.674 % low: -5.311 % |
|
| Return On Sales (ROS) | 35.945 % | |
| Return On Sales QoQ | 0.777 % | |
| Return On Sales YoY | 20.588 % | |
| Return On Sales IPRWA | UI: 35.945 % high: 30.2 % median: 23.584 % mean: 20.719 % low: -5.311 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 260.3 M | |
| Free Cash Flow Yield | 0.751 % | |
| Free Cash Flow Yield QoQ | 51.411 % | |
| Free Cash Flow Yield YoY | 6.828 % | |
| Free Cash Flow Yield IPRWA | high: 8.108 % mean: 1.522 % median: 1.058 % UI: 0.751 % low: -2.586 % |
|
| Free Cash Growth | 34.652 % | |
| Free Cash Growth QoQ | -36.305 % | |
| Free Cash Growth YoY | -199.318 % | |
| Free Cash Growth IPRWA | high: 191.852 % UI: 34.652 % mean: -4.13 % median: -28.081 % low: -306.546 % |
|
| Free Cash To Net Income | 1.114 | |
| Cash Flow Margin | 34.551 % | |
| Cash Flow To Earnings | 1.205 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 15.079 % | |
| Return On Assets QoQ | 7.24 % | |
| Return On Assets YoY | 29.057 % | |
| Return On Assets IPRWA | UI: 15.079 % high: 2.35 % median: 2.35 % mean: 1.987 % low: -2.153 % |
|
| Return On Capital Employed (ROCE) | 25.86 % | |
| Return On Equity (ROE) | 0.23 | |
| Return On Equity QoQ | -8.325 % | |
| Return On Equity YoY | -51.159 % | |
| Return On Equity IPRWA | UI: 0.23 high: 0.082 median: 0.061 mean: 0.052 low: -0.186 |
|
| DuPont ROE | 25.337 % | |
| Return On Invested Capital (ROIC) | 22.1 % | |
| Return On Invested Capital QoQ | 1.024 % | |
| Return On Invested Capital YoY | -116.441 % | |
| Return On Invested Capital IPRWA | UI: 22.1 % high: 4.209 % median: 4.209 % mean: 3.581 % low: -1.299 % |
|