Unity Bancorp, Inc.: Leads amongst peers with strong fundamentals

Unity Bancorp, Inc. relative valuation is OVERVALUED and it has a fundamental analysis score of 71.

Our analysis is based on comparing Unity Bancorp, Inc. with the following peers – Parke Bancorp, Inc., Peapack-Gladstone Financial Corporation, Bancorp of New Jersey, Inc., Sussex Bancorp, Two River Bancorp, Stewardship Financial Corporation, Lakeland Bancorp, Inc., Sun Bancorp, Inc. and Brunswick Bancorp (PKBK-US, PGC-US, BKJ-US, SBBX-US, TRCB-US, SSFN-US, LBAI-US, SNBC-US and BRBW-US).

Unity Bancorp, Inc. has shown good performance overall, both over the last one year (at 77.66%) as well as over the last month (at 24.63%). Share price performance over the last month, though has been lower than that over the last year. But Unity Bancorp, Inc.’s stock has done better than its overall peer group whose performance was 12.21% over the last month.

Company Snapshot

  • Considering peers, relative outperformance over the last year and the last month suggest a leading position.
  • Unity Bancorp, Inc. currently trades at a higher Price/Book ratio (1.77) than its peer median (1.35).
  • We classify UNTY-US as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
  • UNTY-US has a successful operating model with relatively high net profit margins and capital turns.
  • The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
  • Over the last five years, UNTY-US‘s return on equity has improved from median to better than the median among its peers, suggesting the company has found relative operating advantages.
  • While the company’s lending operations do not seem to benefit from any relative pricing advantage its margins suggest relatively low operating costs.
  • While UNTY-US‘s revenue growth in recent years has been above the peer median, the stock’s P/E ratio is less than the peer median suggesting that the company’s earnings may be peaking and the market expects a decline in its growth expectations.
  • The company’s level of equity capital investment is relatively low and suggests it is milking the business.
  • Our analysis rates Unity Bancorp, Inc. as OVERVALUED relative to its peers.

Share Price Performance

Considering peers, relative outperformance over the last year and the last month suggest a leading position.

UNTY-US‘s share price performance of 77.66% over the last 12 months is above peer median of 45.97%. The 30-day trend in its share price performance of 24.63% is also above the peer median of 12.21% suggesting that this company is a leading performer relative to its peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Unity Bancorp, Inc.’s price of USD 16.70 is greater than CapitalCube’s implied price of USD 13.58. At this level, CapitalCube believes that Unity Bancorp, Inc. is overvalued. Over the last 52 week period, the stock has fluctuated between USD 8.75 and USD 17.10.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Unity Bancorp, Inc. operates as a bank holding company which conducts a traditional and community-oriented commercial banking business and financial services to retail, corporate, and small business customers. The company accepts personal and business checking accounts, time deposits, money market accounts, and regular savings accounts, as well as demand and savings deposits. Its loan portfolio comprises commercial, small business administration, consumer, mortgage, home equity, and personal loans. Unity Bancorp was founded in 1994 and is headquartered in Clinton, NJ.

Disclaimer

The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.