Uniti Group Inc
UNIT: XNAS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $6.00 | Pgpcl | Vtygmmdb |
Uniti’s Business Has a High Floor and a Low Ceiling, but Liquidity Can Be a Concern
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Business Strategy and Outlook
Uniti’s business is dominated by its triple-net leases, which results in little variability in operating results. The firm’s lease with Windstream makes up about 70% of total revenue and nearly 90% of EBITDA. Following Windstream’s bankruptcy in 2019, Uniti and Windstream renegotiated the lease, which has an initial term that runs through 2030. The renegotiation leaves Uniti with very stable and predictable financial results, but the firm has sought to grow and diversify.