Unity Bancorp, Inc. (UNTY) AI Stock Analysis

Unity Bancorp, Inc. serves as the holding company for Unity Bank, established in 1991 and headquartered in Clinton, New Jersey. The bank provides personal banking options, including checking accounts, savings accounts, time deposits, money market accounts, and demand deposits. For commercial clients, it offers Small Business Administration loans, specialized commercial lending, residential mortgage products, home equity lines, and construction financing. Unity Bancorp operates a network of nineteen branch offices across Bergen, Hunterdon, Middlesex, Somerset, Union, and Warren counties in New Jersey, alongside Northampton County in Pennsylvania, catering to individuals, small and medium-sized businesses, and professionals.

Between FY2021 and FY2025, revenue expanded from $95.8M to $188.4M, representing a 5-year CAGR of 15.7%. Over the same period, net income grew from $36.1M to $58.0M, with annual diluted EPS rising from $3.42 to $5.67. Annual operating margin was 50.3% in FY2021, reached 33.4% in FY2024, and rebounded to 40.1% in FY2025. In the trailing twelve months ended September 30, 2026, revenue stood at $133.8M with a net profit margin of 46.1% and an operating margin of 57.1%. For the latest quarter, quarterly revenue increased 10.3% year-over-year while quarterly earnings expanded 20.6%.

As of September 30, 2026, Unity Bancorp held $97.1M in cash and short-term investments against total debt of $261.4M, resulting in net debt of $164.3M. Total assets reached $3.25B and shareholders' equity was $388.5M, yielding a debt-to-equity ratio of 0.67. In FY2025, the company generated $44.9M in operating cash flow and $44.3M in free cash flow. Capital expenditures totaled $564,000, while cash outflows included $5.0M directed toward share buybacks and $5.6M distributed in dividends.

At $56.40 per share, Unity Bancorp has a market capitalization of $567.8M and an enterprise value of $599.1M. The stock trades at a trailing P/E of 9.3x and a forward P/E of 8.4x, lower than the median of its US-listed Financial Services peers at 12.1x and 10.8x, respectively. Its price-to-sales ratio is 4.2x, compared to the peer median of 3.2x, while its PEG ratio sits at 0.99. Over the past year, UNTY delivered a return of 19.5%, outperforming the S&P 500's 16.8%, and its 5-year return of 141.0% exceeds the index's 83.0%.

Unity Bancorp pays a quarterly dividend with an annualized forward payout of $0.68 per share, representing a 1.21% dividend yield. The company has paid dividends for 14 consecutive years and generated a 5-year annualized dividend growth rate of 12.6%. Supported by a low payout ratio of 8.8%, total dividends paid in FY2025 were $5.6M, with the most recent ex-dividend date on September 3, 2026.

Wall Street coverage includes 3 Strong Buy and 2 Buy ratings from 5 analysts, with zero Hold or Sell recommendations. The mean price target is $68.60, representing a 21.6% upside from the October 16, 2026 closing price of $56.40. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $5.97 on revenue of $141.7M. Unity Bancorp has beaten EPS consensus estimates in 3 of the last 4 quarters.

This page is an AI-written research summary of Unity Bancorp, Inc. (UNTY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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