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UNTYUnity Bancorp, Inc.
$58.56$588M
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  4. Financial Ratios

Unity Bancorp, Inc. (UNTY) Financial Ratios

Latest Ratios: P/E Ratio 10.3x · EV/EBITDA 8.1x · ROE 18.1%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

UNTY Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$588M$529M$445M$306M$293M$277M$190M$249M$227M$212M$150M
Enterprise Value$638M$578M$495M$478M$577M$88M$380M$521M$427M$474M$274M
P/E Ratio →10.339.1210.747.717.617.658.0110.5510.3316.4611.38
P/S Ratio4.464.014.202.993.003.142.483.773.603.973.25
P/B Ratio1.731.531.511.171.221.351.091.551.641.801.41
P/FCF13.2611.929.416.667.108.858.727.666.1116.41—
P/OCF13.0911.779.276.526.868.518.507.505.8714.6917.10

P/E links to full P/E history page with 30-year chart

UNTY EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—4.394.684.675.911.004.967.896.788.865.94
EV / EBITDA8.147.388.698.6310.641.7611.5016.3214.6020.0212.95
EV / EBIT8.447.669.119.0211.211.8212.2017.1915.6321.1313.41
EV / FCF—13.0410.4710.4014.002.8017.4516.0411.5136.62—

UNTY Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin67.9%67.9%62.5%65.7%86.2%91.7%76.4%76.0%79.6%82.4%81.8%
Operating Margin40.1%40.1%33.4%35.2%47.5%50.3%34.2%36.0%35.7%35.6%37.2%
Net Profit Margin30.8%30.8%25.4%26.3%35.5%37.7%26.0%28.1%28.7%20.5%24.0%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE18.1%18.1%14.9%15.9%17.3%19.0%14.1%15.8%17.1%11.5%14.3%
ROA2.1%2.1%1.6%1.6%1.7%1.8%1.3%1.4%1.4%1.0%1.2%
ROIC10.0%10.0%7.1%6.3%8.6%11.1%5.6%5.6%5.4%5.1%7.0%
ROCE13.0%13.0%9.2%8.4%11.5%14.7%7.4%7.5%7.2%7.2%10.4%

UNTY Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.770.770.781.401.670.271.221.831.592.421.38
Debt / EBITDA3.403.404.056.627.361.126.449.187.5312.056.90
Net Debt / Equity—0.140.170.661.19-0.921.091.691.452.221.17
Net Debt / EBITDA0.630.630.883.115.24-3.805.758.526.8511.055.86
Debt / FCF—1.121.073.746.90-6.058.738.385.4020.22—
Interest Coverage1.331.330.951.094.846.222.151.682.022.372.33

UNTY Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio0.160.160.100.150.130.180.050.070.060.080.07
Quick Ratio0.160.160.100.150.130.180.050.070.060.080.07
Cash Ratio0.090.090.090.100.060.140.010.020.020.020.02
Asset Turnover—0.060.060.060.040.050.050.050.050.040.05
Inventory Turnover———————————
Days Sales Outstanding———————————

UNTY Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield0.9%1.1%1.1%1.5%1.5%1.3%1.7%1.3%1.2%1.1%1.0%
Payout Ratio9.7%9.7%12.1%11.9%11.4%10.0%13.9%13.8%12.8%18.5%11.5%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield9.7%11.0%9.3%13.0%13.1%13.1%12.5%9.5%9.7%6.1%8.8%
FCF Yield7.5%8.4%10.6%15.0%14.1%11.3%11.5%13.1%16.4%6.1%—
Buyback Yield0.9%1.0%1.4%5.1%0.0%1.5%3.9%0.0%0.0%0.0%0.0%
Total Shareholder Yield1.8%2.0%2.5%6.7%1.5%2.8%5.7%1.3%1.2%1.1%1.0%
Shares Outstanding—$10M$10M$10M$11M$11M$11M$11M$11M$11M$10M

Key Metrics

Growth RegimeAccelerating
ProfitabilityModerate
Balance SheetHealthy
Cash FlowMixed
Top Statement Risk

Securities concentration and duration risk

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q2)

Premium Valuation on Tangible Book

At a P/B of 1.74, Unity Bancorp trades at a significant premium to its tangible book value of $36.27 per share, suggesting the market prices in expectations of sustained profitability above its current return on equity.

The current P/B multiple of 1.74 is well above the peer median of 1.19, indicating investors are willing to pay a premium for Unity's franchise. This valuation implies an expectation of a return on tangible equity (ROTCE) that exceeds the bank's recent ROE of approximately 4.0%, as the market appears to be pricing in future earnings power or a normalization of the 2025Q3 anomaly. The premium warrants scrutiny of whether the bank's asset mix and capital structure can generate the returns necessary to justify this multiple.

ROE Constrained by Low Leverage

Unity Bancorp's ROE of 4.0% in 2026Q2 is primarily constrained by its low equity-to-assets ratio of 0.12, as its net interest margin of 1.0% and efficiency ratio of 28.7% are otherwise competitive within the peer group.

A DuPont decomposition reveals that the bank's profitability is limited by its conservative leverage, with an equity multiplier of approximately 8.3x. While the efficiency ratio is strong, the NIM of 1.0% is below peers like NBT Bancorp, suggesting a potential funding cost disadvantage or a lower-yielding asset mix. The volatile non-interest income component, which swung from -32.3% to 15.1% of revenue, adds significant uncertainty to the sustainability of the overall ROE.

NIM Volatility Amidst Strong Cost Control

The net interest margin spiked to 2.4% in 2025Q3 before reverting to 1.0%, a pattern that, combined with a consistently low efficiency ratio, suggests the bank's core earnings power is masked by episodic balance sheet events.

The dramatic NIM expansion in 2025Q3, coinciding with the anomalous NII spike, appears to be a non-recurring event rather than a sustainable trend. The subsequent normalization to 1.0% indicates the bank's underlying spread generation is modest. However, the efficiency ratio has remained excellent, consistently below 30%, demonstrating strong operating leverage and cost discipline that provides a solid foundation for profitability if the bank can stabilize its net interest margin.

Robust Capital Supports Strategic Optionality

With an equity-to-assets ratio of 12% as of 2026Q2, Unity Bancorp maintains a capital position well above regulatory minimums, providing substantial capacity for balance sheet growth or capital return.

The bank's equity ratio has improved from 10% in early 2024 to 12% currently, reflecting strong organic capital generation from retained earnings. This robust capital base, combined with the recent aggressive deployment into investment securities, suggests management is positioning the balance sheet for future rate environments. The capital strength is a key differentiator versus more leveraged peers and provides a buffer against potential credit or market losses.

Provision Normalization Follows Stress Event

After a $16.3M provision expense in 2025Q3, loan loss provisions have normalized to approximately $1.0M per quarter, suggesting the acute phase of credit stress has passed but underlying loss rates remain elevated versus 2024 levels.

The provision spike in 2025Q3 was a clear inflection point, likely tied to a specific credit event or portfolio reclassification. The subsequent normalization to a lower, but still positive, provision level indicates ongoing but manageable credit costs. Investors should monitor whether the current provision run-rate is adequate for the bank's loan portfolio, especially given the lack of detailed non-performing loan data in the provided metrics.

P/B Multiple Ignores Unrealized Losses

The P/B ratio of 1.74 is the most commonly misapplied metric for Unity Bancorp, as it fails to account for the significant unrealized losses embedded in its $2.8 billion investment securities portfolio, which could materially reduce tangible book value.

The bank's investment securities represent approximately 88% of total assets, creating substantial exposure to interest rate risk. In a rising rate environment, these holdings would generate unrealized losses that directly reduce tangible common equity, making the reported tangible book value per share of $36.27 potentially overstated. A more appropriate valuation metric would be P/TBV adjusted for accumulated other comprehensive income (AOCI) losses, which would provide a clearer picture of the bank's true net worth and the sustainability of its current valuation premium.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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UNTY — Frequently Asked Questions

Quick answers to the most common questions about buying UNTY stock.

What is Unity Bancorp, Inc.'s P/E ratio?

Unity Bancorp, Inc.'s current P/E ratio is 10.3x. The historical average is 16.9x. This places it at the 19th percentile of its historical range.

What is Unity Bancorp, Inc.'s EV/EBITDA?

Unity Bancorp, Inc.'s current EV/EBITDA is 8.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.0x.

What is Unity Bancorp, Inc.'s ROE?

Unity Bancorp, Inc.'s return on equity (ROE) is 18.1%. The historical average is 9.4%.

Is UNTY stock overvalued?

Based on historical data, Unity Bancorp, Inc. is trading at a P/E of 10.3x. This is at the 19th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Unity Bancorp, Inc.'s dividend yield?

Unity Bancorp, Inc.'s current dividend yield is 0.94% with a payout ratio of 9.7%.

What are Unity Bancorp, Inc.'s profit margins?

Unity Bancorp, Inc. has 67.9% gross margin and 40.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.

How much debt does Unity Bancorp, Inc. have?

Unity Bancorp, Inc.'s Debt/EBITDA ratio is 3.4x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.