Unity Bancorp (UNTY) posted net profit margins of 44.3%, up from last year’s 39.4%, with earnings growth of 35.9% over the past year and an 11.6% annual average over five years. Investors will note that revenue is forecast to grow 9.8% per year going forward, while earnings are expected to rise 3.25% annually. The stock’s price-to-earnings ratio of 9.2x sits below both peers and the broader US bank industry average. With no material risks flagged and several rewards centering on sustained profit growth and relative value, these results keep profitability and valuation as strong focal points for shareholders.
See our full analysis for Unity Bancorp.
The next section examines how Unity Bancorp’s latest numbers measure up against the most widely followed narratives in the market, highlighting where consensus holds and where the data tells a different story.
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NasdaqGM:UNTY Earnings & Revenue History as at Oct 2025
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Net profit margin climbed to 44.3%, moving up from last year’s 39.4% and outpacing most regional banks. This signals that performance remains well above sector averages even as industry headwinds persist.
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What is notable here is that, while some analysts might expect margin compression among peers, Unity Bancorp’s latest figure instead supports the view that operational discipline is driving resilience.
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This margin expansion occurs in the context of forecasted revenue growth of 9.8% per year, suggesting the bank has been able to balance steady top-line gains with effective cost controls.
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Profit margins above both their own history and typical industry levels provide direct evidence for those who argue quality of earnings has been a quiet strength, especially against less consistent competitors.
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Earnings surged 35.9% over the past year, far surpassing the five-year average of 11.6% and marking an increase well above what most community banks have delivered.
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This acceleration strongly supports the case that Unity’s historical profit growth underpins its investment appeal. However, consensus expectations for the next year, with earnings rising just 3.25% annually, prompt a reality check for overly optimistic forecasts.
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Bulls cite the sustained five-year earnings average as a marker of underlying strength, but single-digit forward growth means investors should not expect last year’s outsized jump to persist without new catalysts.
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Analysts will watch to see if operational wins and margin expansion can consistently drive better-than-expected performance as the bank navigates a slower growth outlook.
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Story Continues
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With a price-to-earnings ratio (P/E) of 9.2x, Unity’s shares trade at a discount compared to the peer average of 12.3x and the broader US bank industry at 11.5x. This underscores its relative value.
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The prevailing market perspective notes that, even with earnings and revenue growth forecasts trailing those for the US market, a discounted P/E multiple gives the stock more room for upside if performance holds steady or surprises positively.
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The gap between valuation multiples and those of both direct peers and the wider sector is seen as an opportunity, especially as current profit margins outperform.
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Absent any flagged material risks, investors focused on value and profitability may view this as a rare combination among regional banks right now.
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Don’t just look at this quarter; the real story is in the long-term trend. We’ve done an in-depth analysis on Unity Bancorp’s growth and its valuation to see if today’s price is a bargain. Add the company to your watchlist or portfolio now so you don’t miss the next big move.
While Unity Bancorp achieved robust profit margins and strong past earnings, forward growth expectations are subdued. This suggests that last year’s pace may not be sustainable.
If you want to focus on companies delivering reliable earnings and revenue growth year after year, take a look at stable growth stocks screener (2090 results) to find opportunities built for consistency.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include UNTY.
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