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UNITY SOFTWARE INC (U) Stock Fundamental Analysis

NYSE:U - New York Stock Exchange, Inc. - US91332U1016 - Common Stock - Currency: USD

19.25  +0.02 (+0.1%)

After market: 19.49 +0.24 (+1.25%)

Fundamental Rating

3

Overall U gets a fundamental rating of 3 out of 10. We evaluated U against 285 industry peers in the Software industry. The financial health of U is average, but there are quite some concerns on its profitability. While showing a medium growth rate, U is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year U has reported negative net income.
U had a positive operating cash flow in the past year.
U had negative earnings in each of the past 5 years.
In multiple years U reported negative operating cash flow during the last 5 years.
U Yearly Net Income VS EBIT VS OCF VS FCFU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 200M -200M -400M -600M -800M

1.2 Ratios

U's Return On Assets of -9.86% is on the low side compared to the rest of the industry. U is outperformed by 60.70% of its industry peers.
With a Return On Equity value of -20.81%, U perfoms like the industry average, outperforming 43.51% of the companies in the same industry.
Industry RankSector Rank
ROA -9.86%
ROE -20.81%
ROIC N/A
ROA(3y)-10.99%
ROA(5y)-10.91%
ROE(3y)-24.25%
ROE(5y)-21.77%
ROIC(3y)N/A
ROIC(5y)N/A
U Yearly ROA, ROE, ROICU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 -20 -40 -60

1.3 Margins

U's Gross Margin of 73.48% is fine compared to the rest of the industry. U outperforms 64.21% of its industry peers.
In the last couple of years the Gross Margin of U has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for U so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 73.48%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.25%
GM growth 5Y-0.99%
U Yearly Profit, Operating, Gross MarginsU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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4

2. Health

2.1 Basic Checks

U does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, U has more shares outstanding
Compared to 5 years ago, U has more shares outstanding
The debt/assets ratio for U has been reduced compared to a year ago.
U Yearly Shares OutstandingU Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
U Yearly Total Debt VS Total AssetsU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

Based on the Altman-Z score of 0.73, we must say that U is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of U (0.73) is worse than 62.11% of its industry peers.
The Debt to FCF ratio of U is 8.20, which is on the high side as it means it would take U, 8.20 years of fcf income to pay off all of its debts.
U has a Debt to FCF ratio of 8.20. This is comparable to the rest of the industry: U outperforms 51.58% of its industry peers.
U has a Debt/Equity ratio of 0.70. This is a neutral value indicating U is somewhat dependend on debt financing.
U has a worse Debt to Equity ratio (0.70) than 68.77% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 8.2
Altman-Z 0.73
ROIC/WACCN/A
WACC9.77%
U Yearly LT Debt VS Equity VS FCFU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B

2.3 Liquidity

U has a Current Ratio of 2.50. This indicates that U is financially healthy and has no problem in meeting its short term obligations.
U's Current ratio of 2.50 is fine compared to the rest of the industry. U outperforms 67.37% of its industry peers.
A Quick Ratio of 2.50 indicates that U has no problem at all paying its short term obligations.
U's Quick ratio of 2.50 is fine compared to the rest of the industry. U outperforms 68.07% of its industry peers.
Industry RankSector Rank
Current Ratio 2.5
Quick Ratio 2.5
U Yearly Current Assets VS Current LiabilitesU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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3. Growth

3.1 Past

The earnings per share for U have decreased strongly by -5700.00% in the last year.
U shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.10%.
U shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.33% yearly.
EPS 1Y (TTM)-5700%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%54.55%
Revenue 1Y (TTM)-17.1%
Revenue growth 3Y17.76%
Revenue growth 5Y27.33%
Sales Q2Q%-24.98%

3.2 Future

Based on estimates for the next years, U will show a very strong growth in Earnings Per Share. The EPS will grow by 32.49% on average per year.
U is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.18% yearly.
EPS Next Y35.26%
EPS Next 2Y22.55%
EPS Next 3Y18.54%
EPS Next 5Y32.49%
Revenue Next Year-0.88%
Revenue Next 2Y4.4%
Revenue Next 3Y6.78%
Revenue Next 5Y10.18%

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
U Yearly Revenue VS EstimatesU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B
U Yearly EPS VS EstimatesU Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 4

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1

4. Valuation

4.1 Price/Earnings Ratio

U reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for U. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
U Price Earnings VS Forward Price EarningsU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 30 40

4.2 Price Multiples

72.98% of the companies in the same industry are more expensive than U, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 28.87
EV/EBITDA N/A
U Per share dataU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6

4.3 Compensation for Growth

U's earnings are expected to grow with 18.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.55%
EPS Next 3Y18.54%

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0

5. Dividend

5.1 Amount

No dividends for U!.
Industry RankSector Rank
Dividend Yield N/A

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UNITY SOFTWARE INC

NYSE:U (4/21/2025, 8:04:00 PM)

After market: 19.49 +0.24 (+1.25%)

19.25

+0.02 (+0.1%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-20 2025-02-20/bmo
Earnings (Next)05-07 2025-05-07/amc
Inst Owners68.36%
Inst Owner Change0.05%
Ins Owners5.03%
Ins Owner Change7.54%
Market Cap7.89B
Analysts76
Price Target28.69 (49.04%)
Short Float %9.3%
Short Ratio2.55
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.87%
Min EPS beat(2)15.85%
Max EPS beat(2)19.9%
EPS beat(4)3
Avg EPS beat(4)10.72%
Min EPS beat(4)-17.62%
Max EPS beat(4)24.73%
EPS beat(8)6
Avg EPS beat(8)104.35%
EPS beat(12)9
Avg EPS beat(12)58.41%
EPS beat(16)13
Avg EPS beat(16)53.01%
Revenue beat(2)2
Avg Revenue beat(2)2.59%
Min Revenue beat(2)1.72%
Max Revenue beat(2)3.45%
Revenue beat(4)4
Avg Revenue beat(4)2.5%
Min Revenue beat(4)0.23%
Max Revenue beat(4)4.59%
Revenue beat(8)7
Avg Revenue beat(8)1.8%
Revenue beat(12)8
Avg Revenue beat(12)0.72%
Revenue beat(16)12
Avg Revenue beat(16)2.23%
PT rev (1m)2.82%
PT rev (3m)26.89%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)-6.17%
EPS NY rev (1m)5.64%
EPS NY rev (3m)4.8%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-4.83%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.79%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 4.35
P/FCF 28.87
P/OCF 24.99
P/B 2.47
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-1.68
EYN/A
EPS(NY)-1.09
Fwd EYN/A
FCF(TTM)0.67
FCFY3.46%
OCF(TTM)0.77
OCFY4%
SpS4.43
BVpS7.79
TBVpS-2.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -9.86%
ROE -20.81%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 73.48%
FCFM 15.06%
ROA(3y)-10.99%
ROA(5y)-10.91%
ROE(3y)-24.25%
ROE(5y)-21.77%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.25%
GM growth 5Y-0.99%
F-Score5
Asset Turnover0.27
Health
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 8.2
Debt/EBITDA N/A
Cap/Depr 10.37%
Cap/Sales 2.34%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.5
Quick Ratio 2.5
Altman-Z 0.73
F-Score5
WACC9.77%
ROIC/WACCN/A
Cap/Depr(3y)15.76%
Cap/Depr(5y)41.49%
Cap/Sales(3y)3%
Cap/Sales(5y)3.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5700%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%54.55%
EPS Next Y35.26%
EPS Next 2Y22.55%
EPS Next 3Y18.54%
EPS Next 5Y32.49%
Revenue 1Y (TTM)-17.1%
Revenue growth 3Y17.76%
Revenue growth 5Y27.33%
Sales Q2Q%-24.98%
Revenue Next Year-0.88%
Revenue Next 2Y4.4%
Revenue Next 3Y6.78%
Revenue Next 5Y10.18%
EBIT growth 1Y17.26%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year147.1%
EBIT Next 3Y40.27%
EBIT Next 5Y38.15%
FCF growth 1Y52.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y34.45%
OCF growth 3YN/A
OCF growth 5YN/A