UNITY SOFTWARE INC (U)
US91332U1016 - Common Stock
Taking everything into account, U scores 2 out of 10 in our fundamental rating. U was compared to 279 industry peers in the Software industry. Both the profitability and financial health of U have multiple concerns. U is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
U had negative earnings in the past year.
In the past year U had a positive cash flow from operations.
In the past 5 years U always reported negative net income.
The reported operating cash flow has been mixed in the past 5 years: U reported negative operating cash flow in multiple years.
1.2 Ratios
U has a Return On Assets of -11.81%. This is in the lower half of the industry: U underperforms 62.59% of its industry peers.
The Return On Equity of U (-24.94%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.81% | ||
| ROE | -24.94% | ||
| ROIC | N/A |
ROA(3y)-11.37%
ROA(5y)-16.1%
ROE(3y)-24.73%
ROE(5y)-31.49%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 68.10%, U is in line with its industry, outperforming 50.36% of the companies in the same industry.
U's Gross Margin has declined in the last couple of years.
U does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 68.1% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.07%
GM growth 5Y-3.31%
2. Health
2.1 Basic Checks
U does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for U has been increased compared to 1 year ago.
The number of shares outstanding for U has been increased compared to 5 years ago.
The debt/assets ratio for U is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that U is in the distress zone and has some risk of bankruptcy.
U's Altman-Z score of 0.84 is on the low side compared to the rest of the industry. U is outperformed by 67.63% of its industry peers.
The Debt to FCF ratio of U is 9.81, which is on the high side as it means it would take U, 9.81 years of fcf income to pay off all of its debts.
U has a Debt to FCF ratio (9.81) which is in line with its industry peers.
A Debt/Equity ratio of 0.70 indicates that U is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, U is not doing good in the industry: 71.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 9.81 | ||
| Altman-Z | 0.84 |
ROIC/WACCN/A
WACC10.52%
2.3 Liquidity
A Current Ratio of 2.41 indicates that U has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.41, U is doing good in the industry, outperforming 67.63% of the companies in the same industry.
A Quick Ratio of 2.41 indicates that U has no problem at all paying its short term obligations.
U has a Quick ratio of 2.41. This is in the better half of the industry: U outperforms 69.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 2.41 |
3. Growth
3.1 Past
The earnings per share for U have decreased strongly by -400.00% in the last year.
U shows a decrease in Revenue. In the last year, the revenue decreased by -3.14%.
The Revenue has been growing by 41.85% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-400%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-188.57%
Revenue 1Y (TTM)-3.14%
Revenue growth 3Y41.48%
Revenue growth 5Y41.85%
Sales Q2Q%-17.95%
3.2 Future
U is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 146.38% yearly.
Based on estimates for the next years, U will show a decrease in Revenue. The Revenue will decrease by -0.66% on average per year.
EPS Next Y-5875.24%
EPS Next 2Y-532.21%
EPS Next 3Y-219.96%
EPS Next 5Y146.38%
Revenue Next Year-16.86%
Revenue Next 2Y-8.37%
Revenue Next 3Y-3.27%
Revenue Next 5Y-0.66%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
U reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year U is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, U is valued a bit cheaper than the industry average as 70.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.74 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as U's earnings are expected to decrease with -219.96% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-532.21%
EPS Next 3Y-219.96%
5. Dividend
5.1 Amount
No dividends for U!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
UNITY SOFTWARE INC
NYSE:U (12/20/2024, 8:04:00 PM)
After market: 22.75 +0.24 (+1.07%)22.51
+0.25 (+1.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners63.05%
Inst Owner Change4.91%
Ins Owners4.94%
Ins Owner Change2.34%
Market Cap9.07B
Analysts73.33
Price Target22.61 (0.44%)
Short Float %7.62%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)20.29%
Min EPS beat(2)15.85%
Max EPS beat(2)24.73%
EPS beat(4)2
Avg EPS beat(4)-2.41%
Min EPS beat(4)-32.59%
Max EPS beat(4)24.73%
EPS beat(8)5
Avg EPS beat(8)81.59%
EPS beat(12)9
Avg EPS beat(12)59.19%
EPS beat(16)13
Avg EPS beat(16)53.7%
Revenue beat(2)2
Avg Revenue beat(2)0.97%
Min Revenue beat(2)0.23%
Max Revenue beat(2)1.72%
Revenue beat(4)4
Avg Revenue beat(4)2.88%
Min Revenue beat(4)0.23%
Max Revenue beat(4)4.98%
Revenue beat(8)7
Avg Revenue beat(8)1.47%
Revenue beat(12)8
Avg Revenue beat(12)0.83%
Revenue beat(16)12
Avg Revenue beat(16)2.37%
PT rev (1m)5.07%
PT rev (3m)10.72%
EPS NQ rev (1m)8.01%
EPS NQ rev (3m)-17.98%
EPS NY rev (1m)5.44%
EPS NY rev (3m)5.14%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)-10.63%
Revenue NY rev (1m)0.72%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 4.61 | ||
| P/FCF | 39.74 | ||
| P/OCF | 32.92 | ||
| P/B | 2.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)-2.04
EYN/A
EPS(NY)-1.14
Fwd EYN/A
FCF(TTM)0.57
FCFY2.52%
OCF(TTM)0.68
OCFY3.04%
SpS4.88
BVpS7.9
TBVpS-2.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.81% | ||
| ROE | -24.94% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 68.1% | ||
| FCFM | 11.61% |
ROA(3y)-11.37%
ROA(5y)-16.1%
ROE(3y)-24.73%
ROE(5y)-31.49%
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-5.07%
GM growth 5Y-3.31%
F-Score5
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 9.81 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 8.79% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.41 | ||
| Quick Ratio | 2.41 | ||
| Altman-Z | 0.84 |
F-Score5
WACC10.52%
ROIC/WACCN/A
Cap/Depr(3y)33.96%
Cap/Depr(5y)56.8%
Cap/Sales(3y)3.48%
Cap/Sales(5y)4.15%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-400%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-188.57%
EPS Next Y-5875.24%
EPS Next 2Y-532.21%
EPS Next 3Y-219.96%
EPS Next 5Y146.38%
Revenue 1Y (TTM)-3.14%
Revenue growth 3Y41.48%
Revenue growth 5Y41.85%
Sales Q2Q%-17.95%
Revenue Next Year-16.86%
Revenue Next 2Y-8.37%
Revenue Next 3Y-3.27%
Revenue Next 5Y-0.66%
EBIT growth 1Y-9.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year147.61%
EBIT Next 3Y37.58%
EBIT Next 5Y22.41%
FCF growth 1Y315.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y652.03%
OCF growth 3Y127.59%
OCF growth 5YN/A