Taking everything into account, UIS scores 3 out of 10 in our fundamental rating. UIS was compared to 88 industry peers in the IT Services industry. UIS has a bad profitability rating. Also its financial health evaluation is rather negative. UIS is cheap, but on the other hand it scores bad on growth.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year UIS was profitable.
UIS had a negative operating cash flow in the past year.
UIS had negative earnings in 4 of the past 5 years.
Of the past 5 years UIS 4 years had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of -18.84%, UIS is doing worse than 79.55% of the companies in the same industry.
UIS has a Return On Invested Capital of 7.53%. This is in the better half of the industry: UIS outperforms 68.18% of its industry peers.
UIS had an Average Return On Invested Capital over the past 3 years of 6.25%. This is significantly below the industry average of 29.06%.
The last Return On Invested Capital (7.53%) for UIS is above the 3 year average (6.25%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	-18.84%
ROE	N/A
ROIC	7.53%

ROA(3y)-12.46%

ROA(5y)-5.64%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)6.25%

ROIC(5y)6.03%

1.3 Margins

Looking at the Operating Margin, with a value of 5.85%, UIS is in the better half of the industry, outperforming 60.23% of the companies in the same industry.
UIS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 27.81%, UIS is doing worse than 65.91% of the companies in the same industry.
UIS's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	5.85%
PM (TTM)	N/A
GM	27.81%

OM growth 3Y-2.57%

OM growth 5Y2.69%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.57%

GM growth 5Y3.96%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UIS is destroying value.
The number of shares outstanding for UIS has been increased compared to 1 year ago.
The number of shares outstanding for UIS has been increased compared to 5 years ago.
Compared to 1 year ago, UIS has a worse debt to assets ratio.

2.2 Solvency

UIS has an Altman-Z score of -0.42. This is a bad value and indicates that UIS is not financially healthy and even has some risk of bankruptcy.
UIS has a worse Altman-Z score (-0.42) than 79.55% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	N/A
Altman-Z	-0.42

ROIC/WACC0.88

WACC8.59%

2.3 Liquidity

A Current Ratio of 1.53 indicates that UIS should not have too much problems paying its short term obligations.
UIS has a Current ratio of 1.53. This is comparable to the rest of the industry: UIS outperforms 45.45% of its industry peers.
UIS has a Quick Ratio of 1.50. This is a normal value and indicates that UIS is financially healthy and should not expect problems in meeting its short term obligations.
UIS has a Quick ratio (1.50) which is in line with its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.53
Quick Ratio	1.5

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for UIS have decreased strongly by -38.10% in the last year.
Measured over the past years, UIS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -26.58% on average per year.
Looking at the last year, UIS shows a decrease in Revenue. The Revenue has decreased by -4.93% in the last year.
The Revenue has been decreasing by -2.01% on average over the past years.

EPS 1Y (TTM)-38.1%

EPS 3Y-36.41%

EPS 5Y-26.58%

EPS Q2Q%0%

Revenue 1Y (TTM)-4.93%

Revenue growth 3Y-0.75%

Revenue growth 5Y-2.01%

Sales Q2Q%-7.4%

3.2 Future

Based on estimates for the next years, UIS will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.25% on average per year.
Based on estimates for the next years, UIS will show a decrease in Revenue. The Revenue will decrease by -0.38% on average per year.

EPS Next Y56.55%

EPS Next 2Y19.62%

EPS Next 3Y18.25%

EPS Next 5YN/A

Revenue Next Year-3.39%

Revenue Next 2Y-2.46%

Revenue Next 3Y-0.38%

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 7.38, which indicates a rather cheap valuation of UIS.
Compared to the rest of the industry, the Price/Earnings ratio of UIS indicates a rather cheap valuation: UIS is cheaper than 92.05% of the companies listed in the same industry.
UIS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
With a Price/Forward Earnings ratio of 4.47, the valuation of UIS can be described as very cheap.
Based on the Price/Forward Earnings ratio, UIS is valued cheaper than 96.59% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.26. UIS is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	7.38
Fwd PE	4.47

4.2 Price Multiples

97.73% of the companies in the same industry are more expensive than UIS, based on the Enterprise Value to EBITDA ratio.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	2.92

4.3 Compensation for Growth

UIS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
UIS's earnings are expected to grow with 18.25% in the coming years. This may justify a more expensive valuation.