UNISYS CORP (UIS) Stock Fundamental Analysis
NYSE:UIS - New York Stock Exchange, Inc. - US9092143067 - Common Stock - Currency: USD
UIS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 81 industry peers in the IT Services industry. There are concerns on the financial health of UIS while its profitability can be described as average. UIS is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
UIS had positive earnings in the past year.
UIS had a positive operating cash flow in the past year.
In the past 5 years UIS reported 4 times negative net income.
UIS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -10.33%, UIS is doing worse than 67.90% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.04%, UIS is in the better half of the industry, outperforming 72.84% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UIS is below the industry average of 10.52%.
The last Return On Invested Capital (9.04%) for UIS is above the 3 year average (6.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.33% | ||
| ROE | N/A | ||
| ROIC | 9.04% |
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
UIS has a better Operating Margin (7.09%) than 61.73% of its industry peers.
In the last couple of years the Operating Margin of UIS has grown nicely.
With a Gross Margin value of 29.17%, UIS is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of UIS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.09% | ||
| PM (TTM) | N/A | ||
| GM | 29.17% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UIS is destroying value.
Compared to 1 year ago, UIS has more shares outstanding
Compared to 5 years ago, UIS has more shares outstanding
Compared to 1 year ago, UIS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.03, we must say that UIS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.03, UIS is doing worse than 80.25% of the companies in the same industry.
UIS has a debt to FCF ratio of 8.92. This is a slightly negative value and a sign of low solvency as UIS would need 8.92 years to pay back of all of its debts.
UIS has a Debt to FCF ratio (8.92) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.92 | ||
| Altman-Z | 0.03 |
ROIC/WACC0.96
WACC9.39%
2.3 Liquidity
A Current Ratio of 1.56 indicates that UIS should not have too much problems paying its short term obligations.
UIS's Current ratio of 1.56 is in line compared to the rest of the industry. UIS outperforms 51.85% of its industry peers.
UIS has a Quick Ratio of 1.54. 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 (1.54) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The earnings per share for UIS have decreased strongly by -25.00% 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.
UIS shows a decrease in Revenue. In the last year, the revenue decreased by -0.35%.
The Revenue has been decreasing by -2.01% on average over the past years.
EPS 1Y (TTM)-25%
EPS 3Y-36.41%
EPS 5Y-26.58%
EPS Q2Q%-35.29%
Revenue 1Y (TTM)-0.35%
Revenue growth 3Y-0.75%
Revenue growth 5Y-2.01%
Sales Q2Q%-2.19%
3.2 Future
The Earnings Per Share is expected to grow by 72.77% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 0.59% on average over the next years.
EPS Next Y128.19%
EPS Next 2Y72.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.77%
Revenue Next 2Y0.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.27 indicates a reasonable valuation of UIS.
UIS's Price/Earnings ratio is rather cheap when compared to the industry. UIS is cheaper than 93.83% of the companies in the same industry.
UIS is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 4.06 indicates a rather cheap valuation of UIS.
Based on the Price/Forward Earnings ratio, UIS is valued cheaper than 97.53% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. UIS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.27 | ||
| Fwd PE | 4.06 |
4.2 Price Multiples
97.53% of the companies in the same industry are more expensive than UIS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, UIS is valued cheaper than 96.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.25 | ||
| EV/EBITDA | 1.64 |
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 72.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y72.77%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UIS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.17
+0.11 (+2.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners86.54%
Inst Owner Change2.34%
Ins Owners5.38%
Ins Owner Change19.91%
Market Cap290.23M
Analysts46.67
Price Target7.4 (77.46%)
Short Float %1.94%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.09
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-75.25%
Min EPS beat(2)-159.41%
Max EPS beat(2)8.91%
EPS beat(4)3
Avg EPS beat(4)625.94%
Min EPS beat(4)-159.41%
Max EPS beat(4)2475.05%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.42%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)1.15%
Revenue beat(4)2
Avg Revenue beat(4)-0.85%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)1.15%
Revenue beat(8)6
Avg Revenue beat(8)1.52%
Revenue beat(12)8
Avg Revenue beat(12)0.89%
Revenue beat(16)9
Avg Revenue beat(16)0.73%
PT rev (1m)-3.33%
PT rev (3m)-3.33%
EPS NQ rev (1m)-309.53%
EPS NQ rev (3m)-309.53%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-11.82%
Revenue NQ rev (3m)-11.82%
Revenue NY rev (1m)-4.54%
Revenue NY rev (3m)-4.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.27 | ||
| Fwd PE | 4.06 | ||
| P/S | 0.14 | ||
| P/FCF | 5.25 | ||
| P/OCF | 2.15 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.64 |
EPS(TTM)0.45
EY10.79%
EPS(NY)1.03
Fwd EY24.62%
FCF(TTM)0.79
FCFY19.05%
OCF(TTM)1.94
OCFY46.55%
SpS28.86
BVpS-4.07
TBVpS-10.51
PEG (NY)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.33% | ||
| ROE | N/A | ||
| ROCE | 11.44% | ||
| ROIC | 9.04% | ||
| ROICexc | 12.96% | ||
| ROICexgc | 26.82% | ||
| OM | 7.09% | ||
| PM (TTM) | N/A | ||
| GM | 29.17% | ||
| FCFM | 2.75% |
ROA(3y)-12.46%
ROA(5y)-5.64%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.25%
ROIC(5y)6.03%
ROICexc(3y)8.87%
ROICexc(5y)9.15%
ROICexgc(3y)18.5%
ROICexgc(5y)17.77%
ROCE(3y)7.91%
ROCE(5y)7.63%
ROICexcg growth 3Y8.22%
ROICexcg growth 5Y10.65%
ROICexc growth 3Y5.09%
ROICexc growth 5Y4.3%
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%
F-Score6
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.92 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 75% | ||
| Cap/Sales | 3.97% | ||
| Interest Coverage | 4.02 | ||
| Cash Conversion | 54.3% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 0.03 |
F-Score6
WACC9.39%
ROIC/WACC0.96
Cap/Depr(3y)59.5%
Cap/Depr(5y)63.42%
Cap/Sales(3y)4.07%
Cap/Sales(5y)4.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25%
EPS 3Y-36.41%
EPS 5Y-26.58%
EPS Q2Q%-35.29%
EPS Next Y128.19%
EPS Next 2Y72.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.35%
Revenue growth 3Y-0.75%
Revenue growth 5Y-2.01%
Sales Q2Q%-2.19%
Revenue Next Year-1.77%
Revenue Next 2Y0.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y60.36%
EBIT growth 3Y-3.3%
EBIT growth 5Y0.63%
EBIT Next Year115.62%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1328.89%
FCF growth 3Y19.63%
FCF growth 5YN/A
OCF growth 1Y82.08%
OCF growth 3Y0.65%
OCF growth 5Y1.75%