UNITY SOFTWARE INC (U)
US91332U1016 - Common Stock
We assign a fundamental rating of 3 out of 10 to U. U was compared to 276 industry peers in the Software industry. U has a bad profitability rating. Also its financial health evaluation is rather negative. U is valued quite expensive, but it does show an excellent growth.
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.
In the past 5 years U always reported negative net income.
In multiple years U reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of -12.74%, U is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
With a Return On Equity value of -27.01%, U perfoms like the industry average, outperforming 42.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.74% | ||
| ROE | -27.01% | ||
| 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
With a Gross Margin value of 66.65%, U perfoms like the industry average, outperforming 49.64% of the companies in the same industry.
U's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for U so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 66.65% |
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.
Compared to 1 year ago, U has more shares outstanding
U has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, U has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.42, we must say that U is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of U (0.42) is worse than 69.57% of its industry peers.
U has a debt to FCF ratio of 12.17. This is a negative value and a sign of low solvency as U would need 12.17 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.17, U is in line with its industry, outperforming 46.38% of the companies in the same industry.
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 Debt to Equity ratio of 0.70. This is in the lower half of the industry: U underperforms 71.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 12.17 | ||
| Altman-Z | 0.42 |
ROIC/WACCN/A
WACC8.63%
2.3 Liquidity
A Current Ratio of 2.15 indicates that U has no problem at all paying its short term obligations.
U has a better Current ratio (2.15) than 64.86% of its industry peers.
A Quick Ratio of 2.15 indicates that U has no problem at all paying its short term obligations.
The Quick ratio of U (2.15) is better than 65.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
U shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -237.50%.
The Revenue has grown by 36.66% in the past year. This is a very strong growth!
The Revenue has been growing by 41.85% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-237.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-933.33%
Revenue 1Y (TTM)36.66%
Revenue growth 3Y41.48%
Revenue growth 5Y41.85%
Sales Q2Q%-7.99%
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 146.38% on average per year.
U is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.57% yearly.
EPS Next Y-6158.8%
EPS Next 2Y-506.8%
EPS Next 3Y-198.99%
EPS Next 5Y146.38%
Revenue Next Year-14.31%
Revenue Next 2Y-3.28%
Revenue Next 3Y2%
Revenue Next 5Y23.57%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.89 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as U's earnings are expected to decrease with -198.99% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-506.8%
EPS Next 3Y-198.99%
5. Dividend
5.1 Amount
No dividends for U!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
UNITY SOFTWARE INC
NYSE:U (6/14/2024, 7:04:00 PM)
After market: 16.38 -0.02 (-0.12%)16.4
-0.38 (-2.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.74% | ||
| ROE | -27.01% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 66.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-237.5%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-6158.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)36.66%
Revenue growth 3Y41.48%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y