UNITY SOFTWARE INC (U) Fundamental Analysis & Valuation

NYSE:U • US91332U1016

Current stock price

17.8 USD
-0.34 (-1.87%)
At close:
17.79 USD
-0.01 (-0.06%)
After Hours:

This U fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. U Profitability Analysis

1.1 Basic Checks

  • U had negative earnings in the past year.
  • In the past year U had a positive cash flow from operations.
  • U had negative earnings in each of the past 5 years.
  • The reported operating cash flow has been mixed in the past 5 years: U reported negative operating cash flow in multiple 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 2025 0 200M -200M 400M -400M -600M -800M

1.2 Ratios

  • U has a Return On Assets (-5.89%) which is in line with its industry peers.
  • U has a Return On Equity of -12.44%. This is comparable to the rest of the industry: U outperforms 45.68% of its industry peers.
Industry RankSector Rank
ROA -5.89%
ROE -12.44%
ROIC N/A
ROA(3y)-9.03%
ROA(5y)-9.97%
ROE(3y)-19.69%
ROE(5y)-21.49%
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 2025 -20 -40 -60

1.3 Margins

  • U has a Gross Margin of 74.27%. This is in the better half of the industry: U outperforms 62.59% of its industry peers.
  • U's Gross Margin has been stable in the last couple of years.
  • 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 74.27%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.89%
GM growth 5Y-0.9%
U Yearly Profit, Operating, Gross MarginsU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50

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3

2. U Health Analysis

2.1 Basic Checks

  • U does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • U has more shares outstanding than it did 1 year ago.
  • 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 2025 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 2025 2B 4B 6B

2.2 Solvency

  • Based on the Altman-Z score of 0.70, we must say that U is in the distress zone and has some risk of bankruptcy.
  • U has a worse Altman-Z score (0.70) than 64.39% of its industry peers.
  • The Debt to FCF ratio of U is 5.58, which is a neutral value as it means it would take U, 5.58 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of U (5.58) is comparable to the rest of the industry.
  • U has a Debt/Equity ratio of 0.52. This is a neutral value indicating U is somewhat dependend on debt financing.
  • U's Debt to Equity ratio of 0.52 is on the low side compared to the rest of the industry. U is outperformed by 66.19% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 5.58
Altman-Z 0.7
ROIC/WACCN/A
WACC9.79%
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 2025 0 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 1.84 indicates that U should not have too much problems paying its short term obligations.
  • U's Current ratio of 1.84 is in line compared to the rest of the industry. U outperforms 55.04% of its industry peers.
  • A Quick Ratio of 1.84 indicates that U should not have too much problems paying its short term obligations.
  • U has a Quick ratio (1.84) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.84
Quick Ratio 1.84
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 2025 500M 1B 1.5B 2B 2.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. U Growth Analysis

3.1 Past

  • U shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.80%, which is quite impressive.
  • U shows a small growth in Revenue. In the last year, the Revenue has grown by 2.01%.
  • Measured over the past years, U shows a quite strong growth in Revenue. The Revenue has been growing by 19.08% on average per year.
EPS 1Y (TTM)42.8%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%30%
Revenue 1Y (TTM)2.01%
Revenue growth 3Y9.96%
Revenue growth 5Y19.08%
Sales Q2Q%10.06%

3.2 Future

  • U is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.69% yearly.
  • The Revenue is expected to grow by 16.44% on average over the next years. This is quite good.
EPS Next Y26.86%
EPS Next 2Y31.36%
EPS Next 3Y31.83%
EPS Next 5Y45.69%
Revenue Next Year13.44%
Revenue Next 2Y13%
Revenue Next 3Y13.02%
Revenue Next 5Y16.44%

3.3 Evolution

  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last 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 4B
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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2

4. U Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings Ratio is negative for U. In the last year negative earnings were reported.
  • 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 -20 30

4.2 Price Multiples

  • 73.74% 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 19.22
EV/EBITDA N/A
U Per share dataU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

  • A more expensive valuation may be justified as U's earnings are expected to grow with 31.83% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y31.36%
EPS Next 3Y31.83%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. U Dividend Analysis

5.1 Amount

  • U does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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U Fundamentals: All Metrics, Ratios and Statistics

UNITY SOFTWARE INC

NYSE:U (3/25/2026, 8:04:00 PM)

After market: 17.79 -0.01 (-0.06%)

17.8

-0.34 (-1.87%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners73.49%
Inst Owner Change-3.68%
Ins Owners2.13%
Ins Owner Change4.41%
Market Cap7.71B
Revenue(TTM)1.85B
Net Income(TTM)-402.76M
Analysts78.33
Price Target35.3 (98.31%)
Short Float %9.6%
Short Ratio1.96
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)1
Avg EPS beat(2)-8.33%
Min EPS beat(2)-27.32%
Max EPS beat(2)10.66%
EPS beat(4)3
Avg EPS beat(4)8.81%
Min EPS beat(4)-27.32%
Max EPS beat(4)47.82%
EPS beat(8)6
Avg EPS beat(8)9.76%
EPS beat(12)9
Avg EPS beat(12)72.5%
EPS beat(16)12
Avg EPS beat(16)46.01%
Revenue beat(2)2
Avg Revenue beat(2)1.22%
Min Revenue beat(2)0.23%
Max Revenue beat(2)2.21%
Revenue beat(4)4
Avg Revenue beat(4)1.58%
Min Revenue beat(4)0.23%
Max Revenue beat(4)2.6%
Revenue beat(8)8
Avg Revenue beat(8)2.04%
Revenue beat(12)11
Avg Revenue beat(12)1.73%
Revenue beat(16)12
Avg Revenue beat(16)0.93%
PT rev (1m)-27.02%
PT rev (3m)-24.49%
EPS NQ rev (1m)-38.14%
EPS NQ rev (3m)-43.95%
EPS NY rev (1m)-4.55%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)-0.84%
Revenue NY rev (3m)0.19%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 4.17
P/FCF 19.22
P/OCF 18.22
P/B 2.38
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-0.96
EYN/A
EPS(NY)-0.7
Fwd EYN/A
FCF(TTM)0.93
FCFY5.2%
OCF(TTM)0.98
OCFY5.49%
SpS4.27
BVpS7.48
TBVpS-1.34
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -5.89%
ROE -12.44%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 74.27%
FCFM 21.68%
ROA(3y)-9.03%
ROA(5y)-9.97%
ROE(3y)-19.69%
ROE(5y)-21.49%
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
ROICexgc growth 3YN/A
ROICexgc 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 3Y2.89%
GM growth 5Y-0.9%
F-Score6
Asset Turnover0.27
Health
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 5.58
Debt/EBITDA N/A
Cap/Depr 4.78%
Cap/Sales 1.19%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.84
Quick Ratio 1.84
Altman-Z 0.7
F-Score6
WACC9.79%
ROIC/WACCN/A
Cap/Depr(3y)8.35%
Cap/Depr(5y)23.4%
Cap/Sales(3y)2.03%
Cap/Sales(5y)2.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)42.8%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%30%
EPS Next Y26.86%
EPS Next 2Y31.36%
EPS Next 3Y31.83%
EPS Next 5Y45.69%
Revenue 1Y (TTM)2.01%
Revenue growth 3Y9.96%
Revenue growth 5Y19.08%
Sales Q2Q%10.06%
Revenue Next Year13.44%
Revenue Next 2Y13%
Revenue Next 3Y13.02%
Revenue Next 5Y16.44%
EBIT growth 1Y30.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year224.19%
EBIT Next 3Y57.32%
EBIT Next 5Y55.27%
FCF growth 1Y46.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y34.04%
OCF growth 3YN/A
OCF growth 5Y84.27%

UNITY SOFTWARE INC / U Fundamental Analysis FAQ

What is the fundamental rating for U stock?

ChartMill assigns a fundamental rating of 3 / 10 to U.


What is the valuation status for U stock?

ChartMill assigns a valuation rating of 2 / 10 to UNITY SOFTWARE INC (U). This can be considered as Overvalued.


How profitable is UNITY SOFTWARE INC (U) stock?

UNITY SOFTWARE INC (U) has a profitability rating of 2 / 10.


What is the expected EPS growth for UNITY SOFTWARE INC (U) stock?

The Earnings per Share (EPS) of UNITY SOFTWARE INC (U) is expected to grow by 26.86% in the next year.