UNITY SOFTWARE INC (U)
US91332U1016 - Common Stock
We assign a fundamental rating of 3 out of 10 to U. U was compared to 277 industry peers in the Software industry. Both the profitability and financial health of U have multiple concerns. U is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year U was profitable.
U had a positive operating cash flow in the past year.
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
With a Return On Assets value of -11.35%, U perfoms like the industry average, outperforming 43.43% of the companies in the same industry.
Looking at the Return On Equity, with a value of -25.83%, U is in line with its industry, outperforming 45.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.35% | ||
| ROE | -25.83% | ||
| 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 66.46%, U is in line with its industry, outperforming 51.82% of the companies in the same industry.
In the last couple of years the Gross Margin of U has declined.
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 | 66.46% |
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
Compared to 5 years ago, U has more shares outstanding
U has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.99, we must say that U is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.99, U is doing worse than 62.04% of the companies in the same industry.
U has a debt to FCF ratio of 15.17. This is a negative value and a sign of low solvency as U would need 15.17 years to pay back of all of its debts.
The Debt to FCF ratio of U (15.17) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.85 indicates that U is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.85, U is not doing good in the industry: 71.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 15.17 | ||
| Altman-Z | 0.99 |
ROIC/WACCN/A
WACC8.76%
2.3 Liquidity
U has a Current Ratio of 2.60. This indicates that U is financially healthy and has no problem in meeting its short term obligations.
U has a better Current ratio (2.60) than 72.63% of its industry peers.
A Quick Ratio of 2.60 indicates that U has no problem at all paying its short term obligations.
U's Quick ratio of 2.60 is fine compared to the rest of the industry. U outperforms 72.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 2.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 107.32% over the past year.
U shows a strong growth in Revenue. In the last year, the Revenue has grown by 57.25%.
The Revenue has been growing by 41.85% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)107.32%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-6500%
Revenue 1Y (TTM)57.25%
Revenue growth 3Y41.48%
Revenue growth 5Y41.85%
Revenue growth Q2Q35.09%
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.
Based on estimates for the next years, U will show a very strong growth in Revenue. The Revenue will grow by 23.57% on average per year.
EPS Next Y-5887.48%
EPS Next 2Y-546.46%
EPS Next 3Y-183.17%
EPS Next 5Y146.38%
Revenue Next Year-15.58%
Revenue Next 2Y-2.92%
Revenue Next 3Y2.87%
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
The Price/Earnings ratio is 824.67, which means the current valuation is very expensive for U.
U's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.28. U is valued rather expensively when compared to this.
U is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 824.67 | ||
| Fwd PE | N/A |
4.2 Price Multiples
U's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.07 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
U's earnings are expected to decrease with -183.17% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-546.46%
EPS Next 3Y-183.17%
5. Dividend
5.1 Amount
No dividends for U!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
UNITY SOFTWARE INC
NYSE:U (5/3/2024, 7:23:30 PM)
After market: 24.8 +0.06 (+0.24%)24.74
+0.58 (+2.4%)
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 Cap9.67B
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 | 824.67 | ||
| 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 | -11.35% | ||
| ROE | -25.83% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 66.46% | ||
| 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 Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.6 | ||
| Quick Ratio | 2.6 | ||
| 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)
Growth
EPS 1Y (TTM)107.32%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-5887.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)57.25%
Revenue growth 3Y41.48%
Revenue growth 5Y
Revenue growth 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