UNITY SOFTWARE INC (U) Fundamental Analysis & Valuation

NYSE:U • US91332U1016

Current stock price

21.62 USD
+0.05 (+0.23%)
At close:
21.62 USD
0 (0%)
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.
  • 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.
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

  • Looking at the Return On Assets, with a value of -5.89%, U is in line with its industry, outperforming 44.00% of the companies in the same industry.
  • U has a Return On Equity of -12.44%. This is comparable to the rest of the industry: U outperforms 44.73% 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

  • The Gross Margin of U (74.27%) is better than 63.27% of its industry peers.
  • In the last couple of years the Gross Margin of U has remained more or less at the same level.
  • 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.
  • The number of shares outstanding for U has been increased compared to 1 year ago.
  • Compared to 5 years ago, U has more shares outstanding
  • Compared to 1 year ago, U has an improved debt to assets ratio.
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 0.98, we must say that U is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of U (0.98) is worse than 60.00% of its industry peers.
  • U has a debt to FCF ratio of 5.58. This is a neutral value as U would need 5.58 years to pay back of all of its debts.
  • U has a Debt to FCF ratio of 5.58. This is comparable to the rest of the industry: U outperforms 52.36% of its industry peers.
  • U has a Debt/Equity ratio of 0.52. This is a neutral value indicating U is somewhat dependend on debt financing.
  • The Debt to Equity ratio of U (0.52) is worse than 66.18% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 5.58
Altman-Z 0.98
ROIC/WACCN/A
WACC9.98%
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

  • U has a Current Ratio of 1.84. This is a normal value and indicates that U is financially healthy and should not expect problems in meeting its short term obligations.
  • U has a Current ratio (1.84) which is comparable to the rest of the industry.
  • 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.
  • Looking at the last year, U shows a small growth in Revenue. The Revenue has grown by 2.01% in the last year.
  • U shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.08% yearly.
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.
  • Based on estimates for the next years, U will show a quite strong growth in Revenue. The Revenue will grow by 16.44% on average per year.
EPS Next Y26.86%
EPS Next 2Y31.36%
EPS Next 3Y31.83%
EPS Next 5Y45.69%
Revenue Next Year14.13%
Revenue Next 2Y13.51%
Revenue Next 3Y13.56%
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.
  • Also next year U is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
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 20 -20

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, U is valued a bit cheaper than 65.45% of the companies in the same industry.
Industry RankSector Rank
P/FCF 23.35
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 (4/10/2026, 8:04:00 PM)

After market: 21.62 0 (0%)

21.62

+0.05 (+0.23%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners73.49%
Inst Owner Change0%
Ins Owners2.13%
Ins Owner Change4.41%
Market Cap9.36B
Revenue(TTM)1.85B
Net Income(TTM)-402.76M
Analysts80
Price Target34.83 (61.1%)
Short Float %9.49%
Short Ratio1.76
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)-1.34%
PT rev (3m)-25.5%
EPS NQ rev (1m)2.83%
EPS NQ rev (3m)-30.09%
EPS NY rev (1m)-4.55%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)1.58%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.8%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 5.06
P/FCF 23.35
P/OCF 22.13
P/B 2.89
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
FCFY4.28%
OCF(TTM)0.98
OCFY4.52%
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 0.98
F-Score6
WACC9.98%
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 Year14.13%
Revenue Next 2Y13.51%
Revenue Next 3Y13.56%
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.


Can you provide the valuation status for UNITY SOFTWARE INC?

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


Can you provide the profitability details for UNITY SOFTWARE INC?

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