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UNITY SOFTWARE INC (U) Stock Fundamental Analysis

NYSE:U - US91332U1016 - Common Stock

39.41 USD
0 (0%)
Last: 9/2/2025, 7:34:19 PM
39.42 USD
+0.01 (+0.03%)
After Hours: 9/2/2025, 7:34:19 PM
Fundamental Rating

3

Taking everything into account, U scores 3 out of 10 in our fundamental rating. U was compared to 280 industry peers in the Software industry. The financial health of U is average, but there are quite some concerns on its profitability. U is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year U has reported negative net income.
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 0 200M -200M -400M -600M -800M

1.2 Ratios

Looking at the Return On Assets, with a value of -6.46%, U is in line with its industry, outperforming 41.43% of the companies in the same industry.
U has a Return On Equity (-13.61%) which is in line with its industry peers.
Industry RankSector Rank
ROA -6.46%
ROE -13.61%
ROIC N/A
ROA(3y)-10.99%
ROA(5y)-10.91%
ROE(3y)-24.25%
ROE(5y)-21.77%
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 -20 -40 -60

1.3 Margins

Looking at the Gross Margin, with a value of 74.43%, U is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
U's Gross Margin has been stable in the last couple of years.
U does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 74.43%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.25%
GM growth 5Y-0.99%
U Yearly Profit, Operating, Gross MarginsU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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5

2. Health

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.
The number of shares outstanding for U has been increased compared to 5 years ago.
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 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 2B 4B 6B

2.2 Solvency

An Altman-Z score of 2.34 indicates that U is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.34, U is in line with its industry, outperforming 53.57% of the companies in the same industry.
U has a debt to FCF ratio of 6.52. This is a slightly negative value and a sign of low solvency as U would need 6.52 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.52, U perfoms like the industry average, outperforming 54.29% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that U is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, U is not doing good in the industry: 70.36% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 6.52
Altman-Z 2.34
ROIC/WACCN/A
WACC10.62%
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 0 1B 2B 3B

2.3 Liquidity

A Current Ratio of 2.73 indicates that U has no problem at all paying its short term obligations.
U has a better Current ratio (2.73) than 74.64% of its industry peers.
U has a Quick Ratio of 2.73. This indicates that U is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.73, U is doing good in the industry, outperforming 75.36% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.73
Quick Ratio 2.73
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 500M 1B 1.5B 2B

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5

3. Growth

3.1 Past

U shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.12%, which is quite impressive.
U shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.74%.
Measured over the past years, U shows a very strong growth in Revenue. The Revenue has been growing by 27.33% on average per year.
EPS 1Y (TTM)23.12%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%18.44%
Revenue 1Y (TTM)-13.74%
Revenue growth 3Y17.76%
Revenue growth 5Y27.33%
Sales Q2Q%-1.85%

3.2 Future

The Earnings Per Share is expected to grow by 32.49% on average over the next years. This is a very strong growth
U is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.85% yearly.
EPS Next Y47.59%
EPS Next 2Y28.94%
EPS Next 3Y22.23%
EPS Next 5Y32.49%
Revenue Next Year0.88%
Revenue Next 2Y5.06%
Revenue Next 3Y7.05%
Revenue Next 5Y9.85%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
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. Valuation

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 20 -20 40 -40 -60

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, U is valued a bit cheaper than the industry average as 61.79% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 48.63
EV/EBITDA N/A
U Per share dataU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6

4.3 Compensation for Growth

A more expensive valuation may be justified as U's earnings are expected to grow with 22.23% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y28.94%
EPS Next 3Y22.23%

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0

5. Dividend

5.1 Amount

No dividends for U!.
Industry RankSector Rank
Dividend Yield N/A

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UNITY SOFTWARE INC

NYSE:U (9/2/2025, 7:34:19 PM)

After market: 39.42 +0.01 (+0.03%)

39.41

0 (0%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)08-06 2025-08-06/bmo
Earnings (Next)11-05 2025-11-05/amc
Inst Owners74.62%
Inst Owner Change11.26%
Ins Owners4.36%
Ins Owner Change5.46%
Market Cap16.65B
Analysts73.71
Price Target34.2 (-13.22%)
Short Float %10.47%
Short Ratio2.64
Dividend
Industry RankSector Rank
Dividend Yield N/A
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)2
Avg EPS beat(2)25.94%
Min EPS beat(2)4.06%
Max EPS beat(2)47.82%
EPS beat(4)4
Avg EPS beat(4)21.91%
Min EPS beat(4)4.06%
Max EPS beat(4)47.82%
EPS beat(8)6
Avg EPS beat(8)28.45%
EPS beat(12)9
Avg EPS beat(12)60.87%
EPS beat(16)13
Avg EPS beat(16)49.73%
Revenue beat(2)2
Avg Revenue beat(2)1.95%
Min Revenue beat(2)1.3%
Max Revenue beat(2)2.6%
Revenue beat(4)4
Avg Revenue beat(4)2.27%
Min Revenue beat(4)1.3%
Max Revenue beat(4)3.45%
Revenue beat(8)7
Avg Revenue beat(8)1.9%
Revenue beat(12)10
Avg Revenue beat(12)1.45%
Revenue beat(16)12
Avg Revenue beat(16)1.43%
PT rev (1m)29.47%
PT rev (3m)25.43%
EPS NQ rev (1m)-7.35%
EPS NQ rev (3m)2.74%
EPS NY rev (1m)0.47%
EPS NY rev (3m)17.21%
Revenue NQ rev (1m)1.63%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)1.38%
Revenue NY rev (3m)2.05%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 9.36
P/FCF 48.63
P/OCF 43.74
P/B 5.22
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-1.06
EYN/A
EPS(NY)-0.57
Fwd EYN/A
FCF(TTM)0.81
FCFY2.06%
OCF(TTM)0.9
OCFY2.29%
SpS4.21
BVpS7.54
TBVpS-2.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -6.46%
ROE -13.61%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 74.43%
FCFM 19.24%
ROA(3y)-10.99%
ROA(5y)-10.91%
ROE(3y)-24.25%
ROE(5y)-21.77%
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
ROICexcg growth 3YN/A
ROICexcg 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 3Y-1.25%
GM growth 5Y-0.99%
F-Score6
Asset Turnover0.26
Health
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 6.52
Debt/EBITDA N/A
Cap/Depr 9.59%
Cap/Sales 2.15%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.73
Quick Ratio 2.73
Altman-Z 2.34
F-Score6
WACC10.62%
ROIC/WACCN/A
Cap/Depr(3y)15.76%
Cap/Depr(5y)41.49%
Cap/Sales(3y)3%
Cap/Sales(5y)3.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.12%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%18.44%
EPS Next Y47.59%
EPS Next 2Y28.94%
EPS Next 3Y22.23%
EPS Next 5Y32.49%
Revenue 1Y (TTM)-13.74%
Revenue growth 3Y17.76%
Revenue growth 5Y27.33%
Sales Q2Q%-1.85%
Revenue Next Year0.88%
Revenue Next 2Y5.06%
Revenue Next 3Y7.05%
Revenue Next 5Y9.85%
EBIT growth 1Y51.65%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year146.69%
EBIT Next 3Y39.8%
EBIT Next 5Y23.51%
FCF growth 1Y362.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y605.54%
OCF growth 3YN/A
OCF growth 5YN/A