UNITY SOFTWARE INC (U) Stock Fundamental Analysis
USA - NYSE:U - US91332U1016 - Common Stock
37.9 USD
+1.77 (+4.9%)
37.9895 USD
+0.09 (+0.24%)
U gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 285 industry peers in the Software industry. While U seems to be doing ok healthwise, there are quite some concerns on its profitability. U is valied quite expensively at the moment, while it does show a decent growth rate.
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.
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
U has a Return On Assets (-6.46%) which is comparable to the rest of the industry.
U has a Return On Equity (-13.61%) which is comparable to the rest of the industry.
| Industry Rank | Sector 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
1.3 Margins
Looking at the Gross Margin, with a value of 74.43%, U is in the better half of the industry, outperforming 64.56% of the companies in the same industry.
In the last couple of years the Gross Margin of U has remained more or less at the same level.
U does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector 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%
2. Health
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.
U has more shares outstanding than it did 5 years ago.
The debt/assets ratio for U has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.10 indicates that U is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of U (2.10) is comparable to the rest of the 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.
U has a Debt to FCF ratio (6.52) which is in line with its industry peers.
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 worse Debt to Equity ratio (0.70) than 70.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 6.52 | ||
| Altman-Z | 2.1 |
ROIC/WACCN/A
WACC10.37%
2.3 Liquidity
A Current Ratio of 2.73 indicates that U has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.73, U is in the better half of the industry, outperforming 74.39% of the companies in the same industry.
A Quick Ratio of 2.73 indicates that U has no problem at all paying its short term obligations.
U has a Quick ratio of 2.73. This is in the better half of the industry: U outperforms 74.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.12% over the past year.
Looking at the last year, U shows a very negative growth in Revenue. The Revenue has decreased by -13.74% in the last year.
U shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.33% yearly.
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
Based on estimates for the next years, U will show a quite strong growth in Revenue. The Revenue will grow by 9.85% on average per year.
EPS Next Y46.12%
EPS Next 2Y30.44%
EPS Next 3Y22.06%
EPS Next 5Y32.49%
Revenue Next Year1.1%
Revenue Next 2Y5.61%
Revenue Next 3Y7.79%
Revenue Next 5Y9.85%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
U's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. U is cheaper than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.77 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
U's earnings are expected to grow with 22.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.44%
EPS Next 3Y22.06%
5. Dividend
5.1 Amount
U does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
37.9
+1.77 (+4.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners75.42%
Inst Owner Change-0.04%
Ins Owners4.27%
Ins Owner Change-1.68%
Market Cap16.01B
Revenue(TTM)1.78B
Net Income(TTM)-433906000
Analysts73.71
Price Target35.47 (-6.41%)
Short Float %5.88%
Short Ratio2.06
Dividend
| Industry Rank | Sector 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)1.49%
PT rev (3m)34.3%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)-7.57%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-2.31%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)2.34%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 9 | ||
| P/FCF | 46.77 | ||
| P/OCF | 42.07 | ||
| P/B | 5.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)-1.06
EYN/A
EPS(NY)-0.5
Fwd EYN/A
FCF(TTM)0.81
FCFY2.14%
OCF(TTM)0.9
OCFY2.38%
SpS4.21
BVpS7.54
TBVpS-2.07
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector 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
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 3Y-1.25%
GM growth 5Y-0.99%
F-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector 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 | 2.1 |
F-Score6
WACC10.37%
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 Y46.12%
EPS Next 2Y30.44%
EPS Next 3Y22.06%
EPS Next 5Y32.49%
Revenue 1Y (TTM)-13.74%
Revenue growth 3Y17.76%
Revenue growth 5Y27.33%
Sales Q2Q%-1.85%
Revenue Next Year1.1%
Revenue Next 2Y5.61%
Revenue Next 3Y7.79%
Revenue Next 5Y9.85%
EBIT growth 1Y51.65%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year149.41%
EBIT Next 3Y40.25%
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
UNITY SOFTWARE INC / U FAQ
What is the fundamental rating for U stock?
ChartMill assigns a fundamental rating of 3 / 10 to U.
What is the valuation status of UNITY SOFTWARE INC (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.
Can you provide the expected EPS growth for U stock?
The Earnings per Share (EPS) of UNITY SOFTWARE INC (U) is expected to grow by 46.12% in the next year.