UNITY SOFTWARE INC (U) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:U - US91332U1016 - Common Stock
43.98 USD
+1.94 (+4.61%)
43.91 USD
-0.07 (-0.16%)
Taking everything into account, U scores 3 out of 10 in our fundamental rating. U was compared to 276 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.
- U had a positive operating cash flow in the past year.
- 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.
1.2 Ratios
- U has a Return On Assets (-6.42%) which is comparable to the rest of the industry.
- U's Return On Equity of -13.60% is in line compared to the rest of the industry. U outperforms 44.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.42% | ||
| ROE | -13.6% | ||
| 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
- U's Gross Margin of 74.32% is fine compared to the rest of the industry. U outperforms 63.04% of its industry peers.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 74.32% |
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.
- Compared to 1 year ago, U has more shares outstanding
- 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.
2.2 Solvency
- An Altman-Z score of 2.53 indicates that U is not a great score, but indicates only limited risk for bankruptcy at the moment.
- U has a Altman-Z score (2.53) which is comparable to the rest of the industry.
- The Debt to FCF ratio of U is 5.71, which is a neutral value as it means it would take U, 5.71 years of fcf income to pay off all of its debts.
- U has a Debt to FCF ratio of 5.71. This is comparable to the rest of the industry: U outperforms 55.43% of its industry peers.
- A Debt/Equity ratio of 0.70 indicates that U is somewhat dependend on debt financing.
- U has a Debt to Equity ratio of 0.70. This is in the lower half of the industry: U underperforms 70.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | 2.53 |
ROIC/WACCN/A
WACC10.41%
2.3 Liquidity
- A Current Ratio of 2.78 indicates that U has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.78, U is in the better half of the industry, outperforming 74.28% of the companies in the same industry.
- U has a Quick Ratio of 2.78. This indicates that U is financially healthy and has no problem in meeting its short term obligations.
- U has a Quick ratio of 2.78. This is in the better half of the industry: U outperforms 74.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.78 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 48.48% over the past year.
- U shows a decrease in Revenue. In the last year, the revenue decreased by -8.23%.
- U shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.33% yearly.
EPS 1Y (TTM)48.48%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%3.23%
Revenue 1Y (TTM)-8.23%
Revenue growth 3Y17.76%
Revenue growth 5Y27.33%
Sales Q2Q%5.4%
3.2 Future
- U is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.49% yearly.
- The Revenue is expected to grow by 14.30% on average over the next years. This is quite good.
EPS Next Y42.28%
EPS Next 2Y25.94%
EPS Next 3Y21%
EPS Next 5Y32.49%
Revenue Next Year2.8%
Revenue Next 2Y7.94%
Revenue Next 3Y9.65%
Revenue Next 5Y14.3%
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
- U reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- 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
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of U is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.13 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- U's earnings are expected to grow with 21.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y25.94%
EPS Next 3Y21%
5. Dividend
5.1 Amount
- U does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
43.98
+1.94 (+4.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)01-29 2026-01-29/amc
Inst Owners75.71%
Inst Owner Change0.03%
Ins Owners3.94%
Ins Owner Change-3%
Market Cap18.82B
Revenue(TTM)1.80B
Net Income(TTM)-435.53M
Analysts76.57
Price Target46.75 (6.3%)
Short Float %5.43%
Short Ratio2.36
Dividend
| Industry Rank | Sector 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)-11.63%
Min EPS beat(2)-27.32%
Max EPS beat(2)4.06%
EPS beat(4)3
Avg EPS beat(4)11.11%
Min EPS beat(4)-27.32%
Max EPS beat(4)47.82%
EPS beat(8)5
Avg EPS beat(8)4.35%
EPS beat(12)8
Avg EPS beat(12)58.1%
EPS beat(16)12
Avg EPS beat(16)47.17%
Revenue beat(2)2
Avg Revenue beat(2)1.75%
Min Revenue beat(2)1.3%
Max Revenue beat(2)2.21%
Revenue beat(4)4
Avg Revenue beat(4)2.39%
Min Revenue beat(4)1.3%
Max Revenue beat(4)3.45%
Revenue beat(8)8
Avg Revenue beat(8)2.63%
Revenue beat(12)11
Avg Revenue beat(12)1.77%
Revenue beat(16)12
Avg Revenue beat(16)1.22%
PT rev (1m)4.04%
PT rev (3m)31.78%
EPS NQ rev (1m)-6.18%
EPS NQ rev (3m)-9.9%
EPS NY rev (1m)-0.75%
EPS NY rev (3m)-7.58%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)3.48%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 10.43 | ||
| P/FCF | 48.13 | ||
| P/OCF | 45.49 | ||
| P/B | 5.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)-1.05
EYN/A
EPS(NY)-0.7
Fwd EYN/A
FCF(TTM)0.91
FCFY2.08%
OCF(TTM)0.97
OCFY2.2%
SpS4.22
BVpS7.49
TBVpS-1.71
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.42% | ||
| ROE | -13.6% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 74.32% | ||
| FCFM | 21.68% |
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 Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 5.71 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 5.26% | ||
| Cap/Sales | 1.26% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.78 | ||
| Altman-Z | 2.53 |
F-Score6
WACC10.41%
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)48.48%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%3.23%
EPS Next Y42.28%
EPS Next 2Y25.94%
EPS Next 3Y21%
EPS Next 5Y32.49%
Revenue 1Y (TTM)-8.23%
Revenue growth 3Y17.76%
Revenue growth 5Y27.33%
Sales Q2Q%5.4%
Revenue Next Year2.8%
Revenue Next 2Y7.94%
Revenue Next 3Y9.65%
Revenue Next 5Y14.3%
EBIT growth 1Y51.11%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year151.55%
EBIT Next 3Y42%
EBIT Next 5Y23.51%
FCF growth 1Y621.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y264.18%
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 for U stock?
ChartMill assigns a valuation rating of 1 / 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 42.28% in the next year.