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UNITY SOFTWARE INC (U) Stock Fundamental Analysis

USA - NYSE:U - US91332U1016 - Common Stock

37.89 USD
-1.21 (-3.09%)
Last: 10/3/2025, 8:09:14 PM
37.73 USD
-0.16 (-0.42%)
After Hours: 10/3/2025, 8:09:14 PM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to U. U was compared to 281 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.


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.
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.
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

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 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

U has a better Gross Margin (74.43%) than 65.48% 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 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.
Compared to 1 year ago, U has more shares outstanding
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 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

U has an Altman-Z score of 2.32. This is not the best score and indicates that U is in the grey zone with still only limited risk for bankruptcy at the moment.
U's Altman-Z score of 2.32 is in line compared to the rest of the industry. U outperforms 52.31% of its industry peers.
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 comparable to the rest of the industry.
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 Debt to Equity ratio of 0.70. This is in the lower half of the industry: U underperforms 70.11% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 6.52
Altman-Z 2.32
ROIC/WACCN/A
WACC10.67%
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

U has a Current Ratio of 2.73. This indicates that U is financially healthy and has no problem in meeting its short term obligations.
U has a Current ratio of 2.73. This is in the better half of the industry: U outperforms 75.44% 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.
U has a Quick ratio of 2.73. This is in the better half of the industry: U outperforms 76.16% of its industry peers.
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.
Looking at the last year, U shows a very negative growth in Revenue. The Revenue has decreased by -13.74% in the last year.
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

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 9.85% on average over the next years. This is quite good.
EPS Next Y46.35%
EPS Next 2Y28.03%
EPS Next 3Y21.53%
EPS Next 5Y32.49%
Revenue Next Year0.93%
Revenue Next 2Y5.06%
Revenue Next 3Y7.05%
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.
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.
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 40 -40 -60

4.2 Price Multiples

U's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. U is cheaper than 61.21% of the companies in the same industry.
Industry RankSector Rank
P/FCF 46.75
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

U's earnings are expected to grow with 21.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y28.03%
EPS Next 3Y21.53%

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0

5. Dividend

5.1 Amount

U does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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UNITY SOFTWARE INC

NYSE:U (10/3/2025, 8:09:14 PM)

After market: 37.73 -0.16 (-0.42%)

37.89

-1.21 (-3.09%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)08-06 2025-08-06/bmo
Earnings (Next)11-05 2025-11-05/amc
Inst Owners75.42%
Inst Owner Change11.26%
Ins Owners4.27%
Ins Owner Change-1.67%
Market Cap16.01B
Analysts73.71
Price Target34.95 (-7.76%)
Short Float %9.48%
Short Ratio2.85
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)2.2%
PT rev (3m)33.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9%
EPS NY rev (1m)-2.36%
EPS NY rev (3m)-2.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.71%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 9
P/FCF 46.75
P/OCF 42.06
P/B 5.02
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-1.06
EYN/A
EPS(NY)-0.61
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
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 2.32
F-Score6
WACC10.67%
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 Y46.35%
EPS Next 2Y28.03%
EPS Next 3Y21.53%
EPS Next 5Y32.49%
Revenue 1Y (TTM)-13.74%
Revenue growth 3Y17.76%
Revenue growth 5Y27.33%
Sales Q2Q%-1.85%
Revenue Next Year0.93%
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 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