UNITY SOFTWARE INC (U) Stock Fundamental Analysis

NYSE:U • US91332U1016

18.58 USD
+0.29 (+1.59%)
At close: Feb 25, 2026
18.52 USD
-0.06 (-0.32%)
After Hours: 2/25/2026, 4:43:44 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to U. U was compared to 274 industry peers in the Software industry. U may be in some trouble as it scores bad on both profitability and health. U is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

2

1. Profitability

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.
  • 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 2025 0 200M -200M 400M -400M -600M -800M

1.2 Ratios

  • U's Return On Assets of -5.89% is in line compared to the rest of the industry. U outperforms 41.24% of its industry peers.
  • U's Return On Equity of -12.44% is in line compared to the rest of the industry. U outperforms 44.53% 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

  • Looking at the Gross Margin, with a value of 74.27%, U is in the better half of the industry, outperforming 62.04% 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.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

3

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.
  • The number of shares outstanding for U has been increased compared to 5 years ago.
  • 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 0.72, we must say that U is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of U (0.72) is worse than 64.60% 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 54.01% 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.
  • U has a worse Debt to Equity ratio (0.52) than 67.15% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 5.58
Altman-Z 0.72
ROIC/WACCN/A
WACC9.89%
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

  • A Current Ratio of 1.84 indicates that U should not have too much problems paying its short term obligations.
  • U has a Current ratio of 1.84. This is comparable to the rest of the industry: U outperforms 56.20% of its industry peers.
  • U has a Quick 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.
  • With a Quick ratio value of 1.84, U perfoms like the industry average, outperforming 56.57% of the companies in the same industry.
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. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 42.80% over the past year.
  • U shows a small growth in Revenue. In the last year, the Revenue has grown by 2.01%.
  • The Revenue has been growing by 19.08% on average over the past years. This is quite good.
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

  • Based on estimates for the next years, U will show a very strong growth in Earnings Per Share. The EPS will grow by 45.69% on average per year.
  • Based on estimates for the next years, U will show a quite strong growth in Revenue. The Revenue will grow by 16.54% on average per year.
EPS Next Y30.04%
EPS Next 2Y28.31%
EPS Next 3Y53.56%
EPS Next 5Y45.69%
Revenue Next Year13.97%
Revenue Next 2Y13.42%
Revenue Next 3Y13.53%
Revenue Next 5Y16.54%

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 stable.
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

More info and screens

Find the best growth stocksShow best growing peers

2

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 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

4.2 Price Multiples

  • 72.99% of the companies in the same industry are more expensive than U, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 19.83
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 53.56% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y28.31%
EPS Next 3Y53.56%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • U does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

UNITY SOFTWARE INC

NYSE:U (2/25/2026, 4:43:44 PM)

After market: 18.52 -0.06 (-0.32%)

18.58

+0.29 (+1.59%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners75.71%
Inst Owner Change-3.64%
Ins Owners3.94%
Ins Owner Change-2.89%
Market Cap7.95B
Revenue(TTM)1.85B
Net Income(TTM)-402.76M
Analysts77.22
Price Target48.37 (160.33%)
Short Float %5.35%
Short Ratio1.36
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)0.14%
PT rev (3m)26.97%
EPS NQ rev (1m)5.35%
EPS NQ rev (3m)1.89%
EPS NY rev (1m)0.47%
EPS NY rev (3m)-33.41%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)2.11%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)4.96%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 4.3
P/FCF 19.83
P/OCF 18.8
P/B 2.46
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-0.96
EYN/A
EPS(NY)-0.67
Fwd EYN/A
FCF(TTM)0.94
FCFY5.04%
OCF(TTM)0.99
OCFY5.32%
SpS4.32
BVpS7.57
TBVpS-1.35
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 0.72
F-Score6
WACC9.89%
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 Y30.04%
EPS Next 2Y28.31%
EPS Next 3Y53.56%
EPS Next 5Y45.69%
Revenue 1Y (TTM)2.01%
Revenue growth 3Y9.96%
Revenue growth 5Y19.08%
Sales Q2Q%10.06%
Revenue Next Year13.97%
Revenue Next 2Y13.42%
Revenue Next 3Y13.53%
Revenue Next 5Y16.54%
EBIT growth 1Y30.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year228%
EBIT Next 3Y59.58%
EBIT Next 5Y55.26%
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 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 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.


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 30.04% in the next year.