Logo image of U

UNITY SOFTWARE INC (U) Stock Fundamental Analysis

NYSE:U - New York Stock Exchange, Inc. - US91332U1016 - Common Stock - Currency: USD

23.91  +0.36 (+1.53%)

After market: 23.909 0 (0%)

Fundamental Rating

3

Overall U gets a fundamental rating of 3 out of 10. We evaluated U against 284 industry peers in the Software industry. U scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. U is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

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.
In multiple years U reported negative operating cash flow during the last 5 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's Return On Assets of -6.78% is in line compared to the rest of the industry. U outperforms 45.77% of its industry peers.
With a Return On Equity value of -14.15%, U perfoms like the industry average, outperforming 47.89% of the companies in the same industry.
Industry RankSector Rank
ROA -6.78%
ROE -14.15%
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's Gross Margin of 74.84% is fine compared to the rest of the industry. U outperforms 66.55% of its industry peers.
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 RankSector Rank
OM N/A
PM (TTM) N/A
GM 74.84%
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

More info and screens

4

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.
Compared to 5 years ago, U has more shares outstanding
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

U has an Altman-Z score of 1.23. This is a bad value and indicates that U is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.23, U perfoms like the industry average, outperforming 40.49% of the companies in the same industry.
The Debt to FCF ratio of U is 7.57, which is on the high side as it means it would take U, 7.57 years of fcf income to pay off all of its debts.
U has a Debt to FCF ratio (7.57) 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's Debt to Equity ratio of 0.70 is on the low side compared to the rest of the industry. U is outperformed by 68.66% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 7.57
Altman-Z 1.23
ROIC/WACCN/A
WACC7.66%
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 2.74. This indicates that U is financially healthy and has no problem in meeting its short term obligations.
U has a better Current ratio (2.74) than 74.65% of its industry peers.
U has a Quick Ratio of 2.74. This indicates that U is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.74, U is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.74
Quick Ratio 2.74
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

More info and screens

5

3. Growth

3.1 Past

The earnings per share for U have decreased strongly by -38.27% in the last year.
Looking at the last year, U shows a very negative growth in Revenue. The Revenue has decreased by -16.74% 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)-38.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%74.67%
Revenue 1Y (TTM)-16.74%
Revenue growth 3Y17.76%
Revenue growth 5Y27.33%
Sales Q2Q%-5.51%

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 32.49% on average per year.
U is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.42% yearly.
EPS Next Y36.69%
EPS Next 2Y25.37%
EPS Next 3Y18.55%
EPS Next 5Y32.49%
Revenue Next Year-0.77%
Revenue Next 2Y4.03%
Revenue Next 3Y6.41%
Revenue Next 5Y8.42%

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

More info and screens

1

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 60

4.2 Price Multiples

71.48% 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 33.69
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 18.55% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y25.37%
EPS Next 3Y18.55%

More info and screens

0

5. Dividend

5.1 Amount

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

More info and screens

UNITY SOFTWARE INC

NYSE:U (6/18/2025, 8:04:00 PM)

After market: 23.909 0 (0%)

23.91

+0.36 (+1.53%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-07 2025-05-07/bmo
Earnings (Next)08-06 2025-08-06/amc
Inst Owners74.33%
Inst Owner Change2.92%
Ins Owners4.34%
Ins Owner Change9.35%
Market Cap9.94B
Analysts76.57
Price Target26.15 (9.37%)
Short Float %7.64%
Short Ratio2.26
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)33.86%
Min EPS beat(2)19.9%
Max EPS beat(2)47.82%
EPS beat(4)4
Avg EPS beat(4)27.08%
Min EPS beat(4)15.85%
Max EPS beat(4)47.82%
EPS beat(8)6
Avg EPS beat(8)54.06%
EPS beat(12)9
Avg EPS beat(12)61.87%
EPS beat(16)13
Avg EPS beat(16)54.78%
Revenue beat(2)2
Avg Revenue beat(2)3.03%
Min Revenue beat(2)2.6%
Max Revenue beat(2)3.45%
Revenue beat(4)4
Avg Revenue beat(4)2%
Min Revenue beat(4)0.23%
Max Revenue beat(4)3.45%
Revenue beat(8)7
Avg Revenue beat(8)1.86%
Revenue beat(12)9
Avg Revenue beat(12)1.13%
Revenue beat(16)12
Avg Revenue beat(16)2%
PT rev (1m)-4.08%
PT rev (3m)-6.28%
EPS NQ rev (1m)8.48%
EPS NQ rev (3m)4.41%
EPS NY rev (1m)0%
EPS NY rev (3m)7.73%
Revenue NQ rev (1m)0.75%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.06%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 5.56
P/FCF 33.69
P/OCF 29.59
P/B 3.12
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-1.12
EYN/A
EPS(NY)-0.72
Fwd EYN/A
FCF(TTM)0.71
FCFY2.97%
OCF(TTM)0.81
OCFY3.38%
SpS4.3
BVpS7.66
TBVpS-2.31
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -6.78%
ROE -14.15%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 74.84%
FCFM 16.5%
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-Score5
Asset Turnover0.27
Health
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 7.57
Debt/EBITDA N/A
Cap/Depr 10.15%
Cap/Sales 2.29%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.74
Quick Ratio 2.74
Altman-Z 1.23
F-Score5
WACC7.66%
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)-38.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%74.67%
EPS Next Y36.69%
EPS Next 2Y25.37%
EPS Next 3Y18.55%
EPS Next 5Y32.49%
Revenue 1Y (TTM)-16.74%
Revenue growth 3Y17.76%
Revenue growth 5Y27.33%
Sales Q2Q%-5.51%
Revenue Next Year-0.77%
Revenue Next 2Y4.03%
Revenue Next 3Y6.41%
Revenue Next 5Y8.42%
EBIT growth 1Y53.65%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year145.77%
EBIT Next 3Y39.52%
EBIT Next 5Y23.51%
FCF growth 1Y232.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y302.63%
OCF growth 3YN/A
OCF growth 5YN/A