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UNITY SOFTWARE INC (U) Stock Fundamental Analysis

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

20.75  -1.11 (-5.08%)

After market: 20.7207 -0.03 (-0.14%)

Fundamental Rating

3

U gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. The financial health of U is average, but 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.
In the past year U had a positive cash flow from operations.
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

Looking at the Return On Assets, with a value of -6.78%, U is in line with its industry, outperforming 44.17% of the companies in the same industry.
The Return On Equity of U (-14.15%) is comparable to the rest of the 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

Looking at the Gross Margin, with a value of 74.84%, U is in the better half of the industry, outperforming 66.78% of the companies in the same industry.
U's Gross Margin has been stable in the last couple of years.
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 74.84%
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

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4

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 1.08. 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 1.08, U is not doing good in the industry: 61.13% of the companies in the same industry are doing better.
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's Debt to FCF ratio of 7.57 is in line compared to the rest of the industry. U outperforms 52.65% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that U is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, U is not doing good in the industry: 69.26% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 7.57
Altman-Z 1.08
ROIC/WACCN/A
WACC9.88%
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 72.79% of its industry peers.
A Quick Ratio of 2.74 indicates that U has no problem at all paying its short term obligations.
U's Quick ratio of 2.74 is fine compared to the rest of the industry. U outperforms 73.14% of its industry peers.
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

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5

3. Growth

3.1 Past

U shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.27%.
U shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.74%.
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

U is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.49% yearly.
U is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.18% yearly.
EPS Next Y36.69%
EPS Next 2Y25.37%
EPS Next 3Y18.55%
EPS Next 5Y32.49%
Revenue Next Year-1.15%
Revenue Next 2Y4.01%
Revenue Next 3Y6.49%
Revenue Next 5Y10.18%

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.
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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1

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

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, U is valued a bit cheaper than the industry average as 72.44% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 29.23
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%

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0

5. Dividend

5.1 Amount

No dividends for U!.
Industry RankSector Rank
Dividend Yield N/A

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UNITY SOFTWARE INC

NYSE:U (5/23/2025, 9:00:46 PM)

After market: 20.7207 -0.03 (-0.14%)

20.75

-1.11 (-5.08%)

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 Owners68.36%
Inst Owner Change2.91%
Ins Owners5.03%
Ins Owner Change7.13%
Market Cap8.62B
Analysts76
Price Target27.27 (31.42%)
Short Float %8.23%
Short Ratio3.09
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)-4.97%
PT rev (3m)18.88%
EPS NQ rev (1m)-3.71%
EPS NQ rev (3m)-2.45%
EPS NY rev (1m)2.21%
EPS NY rev (3m)7.73%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-4.71%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-2.07%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 4.82
P/FCF 29.23
P/OCF 25.66
P/B 2.71
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
FCFY3.42%
OCF(TTM)0.81
OCFY3.9%
SpS4.3
BVpS7.67
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 1.08
F-Score5
WACC9.88%
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-1.15%
Revenue Next 2Y4.01%
Revenue Next 3Y6.49%
Revenue Next 5Y10.18%
EBIT growth 1Y53.65%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year147.1%
EBIT Next 3Y40.27%
EBIT Next 5Y38.15%
FCF growth 1Y232.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y302.63%
OCF growth 3YN/A
OCF growth 5YN/A