UNITY SOFTWARE INC (U) Stock Fundamental Analysis
NYSE:U • US91332U1016
18.68 USD
-0.97 (-4.94%)
At close: Feb 13, 2026
18.6301 USD
-0.05 (-0.27%)
After Hours: 2/13/2026, 8:04:00 PM
We assign a fundamental rating of 3 out of 10 to U. U was compared to 276 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.
1. Profitability
1.1 Basic Checks
- U had negative earnings in the past year.
- 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 (-5.89%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of -12.44%, U is in line with its industry, outperforming 44.57% of the companies in the same industry.
| Industry Rank | Sector 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
1.3 Margins
- U has a better Gross Margin (74.27%) than 61.59% 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 | 74.27% |
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%
2. Health
2.1 Basic Checks
- U does not have a ROIC to compare to the WACC, probably because it is not profitable.
- U has more shares outstanding than it did 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.
2.2 Solvency
- U has an Altman-Z score of 0.75. This is a bad value and indicates that U is not financially healthy and even has some risk of bankruptcy.
- U has a Altman-Z score of 0.75. This is in the lower half of the industry: U underperforms 64.86% 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 54.35% 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 Debt to Equity ratio of 0.52. This is in the lower half of the industry: U underperforms 67.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 5.58 | ||
| Altman-Z | 0.75 |
ROIC/WACCN/A
WACC9.97%
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 (1.84) which is comparable to the rest of the industry.
- A Quick Ratio of 1.84 indicates that U should not have too much problems paying its short term obligations.
- U has a Quick ratio of 1.84. This is comparable to the rest of the industry: U outperforms 55.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 |
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
- The Earnings Per Share is expected to grow by 45.69% on average over the next years. This is a very strong growth
- 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
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for U. In the last year negative earnings were reported.
- 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 indicates a somewhat cheap valuation: U is cheaper than 74.28% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.94 | ||
| EV/EBITDA | N/A |
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%
5. Dividend
5.1 Amount
- No dividends for U!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
18.68
-0.97 (-4.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-11 2026-02-11/bmo
Earnings (Next)05-05 2026-05-05/amc
Inst Owners75.71%
Inst Owner Change-6.03%
Ins Owners3.94%
Ins Owner Change-2.9%
Market Cap7.99B
Revenue(TTM)1.85B
Net Income(TTM)-402.76M
Analysts77.22
Price Target48.37 (158.94%)
Short Float %5.5%
Short Ratio2.18
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)-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)3.47%
PT rev (3m)26.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.67%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-6.27%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)1.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 4.32 | ||
| P/FCF | 19.94 | ||
| P/OCF | 18.9 | ||
| P/B | 2.47 | ||
| 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
FCFY5.02%
OCF(TTM)0.99
OCFY5.29%
SpS4.32
BVpS7.57
TBVpS-1.35
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.75 |
F-Score6
WACC9.97%
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.