Taking everything into account, UIS scores 3 out of 10 in our fundamental rating. UIS was compared to 88 industry peers in the IT Services industry. UIS may be in some trouble as it scores bad on both profitability and health. UIS has a bad growth rate and is valued cheaply.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

UIS had positive earnings in the past year.
In the past year UIS has reported a negative cash flow from operations.
UIS had negative earnings in 4 of the past 5 years.
Of the past 5 years UIS 4 years had a positive operating cash flow.

1.2 Ratios

The Return On Assets of UIS (-18.84%) is worse than 79.55% of its industry peers.
With a decent Return On Invested Capital value of 7.53%, UIS is doing good in the industry, outperforming 68.18% of the companies in the same industry.
UIS had an Average Return On Invested Capital over the past 3 years of 6.25%. This is significantly below the industry average of 29.07%.
The last Return On Invested Capital (7.53%) for UIS is above the 3 year average (6.25%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	-18.84%
ROE	N/A
ROIC	7.53%

ROA(3y)-12.46%

ROA(5y)-5.64%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)6.25%

ROIC(5y)6.03%

1.3 Margins

The Operating Margin of UIS (5.85%) is better than 60.23% of its industry peers.
UIS's Operating Margin has improved in the last couple of years.
UIS has a worse Gross Margin (27.81%) than 65.91% of its industry peers.
In the last couple of years the Gross Margin of UIS has grown nicely.

		Industry Rank	Sector Rank
OM	5.85%
PM (TTM)	N/A
GM	27.81%

OM growth 3Y-2.57%

OM growth 5Y2.69%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.57%

GM growth 5Y3.96%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UIS is destroying value.
Compared to 1 year ago, UIS has more shares outstanding
UIS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, UIS has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of -0.43, we must say that UIS is in the distress zone and has some risk of bankruptcy.
UIS's Altman-Z score of -0.43 is on the low side compared to the rest of the industry. UIS is outperformed by 78.41% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	N/A
Altman-Z	-0.43

ROIC/WACC0.9

WACC8.41%

2.3 Liquidity

A Current Ratio of 1.53 indicates that UIS should not have too much problems paying its short term obligations.
UIS's Current ratio of 1.53 is in line compared to the rest of the industry. UIS outperforms 45.45% of its industry peers.
A Quick Ratio of 1.50 indicates that UIS should not have too much problems paying its short term obligations.
UIS has a Quick ratio of 1.50. This is comparable to the rest of the industry: UIS outperforms 44.32% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.53
Quick Ratio	1.5

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

UIS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.10%.
The earnings per share for UIS have been decreasing by -26.58% on average. This is quite bad
Looking at the last year, UIS shows a decrease in Revenue. The Revenue has decreased by -4.93% in the last year.
Measured over the past years, UIS shows a decrease in Revenue. The Revenue has been decreasing by -2.01% on average per year.

EPS 1Y (TTM)-38.1%

EPS 3Y-36.41%

EPS 5Y-26.58%

EPS Q2Q%0%

Revenue 1Y (TTM)-4.93%

Revenue growth 3Y-0.75%

Revenue growth 5Y-2.01%

Sales Q2Q%-7.4%

3.2 Future

UIS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.25% yearly.
Based on estimates for the next years, UIS will show a decrease in Revenue. The Revenue will decrease by -0.38% on average per year.

EPS Next Y56.55%

EPS Next 2Y19.62%

EPS Next 3Y18.25%

EPS Next 5YN/A

Revenue Next Year-3.39%

Revenue Next 2Y-2.46%

Revenue Next 3Y-0.38%

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 6.74 indicates a rather cheap valuation of UIS.
UIS's Price/Earnings ratio is rather cheap when compared to the industry. UIS is cheaper than 93.18% of the companies in the same industry.
UIS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.30.
UIS is valuated cheaply with a Price/Forward Earnings ratio of 4.08.
UIS's Price/Forward Earnings ratio is rather cheap when compared to the industry. UIS is cheaper than 97.73% of the companies in the same industry.
UIS is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	6.74
Fwd PE	4.08

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, UIS is valued cheaper than 97.73% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	2.85

4.3 Compensation for Growth

UIS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
UIS's earnings are expected to grow with 18.25% in the coming years. This may justify a more expensive valuation.