UNISYS CORP (UIS) Stock Fundamental Analysis
NYSE:UIS - New York Stock Exchange, Inc. - US9092143067 - Common Stock - Currency: USD
UIS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 industry peers in the IT Services industry. UIS has a bad profitability rating. Also its financial health evaluation is rather negative. UIS scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
UIS had positive earnings in the past year.
In the past year UIS had a positive 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
With a Return On Assets value of -3.99%, UIS is not doing good in the industry: 67.07% of the companies in the same industry are doing better.
UIS has a Return On Invested Capital of 7.75%. This is in the better half of the industry: UIS outperforms 67.07% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UIS is significantly below the industry average of 21.64%.
The 3 year average ROIC (6.25%) for UIS is below the current ROIC(7.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.99% | ||
| ROE | N/A | ||
| ROIC | 7.75% |
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
UIS has a Operating Margin of 6.40%. This is comparable to the rest of the industry: UIS outperforms 57.32% of its industry peers.
UIS's Operating Margin has improved in the last couple of years.
UIS's Gross Margin of 28.52% is on the low side compared to the rest of the industry. UIS is outperformed by 65.85% of its industry peers.
In the last couple of years the Gross Margin of UIS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.4% | ||
| PM (TTM) | N/A | ||
| GM | 28.52% |
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%
2. Health
2.1 Basic Checks
UIS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, UIS has more shares outstanding
Compared to 5 years ago, UIS has more shares outstanding
The debt/assets ratio for UIS is higher compared to a year ago.
2.2 Solvency
UIS has an Altman-Z score of -0.03. This is a bad value and indicates that UIS is not financially healthy and even has some risk of bankruptcy.
UIS has a worse Altman-Z score (-0.03) than 84.15% of its industry peers.
The Debt to FCF ratio of UIS is 7.66, which is on the high side as it means it would take UIS, 7.66 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.66, UIS is in line with its industry, outperforming 43.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.66 | ||
| Altman-Z | -0.03 |
ROIC/WACC0.82
WACC9.5%
2.3 Liquidity
A Current Ratio of 1.67 indicates that UIS should not have too much problems paying its short term obligations.
UIS has a Current ratio (1.67) which is in line with its industry peers.
A Quick Ratio of 1.63 indicates that UIS should not have too much problems paying its short term obligations.
UIS has a Quick ratio (1.63) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
UIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 176.92%, which is quite impressive.
Measured over the past years, UIS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -26.58% on average per year.
UIS shows a decrease in Revenue. In the last year, the revenue decreased by -1.72%.
The Revenue has been decreasing by -2.01% on average over the past years.
EPS 1Y (TTM)176.92%
EPS 3Y-36.41%
EPS 5Y-26.58%
EPS Q2Q%-225%
Revenue 1Y (TTM)-1.72%
Revenue growth 3Y-0.75%
Revenue growth 5Y-2.01%
Sales Q2Q%-11.42%
3.2 Future
The Earnings Per Share is expected to grow by 49.81% on average over the next years. This is a very strong growth
UIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.20% yearly.
EPS Next Y16.71%
EPS Next 2Y49.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.33%
Revenue Next 2Y1.2%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.31, the valuation of UIS can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of UIS indicates a rather cheap valuation: UIS is cheaper than 87.80% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, UIS is valued rather cheaply.
A Price/Forward Earnings ratio of 4.39 indicates a rather cheap valuation of UIS.
96.34% of the companies in the same industry are more expensive than UIS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, UIS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 4.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UIS is valued cheaper than 98.78% of the companies in the same industry.
97.56% of the companies in the same industry are more expensive than UIS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.87 | ||
| EV/EBITDA | 1.83 |
4.3 Compensation for Growth
The 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 49.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y49.81%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UIS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.43
-0.43 (-8.85%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners83.74%
Inst Owner Change-1.47%
Ins Owners6.66%
Ins Owner Change18.38%
Market Cap314.84M
Analysts45
Price Target8.16 (84.2%)
Short Float %1.54%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)43.37%
Min EPS beat(2)8.91%
Max EPS beat(2)77.83%
EPS beat(4)3
Avg EPS beat(4)600.6%
Min EPS beat(4)-159.41%
Max EPS beat(4)2475.05%
EPS beat(8)7
Avg EPS beat(8)356.33%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.51%
Min Revenue beat(2)-3.03%
Max Revenue beat(2)-1.98%
Revenue beat(4)1
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-3.03%
Max Revenue beat(4)1.15%
Revenue beat(8)5
Avg Revenue beat(8)0.41%
Revenue beat(12)8
Avg Revenue beat(12)0.85%
Revenue beat(16)9
Avg Revenue beat(16)0.55%
PT rev (1m)10.34%
PT rev (3m)10.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20%
EPS NY rev (1m)0%
EPS NY rev (3m)-48.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 4.39 | ||
| P/S | 0.16 | ||
| P/FCF | 4.87 | ||
| P/OCF | 2.18 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.83 |
EPS(TTM)0.36
EY8.13%
EPS(NY)1.01
Fwd EY22.8%
FCF(TTM)0.91
FCFY20.52%
OCF(TTM)2.03
OCFY45.93%
SpS27.48
BVpS-3.77
TBVpS-10.06
PEG (NY)0.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.99% | ||
| ROE | N/A | ||
| ROCE | 9.82% | ||
| ROIC | 7.75% | ||
| ROICexc | 11.22% | ||
| ROICexgc | 22.85% | ||
| OM | 6.4% | ||
| PM (TTM) | N/A | ||
| GM | 28.52% | ||
| FCFM | 3.31% |
ROA(3y)-12.46%
ROA(5y)-5.64%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.25%
ROIC(5y)6.03%
ROICexc(3y)8.87%
ROICexc(5y)9.15%
ROICexgc(3y)18.5%
ROICexgc(5y)17.77%
ROCE(3y)7.91%
ROCE(5y)7.63%
ROICexcg growth 3Y8.22%
ROICexcg growth 5Y10.65%
ROICexc growth 3Y5.09%
ROICexc growth 5Y4.3%
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%
F-Score6
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.66 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 78.28% | ||
| Cap/Sales | 4.1% | ||
| Interest Coverage | 3.56 | ||
| Cash Conversion | 63.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | -0.03 |
F-Score6
WACC9.5%
ROIC/WACC0.82
Cap/Depr(3y)59.5%
Cap/Depr(5y)63.42%
Cap/Sales(3y)4.07%
Cap/Sales(5y)4.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)176.92%
EPS 3Y-36.41%
EPS 5Y-26.58%
EPS Q2Q%-225%
EPS Next Y16.71%
EPS Next 2Y49.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.72%
Revenue growth 3Y-0.75%
Revenue growth 5Y-2.01%
Sales Q2Q%-11.42%
Revenue Next Year-1.33%
Revenue Next 2Y1.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y103.42%
EBIT growth 3Y-3.3%
EBIT growth 5Y0.63%
EBIT Next Year87.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y322.76%
FCF growth 3Y19.63%
FCF growth 5YN/A
OCF growth 1Y147.18%
OCF growth 3Y0.65%
OCF growth 5Y1.75%