(U) Unity Software - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US91332U1016

Engine, Create, Grow, Ai, Cloud

U EPS (Earnings per Share)

EPS (Earnings per Share) of U over the last years for every Quarter: "2020-09-30": -0.09, "2020-12-31": -0.1, "2021-03-31": -0.1, "2021-06-30": -0.02, "2021-09-30": -0.06, "2021-12-31": -0.05, "2022-03-31": -0.08, "2022-06-30": -0.18, "2022-09-30": -0.14, "2022-12-31": -0.01, "2023-03-31": 0.09, "2023-06-30": 0.25, "2023-09-30": 0.35, "2023-12-31": -0.66, "2024-03-31": -0.75, "2024-06-30": -0.32, "2024-09-30": -0.31, "2024-12-31": -0.3, "2025-03-31": -0.19, "2025-06-30": 0.18,

U Revenue

Revenue of U over the last years for every Quarter: 2020-09-30: 200.784, 2020-12-31: 220.336, 2021-03-31: 234.772, 2021-06-30: 273.562, 2021-09-30: 286.328, 2021-12-31: 315.864, 2022-03-31: 320.126, 2022-06-30: 297.043, 2022-09-30: 322.881, 2022-12-31: 450.974, 2023-03-31: 500.361, 2023-06-30: 533.478, 2023-09-30: 544.21, 2023-12-31: 609.268, 2024-03-31: 460.38, 2024-06-30: 449.259, 2024-09-30: 446.517, 2024-12-31: 457.099, 2025-03-31: 435, 2025-06-30: 440.944,

Description: U Unity Software

Unity Software Inc. is a leading platform provider for creating and growing interactive experiences across various devices and regions. The companys comprehensive suite of tools and services supports developers throughout the development lifecycle, from prototyping to monetization, leveraging artificial intelligence solutions to streamline the process.

The companys offerings can be broken down into key areas: Create Solutions for building and running real-time 2D and 3D content, and Grow Solutions for user acquisition and monetization. Additionally, Unity provides enterprise support, professional services, and advertising services, catering to a diverse customer base across industries, including enterprises, mid-market companies, government institutions, and individuals.

From a performance perspective, Unity Software Inc. has shown significant growth, with a current market capitalization of $15.28 billion. Key performance indicators (KPIs) to monitor include revenue growth rate, customer acquisition cost, and average revenue per user (ARPU). The companys forward P/E ratio of 1111.11 suggests high growth expectations, while the negative return on equity (RoE) of -14.14 indicates that the company is currently investing heavily in its growth. Other relevant KPIs include the companys gross margin, operating expenses as a percentage of revenue, and the percentage of revenue derived from its various services, such as Create and Grow Solutions.

To further evaluate Unity Software Inc.s potential, its essential to analyze its competitive positioning within the application software industry, its ability to expand into new markets, and its capacity to maintain a strong developer community. The companys ability to drive long-term growth will depend on its success in executing on its product roadmap, managing its operating expenses, and navigating the competitive landscape.

U Stock Overview

Market Cap in USD 16,651m
Sub-Industry Application Software
IPO / Inception 2020-09-18

U Stock Ratings

Growth Rating 23.0%
Fundamental 39.4%
Dividend Rating -
Return 12m vs S&P 500 90.5%
Analyst Rating 3.97 of 5

U Dividends

Currently no dividends paid

U Growth Ratios

Growth Correlation 3m 94.2%
Growth Correlation 12m 59.5%
Growth Correlation 5y -83.8%
CAGR 5y 9.36%
CAGR/Max DD 3y 0.13
CAGR/Mean DD 3y 0.24
Sharpe Ratio 12m 0.73
Alpha 0.03
Beta 0.959
Volatility 70.80%
Current Volume 10403.4k
Average Volume 20d 10797.1k
Stop Loss 43.6 (-5.1%)
Signal 0.67

Piotroski VR‑10 (Strict, 0-10) 4.0

Net Income (-433.9m TTM) > 0 and > 6% of Revenue (6% = 106.8m TTM)
FCFTA 0.05 (>2.0%) and ΔFCFTA 1.86pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)
NWC/Revenue 85.67% (prev 55.38%; Δ 30.29pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)
CFO/TA 0.06 (>3.0%) and CFO 380.7m > Net Income -433.9m (YES >=105%, WARN >=100%)
Current Ratio 2.73 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)
Outstanding Shares last Quarter (417.6m) change vs 12m ago 6.38% (target <= -2.0% for YES)
Gross Margin 74.40% (prev 67.72%; Δ 6.68pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)
Asset Turnover 26.56% (prev 30.87%; Δ -4.31pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)
Interest Coverage Ratio -16.74 (EBITDA TTM 3.83m / Interest Expense TTM 23.6m) >= 6 (WARN >= 3)

Altman Z'' -2.07

(A) 0.23 = (Total Current Assets 2.41b - Total Current Liabilities 883.3m) / Total Assets 6.72b
(B) -0.58 = Retained Earnings (Balance) -3.92b / Total Assets 6.72b
(C) -0.06 = EBIT TTM -395.1m / Avg Total Assets 6.70b
(D) -1.20 = Book Value of Equity -3.93b / Total Liabilities 3.28b
Total Rating: -2.07 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 39.37

1. Piotroski 4.0pt = -1.0
2. FCF Yield 2.06% = 1.03
3. FCF Margin 19.96% = 4.99
4. Debt/Equity 0.71 = 2.25
5. Debt/Ebitda 592.2 = -2.50
6. ROIC - WACC (= -15.72)% = -12.50
7. RoE -13.62% = -2.27
8. Rev. Trend 5.87% = 0.44
9. EPS Trend -21.65% = -1.08

What is the price of U shares?

As of September 17, 2025, the stock is trading at USD 45.92 with a total of 10,403,396 shares traded.
Over the past week, the price has changed by +0.92%, over one month by +19.77%, over three months by +88.20% and over the past year by +126.21%.

Is Unity Software a good stock to buy?

No, based on ValueRay´s Fundamental Analyses, Unity Software (NYSE:U) is currently (September 2025) a stock to sell. It has a ValueRay Fundamental Rating of 39.37 and therefor a negative outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of U is around 47.37 USD . This means that U is currently overvalued and has a potential downside of 3.16%.

Is U a buy, sell or hold?

Unity Software has received a consensus analysts rating of 3.97. Therefore, it is recommended to buy U.
  • Strong Buy: 12
  • Buy: 4
  • Hold: 13
  • Sell: 0
  • Strong Sell: 0

What are the forecasts/targets for the U price?

Issuer Target Up/Down from current
Wallstreet Target Price 34.8 -24.3%
Analysts Target Price 34.8 -24.3%
ValueRay Target Price 52.8 14.9%

Last update: 2025-09-04 04:49

U Fundamental Data Overview

Market Cap USD = 16.65b (16.65b USD * 1.0 USD.USD)
CCE Cash And Equivalents = 1.69b USD (Cash And Short Term Investments, last quarter)
P/E Forward = 1111.1111
P/S = 9.3571
P/B = 5.2242
Beta = 2.323
Revenue TTM = 1.78b USD
EBIT TTM = -395.1m USD
EBITDA TTM = 3.83m USD
Long Term Debt = 2.23b USD (from longTermDebt, last quarter)
Short Term Debt = 31.9m USD (from shortTermDebt, last quarter)
Debt = 2.27b USD (Calculated: Short Term 31.9m + Long Term 2.23b)
Net Debt = 542.2m USD (from netDebt column, last quarter)
Enterprise Value = 17.23b USD (16.65b + Debt 2.27b - CCE 1.69b)
Interest Coverage Ratio = -16.74 (Ebit TTM -395.1m / Interest Expense TTM 23.6m)
FCF Yield = 2.06% (FCF TTM 355.3m / Enterprise Value 17.23b)
FCF Margin = 19.96% (FCF TTM 355.3m / Revenue TTM 1.78b)
Net Margin = -24.38% (Net Income TTM -433.9m / Revenue TTM 1.78b)
Gross Margin = 74.40% ((Revenue TTM 1.78b - Cost of Revenue TTM 455.5m) / Revenue TTM)
Tobins Q-Ratio = -4.38 (set to none) (Enterprise Value 17.23b / Book Value Of Equity -3.93b)
Interest Expense / Debt = 0.27% (Interest Expense 6.03m / Debt 2.27b)
Taxrate = 21.0% (US default)
NOPAT = -395.1m (EBIT -395.1m, no tax applied on loss)
Current Ratio = 2.73 (Total Current Assets 2.41b / Total Current Liabilities 883.3m)
Debt / Equity = 0.71 (Debt 2.27b / last Quarter total Stockholder Equity 3.19b)
Debt / EBITDA = 592.2 (Net Debt 542.2m / EBITDA 3.83m)
Debt / FCF = 6.38 (Debt 2.27b / FCF TTM 355.3m)
Total Stockholder Equity = 3.19b (last 4 quarters mean)
RoA = -6.46% (Net Income -433.9m, Total Assets 6.72b )
RoE = -13.62% (Net Income TTM -433.9m / Total Stockholder Equity 3.19b)
RoCE = -7.29% (Ebit -395.1m / (Equity 3.19b + L.T.Debt 2.23b))
RoIC = -7.29% (NOPAT -395.1m / Invested Capital 5.42b)
WACC = 8.43% (E(16.65b)/V(18.92b) * Re(9.55%)) + (D(2.27b)/V(18.92b) * Rd(0.27%) * (1-Tc(0.21)))
Shares Correlation 3-Years: 100.00 | Cagr: 3.08%
Discount Rate = 9.55% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 63.96% ; FCFE base≈304.9m ; Y1≈200.2m ; Y5≈91.6m
Fair Price DCF = 3.38 (DCF Value 1.43b / Shares Outstanding 422.5m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: -21.65 | EPS CAGR: 15.94% | SUE: 0.26 | # QB: 0
Revenue Correlation: 5.87 | Revenue CAGR: 12.00%

Additional Sources for U Stock

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