Overview Dividends

(U) Unity Software - Ratings and Ratios

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

Engine, Ads, Cloud, Analytics, SDK

U EPS (Earnings per Share)

EPS Growth (3Y CAGR): 0.47%
EPS Trend (3Y Correlation): -15.4%

U Revenue

Revenue Growth (3Y CAGR): 12.00%
Revenue Trend (3Y Correlation): 5.9%

Description: U Unity Software October 31, 2025

Unity Software Inc. (NYSE: U) provides a comprehensive development platform that enables creators to build, operate, and monetize interactive 2D/3D experiences across mobile, PC, console, and extended-reality devices worldwide. Its offering is split into “Create Solutions” (tools for real-time content creation) and “Grow Solutions” (services for user acquisition, live-ops, and monetization), supplemented by enterprise support, professional services, and advertising/publishing capabilities delivered via an online store, field sales, and channel partners.

Key recent metrics reinforce Unity’s growth narrative: FY 2023 revenue reached approximately $1.9 billion, up roughly 20 % year-over-year, driven largely by the Unity Gaming Services (UGS) segment, which posted a 45 % YoY increase in subscription revenue. The platform now supports over 2.5 billion monthly active users (MAU) across its ecosystem, and average revenue per user (ARPU) has risen as developers shift spend toward in-game advertising and live-ops services. A broader sector driver is the accelerating adoption of AR/VR and the continued expansion of mobile gaming spend, which together are projected to grow at a CAGR of ~12 % through 2028.

If you want a data-rich, model-based perspective on Unity’s valuation and risk profile, a deeper dive on ValueRay can provide the quantitative context you need.

U Stock Overview

Market Cap in USD	14,890m
Sub-Industry	Application Software
IPO / Inception	2020-09-18

U Stock Ratings

Growth Rating	33.9%
Fundamental	39.6%
Dividend Rating	-
Return 12m vs S&P 500	54.0%
Analyst Rating	3.97 of 5

U Dividends

Currently no dividends paid

U Growth Ratios

Growth Correlation 3m	-9.1%
Growth Correlation 12m	70.7%
Growth Correlation 5y	-79.4%
CAGR 5y	14.63%
CAGR/Max DD 3y (Calmar Ratio)	0.21
CAGR/Mean DD 3y (Pain Ratio)	0.38
Sharpe Ratio 12m	0.72
Alpha	45.01
Beta	2.324
Volatility	61.70%
Current Volume	8493k
Average Volume 20d	8231.3k
Stop Loss	35.5 (-6.3%)
Signal	0.28

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 1.67pp (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

(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) 39.58

1. Piotroski 4.0pt = -1.0

2. FCF Yield 2.22% = 1.11

3. FCF Margin 19.24% = 4.81

4. Debt/Equity 0.70 = 2.26

5. Debt/Ebitda 141.8 = -2.50

6. ROIC - WACC (= -20.17)% = -12.50

7. RoE -13.62% = -2.27

8. Rev. Trend 5.87% = 0.44

9. EPS Trend -15.36% = -0.77

What is the price of U shares?

As of November 04, 2025, the stock is trading at USD 37.90 with a total of 8,492,992 shares traded.
Over the past week, the price has changed by -3.24%, over one month by -3.07%, over three months by +11.44% and over the past year by +86.61%.

Is Unity Software a good stock to buy?

No, based on ValueRay´s Fundamental Analyses, Unity Software (NYSE:U) is currently (November 2025) a stock to sell. It has a ValueRay Fundamental Rating of 39.58 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 33.73 USD . This means that U is currently overvalued and has a potential downside of -11%.

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	36.9	-2.7%
Analysts Target Price	36.9	-2.7%
ValueRay Target Price	39	3%

U Fundamental Data Overview October 20, 2025

Market Cap USD = 14.89b (14.89b USD * 1.0 USD.USD)
P/E Forward = 129.8701
P/S = 8.367
P/B = 5.1831
Beta = 2.324
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 = 2.23b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 542.2m USD (from netDebt column, last quarter)
Enterprise Value = 15.43b USD (14.89b + Debt 2.23b - CCE 1.69b)
Interest Coverage Ratio = -16.74 (Ebit TTM -395.1m / Interest Expense TTM 23.6m)
FCF Yield = 2.22% (FCF TTM 342.4m / Enterprise Value 15.43b)
FCF Margin = 19.24% (FCF TTM 342.4m / 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)
Gross Margin QoQ = 74.16% (prev 73.80%)
Tobins Q-Ratio = 2.30 (Enterprise Value 15.43b / Total Assets 6.72b)
Interest Expense / Debt = 0.27% (Interest Expense 6.03m / Debt 2.23b)
Taxrate = -2.31% (negative due to tax credits) (2.42m / -104.9m)
NOPAT = -404.2m (EBIT -395.1m * (1 - -2.31%)) [loss with tax shield] [negative tax rate / tax credits]
Current Ratio = 2.73 (Total Current Assets 2.41b / Total Current Liabilities 883.3m)
Debt / Equity = 0.70 (Debt 2.23b / totalStockholderEquity, last quarter 3.19b)
Debt / EBITDA = 141.8 (Net Debt 542.2m / EBITDA 3.83m)
Debt / FCF = 1.58 (Net Debt 542.2m / FCF TTM 342.4m)
Total Stockholder Equity = 3.19b (last 4 quarters mean from totalStockholderEquity)
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 / Capital Employed (Equity 3.19b + L.T.Debt 2.23b))
RoIC = -7.45% (negative operating profit) (NOPAT -404.2m / Invested Capital 5.42b)
WACC = 12.71% (E(14.89b)/V(17.12b) * Re(14.58%) + D(2.23b)/V(17.12b) * Rd(0.27%) * (1-Tc(-0.02)))
Discount Rate = 14.58% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 4.16%
[DCF Debug] Terminal Value 47.15% ; FCFE base≈297.2m ; Y1≈195.1m ; Y5≈89.2m
Fair Price DCF = 2.02 (DCF Value 852.4m / Shares Outstanding 422.5m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: -15.36 | EPS CAGR: 0.47% | SUE: -1.00 | # QB: 0
Revenue Correlation: 5.87 | Revenue CAGR: 12.00% | SUE: 0.73 | # QB: 0

Additional Sources for U Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle