(U) Unity Software - Overview
Sector: TechnologyIndustry: Software - Application | Exchange NYSE (USA) | Currency USD | Market Cap: 7.963m | Total Return -20.2% in 12m
Stock: Game Engine, Ad Platform, Development Tools
Total Rating 23
Risk 39
Buy Signal -1.71
| Risk 5d forecast | |
|---|---|
| Volatility | 65.0% |
| Relative Tail Risk | -7.52% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.06 |
| Alpha | -42.91 |
| Character TTM | |
|---|---|
| Beta | 1.771 |
| Beta Downside | 1.724 |
| Drawdowns 3y | |
|---|---|
| Max DD | 71.28% |
| CAGR/Max DD | -0.19 |
EPS (Earnings per Share)
Revenue
Risks
Technicals:
volatile
Description: U Unity Software March 07, 2026
Unity Software Inc. (U) provides a platform for developing and operating interactive content, primarily games, across various devices globally. The company operates in the software industry, which is characterized by high research and development investment.
Its business model includes two main segments: Create Solutions, offering tools for content creation, and Grow Solutions, focusing on user engagement and monetization. This dual approach addresses the full lifecycle of digital content, from development to commercialization, a common strategy in the platform economy.
Unity also offers professional services like consulting and training, alongside advertising and game publishing. The company serves a broad customer base, from large enterprises to individual developers, through direct sales and partners.
To gain further insights into Unitys financial performance and market position, consider exploring ValueRays detailed analysis.
Headlines to watch out for
- Gaming industry growth drives Unitys core software demand
- Advertising revenue volatility impacts Grow Solutions segment
- Competition from Epic Games Unreal Engine pressures market share
- AI integration expands platform capabilities, attracting new users
- Economic downturns reduce developer spending on tools and services
Piotroski VR‑10 (Strict, 0-10) 4.0
| Net Income: -402.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 1.85 > 1.0 |
| NWC/Revenue: 69.56% < 20% (prev 73.67%; Δ -4.11% < -1%) |
| CFO/TA 0.06 > 3% & CFO 423.0m > Net Income -402.8m |
| Net Debt (329.9m) to EBITDA (82.9m): 3.98 < 3 |
| Current Ratio: 1.84 > 1.5 & < 3 |
| Outstanding Shares: last quarter (429.8m) vs 12m ago 6.09% < -2% |
| Gross Margin: 70.62% > 18% (prev 0.73%; Δ 6.99k% > 0.5%) |
| Asset Turnover: 27.25% > 50% (prev 26.91%; Δ 0.34% > 0%) |
| Interest Coverage Ratio: -15.75 > 6 (EBITDA TTM 82.9m / Interest Expense TTM 24.0m) |
Altman Z'' -2.41
| A: 0.19 (Total Current Assets 2.81b - Total Current Liabilities 1.53b) / Total Assets 6.84b |
| B: -0.61 (Retained Earnings -4.14b / Total Assets 6.84b) |
| C: -0.06 (EBIT TTM -378.0m / Avg Total Assets 6.79b) |
| D: -1.24 (Book Value of Equity -4.14b / Total Liabilities 3.34b) |
| Altman-Z'' Score: -2.41 = D |
Beneish M -3.09
| DSRI: 1.10 (Receivables 643.6m/573.9m, Revenue 1.85b/1.81b) |
| GMI: 1.04 (GM 70.62% / 73.50%) |
| AQI: 0.88 (AQ_t 0.58 / AQ_t-1 0.66) |
| SGI: 1.02 (Revenue 1.85b / 1.81b) |
| TATA: -0.12 (NI -402.8m - CFO 423.0m) / TA 6.84b) |
| Beneish M-Score: -3.09 (Cap -4..+1) = AA |
What is the price of U shares?
As of March 25, 2026, the stock is trading at USD 18.14 with a total of 8,688,830 shares traded.
Over the past week, the price has changed by -9.71%, over one month by -0.82%, over three months by -60.08% and over the past year by -20.19%.
Over the past week, the price has changed by -9.71%, over one month by -0.82%, over three months by -60.08% and over the past year by -20.19%.
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.
- StrongBuy: 12
- Buy: 4
- Hold: 13
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the U price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 32.3 | 78.2% |
| Analysts Target Price | 32.3 | 78.2% |
U Fundamental Data Overview March 23, 2026
P/E Forward = 20.6612
P/S = 4.3049
P/B = 2.4596
Revenue TTM = 1.85b USD
EBIT TTM = -378.0m USD
EBITDA TTM = 82.9m USD
Long Term Debt = 1.68b USD (from longTermDebt, last quarter)
Short Term Debt = 584.9m USD (from shortTermDebt, last quarter)
Debt = 2.39b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 329.9m USD (from netDebt column, last quarter)
Enterprise Value = 9.00b USD (7.96b + Debt 2.39b - CCE 1.35b)
Interest Coverage Ratio = -15.75 (Ebit TTM -378.0m / Interest Expense TTM 24.0m)
EV/FCF = 22.28x (Enterprise Value 9.00b / FCF TTM 403.9m)
FCF Yield = 4.49% (FCF TTM 403.9m / Enterprise Value 9.00b)
FCF Margin = 21.84% (FCF TTM 403.9m / Revenue TTM 1.85b)
Net Margin = -21.78% (Net Income TTM -402.8m / Revenue TTM 1.85b)
Gross Margin = 70.62% ((Revenue TTM 1.85b - Cost of Revenue TTM 543.4m) / Revenue TTM)
Gross Margin QoQ = 61.20% (prev 74.43%)
Tobins Q-Ratio = 1.32 (Enterprise Value 9.00b / Total Assets 6.84b)
Interest Expense / Debt = 0.25% (Interest Expense 6.04m / Debt 2.39b)
Taxrate = 21.0% (US default 21%)
NOPAT = -298.6m (EBIT -378.0m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.84 (Total Current Assets 2.81b / Total Current Liabilities 1.53b)
Debt / Equity = 0.74 (Debt 2.39b / totalStockholderEquity, last quarter 3.24b)
Debt / EBITDA = 3.98 (Net Debt 329.9m / EBITDA 82.9m)
Debt / FCF = 0.82 (Net Debt 329.9m / FCF TTM 403.9m)
Total Stockholder Equity = 3.20b (last 4 quarters mean from totalStockholderEquity)
RoA = -5.93% (Net Income -402.8m / Total Assets 6.84b)
RoE = -12.57% (Net Income TTM -402.8m / Total Stockholder Equity 3.20b)
RoCE = -7.74% (EBIT -378.0m / Capital Employed (Equity 3.20b + L.T.Debt 1.68b))
RoIC = -5.49% (negative operating profit) (NOPAT -298.6m / Invested Capital 5.44b)
WACC = 9.44% (E(7.96b)/V(10.35b) * Re(12.21%) + D(2.39b)/V(10.35b) * Rd(0.25%) * (1-Tc(0.21)))
Discount Rate = 12.21% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 5.68%
[DCF] Terminal Value 70.74% ; FCFF base≈351.6m ; Y1≈305.4m ; Y5≈244.4m
[DCF] Fair Price = 7.37 (EV 3.52b - Net Debt 329.9m = Equity 3.19b / Shares 433.0m; r=9.44% [WACC]; 5y FCF grow -16.06% → 3.0% )
EPS Correlation: -18.32 | EPS CAGR: -5.39% | SUE: -1.54 | # QB: 0
Revenue Correlation: 48.85 | Revenue CAGR: 12.81% | SUE: 0.58 | # QB: 0
EPS next Quarter (2026-06-30): EPS=-0.21 | Chg7d=+0.008 | Chg30d=-0.008 | Revisions Net=-3 | Analysts=14
EPS current Year (2026-12-31): EPS=-0.69 | Chg7d=+0.004 | Chg30d=-0.037 | Revisions Net=-1 | Growth EPS=+27.8% | Growth Revenue=+13.0%
EPS next Year (2027-12-31): EPS=-0.38 | Chg7d=+0.001 | Chg30d=-0.006 | Revisions Net=-1 | Growth EPS=+45.7% | Growth Revenue=+12.9%
[Analyst] Revisions Ratio: -0.27 (4 Up / 7 Down within 30d for Next Quarter)
P/S = 4.3049
P/B = 2.4596
Revenue TTM = 1.85b USD
EBIT TTM = -378.0m USD
EBITDA TTM = 82.9m USD
Long Term Debt = 1.68b USD (from longTermDebt, last quarter)
Short Term Debt = 584.9m USD (from shortTermDebt, last quarter)
Debt = 2.39b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 329.9m USD (from netDebt column, last quarter)
Enterprise Value = 9.00b USD (7.96b + Debt 2.39b - CCE 1.35b)
Interest Coverage Ratio = -15.75 (Ebit TTM -378.0m / Interest Expense TTM 24.0m)
EV/FCF = 22.28x (Enterprise Value 9.00b / FCF TTM 403.9m)
FCF Yield = 4.49% (FCF TTM 403.9m / Enterprise Value 9.00b)
FCF Margin = 21.84% (FCF TTM 403.9m / Revenue TTM 1.85b)
Net Margin = -21.78% (Net Income TTM -402.8m / Revenue TTM 1.85b)
Gross Margin = 70.62% ((Revenue TTM 1.85b - Cost of Revenue TTM 543.4m) / Revenue TTM)
Gross Margin QoQ = 61.20% (prev 74.43%)
Tobins Q-Ratio = 1.32 (Enterprise Value 9.00b / Total Assets 6.84b)
Interest Expense / Debt = 0.25% (Interest Expense 6.04m / Debt 2.39b)
Taxrate = 21.0% (US default 21%)
NOPAT = -298.6m (EBIT -378.0m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.84 (Total Current Assets 2.81b / Total Current Liabilities 1.53b)
Debt / Equity = 0.74 (Debt 2.39b / totalStockholderEquity, last quarter 3.24b)
Debt / EBITDA = 3.98 (Net Debt 329.9m / EBITDA 82.9m)
Debt / FCF = 0.82 (Net Debt 329.9m / FCF TTM 403.9m)
Total Stockholder Equity = 3.20b (last 4 quarters mean from totalStockholderEquity)
RoA = -5.93% (Net Income -402.8m / Total Assets 6.84b)
RoE = -12.57% (Net Income TTM -402.8m / Total Stockholder Equity 3.20b)
RoCE = -7.74% (EBIT -378.0m / Capital Employed (Equity 3.20b + L.T.Debt 1.68b))
RoIC = -5.49% (negative operating profit) (NOPAT -298.6m / Invested Capital 5.44b)
WACC = 9.44% (E(7.96b)/V(10.35b) * Re(12.21%) + D(2.39b)/V(10.35b) * Rd(0.25%) * (1-Tc(0.21)))
Discount Rate = 12.21% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 5.68%
[DCF] Terminal Value 70.74% ; FCFF base≈351.6m ; Y1≈305.4m ; Y5≈244.4m
[DCF] Fair Price = 7.37 (EV 3.52b - Net Debt 329.9m = Equity 3.19b / Shares 433.0m; r=9.44% [WACC]; 5y FCF grow -16.06% → 3.0% )
EPS Correlation: -18.32 | EPS CAGR: -5.39% | SUE: -1.54 | # QB: 0
Revenue Correlation: 48.85 | Revenue CAGR: 12.81% | SUE: 0.58 | # QB: 0
EPS next Quarter (2026-06-30): EPS=-0.21 | Chg7d=+0.008 | Chg30d=-0.008 | Revisions Net=-3 | Analysts=14
EPS current Year (2026-12-31): EPS=-0.69 | Chg7d=+0.004 | Chg30d=-0.037 | Revisions Net=-1 | Growth EPS=+27.8% | Growth Revenue=+13.0%
EPS next Year (2027-12-31): EPS=-0.38 | Chg7d=+0.001 | Chg30d=-0.006 | Revisions Net=-1 | Growth EPS=+45.7% | Growth Revenue=+12.9%
[Analyst] Revisions Ratio: -0.27 (4 Up / 7 Down within 30d for Next Quarter)