U Stock Overview
Unity Software Inc. creates and operates an interactive real-time 3D content platform.
Unity Software Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$35.22|
|52 Week High||US$210.00|
|52 Week Low||US$29.09|
|1 Month Change||-53.47%|
|3 Month Change||-62.60%|
|1 Year Change||-63.04%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-48.47%|
Recent News & Updates
Unity Software Stock: Priced Too Low For The Long-Term Opportunity
Unity previously guided for revenue growth of 36% for full year 2022, which would put the company as the leader in ad-tech growth and mid-range for cloud. Unity is a game engine where more than 2.8 billion monthly active users (MAUs) play games or apps built on Unity compared to Facebook’s 2.9 billion monthly active users. Unity Software's future growth opportunities extend beyond gaming to include industrial real-time 3D and the Metaverse.
Unity's (NYSE:U) Set Q2 Revenue Outlook 20% Below Expectations - Recent Insider Transactions are not Helpful with Investor Sentiment
As investors are wondering why the stock is dropping after the earnings call, Unity's (NYSE:U) management will have a harder time convincing them to stay on-board. Today we will review the earnings results, and take a look at the history of insider transactions.
|U||US Software||US Market|
Return vs Industry: U underperformed the US Software industry which returned -13.6% over the past year.
Return vs Market: U underperformed the US Market which returned -12.3% over the past year.
|U Average Weekly Movement||17.2%|
|Software Industry Average Movement||10.9%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: U is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 17% a week.
Volatility Over Time: U's weekly volatility has increased from 11% to 17% over the past year.
About the Company
Unity Software Inc. creates and operates an interactive real-time 3D content platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The company serves content creators and developers, artists, designers, engineers, and architects to create interactive and real-time 2D and 3D content.
Unity Software Fundamentals Summary
|U fundamental statistics|
Is U overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|U income statement (TTM)|
|Cost of Revenue||US$284.67m|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||-2.04|
|Net Profit Margin||-50.40%|
How did U perform over the long term?See historical performance and comparison
Is Unity Software undervalued compared to its fair value and its price relative to the market?
Valuation Score 2/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: U ($35.22) is trading below our estimate of fair value ($101.88)
Significantly Below Fair Value: U is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: U is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US Software industry average.
PE vs Market: U is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate U's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: U is overvalued based on its Price-To-Book Ratio (4.4x) compared to the US Software industry average (3.6x).
How is Unity Software forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: U is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: U is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: U is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: U's revenue (24.6% per year) is forecast to grow faster than the US market (7.8% per year).
High Growth Revenue: U's revenue (24.6% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: U is forecast to be unprofitable in 3 years.
How has Unity Software performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: U is currently unprofitable.
Growing Profit Margin: U is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: U is unprofitable, and losses have increased over the past 5 years at a rate of 38.4% per year.
Accelerating Growth: Unable to compare U's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: U is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (27.1%).
Return on Equity
High ROE: U has a negative Return on Equity (-25.52%), as it is currently unprofitable.
How is Unity Software's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: U's short term assets ($2.2B) exceed its short term liabilities ($630.3M).
Long Term Liabilities: U's short term assets ($2.2B) exceed its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: U has more cash than its total debt.
Reducing Debt: Insufficient data to determine if U's debt to equity ratio has reduced over the past 5 years.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable U has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: U is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 19.1% per year.
What is Unity Software current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate U's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate U's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if U's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if U's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as U has not reported any payouts.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Riccitiello (61 yo)
Mr. John S. Riccitiello has been Chief Executive Officer and President of Unity Software Inc. (formerly known as Unity Technologies, Inc.). since October 2014. Mr. Riccitiello served as the Chief Executive...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD12.50M) is about average for companies of similar size in the US market ($USD13.26M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Experienced Management: U's management team is considered experienced (2.3 years average tenure).
Experienced Board: U's board of directors are considered experienced (4.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: U insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.9%.
Unity Software Inc.'s employee growth, exchange listings and data sources
- Name: Unity Software Inc.
- Ticker: U
- Exchange: NYSE
- Founded: 2004
- Industry: Application Software
- Sector: Software
- Implied Market Cap: US$10.426b
- Shares outstanding: 296.01m
- Website: https://unity.com
Number of Employees
- Unity Software Inc.
- 30 3rd Street
- San Francisco
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/24 00:00|
|End of Day Share Price||2022/05/24 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.