NYSE:UIS

Stock Analysis Report

Executive Summary

Unisys Corporation operates as an information technology company worldwide.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Unisys's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UIS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.6%

UIS

-4.6%

US IT

-4.2%

US Market


1 Year Return

15.8%

UIS

29.5%

US IT

14.0%

US Market

Return vs Industry: UIS underperformed the US IT industry which returned 29.5% over the past year.

Return vs Market: UIS exceeded the US Market which returned 14% over the past year.


Shareholder returns

UISIndustryMarket
7 Day-11.6%-4.6%-4.2%
30 Day57.6%-0.4%-1.8%
90 Day35.1%7.4%2.6%
1 Year15.8%15.8%30.9%29.5%16.3%14.0%
3 Year11.0%11.0%101.3%92.6%43.2%34.0%
5 Year-32.7%-32.7%137.9%116.7%65.9%47.6%

Price Volatility Vs. Market

How volatile is Unisys's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Unisys undervalued compared to its fair value and its price relative to the market?

47.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UIS ($16.26) is trading below our estimate of fair value ($29.97)

Significantly Below Fair Value: UIS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UIS is poor value based on its PE Ratio (46.4x) compared to the IT industry average (30.9x).

PE vs Market: UIS is poor value based on its PE Ratio (46.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: UIS is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: UIS has negative assets, so we can't compare its PB Ratio to the US IT industry average.


Next Steps

Future Growth

How is Unisys forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

120.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UIS's forecast earnings growth (120.9% per year) is above the savings rate (1.7%).

Earnings vs Market: UIS's earnings (120.9% per year) are forecast to grow faster than the US market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: UIS's revenue (0.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: UIS's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if UIS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Unisys performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UIS has a large one-off loss of $56.4M impacting its September 30 2019 financial results.

Growing Profit Margin: UIS's current net profit margins (0.6%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: UIS's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: UIS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UIS had negative earnings growth (-81.6%) over the past year, making it difficult to compare to the IT industry average (12%).


Return on Equity

High ROE: UIS's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Unisys's financial position?


Financial Position Analysis

Short Term Liabilities: UIS has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: UIS has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: UIS has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: UIS's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: UIS's debt is well covered by operating cash flow (26.2%).

Interest Coverage: UIS's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: UIS has a low level of unsold assets or inventory.

Debt Coverage by Assets: UIS has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Unisys's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate UIS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate UIS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if UIS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UIS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of UIS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Peter Altabef (59yo)

5.1yrs

Tenure

US$6,620,840

Compensation

Mr. Peter A. Altabef has been the Chief Executive Officer and President at Unisys Corporation since January 1, 2015 and has been the Chairman of the since April 26, 2018. Mr. Altabef served as the Chief Ex ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD6.62M) is above average for companies of similar size in the US market ($USD2.52M).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Altabef
Chairman5.1yrsUS$6.62m0.82% $8.3m
Jeffrey Renzi
Senior VP & President of Global Sales6.1yrsUS$1.58m0.17% $1.7m
Venkatapathi Puvvada
Senior VP & President of Unisys Federal9yrsUS$1.67m0.11% $1.1m
Eric Hutto
Senior VP & President of Enterprise Solutions0yrsUS$2.14m0.17% $1.7m
Michael Thomson
Senior VP & CFO0.8yrsno data0.037% $377.3k
Lawrence Wieser
Vice President of Global Operations14.2yrsno datano data
Vishal Gupta
Senior VP of Technology & CTO1.5yrsno data0.022% $223.7k
Courtney Holben
Vice President of Investor Relations0yrsno datano data
Gerald Kenney
Senior VP6.3yrsno data0.11% $1.1m
Ann Ruckstuhl
Senior VP & Chief Marketing Officer3.2yrsno data0.060% $609.2k

5.6yrs

Average Tenure

57yo

Average Age

Experienced Management: UIS's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Altabef
Chairman5.1yrsUS$6.62m0.82% $8.3m
Nathaniel Davis
Independent Lead Director1.8yrsUS$254.56k0.064% $647.1k
Lee Roberts
Independent Director9.1yrsUS$241.01k0.11% $1.1m
Regina Paolillo
Independent Director1.9yrsUS$190.51k0.0016% $16.2k
Matthew Desch
Independent Director1.1yrsno datano data
Denise Fletcher
Independent Director19.1yrsUS$241.01k0.034% $343.8k
Jared Cohon
Independent Director7.1yrsUS$225.01kno data
Philippe Germond
Independent Director4yrsUS$223.34k0.039% $396.8k
Deborah James
Independent Director2.5yrsUS$222.51kno data
Paul Martin
Independent Director3yrsUS$222.01k0.061% $618.0k

2.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: UIS's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.6%.


Top Shareholders

Company Information

Unisys Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Unisys Corporation
  • Ticker: UIS
  • Exchange: NYSE
  • Founded: 1886
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$1.015b
  • Shares outstanding: 62.39m
  • Website: https://www.unisys.com

Number of Employees


Location

  • Unisys Corporation
  • 801 Lakeview Drive
  • Suite 100
  • Blue Bell
  • Pennsylvania
  • 19422
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UISNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
USYLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
UISSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
USY1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
USYXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968

Biography

Unisys Corporation operates as an information technology company worldwide. It operates in two segments, Services and Technology. The Services segment offers cloud and infrastructure services, application services, and business process outsourcing services. The Technology segment designs and develops software, and hardware and other related products. This segment offers a range of data-center, infrastructure management, and cloud computing services for clients to virtualize and automate their data-center environments. It also provides industry application products, which allow law enforcement agencies to solve crime and social services case workers assist families; travel and transportation companies manage freight and distribution; life sciences and healthcare companies manage medical devices; and financial institutions deliver omnichannel banking. In addition, this segments products include Unisys ClearPath Forward, a software operating environment for high-intensity enterprise computing; and Unisys Stealth security software, which enables trusted identities to access micro-segmented critical assets and safely communicate through secure and encrypted channels. The company serves customers in the government, financial services, and commercial markets through direct sales force, distributors, resellers, and alliance partners. Unisys Corporation was founded in 1886 and is based in Blue Bell, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 00:14
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.