Briefing on the Fundamentals of Unity Software (U)

Now trading at a price of $31.83, Unity Software has moved -17.85% so far today.

Unity Software shares moved -69.15% over the last 52 weeks, with a high of $109.99 and a low of $21.22. During this time, the stock lagged the S&P 500 index by -60.65%. As of January 2022, the company's 50-day average price is $32.92. Unity Software Inc. operates a real-time 3D development platform. The large-cap Technology company is based in San Francisco, CA. Unity Software has returned a 0.0% dividend yield over the last 12 months.

Declining EPS Growth Trend with an Average Amount of Debt:

2020-12-31 2021-12-31
Revenue (MM) $771 $1,110
Revenue Growth n/a 43.92%
Gross Margins 77.83% 77.22%
Gross Margins Growth n/a -0.78%
Operating Margins -35.64% -47.91%
Operating Margins Growth n/a -34.43%
Earnings Per Share -$1.03 -$1.82
EPS Growth n/a -76.7%
Free Cash Flow (MM) -$21 -$153
FCF Growth n/a -630.66%
Capital Expenditures (MM) $41 $42
LT Debt to Equity n/a 0.71

Unity Software has negative earnings for the current period, so its trailing twelve month P/E ratio is not meaningful. Based on its EPS guidance of 0.02, the company has a forward P/E ratio of 1428.57. In contrast, the Technology sector's average P/E ratio is 27.16.

While it is clearly over priced in terms of its assets, Unity Software is possibly undervalued in terms of its net assets because its P/B ratio is 5.95 compared to its sector average of 6.23.

21 analysts are following Unity Software and on average they have given the company a rating of buy. At the current price of $31.83, U is trading below its average analyst target price of $35.93 per share, implying an analyst consensus of little upside potential for the stock.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.