Stock Analysis
Unity Software Inc.U
Sector: Technology · Industry: Services-Prepackaged Software
AnalystsStrong Buy34 analystsPrice is 72% of the way from the year's low to its high.
PMP Verdict
Weak fundamentals
Risks
- Profitability0
- Growth20
Weak fundamentals — valuation is the only support.
Market context
-6.8% today· Z 2.0σ
Bull Case
- ✓Revenue CAGR 13.6% — durable top-line growth
What's happening with U
Profile
profitability, growth, moat, financial health and valuation lag behind.
How is each axis scored?
- Valuation44/100 · Weak
- P/E vs own history (n/a)10/25
- FCF yield (3.1%)12/25
- P/S (8.7x)12/25
- EV/EBIT (n/a)10/25
- Growth20/100 · Weak
- Revenue CAGR (13.6%)20/25
- Net income CAGR (n/a)0/25
- EPS CAGR 5Y (n/a)0/25
- Fwd implied growth (n/a)0/25
- Profitability0/100 · Weak
- ROIC (-41.2%)0/25
- ROE (-18.1%)0/25
- Net margin (-29.0%)0/25
- Operating margin (-30.4%)0/25
- Financial Health36/100 · Weak
- Altman Z (2.69)18/25
- Current ratio (1.84)18/25
- Interest coverage (-62.1x)0/25
- Net cash / debt (n/a)0/25
- Quality52/100 · Moderate
- Piotroski F (5/9)15/25
- Beneish M (-2.84)25/25
- FCF conversion (n/a)0/25
- Margin stability (σ 14.0%)12/25
- Moat30/100 · Weak
- ROIC >12% years (0/6 yrs)0/25
- Median gross margin (73.8%)25/25
- FCF-positive years (3/6 yrs)5/25
- Worst-year net margin (worst -66.2%)0/25
Risk Flags
- ⚠SBC 16.9% of revenue — real dilution cost
- ⚠6 loss-making years in recent history
- ⚠Interest coverage -62.1× — thin debt cushion
About Unity Software Inc.
Unity Software Inc provides a software platform for creating and operating interactive, real-time 3D content. Show more
The platform can be used 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 business is spread across the United States, Greater China, EMEA, APAC, and other Americas, and key revenue is derived from the EMEA region. Its products are used in the gaming industry, retail, automotive, architecture, engineering, and construction.
Headquarters: SAN FRANCISCO, CA · Employees: 4,412 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
44D+P/E (TTM)—
Price / TTM EPS (own statements)
P/FCF35.3xC
Grade C: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield3.1%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: -2.4%–5.4% · 80th pct
P/S (TTM)8.69xC
Grade C: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 2.6x–55.5x · 67th pct
EV/EBITDA—
Enterprise value / EBITDA (Finnhub) — capital-structure neutral
EV/Sales9.3xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E—
Price / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio5.45xC
Grade C: ExpensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio-1.09A
Grade A: CheapFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
0EROIC-41.2%D
Grade D: LowNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE-18.1%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA-8.8%D
Grade D: WeakReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin-29.0%D
Grade D: LowNet Income / Revenue
Operating Margin-30.4%D
Grade D: LowTTM EBIT / TTM Revenue
Gross Margin64.9%A
Grade A: PremiumGross Profit / Revenue
FCF Margin26.5%A
Grade A: HighFCF / Revenue
True FCF Margin9.7%C
Grade C: AverageTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
20ERevenue CAGR13.6%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR—
Compound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)—
Compound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth—
Analyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)+58.2%D
Grade D: DilutiveShare count change over 5Y
SBC / Net Income—
Stock-based comp/Net income. >30% = dilution risk
SBC / Revenue16.9%D
Grade D: HighTTM stock-based comp / TTM Revenue
Financial Health
36DAltman Z-Score2.69C
Grade C: Gray zoneBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.84xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio1.98xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage-62.1xD
Grade D: RiskyEBIT/Interest. >10 Strong
Debt Repayment—
Years to repay net debt via FCF
Net Debt/EBIT—
Leverage. <2x Low, >4x High
Debt/Equity0.74xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt—
Cash covers how much of total debt. >1 = could repay all debt from cash
Quality
52CPiotroski F-Score5/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.84A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion—
FCF / Net Income
Margin Stability14.0%C
Grade C: AverageEBIT margin std deviation. Lower = stable
Capex / Revenue0.8%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.30xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Blum Alexander Filed | Blum Alexander | SellOpen market sale | -11947 | |
Blum Alexander Filed | Blum Alexander | SellOpen market sale | -31609 | |
Blum Alexander Filed | Blum Alexander | SellOpen market sale | -1964 | |
Blum Alexander Filed | Blum Alexander | SellOpen market sale | -1140 | |
Blum Alexander Filed | Blum Alexander | SellOpen market sale | -19455 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Boyden Rebecca Berenice Filed | Boyden Rebecca Berenice | SellOpen market sale | -92 | |
Boyden Rebecca Berenice Filed | Boyden Rebecca Berenice | SellOpen market sale | -940 | |
Yahes Jarrod Filed | Yahes Jarrod | SellOpen market sale | -1200 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
30DROIC >12% Years0/6 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)73.8%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years3/6 yrsD
Grade D: WeakShare of completed fiscal years with positive free cash flow
Net Margin Floor-66.2%D
Grade D: WeakWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)—
TTM net income per share (Finnhub fallback)
Cash / Share$5.35
Cash & short-term investments per share (Finnhub)
Book Value / Share$6.90
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt—
Total debt obligations (short + long term)
Cash & Equiv.$2.06B
Cash and short-term investments
Net Debt—
Total Debt minus Cash. Negative = Net Cash position
Total Equity$3.24B
Shareholders' equity (book value)
Asset / Liability2.05xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$17.63B
Current Market Capitalization
Beta2.10D
Grade D: High volatilityPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 16, 2026
Key Insights: Unity Software Inc. (U)
U is down 6.78% at the last close. Piotroski F-Score of 5/9 indicates mixed fundamentals for Unity Software Inc.. Altman Z-Score of 2.69 falls in the grey zone (1.81–2.99) — financial distress is unlikely but not ruled out. Beneish M-Score of -2.84 suggests a low likelihood of earnings manipulation.
- Unity Software Inc. converts about 27% of revenue into free cash flow — strong cash generation.
- Interest coverage of -62.1× leaves little room for earnings shocks.
- Unity Software Inc. posted a net loss in 6 of 6 available completed fiscal years (2020–2025).
See how U ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all U moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 16 | Regular | 40.09 | -7.50% | -2.02 |
| Oct 16 | After-hours | 40.06 | -7.57% | -2.03 |
| Oct 14 | Regular | 41.66 | -10.66% | -4.11 |
| Oct 14 | After-hours | 41.06 | -11.95% | -4.62 |
| Oct 1 | Regular | 43.64 | +6.62% | 2.38 |
Frequently Asked Questions about U
What is the current Unity Software Inc. (U) stock price?
U is trading at $40.40 at the last market close, down 6.78% on the session. PreMarketPrice tracks U pre-market, intraday and after-hours prices.
Is U stock a buy right now?
PreMarketPrice's quantitative model rates Unity Software Inc.'s financial health at 36/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is U stock overvalued?
Unity Software Inc. trades at a trailing P/E of n/a and our valuation score rates it 44/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Unity Software Inc. report earnings?
No confirmed earnings date is currently scheduled for U. The Earnings section lists recent reports and updates as dates are announced.
What sector does Unity Software Inc. operate in?
Unity Software Inc. operates in the Technology sector, within the Services-Prepackaged Software industry. The Related Stocks section lists sector peers for comparison.
What does Unity Software Inc. do?
Unity Software Inc provides a software platform for creating and operating interactive, real-time 3D content.
About Unity Software Inc. (U) Stock
Unity Software Inc. (U) is a US-listed stock operating in the Technology sector, specifically the Services-Prepackaged Software industry. As of the latest update, Unity Software Inc. is trading at $40.40, down 6.78% on the day with a market capitalization of $17.6 billion. The financial health score for U is 36/100, which indicates weak financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for U stock.
U Stock Analysis & Key Metrics
On PreMarketPrice, you can track Unity Software Inc. (U) across multiple dimensions:
- Pre-market price & movement: Real-time U stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for U with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Unity Software Inc. across multiple reporting periods.
- Financial health score: A composite score of 36/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for U.
- Sector peers: Compare U against 6 other technology stocks on key financial metrics.
Is U a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Unity Software Inc. (U) as an investment. The financial health score of 36/100 suggests weak financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Unity Software Inc. (U) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.