Unity Software Inc. (U) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Technology · Software - Application
Is Unity Software Inc. a safe investment right now?
Unity Software Inc.'s Altman Z-Score of 1.49 places it in the distress zone. Fair value estimate is not available for this stock. Moat rating: 2.9/5 stars.
Could Unity Software Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 1.49 falls below the 1.8 distress threshold, indicating significant financial stress.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives U's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.1882 | 1.2 | 0.23 |
| B · Retained Earnings / Total Assets | RE / TA | -0.6053 | 1.4 | -0.85 |
| C · EBIT / Total Assets | EBIT / TA | -0.0543 | 3.3 | -0.18 |
| D · Market Cap / Total Liabilities | MCap / TL | 3.3716 | 0.6 | 2.02 |
| E · Revenue / Total Assets | Rev / TA | 0.2705 | 1.0 | 0.27 |
How has U's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 1.27 | Distress |
| 2023 | 1.36 | Distress |
| 2024 | 1.46 | Distress |
| 2025 | 1.49 | Distress |
Source: Calculated from U's latest 10-K filing on SEC EDGAR.
What is Unity Software Inc. actually worth?
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Unity Software Inc. have a durable competitive advantage?
Moat rating: 2.9/5.
What makes up U's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is U's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | -14.0% | — |
| 2023 | -13.1% | Stable |
| 2024 | -11.8% | Rising |
| 2025 | -6.8% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is Unity Software Inc.'s dividend safe?
Unity Software Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $1.8B | $1.8B | $1.4B | Rising |
| Net Income | −$0.4B | −$0.7B | −$0.9B | Rising |
| Free Cash Flow | $0.4B | $0.3B | −$0.1B | Rising |
| Gross Margin | 74.2% | 73.5% | 68.2% | Rising |
Recent events that affect our U analysis
U earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.24. Revenue estimate: $504.3M.
U analyst consensus: 67% bullish (18 of 27 analysts)
4 Strong Buy, 14 Buy, 9 Hold, 0 Sell, 0 Strong Sell. Consensus target: $32.12 (24.4% upside).
U filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
U beat EPS estimates by 14.8%
Reported EPS: $0.24 vs estimate $0.21.
U filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
U filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
U filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
U filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
U filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
U beat EPS estimates by 19.6%
Reported EPS: $0.20 vs estimate $0.17.
U filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
U filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
U beat EPS estimates by 22.0%
Reported EPS: $0.18 vs estimate $0.15.
U filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
U filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
U filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
U beat EPS estimates by 121.9%
Reported EPS: $0.24 vs estimate $0.11.
U filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
U filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
U filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
U filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
U filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
U filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
U beat EPS estimates by 46.9%
Reported EPS: $0.23 vs estimate $0.16.
U filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Unity Software Inc.
What is Unity Software Inc. stock price today?
Unity Software Inc. (U) stock price is $25.82 as of the latest market close, traded on the NYSE exchange.
What does Unity Software Inc. do?
Unity Software Inc. operates a platform to develop, deploy, and grow games and interactive experiences for mobile phones, PCs, consoles, and extended reality devices in the United States, China, Hong Kong, Taiwan, Europe, the Middle East, Africa, the Asia Pacific, Canada, and Latin America. The company's platform offers artificial intelligence solutions that support developers through the entire development lifecycle, which includes prototyping, live service operation, user acquisition, and monetization.
What is Unity Software Inc. market cap?
Unity Software Inc. has a market capitalization of $11.27B, classifying it as a large-cap stock in the Technology sector.
What sector and industry is U in?
Unity Software Inc. operates in the Technology sector, specifically within the Software - Application industry. It trades on the NYSE under the ticker symbol U.
Is U stock overvalued or undervalued?
We do not have sufficient earnings data to produce a reliable fair value estimate for Unity Software Inc. at this time. Stocks without stable earnings history are difficult to value using traditional models.
What is U stock forecast and analyst target price?
Based on 24 Wall Street analysts, the consensus price target for Unity Software Inc. is $32.12, implying upside of 24.4% from the current price.
- Analyst High Target: $46.00
- Analyst Low Target: $19.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Unity Software Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Unity Software Inc.:
- Revenue growth (current year est.): 14.2%
- EPS growth (current year est.): 18.5%
- Revenue growth (next year est.): 12.8%
- EPS growth (next year est.): 24.0%
What are Unity Software Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $1.8B | Rising |
| Net Income | −$0.4B | Rising |
| Free Cash Flow | $0.4B | Rising |
| Gross Margin | 74.2% | Rising |
What is U's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Forward P/E (next 12 months est.): 20.4x
How volatile is U stock?
Unity Software Inc. has a beta of 2.00, meaning it is significantly more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Unity Software Inc. have?
Unity Software Inc.'s balance sheet shows:
- Total Cash: $2.06B
- Total Debt: $2.32B
- Net Cash Position: $-268.9M
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Unity Software Inc.'s free cash flow?
Unity Software Inc. generated $550.8M in trailing twelve-month free cash flow (from $423.0M in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Unity Software Inc. pay a dividend?
Unity Software Inc. does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is Unity Software Inc. at risk of going bankrupt?
Unity Software Inc.'s Altman Z-Score is 1.49, placing it in the distress zone (below 1.8) — elevated bankruptcy risk. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Unity Software Inc. have a durable competitive advantage?
Unity Software Inc. scores 2.9/5 stars (Narrow moat · eroding) in our moat analysis:
- ROIC Stability: 2/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is U's return on equity (ROE)?
Unity Software Inc.'s return on equity is -11.6%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy U stock?
U shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol U
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is U a value stock or speculative?
FairValueLabs classifies Unity Software Inc. as Value-Speculation. It has some value characteristics but carries elevated risk factors that make it speculative. Extra due diligence is recommended.
Who is the CEO of Unity Software Inc.?
The current CEO of Unity Software Inc. is Mr. Matthew Samuel Bromberg J.D..
What is U's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $-0.96
- Forward EPS (next 12 months est.): $1.26
- Analyst consensus EPS (this year): $1.02
- Analyst consensus EPS (next year): $1.26
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
U analysis methodology: How we calculate fair value, Z-Scores, and moat ratings