Unity Software Stock Beneish M Score

U Stock  USD 29.29  1.73  5.58%   
This module uses fundamental data of Unity Software to approximate the value of its Beneish M Score. Unity Software M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Unity Software Piotroski F Score and Unity Software Altman Z Score analysis.
For more information on how to buy Unity Stock please use our How to Invest in Unity Software guide.
  
Total Debt is likely to drop to about 2.5 B in 2024. Debt Current is likely to drop to about 22.7 M in 2024. At this time, Unity Software's Asset Turnover is comparatively stable as compared to the past year. Current Ratio is likely to gain to 2.89 in 2024, whereas EBITDA Margin is likely to drop (0.47) in 2024.
At this time, it appears that Unity Software is an unlikely manipulator. The earnings manipulation may begin if Unity Software's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Unity Software executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Unity Software's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.59
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.3

Focus
Asset Quality

1.1

Focus
Expense Coverage

0.99

Focus
Gross Margin Strengs

1.11

Focus
Accruals Factor

0.99

Focus
Depreciation Resistance

0.97

Focus
Net Sales Growth

0.83

Focus
Financial Leverage Condition

0.9

Focus

Unity Software Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Unity Software's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense826 MB
Significantly Down
Slightly volatile
Revenues1.3 B1.6 B
Significantly Down
Slightly volatile
Trade and Non Trade Receivables786.4 M728.8 M
Significantly Up
Slightly volatile
Property Plant and Equipment Net140.2 M140.1 M
Slightly Up
Slightly volatile
Net Cash Flow from Operations(57.7 M)(53.5 M)
Significantly Down
Slightly volatile
Liabilities Non Current3.8 B3.5 B
Significantly Up
Slightly volatile
Current Liabilities927.6 M1.2 B
Significantly Down
Slightly volatile
Total Liabilities5.1 B4.7 B
Significantly Up
Slightly volatile
Investments Current93.9 M91.5 M
Fairly Up
Slightly volatile
Investments93.9 M91.5 M
Fairly Up
Slightly volatile
Gross Margin0.680.61
Moderately Up
Slightly volatile
Depreciation Amortization and Accretion262.5 M243.3 M
Significantly Up
Slightly volatile
Debt Non Current2.5 B3.1 B
Significantly Down
Slightly volatile
Debt Current22.7 M22.8 M
Slightly Down
Slightly volatile
Total Debt2.5 B3.1 B
Significantly Down
Slightly volatile
Assets Non Current6.8 B6.3 B
Significantly Up
Slightly volatile
Current Assets2.3 B2.7 B
Fairly Down
Slightly volatile
Total Assets9.7 BB
Significantly Up
Slightly volatile

Unity Software Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Unity Software's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Unity Software in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Unity Software's degree of accounting gimmicks and manipulations.

About Unity Software Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

EBITDA Margin

(0.47)

At this time, Unity Software's EBITDA Margin is comparatively stable as compared to the past year.

Unity Software Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Unity Software. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Revenues541.8M772.4M1.1B1.4B1.6B1.3B
Total Assets762.9M2.7B4.8B7.8B9.0B9.7B
Current Assets367.4M2.1B2.2B2.4B2.7B2.3B
Assets Non Current395.4M590.6M2.7B5.5B6.3B6.8B
Total Liabilities368.9M634.1M2.4B4.1B4.7B5.1B
Current Liabilities336.5M503.2M626.2M1.0B1.2B927.6M
Operating Income(150.7M)(274.8M)(531.7M)(882.2M)(794.0M)(814.9M)

About Unity Software Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Unity Software's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Unity Software using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Unity Software based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Unity Software Inc. creates and operates an interactive real-time 3D content platform. The company was founded in 2004 and is headquartered in San Francisco, California. Unity Software operates under SoftwareApplication classification in the United States and is traded on New York Stock Exchange. It employs 5245 people.

Unity Software Investors Sentiment

The influence of Unity Software's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Unity. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Unity Software's public news can be used to forecast risks associated with an investment in Unity. The trend in average sentiment can be used to explain how an investor holding Unity can time the market purely based on public headlines and social activities around Unity Software. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Unity Software's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Unity Software's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Unity Software's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Unity Software.

Unity Software Implied Volatility

    
  105.36  
Unity Software's implied volatility exposes the market's sentiment of Unity Software stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Unity Software's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Unity Software stock will not fluctuate a lot when Unity Software's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Unity Software in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Unity Software's short interest history, or implied volatility extrapolated from Unity Software options trading.

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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
When determining whether Unity Software is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Unity Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Unity Software Stock. Highlighted below are key reports to facilitate an investment decision about Unity Software Stock:
Check out Unity Software Piotroski F Score and Unity Software Altman Z Score analysis.
For more information on how to buy Unity Stock please use our How to Invest in Unity Software guide.
You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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When running Unity Software's price analysis, check to measure Unity Software's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Unity Software is operating at the current time. Most of Unity Software's value examination focuses on studying past and present price action to predict the probability of Unity Software's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Unity Software's price. Additionally, you may evaluate how the addition of Unity Software to your portfolios can decrease your overall portfolio volatility.
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Is Unity Software's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Unity Software. If investors know Unity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Unity Software listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(2.33)
Revenue Per Share
5.409
Quarterly Revenue Growth
0.685
Return On Assets
(0.08)
Return On Equity
(0.30)
The market value of Unity Software is measured differently than its book value, which is the value of Unity that is recorded on the company's balance sheet. Investors also form their own opinion of Unity Software's value that differs from its market value or its book value, called intrinsic value, which is Unity Software's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Unity Software's market value can be influenced by many factors that don't directly affect Unity Software's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Unity Software's value and its price as these two are different measures arrived at by different means. Investors typically determine if Unity Software is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Unity Software's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.