Unity Software Profitability Analysis

U Stock  USD 16.47  0.26  1.60%   
Based on the measurements of profitability obtained from Unity Software's financial statements, Unity Software may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in August. Profitability indicators assess Unity Software's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2019-06-30
Previous Quarter
-252.7 M
Current Value
-291.1 M
Quarterly Volatility
88.3 M
 
Covid
At this time, Unity Software's Days Sales Outstanding is comparatively stable compared to the past year. Sales General And Administrative To Revenue is likely to gain to 0.30 in 2024, whereas Price Sales Ratio is likely to drop 6.76 in 2024. At this time, Unity Software's Net Interest Income is comparatively stable compared to the past year. Interest Income is likely to gain to about 48.1 M in 2024, despite the fact that Net Loss is likely to grow to (817.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.810.6646
Fairly Up
Slightly volatile
For Unity Software profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Unity Software to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Unity Software utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Unity Software's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Unity Software over time as well as its relative position and ranking within its peers.
  
Check out World Market Map.
For more information on how to buy Unity Stock please use our How to Invest in Unity Software guide.
Is Application Software space 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
(2.24)
Revenue Per Share
5.603
Quarterly Revenue Growth
(0.08)
Return On Assets
(0.07)
Return On Equity
(0.24)
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.

Unity Software Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Unity Software's current stock value. Our valuation model uses many indicators to compare Unity Software value to that of its competitors to determine the firm's financial worth.
Unity Software is rated below average in return on equity category among its peers. It is rated below average in return on asset category among its peers . At this time, Unity Software's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Unity Software by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Unity Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Unity Software

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.24
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Unity Software

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0671
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Unity Return On Asset Comparison

Unity Software is currently under evaluation in return on asset category among its peers.

Unity Software Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Unity Software, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Unity Software will eventually generate negative long term returns. The profitability progress is the general direction of Unity Software's change in net profit over the period of time. It can combine multiple indicators of Unity Software, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-5 M-5.3 M
Net Interest Income23.3 M24.5 M
Operating Income-764.8 M-726.5 M
Net Loss-860.1 M-817.1 M
Income Before Tax-797.8 M-758 M
Total Other Income Expense Net-33.1 M-31.4 M
Net Loss-829 M-787.5 M
Net Loss-822 M-780.9 M
Income Tax Expense28.5 M14.3 M
Interest Income45.8 M48.1 M
Change To Netincome659 M692 M
Net Loss(2.16)(2.27)
Income Quality(0.29)(0.27)
Net Income Per E B T 1.03  0.82 

Unity Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Unity Software. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Unity Software position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Unity Software's important profitability drivers and their relationship over time.

Unity Software Profitability Trends

Unity Software profitability trend refers to the progression of profit or loss within a business. An upward trend means that Unity Software's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Unity Software's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Unity Software Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Unity Software different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Unity Software in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Unity Software's future profitability.

Use Unity Software in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Unity Software position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Unity Software will appreciate offsetting losses from the drop in the long position's value.

Unity Software Pair Trading

Unity Software Pair Trading Analysis

The ability to find closely correlated positions to Unity Software could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Unity Software when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Unity Software - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Unity Software to buy it.
The correlation of Unity Software is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Unity Software moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Unity Software moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Unity Software can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Unity Software position

In addition to having Unity Software in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Driverless Cars Thematic Idea Now

Driverless Cars
Driverless Cars Theme
It encompasses large technology companies, automotive makers, security firms, and thematic ETFs across multiple industries. These entities are directly or indirectly involved in shaping the development and marketing of self-driving vehicles. The Driverless Cars theme has 36 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Driverless Cars Theme or any other thematic opportunities.
View All  Next Launch

Additional Tools for Unity Stock Analysis

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.