Unity Software Stock Intrinsic Value – Unity Software Exceeds Q1 Expectations and Raises FY23 Outlook
May 11, 2023
Trending News 🌥️
Unity Software ($NYSE:U) exceeded expectations in its first quarter, setting the stage for a strong full year of 2023. The company reported better than expected top and bottom line results, and raised its outlook for both the second quarter and full year of 2023. Unity Software is a leading provider of 3D creation tools and services for video games, interactive media, automotive, architecture, and design. This growth bodes well for Unity’s future as it continues to leverage its existing products and introduce new ones.
This allowed the company to exceed expectations and report better than expected earnings per share. The company looks set to continue its success in the future, as it has raised its outlook for both the second quarter and full year of 2023. With an increase in both revenue and active users, as well as successful cost-cutting initiatives, the company looks ready to continue its success into the foreseeable future.
Share Price
UNITY SOFTWARE‘s success is a testament to their innovative software solutions, which have enabled them to compete in the marketplace and remain competitive. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Unity Software. More…
| Total Revenues | Net Income | Net Margin |
| 1.39k | -921.06 | -66.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Unity Software. More…
| Operations | Investing | Financing |
| -59.43 | 723.23 | -226.63 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Unity Software. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.83k | 4.08k | 9.43 |
Key Ratios Snapshot
Some of the financial key ratios for Unity Software are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 36.9% | – | -62.9% |
| FCF Margin | ROE | ROA |
| -8.4% | -19.1% | -7.0% |
Analysis – Unity Software Stock Intrinsic Value
At GoodWhale, we’ve conducted an analysis of UNITY SOFTWARE‘s wellbeing, and determined that its fair value is approximately $89.0. This fair value is calculated with our proprietary Valuation Line, which uses a combination of fundamental and technical research to evaluate a company’s worth. Currently, UNITY SOFTWARE’s stock is trading at $28.7, which is significantly below its fair value. This indicates that the stock is undervalued by 67.7% in comparison to its true worth. Investors should keep an eye on UNITY SOFTWARE and consider adding it to their portfolio, as the company may soon reach its true value. More…
Peers
In the software industry, Unity Software Inc. competes with Autodesk Inc., Microsoft Corp., and Shopify Inc. All four companies offer software products that enable users to create three-dimensional (3D) images and animations. Autodesk Inc. is a multinational software corporation that produces software for the architecture, engineering, construction, manufacturing, media, and entertainment industries. Microsoft Corporation is a multinational technology company that develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and services. Shopify Inc. is a Canadian multinational e-commerce company headquartered in Ottawa, Ontario.
– Autodesk Inc ($NASDAQ:ADSK)
Autodesk’s market cap is currently at $43.47 billion. The company has a return on equity of 71.49%. Autodesk is a software company that creates design and engineering software for the architecture, engineering, construction, manufacturing, media, and entertainment industries.
– Microsoft Corp ($NASDAQ:MSFT)
Microsoft Corporation is an American multinational technology company with a market cap of 1.84 trillion as of 2022. The company’s return on equity (ROE) is 45.3%. Microsoft is a leading technology company that develops, manufactures, licenses, supports, and sells a range of software products and services. The company’s products include operating systems for personal computers, servers, and mobile devices; productivity applications; gaming and entertainment consoles; and business and consumer applications. Microsoft also offers cloud-computing services, including computing, storage, and networking. The company was founded in 1975 and is headquartered in Redmond, Washington.
– Shopify Inc ($TSX:SHOP)
Shopify is a Canadian e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. Shopify offers online retailers a suite of services “including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store for small merchants.
Summary
Furthermore, both cash from operations and operating margin improved from the prior year. Management also provided a positive outlook for the second quarter and raised its full year guidance for fiscal year 2023. Investors reacted positively to the news, with Unity Software shares rising in trading following the earnings release. Overall, the company’s strong results and outlook suggest that it is well-placed to continue its positive performance in the coming quarters.
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