The underlying trend currently is to the downside for stocks in Unity Software Inc.. The trend should continue over the coming trading sessions and thereby open the door for lower price targets.
Summary
● Overall, the company has poor fundamentals for a medium to long-term investment strategy.
● From a short-term investment perspective, the company presents a deteriorated fundamental situation
● The company has a poor ESG score according to Refinitiv, which ranks companies by sector.
Strengths
● According to sales estimates from analysts polled by Standard & Poor's, the company is among the best with regard to growth.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
● The company has insufficient levels of profitability.
● The group shows a rather high level of debt in proportion to its EBITDA.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● For the past year, analysts have significantly revised downwards their profit estimates.
● For the last few months, analysts have been revising downwards their earnings forecast.
● Over the past four months, analysts' average price target has been revised downwards significantly.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.
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Unity Software Inc. provides a platform for creating and growing interactive, real-time 3D (RT3D) content and experiences. Its set of software, including artificial intelligence (AI) solutions, supports creators through the entire development lifecycle as they build, run, and grow immersive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. Its platform consists of two complementary sets of solutions: Create Solutions and Grow Solutions. Create Solutions is a robust set of tools and services used to build, ship and run high-definition, real-time 2D and 3D content. Designed for developers, these tools and services are used across a range of industries ranging from games to aerospace, construction to retail, medical to manufacturing, and others. Grow Solutions offers customers to engage their user base and monetize their content from 2D puzzle games to multiplayer, multi-platform games, or other 3D interactive content.