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Unisys (UIS)
NYSE:UIS
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Unisys
(NYSE:UIS)
44Neutral
Positive Factors
Growth initiatives
UIS continues to make solid progress on its growth initiatives, with new service offerings being competitive and in the leaders' quadrant in targeted markets.
New business and contracts
New logo signings were up 29% year-over-year, which management noted sets the stage for cross-selling in 2025.
Negative Factors
Future revenue challenges
The total company pipeline declined 13% year-over-year in 3Q24, indicating challenges in future revenue visibility.
Revenue decline
Revenue declined 2.2% year-over-year to $545.4M in Q4 on lower volumes and deal timing.
Unisys (UIS) vs. S&P 500 (SPY)
Market Cap
$289.96M
Dividend YieldN/A
Average Volume (3M)544.53K
Price to Earnings (P/E)―
Beta (1Y)1.66
Revenue Growth-0.35%
EPS Growth55.51%
CountryUS
Employees15,900
SectorTechnology
Sector Strength62
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-2.83
Shares Outstanding71,068,100
10 Day Avg. Volume399,293
30 Day Avg. Volume544,527
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.15
Price to Cash Flow (P/CF)1.00
P/FCF Ratio1.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.50Price Target Upside59.31% Upside
Rating ConsensusHold
Number of Analyst Covering2
Unisys Business Overview & Revenue Model
Company DescriptionUnisys Corporation (UIS) is a global information technology company that provides a range of IT services, software, and technology solutions to clients worldwide. The company operates in sectors such as financial services, government, and commercial industries. Unisys's core offerings include cloud and infrastructure services, application services, security solutions, and digital workplace services, designed to help clients modernize their operations and enhance their IT capabilities.
How the Company Makes MoneyUnisys makes money primarily through the provision of IT services and solutions. Its revenue streams are derived from contracts for cloud and infrastructure services, which include data center outsourcing, managed services, and hybrid cloud solutions. Another significant source of revenue is application services, which encompass application development, modernization, and maintenance. Additionally, Unisys generates income from its security solutions, including its Stealth product line, which offers advanced security features to protect data and systems. Digital workplace services, which improve user productivity and engagement through enhanced IT support and tools, also contribute to the company's earnings. Strategic partnerships with major technology firms and government contracts further bolster Unisys's revenue, allowing it to leverage cutting-edge technologies and expand its market reach.
Unisys Financial Statement Overview
Summary
Unisys faces significant financial challenges, with consistent losses, high leverage, and negative equity. Despite some improvements in EBIT and cash flow, these fundamental issues require attention for stability and growth.Income Statement
Unisys has experienced significant revenue volatility, with a notable decline from 2019 to 2023. The company has consistently posted negative net income over the years, indicating ongoing profitability challenges. Although EBIT has shown some improvement recently, the net profit margin remains negative, outlining persistent financial struggles.35
Negative
Balance Sheet
The balance sheet reflects high leverage, with a fluctuating but persistently negative stockholders' equity position. The debt-to-equity ratio is unfavorably high due to negative equity. While the company has maintained a reasonable cash position, the overall leverage and equity challenges pose significant risks.40
Negative
Cash Flow
Free cash flow has exhibited some growth recently, recovering from negative territory in prior years. Operating cash flow has been inconsistent but shows a positive trend in the latest year. Despite improvements, the high variability and past deficits highlight the need for more stable cash flow generation.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.01B | 2.02B | 1.98B | 2.05B | 2.03B | Gross Profit |
| 585.90M | 556.90M | 529.60M | 572.00M | 483.00M | EBIT |
| 97.40M | 76.90M | -30.20M | 154.00M | 87.00M | EBITDA |
| 63.00M | -178.20M | 153.30M | -252.90M | -81.60M | Net Income Common Stockholders |
| -193.40M | -430.70M | -104.90M | -449.80M | -317.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 376.50M | 387.70M | 391.80M | 552.90M | 898.50M | Total Assets |
| 1.87B | 1.97B | 2.07B | 2.42B | 2.71B | Total Debt |
| 522.10M | 548.90M | 542.80M | 575.50M | 692.30M | Net Debt |
| 145.60M | 161.20M | 151.00M | 22.60M | -206.20M | Total Liabilities |
| 1.15B | 2.10B | 2.04B | 2.48B | 3.02B | Stockholders Equity |
| 727.20M | -151.80M | -14.70M | -113.70M | -356.80M |
| Cash Flow | Free Cash Flow | |||
| 71.60M | 6.90M | -64.60M | 50.80M | -781.20M | Operating Cash Flow |
| 135.10M | 74.20M | 12.70M | 132.50M | -681.20M | Investing Cash Flow |
| -97.40M | -69.60M | -131.40M | -360.30M | 1.04B | Financing Cash Flow |
| -18.10M | -17.30M | -21.60M | -105.50M | 5.10M |
Unisys Technical Analysis
Neutral
4.08
Price Trends
4.38
Negative
5.63
Negative
5.72
Negative
Market Momentum
-0.14
Negative
47.31
Neutral
73.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UIS, the sentiment is Neutral. The current price of 4.08 is above the 20-day moving average (MA) of 4.05, below the 50-day MA of 4.38, and below the 200-day MA of 5.72, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 73.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UIS.
Unisys Risk Analysis
Unisys disclosed 20 risk factors in its most recent earnings report. Unisys reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Unisys Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.21B | 12.80 | 6.34% | 2.53% | 21.67% | -17.91% | |
72 Outperform | $2.78B | 15.47 | 21.21% | ― | -0.64% | 30.96% | |
71 Outperform | $1.36B | 16.77 | 12.21% | 0.96% | 3.51% | 18.34% | |
59 Neutral | $10.72B | 10.22 | -6.67% | 3.02% | 7.42% | -11.38% | |
48 Neutral | $347.93M | 1.00 | 48.63% | ― | -9.83% | ― | |
44 Neutral | $289.96M | ― | 192.24% | ― | -0.35% | 55.51% | |
43 Neutral | $1.18B | ― | -20.40% | ― | -54.34% | -34.10% |
* Technology Sector Average
Performance Comparison
UIS
Unisys
4.08
-1.35
-24.86%
FORTY
Formula Systems
92.62
17.73
23.67%
VYX
NCR Voyix
8.57
-3.77
-30.55%
WNS
WNS
60.08
17.06
39.66%
CNDT
Conduent
2.15
-1.15
-34.85%
CNXC
Concentrix
50.21
-4.55
-8.31%
Unisys Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -39.01% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
Unisys Corporation's earnings call reflected a predominantly positive outlook with significant growth in new business TCV and improved cash flow projections. However, there were notable declines in certain segments like Digital Workplace Solutions and Cloud Applications and Infrastructure Solutions. The company is optimistic about future growth supported by strong client and analyst recognition.Highlights
Strong Sequential Revenue Growth
Fourth quarter results showed a 10% sequential revenue growth both as reported and in constant currency. Non-GAAP operating margin was 11.6%.
Improvement in Free Cash Flow
Pre pension free cash flow nearly doubled to $82 million in 2024. The 2025 outlook projects approximately $100 million.
Record New Business TCV
Fourth quarter New Business TCV was approximately $220 million, up 24% compared to the prior year period. Full year New Business TCV was approximately $790 million, up 29% compared to 2023.
Positive Client and Analyst Recognition
Received 16 leader designations from firms like Avasant, IDC, ISG, Everest, and NelsonHall across multiple service areas.
Rising License and Support Revenue Expectations
Raised L&S revenue expectations to approximately $390 million in 2025 and $400 million in 2026, with an average expected gross margin of approximately 70%.
Lowlights
Decline in Digital Workplace Solutions Revenue
DWS revenue declined 8.2% year-over-year in the fourth quarter. Full year DWS revenue was down 4.2%.
Challenges in Cloud Applications and Infrastructure Solutions
CA&I revenue declined 5.2% year-over-year in the fourth quarter, driven by lower third-party technology revenues and project volume timing.
Impact of Legal and Environmental Costs
Resolution of several legal matters in 2024, which previously served as a headwind to cash flow.
Company Guidance
In the Unisys Corporation conference call discussing the fourth quarter and full year 2024 financial results, the company provided several key metrics and guidance for 2025. Unisys reported a sequential revenue growth of 10% in the fourth quarter, with a non-GAAP operating margin of 11.6%. For the full year, the non-GAAP operating profit was $176 million, representing an 8.8% margin, up 180 basis points year-over-year. The company exceeded its initial free cash flow outlook, with pre-pension free cash flow nearly doubling to $82 million in 2024. Looking ahead to 2025, Unisys expects pre-pension free cash flow to reach approximately $100 million. The company raised its L&S revenue expectations to approximately $390 million in 2025 and $400 million in 2026, with an average expected gross margin of about 70%. New Business TCV was approximately $220 million in the fourth quarter, marking a 24% increase compared to the previous year, and $790 million for the full year, up 29% from 2023.Unisys Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Unisys Announces New COO Amid Leadership Changes
Neutral
Feb 19, 2025
Unisys Corporation announced that its Board of Directors has elected Chris Arrasmith as Executive Vice President and Chief Operating Officer, effective April 1, 2025. This leadership change comes as Michael Thomson transitions from his role as Chief Operating Officer to Chief Executive Officer and President, also effective April 1, 2025. This change in executive leadership reflects Unisys’s ongoing strategic adjustments, with Mr. Arrasmith bringing extensive experience from his previous roles at Unisys and other technology companies, which is expected to influence the company’s operational and strategic direction.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.