Unisys (UIS) AI Stock Analysis

• Market Cap: $331.17M
• Dividend Yield: N/A
• Average Volume (3M): 735.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.79
• Revenue Growth: -1.72%
• EPS Growth: 82.15%
• Country: US
• Employees: 15,900
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): -0.05
• Shares Outstanding: 71,067,100
• 10 Day Avg. Volume: 516,219
• 30 Day Avg. Volume: 735,375
• PEG Ratio: 0.04
• Price to Book (P/B): -23.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.35
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.89
• Enterprise Value/Ebitda: -15.97
• 1Y Price Target: $8.00
• Price Target Upside: 61.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 52 Neutral
• Price Target: $5.00 ▲(0.81%Upside)

Unisys's overall stock score of 52 reflects its mixed financial performance and valuation concerns, characterized by declining revenue and profitability, and a negative P/E ratio. Technical analysis provides neutral signals, while the earnings call highlights some positive developments in new business growth and partnerships, albeit tempered by revenue challenges and macroeconomic uncertainties.

Positive Factors

Contract Growth

UIS reported a backlog increase to $2.89B, reflecting a positive shift in contract growth and future revenue potential.

Innovation in AI and Quantum Computing

UIS is strengthening its position with innovative solutions in AI and quantum computing, particularly in the transportation and logistics sectors.

Service Revenue Mix

Next-generation service revenue now makes up over 40% of UIS's service revenue, indicating a positive mix shift that supports future growth.

Negative Factors

Backlog and Contract Value Drop

The backlog showed a 5.6% year-over-year decrease, and the 2024 total contract value was down 11%, indicating potential future revenue concerns.

Pension Liabilities

Pension liabilities have increased to $816.4M, posing a significant financial obligation that the company needs to address.

Revenue Decline

UIS experienced a 2.2% year-over-year revenue decline in Q4, impacted by lower volumes and specific segment declines.

Unisys Business Overview & Revenue Model

Company Description

Unisys Corporation, together with its subsidiaries, operates as an information technology services company worldwide. It operates in Digital Workplace Solutions (DWS); Cloud and Infrastructure Solutions (C&I); and Enterprise Computing Solutions (ECS) segments. The DWS segment provides solutions that transform digital workplaces securely and create exceptional end-user experiences. The C&I segment offers solutions that drive modern IT service platforms, cloud applications development, intelligent services, and cybersecurity services. The ECS segment provides solutions that harness secure, continuous high-intensity computing, and enable digital services through software-defined operating environments. Its solutions include Unisys InteliServe, a service solution that transforms traditional service desk into an intelligent, user-centric experience aligned with the needs of the modern digital workplace; Unisys CloudForte, a comprehensive managed service offering to help accelerate the secure move of data and applications to the cloud; PowerSuite, a packaged software tool used by enterprise IT to monitor, analyze, troubleshoot and secure collaboration, and communications multi-platform environments; Unisys ClearPath Forward, a software operating environment for high-intensity enterprise computing; and Unisys Stealth security software, which enables trusted identities to access micro-segmented critical assets and safely communicate through secure and encrypted channels. In addition, the company provides industry solutions, which help law enforcement agencies solve crime; social services case workers assist families; travel and transportation companies manage freight and distribution; and financial institutions deliver omnichannel banking. It serves customers in the government, financial services, and commercial markets through direct sales force, distributors, resellers, and alliance partners. Unisys Corporation was founded in 1886 and is based in Blue Bell, Pennsylvania.

How the Company Makes Money

Unisys makes money through multiple revenue streams primarily derived from its IT services and solutions. The company generates income by providing managed services, systems integration, consulting, and outsourcing services to its clients. Revenue is also earned through the sale and licensing of software, particularly in the areas of cybersecurity and enterprise computing. Additionally, the company benefits from long-term contracts with government and commercial entities, which provide a steady flow of income. Strategic partnerships and collaborations with technology providers further enhance its revenue potential by expanding its service offerings and market reach.

Unisys Financial Statement Overview

Summary

Unisys displays mixed financial results. Revenue and profitability have declined over recent years, with persistent net losses. Despite these challenges, there are signs of improvement in cash flow generation and equity stability, although high debt remains a concern. The company needs to focus on enhancing profitability and managing leverage to strengthen its financial position.

Income Statement

Unisys has shown a decline in revenue over the past periods, with a noticeable decrease from $2.01 billion in 2023 to $1.52 billion in TTM 2025. The gross profit margin for TTM 2025 is 29.6%, indicating moderate profitability. However, the company struggles with consistent net losses, with a net profit margin of -4.8% in TTM 2025. The EBIT margin is 5.5%, showing operational challenges. There's a positive EBITDA margin of 11.0% for TTM 2025, reflecting some improvement in operating performance.

Balance Sheet

Unisys exhibits a high level of debt, with a debt-to-equity ratio of 0.70 in TTM 2025, but this is due to past negative equity situations. The equity has improved to $751 million in TTM 2025 compared to negative equity in previous years. The return on equity remains negative due to net losses, indicating inefficiency in generating returns from shareholders' equity. The equity ratio is 40.8%, reflecting moderate financial stability.

Cash Flow

Operating cash flow improved significantly to $144.6 million in TTM 2025 from $13.5 million in 2022. The free cash flow also increased, showing a positive growth trajectory with a free cash flow of $92.9 million in TTM 2025. The operating cash flow to net income ratio is -1.97, indicating manageable cash generation relative to net losses. The free cash flow to net income ratio is -1.27, showing room for improvement in efficiency.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.95B	2.01B	2.02B	1.98B	2.05B	2.03B
	Gross Profit
557.80M	585.90M	556.90M	529.60M	572.00M	483.00M
	EBIT
84.20M	97.40M	76.90M	-30.20M	154.00M	87.00M
	EBITDA
167.40M	63.00M	-178.20M	153.30M	-252.90M	-81.60M
	Net Income Common Stockholders
-73.40M	-193.40M	-430.70M	-104.90M	-449.80M	-317.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
393.10M	376.50M	387.70M	391.80M	552.90M	898.50M
	Total Assets
1.84B	1.87B	1.97B	2.07B	2.42B	2.71B
	Total Debt
527.40M	537.10M	548.90M	542.80M	575.50M	692.30M
	Net Debt
134.30M	160.60M	161.20M	151.00M	22.60M	-206.20M
	Total Liabilities
1.09B	2.14B	2.10B	2.04B	2.48B	3.02B
	Stockholders Equity
751.50M	-283.40M	-151.80M	-14.70M	-113.70M	-356.80M
Cash Flow		Free Cash Flow
92.90M	71.60M	6.90M	-64.60M	50.80M	-781.20M
	Operating Cash Flow
144.60M	135.10M	74.20M	12.70M	132.50M	-681.20M
	Investing Cash Flow
-98.90M	-97.40M	-69.60M	-131.40M	-360.30M	1.04B
	Financing Cash Flow
-14.40M	-18.10M	-17.30M	-21.60M	-105.50M	5.10M

Unisys Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UIS, the sentiment is Positive. The current price of 4.96 is above the 20-day moving average (MA) of 4.89, above the 50-day MA of 4.50, and below the 200-day MA of 5.75, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 56.55 is Neutral, neither overbought nor oversold. The STOCH value of 53.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UIS.

Unisys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNXC	76 Outperform	$3.62B	14.18	6.34%	2.35%	21.67%	-17.91%
WNS	75 Outperform	$2.78B	15.61	21.21%	―	-0.64%	30.96%
FORTY	71 Outperform	$1.67B	20.24	12.47%	1.74%	3.51%	18.34%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
CNDT	57 Neutral	$448.27M	2.00	30.92%	―	-14.38%	―
UIS	52 Neutral	$331.17M	―	192.24%	―	-1.72%	82.15%
VYX	52 Neutral	$1.68B	―	-19.49%	―	-50.48%	-15.75%

Unisys Corporate Events

Unisys Announces Tender Offer for Senior Secured Notes

On June 11, 2025, Unisys Corporation announced a tender offer to purchase its outstanding 6.875% Senior Secured Notes due 2027 and is soliciting consents to amend the indenture governing these notes. This move is part of a broader financing strategy that includes issuing $700 million in Senior Secured Notes due 2031. The company aims to use the proceeds from this new issuance, along with cash on hand, to fund the tender offer and related expenses. The tender offer and consent solicitation are subject to various conditions, including the successful completion of the new note offering. The tender offer is set to expire on July 11, 2025, and aims to amend restrictive covenants and other provisions, potentially impacting stakeholders by altering the company’s financial obligations.

The most recent analyst rating on (UIS) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Unisys stock, see the UIS Stock Forecast page.

Unisys Recasts Financial Segments in 2024 Form 10-K

Unisys Corporation has recast its financial segment information in its 2024 Form 10-K to reflect organizational changes effective January 1, 2025. This restructuring aims to enhance alignment with client needs and improve operational synergies, impacting the company’s Enterprise Computing Solutions and Cloud, Applications & Infrastructure Solutions segments.

The most recent analyst rating on (UIS) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Unisys stock, see the UIS Stock Forecast page.

Unisys Corporation Concludes Annual Meeting with Key Decisions

On May 8, 2025, Unisys Corporation held its Annual Meeting where 89.19% of the shares entitled to vote were represented. Key outcomes included the election of 11 directors, approval of executive compensation, and ratification of Grant Thornton LLP as the independent auditor. Amendments to the company’s charter were also voted on, with mixed results. The amendment to eliminate supermajority voting provisions was not approved, while amendments to limit officer liability and clarify indemnification provisions were passed.

The most recent analyst rating on (UIS) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Unisys stock, see the UIS Stock Forecast page.