Unisys (UIS) AI Stock Analysis

• Market Cap: $321.93M
• Dividend Yield: N/A
• Average Volume (3M): 659.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• Revenue Growth: -1.72%
• EPS Growth: 82.15%
• Country: US
• Employees: 15,900
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): -0.05
• Shares Outstanding: 71,067,100
• 10 Day Avg. Volume: 897,150
• 30 Day Avg. Volume: 659,034
• 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: 1.54
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.89
• Enterprise Value/Ebitda: -15.97
• 1Y Price Target: $8.00
• Price Target Upside: 76.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 53 Neutral
• Price Target: $4.50 ▼(-0.66%Downside)

Unisys faces significant financial and operational challenges, evidenced by declining revenue and a negative P/E ratio. However, improvements in cash flow and strategic financial moves provide some optimism. Technical indicators suggest continued caution.

Positive Factors

Backlog and Contract Value

UIS reported an increased backlog of $2.89B, showing growth compared to previous quarters, with total contract value up 17% year over year.

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.

Service Revenue Composition

Next-generation service revenue, including higher growth cloud-based and higher software content solutions, now comprises over 40% of the service revenue, indicating a positive mix shift that will drive growth over time.

Negative Factors

Pension Liabilities

Pension liabilities increased to $816.4M, up from $771M, adding pressure to manage these obligations with free cash flow.

Revenue and Deal Timing

Revenue declined 2.2% year over year to $545.4M in 4Q24 due to lower volumes and deal timing.

Revenue Decline

Net revenue was down 2.2% year over year in Q4, with declines in specific segments and lower volume with existing clients affecting the results.

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
EBITDA	167.40M	63.00M	-178.20M	153.30M	-252.90M	-81.60M
Net Income	-73.40M	-193.40M	-430.70M	-104.90M	-449.80M	-317.20M
Balance Sheet
Total Assets	1.84B	1.87B	1.97B	2.07B	2.42B	2.71B
Cash, Cash Equivalents and Short-Term Investments	393.10M	376.50M	387.70M	391.80M	552.90M	898.50M
Total Debt	527.40M	537.10M	548.90M	542.80M	575.50M	692.30M
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: Negative
• Last Price: 4.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UIS, the sentiment is Negative. The current price of 4.53 is above the 20-day moving average (MA) of 4.51, below the 50-day MA of 4.65, and below the 200-day MA of 5.68, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 49.14 is Neutral, neither overbought nor oversold. The STOCH value of 70.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UIS.

Unisys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WNS	76 Outperform	$3.03B	16.83	21.21%	―	-0.64%	30.96%
CNXC	73 Outperform	$3.65B	15.69	5.59%	2.33%	11.31%	-16.02%
FORTY	71 Outperform	$2.04B	25.25	12.47%	1.39%	3.51%	18.34%
CNDT	64 Neutral	$453.12M	2.05	30.92%	―	-14.38%	―
Sector *	63 Neutral	$34.04B	6.14	-11.52%	1.82%	5.53%	-18.79%
VYX	54 Neutral	$1.83B	―	-19.49%	―	-50.48%	-15.75%
UIS	53 Neutral	$321.93M	―	192.24%	―	-1.72%	82.15%

Unisys Corporate Events

Unisys Amends Senior Secured Notes Indenture

On June 27, 2025, Unisys Corporation entered into a supplemental indenture to amend its 6.875% Senior Secured Notes due 2027, eliminating restrictive covenants and releasing collateral. This move follows a successful tender offer where 98.98% of the notes were tendered, allowing Unisys to satisfy and discharge the indenture by depositing $5,117,000 in U.S. government securities. The company plans to use proceeds from a $700 million senior secured notes offering due 2031 to fund this transaction, impacting its financial strategy and stakeholder interests.

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 Completes $700 Million Senior Notes Sale

On June 27, 2025, Unisys Corporation completed the sale of $700 million in senior secured notes due 2031, guaranteed by its subsidiaries. The proceeds will refinance existing notes, partially fund the U.S. pension plan, and support corporate purposes, strengthening Unisys’s financial position and aiding in the execution of its long-term goals.

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 Announces Pricing of $700M Senior Secured Notes

On June 16, 2025, Unisys Corporation announced the pricing of $700 million in Senior Secured Notes due 2031, with an interest rate of 10.625% per year. The proceeds from this private offering will be used to refinance existing notes, partially fund the U.S. pension plan, and for general corporate purposes. This strategic financial move is expected to strengthen Unisys’s financial position by addressing its long-term pension deficit and postretirement liabilities, while also amending the terms of its existing notes to eliminate restrictive covenants and release collateral.

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 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.