Unisys (UIS) AI Stock Analysis

• Market Cap: $272.34M
• Dividend Yield: N/A
• Average Volume (3M): 851.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: -1.53%
• EPS Growth: 78.84%
• Country: US
• Employees: 15,900
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 0.19
• Shares Outstanding: 71,293,020
• 10 Day Avg. Volume: 810,780
• 30 Day Avg. Volume: 851,919
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.83
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 1.38
• Enterprise Value/Ebitda: 4.60
• 1Y Price Target: $7.50
• Price Target Upside: 93.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $4.00 ▲(3.09% Upside)

Unisys's overall score reflects mixed financial performance with improvements in cash flow and strategic initiatives. However, technical indicators and valuation metrics are weak, offsetting positive earnings call and corporate events.

Positive Factors

Debt and Pension Management

Strengthening cash flow should reduce leverage and shift more value to equity holders as the debt and pension burdens lessen.

Financial Performance

The company reported 2Q25 results with revenue and adjusted EBITDA ahead of expectations.

Stock Valuation

With the shares trading at a depressed valuation of ~4x FY26 EV/EBITDA, there is an attractive risk-reward, and potential for the valuation gap to narrow.

Negative Factors

Pension Obligations

The company is navigating a transition from lower-margin legacy services while growing cash flow to meet significant upcoming pension funding obligations.

Revenue Guidance

1Q25 results missed on revenue and beat on adjusted EBITDA estimates; the company does not provide quarterly guidance and consensus is thin.

Unisys Business Overview & Revenue Model

Company Description

Unisys Corporation (UIS) is a global information technology company that specializes in providing IT services, software, and technology solutions. Founded in 1980, Unisys operates primarily in two main sectors: Cloud and Infrastructure Services, and Digital Workplace Services. The company offers a range of core products and services including cybersecurity solutions, enterprise application services, cloud services, and data analytics, catering to clients in various industries such as government, financial services, and healthcare.

How the Company Makes Money

Unisys generates revenue through multiple streams, primarily by offering IT services and solutions to its clients. The company's revenue model includes the provision of consulting services, systems integration, and managed services which are billed on a project or subscription basis. Key revenue streams stem from contracts with government and commercial clients for IT outsourcing, cloud infrastructure, and digital transformation initiatives. Additionally, Unisys benefits from partnerships with leading technology providers, which enhance its service offerings and expand its market reach. The company also sees revenue from licensing its software products and solutions to businesses looking to improve their operational efficiencies and security posture.

Unisys Financial Statement Overview

Summary

Unisys has shown a decline in revenue and profitability over recent years, with persistent net losses. While there is some improvement in cash flow generation and equity stability, high debt remains a concern. The company needs to enhance profitability and manage 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: 3.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 3.88 is below the 20-day moving average (MA) of 3.90, below the 50-day MA of 4.12, and below the 200-day MA of 5.18, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 42.26 is Neutral, neither overbought nor oversold. The STOCH value of 18.12 is Positive, 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	$3.23B	20.11	21.23%	―	1.94%	26.15%
FORTY	76 Outperform	$2.05B	25.34	11.46%	1.46%	9.16%	16.38%
CNXC	71 Outperform	$3.31B	14.27	5.59%	2.54%	11.31%	-16.02%
Sector *	61 Neutral	$35.52B	8.84	-11.04%	1.87%	8.55%	-8.14%
UIS	55 Neutral	$272.34M	―	192.24%	―	-1.53%	78.84%
CNDT	54 Neutral	$440.75M	90.58	2.21%	―	-14.36%	-73.74%
VYX	51 Neutral	$1.74B	―	-8.85%	―	-43.28%	15.29%

Unisys Corporate Events

Unisys Announces $250 Million Pension Contribution

On July 23, 2025, Unisys Corporation’s Board of Directors approved amendments to the company’s bylaws, clarifying director numbers, officer appointments, and executive compensation. Additionally, Unisys announced a conference call on July 24, 2025, to discuss a recent $250 million pension contribution and debt transaction, aimed at reducing pension deficits and volatility, which is expected to enhance the company’s financial stability and strategic positioning.

Unisys to Discuss Pension Strategy on July 24

On July 18, 2025, Unisys announced it will host a conference call on July 24, 2025, to discuss its recent financial strategies, including a $250 million discretionary pension contribution and changes to asset allocations in its U.S. Qualified Defined Benefit Plans. These actions aim to reduce the company’s pension deficit and volatility, marking a significant step in accelerating its pension strategy.

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.

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.

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.

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.

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.