tiprankstipranks
Trending News
More News >
Unisys (UIS)
:UIS

Unisys (UIS) AI Stock Analysis

Compare
303 Followers

Top Page

UI

Unisys

(NYSE:UIS)

Rating:54Neutral
Price Target:
$4.50
▲(5.14%Upside)
Unisys's stock score reflects financial challenges, including revenue declines and net losses, which are partially offset by improvements in cash flow and strategic refinancing. Technical indicators and valuation are weak, but corporate events and new business growth offer some positive outlook.
Positive Factors
Contract Value
Total contract value (TCV) was up 17% year over year.
Revenue Mix
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.
Service Offerings
UIS continues to make solid progress on its growth initiatives, with new service offerings being competitive and in the leaders' quadrant in targeted markets.
Negative Factors
Backlog and Contract Value
Backlog was $2.84B, down 5.6% y/y, and 2024 total contract value (TCV) was down 11%.
Pension Liabilities
Pension liabilities were $816.4M, up from $771M sequentially but obligations should be met with free cash flow (FCF).
Revenue Performance
Revenue declined 2.2% y/y to $545.4M in 4Q24 on lower volumes and deal timing.

Unisys (UIS) vs. SPDR S&P 500 ETF (SPY)

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. It operates in various sectors including government, financial services, and commercial industries. The company's core offerings include digital workplace solutions, cloud and infrastructure services, enterprise computing solutions, and cybersecurity services.
How the Company Makes MoneyUnisys 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 Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: 7.81%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed outlook. While there were significant achievements in new business growth, partnerships, and cash flow improvements, these were counterbalanced by notable revenue declines and challenges in specific segments, compounded by macroeconomic uncertainties.
Q1-2025 Updates
Positive Updates
Significant Growth in New Business TCV
First quarter new business Total Contract Value (TCV) was $337 million, up more than 50% sequentially and more than 80% year-over-year, driven by new logo acquisitions.
DSS Contract Wins
Signed a large new logo win with a global technology supplier for quarterly procurement and services for 380,000 devices across 14 countries. Also secured a DSS contract with a biotech client covering more than 21,000 devices globally.
Recognition and Partnerships
Elevated to 'disrupter' status by Avasant in AI services. Named a leader in attack surface management by NelsonHall. Achieved titanium partner status with Dell.
Strong Pre-Pension Free Cash Flow
Pre-pension free cash flow was $23 million in the first quarter, up $11 million year-over-year, primarily due to improved working capital dynamics.
Improvement in Operating Expenses
Operating expenses declined approximately $16 million year-over-year, with SG&A down nearly 14% from a year ago.
Negative Updates
Revenue Decline
First quarter revenue was $432 million, down 11.4% year-over-year as reported and 8.5% in constant currency, primarily due to Ex-L&S renewal timing.
DWS Segment Challenges
Digital Workplace Solutions revenue declined 7.5% year-over-year to $119 million in the first quarter due to lower field service volumes and discretionary project work.
CA&I Segment Revenue Decline
Cloud, Applications & Infrastructure Solutions revenue declined 3.3% year-over-year to $177 million due to lower volumes with existing clients and expected scope reductions in traditional infrastructure.
Impact of Macroeconomic Factors
Delayed client decision-making due to macroeconomic factors, with some impact on timing of new business signings and in-year revenue generation.
Low Non-GAAP Operating Margin
First quarter non-GAAP operating profit margin was 2.8%, compared to 7.1% in the prior period, reflecting low Ex-L&S revenue due to the timing of client contract renewals.
Company Guidance
During the Unisys Corporation First Quarter 2025 Financial Results Conference Call, the company reiterated its full-year guidance for total company constant currency revenue growth and non-GAAP operating profit margin. The guidance includes expectations for enhanced delivery operational efficiencies and increased license and support (L&S) revenue, aiming for profitability above the midpoint of the guidance range. The first quarter non-GAAP operating margin was reported at 2.8%, with total contract value (TCV) reaching $434 million, up over 50% sequentially and more than 80% year-over-year, driven by new business signings. Unisys also highlighted a strong backlog of $2.9 billion, a pre-pension free cash flow target of approximately $100 million, and a positive outlook for sequential revenue improvement throughout the year. The company expects L&S revenue of approximately $410 million in 2025 and remains on track to meet long-term cash flow objectives through 2026.

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
55
Neutral
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
50
Neutral
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
60
Neutral
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.95B2.01B2.02B1.98B2.05B2.03B
Gross Profit
557.80M585.90M556.90M529.60M572.00M483.00M
EBIT
84.20M97.40M76.90M-30.20M154.00M87.00M
EBITDA
167.40M63.00M-178.20M153.30M-252.90M-81.60M
Net Income Common Stockholders
-73.40M-193.40M-430.70M-104.90M-449.80M-317.20M
Balance SheetCash, Cash Equivalents and Short-Term Investments
393.10M376.50M387.70M391.80M552.90M898.50M
Total Assets
1.84B1.87B1.97B2.07B2.42B2.71B
Total Debt
527.40M537.10M548.90M542.80M575.50M692.30M
Net Debt
134.30M160.60M161.20M151.00M22.60M-206.20M
Total Liabilities
1.09B2.14B2.10B2.04B2.48B3.02B
Stockholders Equity
751.50M-283.40M-151.80M-14.70M-113.70M-356.80M
Cash FlowFree Cash Flow
92.90M71.60M6.90M-64.60M50.80M-781.20M
Operating Cash Flow
144.60M135.10M74.20M12.70M132.50M-681.20M
Investing Cash Flow
-98.90M-97.40M-69.60M-131.40M-360.30M1.04B
Financing Cash Flow
-14.40M-18.10M-17.30M-21.60M-105.50M5.10M

Unisys Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.28
Price Trends
50DMA
4.54
Negative
100DMA
4.84
Negative
200DMA
5.73
Negative
Market Momentum
MACD
-0.08
Positive
RSI
40.10
Neutral
STOCH
7.21
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 4.28 is below the 20-day moving average (MA) of 4.67, below the 50-day MA of 4.54, and below the 200-day MA of 5.73, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 40.10 is Neutral, neither overbought nor oversold. The STOCH value of 7.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$3.40B13.316.34%2.50%21.67%-17.91%
WNWNS
75
Outperform
$2.72B15.0821.21%-0.64%30.96%
71
Outperform
$1.74B21.1412.47%1.66%3.51%18.34%
62
Neutral
$11.95B9.93-7.21%4.85%7.32%-8.25%
57
Neutral
$438.56M1.9830.92%-14.38%
UIUIS
54
Neutral
$304.17M192.24%-1.72%82.15%
VYVYX
52
Neutral
$1.63B-19.49%-50.48%-15.75%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UIS
Unisys
4.28
0.17
4.14%
FORTY
Formula Systems
113.00
43.43
62.43%
VYX
NCR Voyix
11.81
-0.57
-4.60%
WNS
WNS
58.56
5.51
10.39%
CNDT
Conduent
2.71
-0.35
-11.44%
CNXC
Concentrix
53.16
-6.02
-10.17%

Unisys Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Unisys Announces Pricing of $700M Senior Secured Notes
Positive
Jun 17, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Unisys Announces Tender Offer for Senior Secured Notes
Neutral
Jun 11, 2025

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.

Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Unisys Recasts Financial Segments in 2024 Form 10-K
Neutral
May 30, 2025

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.

Executive/Board ChangesShareholder Meetings
Unisys Corporation Concludes Annual Meeting with Key Decisions
Neutral
May 14, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.