Unisys (UIS) AI Stock Analysis

• Market Cap: $346.10M
• Dividend Yield: N/A
• Average Volume (3M): 736.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• Revenue Growth: -1.72%
• EPS Growth: 82.15%
• Country: US
• Employees: 15,900
• Sector: Technology
• Sector Strength: 77
• Industry: Information Technology Services
• EPS (TTM): -0.05
• Shares Outstanding: 71,067,100
• 10 Day Avg. Volume: 845,716
• 30 Day Avg. Volume: 736,288
• PEG Ratio: -0.07
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.00
• Price Target Upside: 68.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: $5.00 ▲( 5.04% Upside)

The stock's overall score is driven primarily by mixed financial performance, with improvements in cash flow but persistent revenue declines and inefficiencies. Technical indicators and earnings call outcomes provide some positive outlook but are tempered by valuation concerns due to ongoing losses.

Positive Factors

Backlog and Contract Value

UIS reported a backlog of $2.89B in 1Q25, an increase from previous quarters, and a 17% year-over-year rise in total contract value.

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 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.

Negative Factors

Backlog and TCV Decline

Backlog was $2.84B, down 5.6% year over year, and total contract value for 2024 was down 11%.

Pension Liabilities

Pension liabilities increased to $816.4M, up from $771M sequentially, posing a challenge despite plans to meet obligations with free cash flow.

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 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 has faced declines in revenue and profitability, with continuous net losses. However, cash flow improvements and better equity stability show potential recovery signs. High debt remains a concern, necessitating a focus on profitability and leverage management.

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
382.80M	376.50M	387.70M	391.80M	552.90M	898.50M
	Total Assets
1.89B	1.87B	1.97B	2.07B	2.42B	2.71B
	Total Debt
527.80M	537.10M	548.90M	542.80M	575.50M	692.30M
	Net Debt
145.00M	160.60M	161.20M	151.00M	22.60M	-206.20M
	Total Liabilities
2.04B	2.14B	2.10B	2.04B	2.48B	3.02B
	Stockholders Equity
-158.60M	-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: 4.76
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 4.76 is below the 20-day moving average (MA) of 4.85, above the 50-day MA of 4.43, and below the 200-day MA of 5.75, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 49.25 is Neutral, neither overbought nor oversold. The STOCH value of 6.76 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	75 Outperform	$2.68B	14.88	21.21%	―	-0.64%	30.96%
CNXC	74 Outperform	$3.59B	14.07	6.34%	2.31%	21.67%	-17.91%
FORTY	71 Outperform	$1.52B	18.24	12.47%	1.18%	3.51%	18.34%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%
CNDT	58 Neutral	$385.16M	1.74	30.92%	―	-14.38%	―
UIS	56 Neutral	$346.10M	―	192.24%	―	-1.72%	82.15%
VYX	54 Neutral	$1.49B	―	-19.49%	―	-50.48%	-15.75%

Unisys Corporate Events

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.