Unisys (UIS) AI Stock Analysis

• Market Cap: $304.17M
• Dividend Yield: N/A
• Average Volume (3M): 637.39K
• 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: 82
• Industry: Information Technology Services
• EPS (TTM): -0.05
• Shares Outstanding: 71,067,100
• 10 Day Avg. Volume: 547,689
• 30 Day Avg. Volume: 637,388
• 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: 1.63
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.89
• Enterprise Value/Ebitda: -15.97
• 1Y Price Target: $8.00
• Price Target Upside: 86.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• 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 Business Overview & Revenue Model

Company Description

Unisys 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 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: Negative
• Last Price: 4.28
• 50DMA: Negative
• 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 4.28 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNXC	76 Outperform	$3.40B	13.31	6.34%	2.50%	21.67%	-17.91%
WNS	75 Outperform	$2.72B	15.08	21.21%	―	-0.64%	30.96%
FORTY	71 Outperform	$1.74B	21.14	12.47%	1.66%	3.51%	18.34%
Sector *	62 Neutral	$11.95B	9.93	-7.21%	4.85%	7.32%	-8.25%
CNDT	57 Neutral	$438.56M	1.98	30.92%	―	-14.38%	―
UIS	54 Neutral	$304.17M	―	192.24%	―	-1.72%	82.15%
VYX	52 Neutral	$1.63B	―	-19.49%	―	-50.48%	-15.75%

Unisys Corporate Events

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.