Should you buy Unity Software stock?

RandyHall
2023-11-13

$Unity Software Inc.(U)$ This means that Unity effectively flipped from burning cash to generating cash profit in Q3. And while management did not provide guidance through the end of this year, year to date, the company has generated $118 million in positive free cash flow, according to data from S&P Global Market Intelligence. If this trend continues, the company might generate as much as $157 million in free cash flow this year -- and deliver its first full year of positive free cash flow ever.

Admittedly, at a current-year valuation of more than 61 times free cash flow, the stock isn't obviously cheap. Still, analysts polled by S&P think Unity Software will double its free-cash-flow number next year, then nearly double it again in 2025 -- putting the company at about $590 million in cash generation that year.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment（1）

  • Top
  • Latest
  • lots_of_goodness
    ·2023-11-14

    Great ariticle, would you like to share it?

    Reply
    Report