Value
6.7/10data confidence 67%| Component | Sub-score |
|---|---|
| P/S | 5.8 |
| Fwd P/E | 6.0 |
| PEG | 10.0 |
| Analyst target | 6.0 |
- ▸Forward P/E: 21.6x
- ▸PEG: 0.12
U · Why this verdict
Why Unity Software (U) is rated HOLD
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictHOLD
Overall score5.4/10
ConfidenceMEDIUM
MacroRISK_OFF
Per-dimension breakdown
Quality
5.0/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 0.0 |
| ROA | 0.0 |
| Gross margin | 10.0 |
| Op margin | 0.0 |
| Net margin | 0.0 |
| Current ratio | 6.8 |
| FCF quality | 9.6 |
| Moat | 6.5 |
| Rule of 40 | 8.0 |
| Piotroski F | 8.9 |
- ▸FCF-positive despite GAAP loss (FCF margin 31%, FCF yield 4.8%)
- ▸Rule of 40: 48 (pass)
- ▸Strong Piotroski F-Score: 8/9
Growth
8.3/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 6.7 |
| EPS growth | 10.0 |
Momentum
3.8/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 4.5 |
| MACD | 6.6 |
| OBV | 1.0 |
| MA position | 6.0 |
| Volume | 1.0 |
- ▸Volume distribution (falling OBV)
- ▸Below 200-MA, MA slope -2.8%/30d — confirmed downtrend
Sentiment
7.9/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 8.5 |
| Analyst rating | 7.5 |
| Price target | 7.9 |
- ▸LLM news sentiment: +0.70 (n=1)
- ▸Analyst upside: 22%
Insider
3.9/10data confidence 75%| Component | Sub-score |
|---|---|
| materiality | 4.5 |
| insider conviction | 2.0 |
| holder change | 5.1 |
- ▸Modest insider selling — $5,390,783 (0.043% of mkt cap)
Peer rank
2.2/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 2.4 |
| quality rank | 0.8 |
| growth rank | 5.6 |
Technical
3.8/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 4.0 |
| support resistance | 5.0 |
| 52w position | 1.0 |
| gap | 5.0 |
Risk (lower is worse)
4.3/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 5.7 |
| days to cover | 7.5 |
| volatility | 0.0 |
| put call | 8.3 |
| implied vol | 0.0 |
| max pain risk | 3.0 |
| beta | 3.2 |
| debt equity | 6.7 |
- ▸High IV: 84%
- ▸Above max pain $15
Catalyst
4.1/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 5.6 |
| earnings timing | 5.0 |
| surprise avg | 0.0 |
| news activity | 5.0 |
How the verdict was assembled
Engine trigger
Multiple concerning factors. Consider reducing position. | News modifier +1 (SELL_IF_HOLDING → HOLD_IF_HOLDING).
Engine technical detail
verdict_path:
L4:PATH_F_SELL|L3:NEWS_MOD=+1Passed (5)
- INSIDER:OK
- NEWS_BOOST:ANALYST:0.70
- EARNINGS_PROXIMITY:57d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (3)
- MOMENTUM:3.8<4.5
- ASYMMETRY:0.7<1.5@spot
- DEATH_CROSS:HARD_BLOCK
Warning (1)
- 8K_CSUITE_CHANGE:5.02 (officer departure/appointment)
Reward-to-Risk
0.73
Upside
+9.6%
Downside
13.2%
Sizing output
AVOID
SetupRECOVERY — Death cross but MACD improving, RSI 58
EdgeNO_EDGE — No clear edge identified
SuitabilityAGGRESSIVE — Beta 2.05>1.3
Investment implication
The F-path SELL output reflects an overall score of 4.1 below the 5.4 soft trigger — multiple weakening dimensions accumulated rather than a single hard-floor breach. The strongest dimension ( Growth at 8.3) was not enough to lift the adjusted overall above the threshold. Co-occurring failed gates ( MOMENTUM:3.8<4.5, ASYMMETRY:0.7<1.5@spot, DEATH_CROSS:HARD_BLOCK) reinforce the read. Current asymmetry R:R is 0.73 — supplementary context, not the trigger for this path.
The strongest dimensions are Growth at 8.3, Sentiment at 7.9, and Value at 6.7; the weakest are Peer rank at 2.2, Technical at 3.8, and Momentum at 3.8. The V9 engine flagged 3 failed gates with 1 warning, producing an asymmetric reward-to-risk of 0.73 and an engine sizing output of AVOID.