UIS - Embedded Expectations Analysis - 2018 10 08
Unisys Corporation (UIS:USA) currently trades near recent averages relative toUAFRS-based (Uniform) Earnings, with an 18.1x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is confident about their technology segment growth, working capital management, and improvements from AI and automation
Specifically, management is confident in their ability to continue to drive improvements over the coming quarters through AI and automation. Moreover, they are confident that they are seeing an accelerating growth of revenue, and that the financial services sector is very engaged in blockchain and other IT spending. They are also confident about their contract with General Services Administration's Public Building Services to provide mobile and cloud platforms, and that there were no material restructuring charges this quarter. Additionally, they are confident in their ability to sustain growth in the top-line of their technology segment and operating free cash flow, and that they operate their business by focusing on CapEx and working capital
Unisys is an information technology company. The company's Services segment provides cloud and infrastructure services, application services and business process outsourcing services. In cloud and infrastructure services, the company assists clients to apply cloud and as-a-service delivery models. In application services, the company develops and manages applications for select industries and provides data analytics. In business process outsourcing services, the company assumes management of processes and functions for clients in target industries. The company's Technology segment designs and develops software and provides hardware and other related products including Unisys ClearPath Forward? and Unisys Stealth?.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.