| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Unisys Corporation (LSE: USY.L) is a global information technology services company headquartered in Blue Bell, Pennsylvania, with a rich history dating back to 1886. Specializing in digital transformation, Unisys operates through three key segments: Digital Workplace Solutions (DWS), Cloud and Infrastructure Solutions (C&I), and Enterprise Computing Solutions (ECS). The company provides cutting-edge IT services, including intelligent workplace solutions, secure cloud migration, high-intensity enterprise computing, and cybersecurity through its proprietary software like Unisys Stealth and ClearPath Forward. Unisys serves a diverse clientele across government, financial services, and commercial markets, leveraging a direct sales force and strategic partnerships. With a focus on modernizing IT infrastructure and enhancing digital security, Unisys plays a critical role in sectors requiring robust, scalable, and secure technology solutions. Despite challenges in profitability, its long-standing expertise and innovative offerings position it as a niche player in the competitive IT services landscape.
Unisys presents a mixed investment profile. On one hand, its specialized IT services, particularly in cybersecurity (Stealth software) and enterprise computing (ClearPath Forward), offer differentiation in a crowded market. The company’s revenue of $2.01 billion (2024) and operating cash flow of $135.1 million indicate stable operations, while a strong cash position ($376.5 million) provides liquidity. However, negative net income (-$193.4 million) and diluted EPS (-$2.79) raise concerns about profitability. The stock’s low beta (0.781) suggests lower volatility relative to the market, but the absence of dividends may deter income-focused investors. Investors should weigh its niche expertise against execution risks in a highly competitive industry.
Unisys competes in the IT services sector by focusing on legacy system modernization and cybersecurity, differentiating itself through proprietary solutions like Stealth (micro-segmentation security) and ClearPath Forward (high-intensity computing). Its vertical expertise in government and financial services provides sticky client relationships. However, the company faces intense competition from larger, more diversified players like Accenture and IBM, which boast greater scale, R&D budgets, and global delivery networks. Unisys’s smaller market cap ($433 million) limits its ability to invest aggressively in growth areas like AI and cloud-native solutions, where rivals are pulling ahead. While its security and mainframe modernization offerings are strengths, reliance on legacy systems (e.g., ClearPath) could hinder long-term relevance as enterprises shift to cloud-first models. The lack of profitability further restricts its competitive agility.