Positioning no disclosures inside 60 days, left as found
Options put/call open interest 0.55, read 2026-10-23
Ethical does not pass the values gate
Price40.33 USD
Fair value46.53
Ethical score70.0/100
Our investment reviews on this name
2026-10-25Read Distribution41.40-2.6% to today ✓Accumulation gives way to Distribution
2026-10-11Read Accumulation43.11-6.4% to today Markdown gives way to Accumulation first Accumulation read since July
2026-09-15Read Markdown42.08-4.2% to today ✓Markup gives way to Markdown after a 26% rise in 4 weeks
2026-08-15Read Markup33.34+21.0% to today ✓Accumulation gives way to Markup after a 22% rise in 6 weeks
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Unity Software Inc holds its Markdown at $40.33. The statistical read favours the sellers, held for 131 days.
As held on the ledger · 2026-10-26
Phase
Markdown · caution
Quantitative state
The statistical read favours the sellers, held for 131 days
Price at the screen
$40.33
Valuation
N/A trailing · 23.17 forward price to earnings
Values screen
FAIL· score 70.0
Beta
2.11
The Workings
Five Screens, Shown in Full
Does not pass. Revenue purity
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
32.69%
Below 33%
Interest-bearing debt is just 32.7% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
0.00%
Below 33%
Cash held in interest-bearing accounts and securities is 0.0% of assets, under the one-third limit.
Pass
Receivables
39.48%
Below 49%
Money owed to the company is 39.5% of assets, under the 49% limit.
Pass
Revenue purity
5.83%
Below 5%
5.8% of revenue comes from non-compliant sources, over the 5% line.
Fail
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Unity Software clears the business-activity screen, and its debt is inside the line. Where it falls short is income purity: around 6% of its income right now is non-operating interest income, against a roughly 5% ceiling, so it does not pass. That reflects what it earns today, not the business itself, and it could clear the screen if its operating revenue grows and the interest share falls.
Read as at 2026-10-27. It updates when the underlying figures move, and past reads are kept below.
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Today U does not pass the screen. If new figures move it to a pass, we send you one short email with the before and after. Verdicts change rarely, so you may not hear from us for a long time.
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Fair value range in USD, drawn from the 2026-10-26 screen. The gold marker is the market price at the same screen. A 15.4% margin of safety to the base estimate.
Third-party analyst targets: 25 covering, consensus Strong Buy. The average target sits +24% from the screen price.
Reading the gap · Both our model and the analysts see meaningful upside from here.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-10-26 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Unity still chasing profits in a crowded game engine market
Every time an indie studio ships a mobile hit or a console title leans on real-time rendering, Unity collects the fees. Yet the numbers show a business still burning cash at a 35% negative profit margin while posting an ROE of minus 20%. Revenue growth of 17% is respectable, but a forward multiple of 22 times earnings on a narrow moat leaves almost no margin of safety at the current price.
We pass. Fair value sits only 5% above the share price, and the consensus target from 22 analysts at 35 dollars does not change the underlying picture of persistent losses and limited pricing power. Ethical screen clears, yet that alone does not turn a marginal valuation into an opportunity.
The main risk is execution. Continued cash burn in a competitive tools market could keep returns depressed even if top-line growth holds. Analysis, not advice.
The risks · The things to watch: it already moves more than the market on an average day.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
U trades on the NYSE. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The framework has shifted from accumulation to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is momentum reading neutral. Over the past year the shares are up 7%. Our forward projection puts the odds of a 10% gain over the next month near 35%. The street (23 analysts) rates it buy, with a mean price target of $35.
2026-10-18Accumulation$41.40-4.0%Entry 8
The analysis reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 4.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is sitting below its long-term trend line with momentum reading bullish. Over the past year the shares are up 7%. Our forward projection puts the odds of a 10% gain over the next month near 35%. The street (23 analysts) rates it buy, with a mean price target of $35.
The framework has shifted from markdown to accumulation since the last review. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it A. Technically it is sitting below its long-term trend line with momentum reading bullish. Over the past year the shares are up 7%. Our forward projection puts the odds of a 10% gain over the next month near 35%. The street (23 analysts) rates it buy, with a mean price target of $35.
2026-10-02Markdown$43.11+2.4%Entry 6
Our analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved up 2.4% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is sitting below its long-term trend line with momentum reading bullish. Over the past year the shares are up 7%. Our forward projection puts the odds of a 10% gain over the next month near 35%. The street (23 analysts) rates it buy, with a mean price target of $35.
2026-09-15Markdown · changed$42.08+26.2%Entry 5
The framework has shifted from markup to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved up 26.2% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is sitting below its long-term trend line with momentum reading bullish. Over the past year the shares are up 7%. Our forward projection puts the odds of a 10% gain over the next month near 35%. The street (23 analysts) rates it buy, with a mean price target of $35.
2026-08-15Markup · changed$33.34+22.4%Entry 4
The framework has shifted from accumulation to markup since the last review. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 22.4% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is sitting below its long-term trend line with momentum reading bullish. Over the past year the shares are up 7%. Our forward projection puts the odds of a 10% gain over the next month near 35%. The street (23 analysts) rates it buy, with a mean price target of $35.
2026-07-18Accumulation$27.24+0.0%Entry 3
Our analysis reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is sitting below its long-term trend line with momentum reading bullish. Over the past year the shares are up 7%. Our forward projection puts the odds of a 10% gain over the next month near 35%. The street (23 analysts) rates it buy, with a mean price target of $35.
2026-07-03Accumulation$27.24+0.0%Entry 2
Our analysis reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows good risk-adjusted returns.
2026-07-02Accumulation$27.24Entry 1
Our analysis reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows good risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
