Unisys Corporation, a global information technology solutions company founded in 1986, continues to thrive in the market by focusing on growing target markets and developing new products with AI and machine learning features. With its extensive expertise, Unisys offers solutions and services to a diverse range of clients in the public and private sectors, including state and local governments, global non-profit organizations, and various industries.
One of the most appealing aspects of Unisys is its significant amount of recurring revenue. In the last quarter, 76% of its total revenue came from recurring sources, providing a stable foundation for future net sales. This level of recurring revenue sets Unisys apart from its competitors and positions it for continued growth in the coming years.
Unisys operates through three reportable segments: Digital Workplace Solutions, Cloud, Applications and Infrastructure Solutions, and Enterprise Computing Solutions. These segments focus on workspace design operations, accelerating digital transformation in critical areas, and offering high-intensity software-defined solutions, respectively. The company’s business is optimized to meet the demands of the digital age, providing cutting-edge solutions to drive business growth and efficiency.
The company’s target markets show promising growth prospects. For example, the global digital workplace market is expected to grow at a compound annual growth rate of 22.3% from 2022 to 2030, offering ample opportunities for Unisys to expand its net sales. This market size was valued at USD 27.33 billion in 2021, and continued growth is expected in the years to come.
Unisys has recently reported better than expected earnings per share (EPS) and net sales. With a momentum in earnings, it is likely that more positive surprises will be seen in the future. Furthermore, the company has revised its guidance for 2023, with increased margins and revenue growth. Despite these positive developments, Unisys is currently trading at multi-year lows, suggesting that the market has not fully taken into account these improvements.
While Unisys has a stable balance sheet with significant cash reserves, shareholders should consider the long-term postretirement liabilities. However, the company has been reducing these liabilities in recent months, which could lead to higher multiples of enterprise value-to-free cash flow and enterprise value-to-EBITDA.
Unisys is also investing in new developments in AI, machine learning, hyper-automation, quantum computing, and encryption. These value-added products have the potential to bring cross-selling and upselling opportunities with existing customers. Notably, the company holds 455 active patents in the United States, indicating its commitment to innovation.
In conclusion, Unisys Corporation remains an attractive investment option with its strong recurring revenue, presence in growing markets, and investments in AI and machine learning. With its proven track record and commitment to technological advancements, Unisys is well-positioned for continued success in the information technology solutions industry.
The source of the article is from the blog lanoticiadigital.com.ar