9. Unisys Corp. (NYSE:UIS)
Market Capitalization as of September 11: $359.87 million
Number of Hedge Fund Holders: 23
Unisys Corp. (NYSE:UIS) is a global information technology services and consulting company that specializes in helping businesses modernize their IT infrastructure, improve their operations, and enhance their customer experiences. It offers solutions in cybersecurity, cloud computing, application modernization, and digital transformation.
A lot of customers are turning to Unisys Corp. (NYSE:UIS) for help with their IT needs. There was a recent large deal with a public sector client in Australia to provide IT support, manage their infrastructure, and provide security and network services for ~6000 end users.
For the first half of 2024, the new business pipeline with existing clients, which consists of new scope and expansion, was up 7% sequentially. Clients are becoming more and more interested in AI, and the company is helping them use AI effectively. There’s also an increased demand for data services, which are essential for AI.
The company had strong sales in Q2 2024, with total TCV increasing by 19% year-over-year, driven by new business signings, which increased by 64% year-over-year. It signed more new deals in both CA&I (cloud and infrastructure) and DWS (digital workplace solutions) segments. Many deals include a combination of traditional and modern workplace solutions.
The overall second-quarter revenue was $478.20 million, an increase of 0.29% year-over-year. DWS revenue was $132 million, a 2.2% decline compared to the prior year period. CA&I revenue was $134 million, an increase of 1.3% compared to the prior year period.
The company has demonstrated strong financial performance, thanks to CA&I and DWS segments, and is well-positioned for continued growth. The recent signings of new logos and framework agreements indicate a promising future. It is held by 23 hedge funds. The largest stake is valued at $7,344,066 by D E Shaw.
Miller Value Partners made the following comment about Unisys Corp (NYSE:UIS) in its Q1 2020 investor letter:
“During the quarter, we only had one holding Unisys (UIS), generate positive returns. Unisys successfully completed the sale of their Federal business for $1.2B in cash, a very accretive valuation level compared to the overall business (1.75x revenue and 13x EBITDA). Proceeds from the transaction are being used to retire outstanding unsecured debt and $600M will be deployed against pension obligations, allowing the U.S. pension to be more than 80% funded providing greater flexibility for future contributions. Unisys’s enterprise business remains attractively positioned and below normalized margins. Management is successfully growing the business and achieving its 12% long-term operating margin target over the next couple of years would support normalized earnings in excess of $2.50/share. Significant upside remains in the shares and we believe Unisys market price has the potential to exceed $25/share over the next couple of years.”
