UCB SA (UCB.BR)
BE0003739530 - Common Stock
We assign a fundamental rating of 3 out of 10 to UCB. UCB was compared to 47 industry peers in the Pharmaceuticals industry. While UCB seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, UCB is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year UCB was profitable.
UCB had a positive operating cash flow in the past year.
UCB had positive earnings in each of the past 5 years.
In the past 5 years UCB always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.21%, UCB perfoms like the industry average, outperforming 48.84% of the companies in the same industry.
UCB has a Return On Equity (3.82%) which is comparable to the rest of the industry.
The Return On Invested Capital of UCB (3.17%) is worse than 65.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UCB is significantly below the industry average of 11.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 3.82% | ||
| ROIC | 3.17% |
ROA(3y)4.1%
ROA(5y)4.99%
ROE(3y)7.02%
ROE(5y)8.47%
ROIC(3y)5.56%
ROIC(5y)7.04%
1.3 Margins
UCB has a Profit Margin (6.53%) which is comparable to the rest of the industry.
UCB's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.75%, UCB is doing worse than 60.47% of the companies in the same industry.
In the last couple of years the Operating Margin of UCB has declined.
With a Gross Margin value of 67.50%, UCB perfoms like the industry average, outperforming 46.51% of the companies in the same industry.
In the last couple of years the Gross Margin of UCB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.75% | ||
| PM (TTM) | 6.53% | ||
| GM | 67.5% |
OM growth 3Y-21.84%
OM growth 5Y-16.44%
PM growth 3Y-21.86%
PM growth 5Y-17.68%
GM growth 3Y-3.24%
GM growth 5Y-1.86%
2. Health
2.1 Basic Checks
UCB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
UCB has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for UCB has been increased compared to 5 years ago.
The debt/assets ratio for UCB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.73 indicates that UCB is not in any danger for bankruptcy at the moment.
The Altman-Z score of UCB (3.73) is better than 62.79% of its industry peers.
The Debt to FCF ratio of UCB is 6.83, which is on the high side as it means it would take UCB, 6.83 years of fcf income to pay off all of its debts.
UCB's Debt to FCF ratio of 6.83 is in line compared to the rest of the industry. UCB outperforms 51.16% of its industry peers.
UCB has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.33, UCB is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 6.83 | ||
| Altman-Z | 3.73 |
ROIC/WACC0.43
WACC7.39%
2.3 Liquidity
A Current Ratio of 1.32 indicates that UCB should not have too much problems paying its short term obligations.
UCB has a Current ratio (1.32) which is comparable to the rest of the industry.
UCB has a Quick Ratio of 1.32. This is a bad value and indicates that UCB is not financially healthy enough and could expect problems in meeting its short term obligations.
UCB has a Quick ratio (0.92) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for UCB have decreased by -3.89% in the last year.
Measured over the past years, UCB shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.58% on average per year.
Looking at the last year, UCB shows a decrease in Revenue. The Revenue has decreased by -4.80% in the last year.
The Revenue has been growing slightly by 2.54% on average over the past years.
EPS 1Y (TTM)-3.89%
EPS 3Y-7.81%
EPS 5Y-2.58%
EPS Q2Q%28.69%
Revenue 1Y (TTM)-4.8%
Revenue growth 3Y-0.6%
Revenue growth 5Y2.54%
Sales Q2Q%2.74%
3.2 Future
Based on estimates for the next years, UCB will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.51% on average per year.
The Revenue is expected to grow by 9.30% on average over the next years. This is quite good.
EPS Next Y2.39%
EPS Next 2Y27.12%
EPS Next 3Y26.51%
EPS Next 5Y19.51%
Revenue Next Year8.8%
Revenue Next 2Y11.22%
Revenue Next 3Y11.01%
Revenue Next 5Y9.3%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 36.19, the valuation of UCB can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of UCB is on the same level as its industry peers.
UCB is valuated rather expensively when we compare the Price/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 35.35, the valuation of UCB can be described as expensive.
65.12% of the companies in the same industry are cheaper than UCB, based on the Price/Forward Earnings ratio.
UCB's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.19 | ||
| Fwd PE | 35.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UCB is valued a bit more expensive than 65.12% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as UCB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.82 | ||
| EV/EBITDA | 25.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as UCB's earnings are expected to grow with 26.51% in the coming years.
PEG (NY)15.15
PEG (5Y)N/A
EPS Next 2Y27.12%
EPS Next 3Y26.51%
5. Dividend
5.1 Amount
UCB has a yearly dividend return of 0.69%, which is pretty low.
UCB's Dividend Yield is comparable with the industry average which is at 2.80.
With a Dividend Yield of 0.69, UCB pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
The dividend of UCB has a limited annual growth rate of 2.45%.
Dividend Growth(5Y)2.45%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
UCB pays out 73.47% of its income as dividend. This is not a sustainable payout ratio.
The dividend of UCB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP73.47%
EPS Next 2Y27.12%
EPS Next 3Y26.51%
UCB SA
EBR:UCB (7/26/2024, 5:29:50 PM)
152
+1.6 (+1.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap28.85B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.19 | ||
| Fwd PE | 35.35 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)15.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 3.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.75% | ||
| PM (TTM) | 6.53% | ||
| GM | 67.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-3.89%
EPS 3Y-7.81%
EPS 5Y
EPS Q2Q%
EPS Next Y2.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.8%
Revenue growth 3Y-0.6%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y