UCB SA (UCB.BR)

BE0003739530 - Common Stock

136.85  -2.2 (-1.58%)

Fundamental Rating

3

UCB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 50 industry peers in the Pharmaceuticals industry. The financial health of UCB is average, but there are quite some concerns on its profitability. UCB is quite expensive at the moment. It does show a decent growth rate.



3

1. Profitability

1.1 Basic Checks

In the past year UCB was profitable.
In the past year UCB had a positive cash flow from operations.
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

UCB has a Return On Assets (2.21%) which is comparable to the rest of the industry.
UCB has a Return On Equity (3.82%) which is in line with its industry peers.
UCB has a Return On Invested Capital of 3.17%. This is in the lower half of the industry: UCB underperforms 63.04% of its industry peers.
UCB had an Average Return On Invested Capital over the past 3 years of 5.56%. This is significantly below the industry average of 11.25%.
Industry RankSector 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 in line with its industry peers.
UCB's Profit Margin has declined in the last couple of years.
UCB has a Operating Margin (9.75%) which is in line with its industry peers.
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 52.17% of the companies in the same industry.
In the last couple of years the Gross Margin of UCB has declined.
Industry RankSector 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%

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UCB is destroying value.
Compared to 1 year ago, UCB has about the same amount of shares outstanding.
UCB has more shares outstanding than it did 5 years ago.
The debt/assets ratio for UCB is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 3.53 indicates that UCB is not in any danger for bankruptcy at the moment.
UCB has a better Altman-Z score (3.53) than 63.04% of its industry peers.
UCB has a debt to FCF ratio of 6.83. This is a slightly negative value and a sign of low solvency as UCB would need 6.83 years to pay back of all of its debts.
UCB has a Debt to FCF ratio (6.83) which is in line with 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.
The Debt to Equity ratio of UCB (0.33) is better than 63.04% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 6.83
Altman-Z 3.53
ROIC/WACC0.44
WACC7.26%

2.3 Liquidity

A Current Ratio of 1.32 indicates that UCB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.32, UCB is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 0.92 indicates that UCB may have some problems paying its short term obligations.
The Quick ratio of UCB (0.92) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 0.92

4

3. Growth

3.1 Past

The earnings per share for UCB have decreased by -3.89% in the last year.
The Earnings Per Share has been decreasing by -2.58% on average over the past years.
Looking at the last year, UCB shows a decrease in Revenue. The Revenue has decreased by -4.80% in the last year.
Measured over the past years, UCB shows a small growth in Revenue. The Revenue has been growing by 2.54% on average per year.
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

The Earnings Per Share is expected to grow by 19.81% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.00% on average over the next years. This is quite good.
EPS Next Y2.39%
EPS Next 2Y27.12%
EPS Next 3Y26.51%
EPS Next 5Y19.81%
Revenue Next Year8.8%
Revenue Next 2Y11.22%
Revenue Next 3Y11.01%
Revenue Next 5Y9%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 32.58, which means the current valuation is very expensive for UCB.
The rest of the industry has a similar Price/Earnings ratio as UCB.
Compared to an average S&P500 Price/Earnings ratio of 28.57, UCB is valued at the same level.
Based on the Price/Forward Earnings ratio of 31.82, the valuation of UCB can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UCB is on the same level as its industry peers.
UCB is valuated expensively when we compare the Price/Forward Earnings ratio to 20.18, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 32.58
Fwd PE 31.82

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, UCB is valued a bit more expensive than the industry average as 60.87% of the companies are valued more cheaply.
UCB's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 58.36
EV/EBITDA 23.35

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
UCB's earnings are expected to grow with 26.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)13.64
PEG (5Y)N/A
EPS Next 2Y27.12%
EPS Next 3Y26.51%

3

5. Dividend

5.1 Amount

With a yearly dividend of 0.70%, UCB is not a good candidate for dividend investing.
UCB's Dividend Yield is comparable with the industry average which is at 2.75.
With a Dividend Yield of 0.70, UCB pays less dividend than the S&P500 average, which is at 2.39.
Industry RankSector Rank
Dividend Yield 0.7%

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

73.47% of the earnings are spent on dividend by UCB. 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 (6/20/2024, 7:00:00 PM)

136.85

-2.2 (-1.58%)

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 Cap25.97B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.7%
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 RankSector Rank
PE 32.58
Fwd PE 31.82
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)13.64
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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