UCB SA (UCB.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:UCB - BE0003739530 - Common Stock
253.3 EUR
-8.7 (-3.32%)
UCB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Pharmaceuticals industry. UCB has only an average score on both its financial health and profitability. UCB is valued quite expensive, but it does show an excellent growth. This makes UCB very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- UCB had positive earnings in the past year.
- UCB had a positive operating cash flow in the past year.
- UCB had positive earnings in each of the past 5 years.
- Each year in the past 5 years UCB had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of UCB (7.75%) is comparable to the rest of the industry.
- UCB has a Return On Equity (13.76%) which is comparable to the rest of the industry.
- UCB has a Return On Invested Capital (11.63%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for UCB is significantly below the industry average of 14.00%.
- The last Return On Invested Capital (11.63%) for UCB is above the 3 year average (4.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.75% | ||
| ROE | 13.76% | ||
| ROIC | 11.63% |
ROA(3y)3.66%
ROA(5y)4.78%
ROE(3y)6.35%
ROE(5y)8.35%
ROIC(3y)4.35%
ROIC(5y)6.33%
1.3 Margins
- UCB has a Profit Margin of 19.45%. This is in the better half of the industry: UCB outperforms 76.36% of its industry peers.
- UCB's Profit Margin has been stable in the last couple of years.
- UCB has a better Operating Margin (26.58%) than 67.27% of its industry peers.
- In the last couple of years the Operating Margin of UCB has declined.
- With a decent Gross Margin value of 73.38%, UCB is doing good in the industry, outperforming 63.64% of the companies in the same industry.
- In the last couple of years the Gross Margin of UCB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.58% | ||
| PM (TTM) | 19.45% | ||
| GM | 73.38% |
OM growth 3Y-15.5%
OM growth 5Y-9.39%
PM growth 3Y-1.86%
PM growth 5Y1.44%
GM growth 3Y-1.62%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UCB is creating some value.
- UCB has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, UCB has more shares outstanding
- The debt/assets ratio for UCB has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.52 indicates that UCB is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.52, UCB is in the better half of the industry, outperforming 76.36% of the companies in the same industry.
- UCB has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as UCB would need 2.43 years to pay back of all of its debts.
- UCB's Debt to FCF ratio of 2.43 is fine compared to the rest of the industry. UCB outperforms 80.00% of its industry peers.
- A Debt/Equity ratio of 0.29 indicates that UCB is not too dependend on debt financing.
- The Debt to Equity ratio of UCB (0.29) is better than 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 5.52 |
ROIC/WACC1.5
WACC7.76%
2.3 Liquidity
- A Current Ratio of 1.35 indicates that UCB should not have too much problems paying its short term obligations.
- The Current ratio of UCB (1.35) is comparable to the rest of the industry.
- UCB has a Quick Ratio of 1.01. This is a normal value and indicates that UCB is financially healthy and should not expect problems in meeting its short term obligations.
- UCB has a Quick ratio (1.01) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 75.41% over the past year.
- The Earnings Per Share has been decreasing by -0.86% on average over the past years.
- Looking at the last year, UCB shows a very strong growth in Revenue. The Revenue has grown by 25.56%.
- Measured over the past years, UCB shows a small growth in Revenue. The Revenue has been growing by 4.60% on average per year.
EPS 1Y (TTM)75.41%
EPS 3Y-8.45%
EPS 5Y-0.86%
EPS Q2Q%68.9%
Revenue 1Y (TTM)25.56%
Revenue growth 3Y2.12%
Revenue growth 5Y4.6%
Sales Q2Q%24.94%
3.2 Future
- Based on estimates for the next years, UCB will show a very strong growth in Earnings Per Share. The EPS will grow by 28.44% on average per year.
- UCB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.09% yearly.
EPS Next Y60.25%
EPS Next 2Y43.7%
EPS Next 3Y38.91%
EPS Next 5Y28.44%
Revenue Next Year25.37%
Revenue Next 2Y19.85%
Revenue Next 3Y17.72%
Revenue Next 5Y15.09%
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.
4. Valuation
4.1 Price/Earnings Ratio
- UCB is valuated quite expensively with a Price/Earnings ratio of 39.45.
- Based on the Price/Earnings ratio, UCB is valued a bit more expensive than the industry average as 61.82% of the companies are valued more cheaply.
- UCB's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.60.
- A Price/Forward Earnings ratio of 24.63 indicates a rather expensive valuation of UCB.
- 61.82% of the companies in the same industry are cheaper than UCB, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, UCB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.45 | ||
| Fwd PE | 24.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, UCB is valued a bit more expensive than the industry average as 65.45% of the companies are valued more cheaply.
- UCB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.58 | ||
| EV/EBITDA | 20.94 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- UCB has a very decent profitability rating, which may justify a higher PE ratio.
- UCB's earnings are expected to grow with 38.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y43.7%
EPS Next 3Y38.91%
5. Dividend
5.1 Amount
- UCB has a yearly dividend return of 0.38%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.62, UCB has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, UCB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
5.2 History
- The dividend of UCB has a limited annual growth rate of 2.46%.
Dividend Growth(5Y)2.46%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- 19.82% of the earnings are spent on dividend by UCB. This is a low number and sustainable payout ratio.
- The dividend of UCB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP19.82%
EPS Next 2Y43.7%
EPS Next 3Y38.91%
UCB SA / UCB.BR FAQ
What is the fundamental rating for UCB stock?
ChartMill assigns a fundamental rating of 6 / 10 to UCB.BR.
Can you provide the valuation status for UCB SA?
ChartMill assigns a valuation rating of 3 / 10 to UCB SA (UCB.BR). This can be considered as Overvalued.
Can you provide the profitability details for UCB SA?
UCB SA (UCB.BR) has a profitability rating of 6 / 10.
What are the PE and PB ratios of UCB SA (UCB.BR) stock?
The Price/Earnings (PE) ratio for UCB SA (UCB.BR) is 39.45 and the Price/Book (PB) ratio is 5.09.
What is the earnings growth outlook for UCB SA?
The Earnings per Share (EPS) of UCB SA (UCB.BR) is expected to grow by 60.25% in the next year.