UCB SA (UCB.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:UCB - BE0003739530 - Common Stock
262 EUR
+3 (+1.16%)
UCB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Pharmaceuticals industry. Both the profitability and the financial health of UCB get a neutral evaluation. Nothing too spectacular is happening here. UCB shows excellent growth, but is valued quite expensive already. These ratings would make UCB suitable 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.
- UCB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.75%, UCB is in line with its industry, outperforming 58.18% of the companies in the same industry.
- UCB has a Return On Equity (13.76%) which is in line with its industry peers.
- UCB has a Return On Invested Capital of 11.63%. This is comparable to the rest of the industry: UCB outperforms 56.36% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for UCB is significantly below the industry average of 14.00%.
- The 3 year average ROIC (4.35%) for UCB is below the current ROIC(11.63%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 19.45%, UCB is in the better half of the industry, outperforming 74.55% of the companies in the same industry.
- UCB's Profit Margin has been stable in the last couple of years.
- The Operating Margin of UCB (26.58%) is better than 65.45% of its industry peers.
- In the last couple of years the Operating Margin of UCB has declined.
- UCB has a better Gross Margin (73.38%) than 61.82% of its industry peers.
- UCB's Gross Margin has been stable in the last couple of years.
| 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.
- 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.
- UCB has a better debt/assets ratio than last year.
2.2 Solvency
- UCB has an Altman-Z score of 5.47. This indicates that UCB is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 5.47, UCB is doing good in the industry, outperforming 78.18% 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 has a better Debt to FCF ratio (2.43) than 78.18% of its industry peers.
- A Debt/Equity ratio of 0.29 indicates that UCB is not too dependend on debt financing.
- UCB's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. UCB outperforms 69.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 5.47 |
ROIC/WACC1.5
WACC7.76%
2.3 Liquidity
- UCB has a Current Ratio of 1.35. This is a normal value and indicates that UCB is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.35, UCB is in line with its industry, outperforming 54.55% of the companies in the same industry.
- A Quick Ratio of 1.01 indicates that UCB should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.01, UCB is in line with its industry, outperforming 54.55% of the companies in the same 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.
- Measured over the past years, UCB shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.86% on average per year.
- Looking at the last year, UCB shows a very strong growth in Revenue. The Revenue has grown by 25.56%.
- UCB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.60% yearly.
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.
- Based on estimates for the next years, UCB will show a quite strong growth in Revenue. The Revenue will grow by 15.09% on average per year.
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
- 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.
- 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
- A Price/Earnings ratio of 40.81 indicates a quite expensive valuation of UCB.
- Compared to the rest of the industry, the Price/Earnings ratio of UCB indicates a slightly more expensive valuation: UCB is more expensive than 63.64% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.87. UCB is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 25.48, which means the current valuation is very expensive for UCB.
- Based on the Price/Forward Earnings ratio, UCB is valued a bit more expensive than 63.64% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. UCB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.81 | ||
| Fwd PE | 25.48 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UCB indicates a slightly more expensive valuation: UCB is more expensive than 67.27% of the companies listed in the same industry.
- UCB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.01 | ||
| EV/EBITDA | 20.7 |
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.
- The decent profitability rating of UCB 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)0.68
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.
- UCB's Dividend Yield is comparable with the industry average which is at 1.62.
- With a Dividend Yield of 0.38, UCB pays less dividend than the S&P500 average, which is at 1.82.
| 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.
- UCB's earnings are growing more than its dividend. This makes the dividend growth 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 40.81 and the Price/Book (PB) ratio is 5.26.
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.