UCB SA (UCB.BR)
BE0003739530 - Common Stock
UCB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 50 industry peers in the Pharmaceuticals industry. Both the profitability and financial health of UCB have multiple concerns. UCB is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year UCB was profitable.
UCB had a positive operating cash flow in the past year.
Each year in the past 5 years UCB has been profitable.
Each year in the past 5 years UCB had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.54%, UCB is doing worse than 60.87% of the companies in the same industry.
The Return On Equity of UCB (2.68%) is comparable to the rest of the industry.
UCB has a Return On Invested Capital of 3.16%. This is in the lower half of the industry: UCB underperforms 60.87% 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 12.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 2.68% | ||
| ROIC | 3.16% |
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 (4.40%) which is comparable to the rest of the industry.
UCB's Profit Margin has declined in the last couple of years.
UCB has a Operating Margin (9.30%) which is comparable to the rest of the industry.
UCB's Operating Margin has declined in the last couple of years.
UCB has a Gross Margin (67.80%) which is comparable to the rest of the industry.
UCB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.3% | ||
| PM (TTM) | 4.4% | ||
| GM | 67.8% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UCB is destroying value.
The number of shares outstanding for UCB remains at a similar level compared to 1 year ago.
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 4.25 indicates that UCB is not in any danger for bankruptcy at the moment.
UCB has a Altman-Z score of 4.25. This is in the better half of the industry: UCB outperforms 71.74% of its industry peers.
UCB has a debt to FCF ratio of 5.34. This is a neutral value as UCB would need 5.34 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.34, UCB is in line with its industry, outperforming 58.70% of the companies in the same industry.
UCB has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.33, UCB perfoms like the industry average, outperforming 58.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 5.34 | ||
| Altman-Z | 4.25 |
ROIC/WACC0.44
WACC7.2%
2.3 Liquidity
A Current Ratio of 1.19 indicates that UCB should not have too much problems paying its short term obligations.
The Current ratio of UCB (1.19) is worse than 69.57% of its industry peers.
UCB has a Quick Ratio of 1.19. This is a bad value and indicates that UCB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.78, UCB is doing worse than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
UCB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.89%.
The Earnings Per Share has been decreasing by -2.58% on average over the past years.
UCB shows a small growth in Revenue. In the last year, the Revenue has grown by 5.27%.
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%-33.21%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y-0.6%
Revenue growth 5Y2.54%
Sales Q2Q%7.8%
3.2 Future
UCB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.51% yearly.
The Revenue is expected to grow by 9.30% on average over the next years. This is quite good.
EPS Next Y1.8%
EPS Next 2Y27.08%
EPS Next 3Y29.05%
EPS Next 5Y19.51%
Revenue Next Year10.96%
Revenue Next 2Y13.76%
Revenue Next 3Y13.28%
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.
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
Based on the Price/Earnings ratio of 44.12, the valuation of UCB can be described as expensive.
Based on the Price/Earnings ratio, UCB is valued a bit more expensive than 60.87% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.48, UCB is valued a bit more expensive.
With a Price/Forward Earnings ratio of 27.32, UCB can be considered very expensive at the moment.
60.87% of the companies in the same industry are cheaper than UCB, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of UCB to the average of the S&P500 Index (23.95), we can say UCB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.12 | ||
| Fwd PE | 27.32 |
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 65.22% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UCB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.78 | ||
| EV/EBITDA | 31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UCB does not grow enough to justify the current Price/Earnings ratio.
UCB's earnings are expected to grow with 29.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)24.57
PEG (5Y)N/A
EPS Next 2Y27.08%
EPS Next 3Y29.05%
5. Dividend
5.1 Amount
UCB has a yearly dividend return of 0.51%, which is pretty low.
UCB's Dividend Yield is slightly below the industry average, which is at 2.69.
Compared to an average S&P500 Dividend Yield of 2.16, UCB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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
107.92% 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.
DP107.92%
EPS Next 2Y27.08%
EPS Next 3Y29.05%
UCB SA
EBR:UCB (12/6/2024, 7:00:00 PM)
185.3
+0.05 (+0.03%)
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 Cap35.16B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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 | 44.12 | ||
| Fwd PE | 27.32 | ||
| 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)24.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 2.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.3% | ||
| PM (TTM) | 4.4% | ||
| GM | 67.8% | ||
| 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 Turnover0.35
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 | 1.19 | ||
| Quick Ratio | 0.78 | ||
| 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 Y1.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.27%
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