UMICORE (UMI.BR)
BE0974320526 - Common Stock
We assign a fundamental rating of 5 out of 10 to UMI. UMI was compared to 65 industry peers in the Chemicals industry. UMI has only an average score on both its financial health and profitability. UMI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
UMI had positive earnings in the past year.
In the past year UMI had a positive cash flow from operations.
Each year in the past 5 years UMI has been profitable.
In the past 5 years UMI always reported a positive cash flow from operatings.
1.2 Ratios
UMI has a better Return On Assets (3.86%) than 63.49% of its industry peers.
UMI's Return On Equity of 10.52% is fine compared to the rest of the industry. UMI outperforms 74.60% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.37%, UMI is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for UMI is above the industry average of 7.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 10.52% | ||
| ROIC | 7.37% |
ROA(3y)5.48%
ROA(5y)4.42%
ROE(3y)15.54%
ROE(5y)12.57%
ROIC(3y)10.16%
ROIC(5y)8.82%
1.3 Margins
UMI's Profit Margin of 2.11% is in line compared to the rest of the industry. UMI outperforms 50.79% of its industry peers.
UMI's Profit Margin has declined in the last couple of years.
UMI has a Operating Margin (3.23%) which is in line with its industry peers.
UMI's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 8.24%, UMI is not doing good in the industry: 87.30% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of UMI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.23% | ||
| PM (TTM) | 2.11% | ||
| GM | 8.24% |
OM growth 3Y19.34%
OM growth 5Y-0.8%
PM growth 3Y49.37%
PM growth 5Y-1.82%
GM growth 3Y13.74%
GM growth 5Y-1.13%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UMI is creating some value.
Compared to 1 year ago, UMI has about the same amount of shares outstanding.
The number of shares outstanding for UMI has been reduced compared to 5 years ago.
Compared to 1 year ago, UMI has a worse debt to assets ratio.
2.2 Solvency
UMI has an Altman-Z score of 3.16. This indicates that UMI is financially healthy and has little risk of bankruptcy at the moment.
UMI has a better Altman-Z score (3.16) than 71.43% of its industry peers.
UMI has a debt to FCF ratio of 17.40. This is a negative value and a sign of low solvency as UMI would need 17.40 years to pay back of all of its debts.
UMI has a Debt to FCF ratio of 17.40. This is comparable to the rest of the industry: UMI outperforms 41.27% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that UMI is somewhat dependend on debt financing.
The Debt to Equity ratio of UMI (0.55) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 17.4 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.25
WACC5.9%
2.3 Liquidity
A Current Ratio of 1.62 indicates that UMI should not have too much problems paying its short term obligations.
The Current ratio of UMI (1.62) is worse than 63.49% of its industry peers.
UMI has a Quick Ratio of 1.62. This is a bad value and indicates that UMI is not financially healthy enough and could expect problems in meeting its short term obligations.
UMI has a Quick ratio of 0.82. This is in the lower half of the industry: UMI underperforms 79.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
UMI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.70%.
Measured over the past 5 years, UMI shows a small growth in Earnings Per Share. The EPS has been growing by 4.10% on average per year.
The Revenue for UMI has decreased by -28.19% in the past year. This is quite bad
UMI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.90% yearly.
EPS 1Y (TTM)-24.7%
EPS 3Y11.55%
EPS 5Y4.1%
EPS growth Q2Q-21.24%
Revenue 1Y (TTM)-28.19%
Revenue growth 3Y-4.1%
Revenue growth 5Y5.9%
Revenue growth Q2Q-34.21%
3.2 Future
UMI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.52% yearly.
Based on estimates for the next years, UMI will show a small growth in Revenue. The Revenue will grow by 7.16% on average per year.
EPS Next Y-17.19%
EPS Next 2Y-7.61%
EPS Next 3Y-3.14%
EPS Next 5Y6.52%
Revenue Next Year-4.28%
Revenue Next 2Y1.78%
Revenue Next 3Y4.32%
Revenue Next 5Y7.16%
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
With a Price/Earnings ratio of 11.40, the valuation of UMI can be described as very reasonable.
Based on the Price/Earnings ratio, UMI is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of UMI to the average of the S&P500 Index (25.20), we can say UMI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.76, the valuation of UMI can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UMI indicates a rather cheap valuation: UMI is cheaper than 80.95% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of UMI to the average of the S&P500 Index (21.63), we can say UMI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.4 | ||
| Fwd PE | 13.76 |
4.2 Price Multiples
73.02% of the companies in the same industry are more expensive than UMI, based on the Enterprise Value to EBITDA ratio.
UMI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.27 | ||
| EV/EBITDA | 7.04 |
4.3 Compensation for Growth
UMI's earnings are expected to decrease with -3.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.78
EPS Next 2Y-7.61%
EPS Next 3Y-3.14%
5. Dividend
5.1 Amount
UMI has a Yearly Dividend Yield of 2.65%.
UMI's Dividend Yield is a higher than the industry average which is at 3.11.
UMI's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
5.2 History
The dividend of UMI has a limited annual growth rate of 1.00%.
Dividend Growth(5Y)1%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
49.94% of the earnings are spent on dividend by UMI. This is a bit on the high side, but may be sustainable.
UMI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP49.94%
EPS Next 2Y-7.61%
EPS Next 3Y-3.14%
UMICORE
EBR:UMI (4/26/2024, 11:32:46 AM)
21.2
+0.28 (+1.34%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
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)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 11.4 | ||
| Fwd PE | 13.76 | ||
| 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)N/A
PEG (5Y)2.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 10.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.23% | ||
| PM (TTM) | 2.11% | ||
| GM | 8.24% | ||
| 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 Turnover1.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.82 | ||
| 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)
Growth
EPS 1Y (TTM)-24.7%
EPS 3Y11.55%
EPS 5Y
EPS growth Q2Q
EPS Next Y-17.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-28.19%
Revenue growth 3Y-4.1%
Revenue growth 5Y
Revenue growth 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