UCB SA (UCB.BR)
BE0003739530 - Common Stock
UCB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 52 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of UCB while its profitability can be described as average. 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.
In the past 5 years UCB always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of UCB (1.54%) is comparable to the rest of the industry.
The Return On Equity of UCB (2.68%) is comparable to the rest of the industry.
UCB's Return On Invested Capital of 3.16% is in line compared to the rest of the industry. UCB outperforms 41.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UCB is significantly below the industry average of 12.09%.
| 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 of 4.40%. This is comparable to the rest of the industry: UCB outperforms 43.75% of its industry peers.
In the last couple of years the Profit Margin of UCB has declined.
UCB has a Operating Margin (9.30%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of UCB has declined.
UCB has a Gross Margin (67.80%) which is in line with its industry peers.
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
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.
UCB has a worse debt/assets ratio than last year.
2.2 Solvency
UCB has an Altman-Z score of 4.51. This indicates that UCB is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.51, UCB is doing good in the industry, outperforming 72.92% of the companies in the same industry.
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 56.25% 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.
Looking at the Debt to Equity ratio, with a value of 0.33, UCB is in line with its industry, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 5.34 | ||
| Altman-Z | 4.51 |
ROIC/WACC0.43
WACC7.29%
2.3 Liquidity
A Current Ratio of 1.19 indicates that UCB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.19, UCB is doing worse than 66.67% of the companies in the same industry.
A Quick Ratio of 0.78 indicates that UCB may have some problems paying its short term obligations.
The Quick ratio of UCB (0.78) is worse than 70.83% of its industry peers.
| 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%.
Measured over the past years, UCB shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.58% on average per year.
The Revenue has been growing slightly by 5.27% in the past year.
The Revenue has been growing slightly by 2.54% on average over the past years.
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
The Earnings Per Share is expected to grow by 24.97% on average over the next years. This is a very strong growth
UCB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.17% yearly.
EPS Next Y1.8%
EPS Next 2Y27.08%
EPS Next 3Y29.05%
EPS Next 5Y24.97%
Revenue Next Year12.38%
Revenue Next 2Y15.12%
Revenue Next 3Y13.76%
Revenue Next 5Y13.17%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 45.75, the valuation of UCB can be described as expensive.
UCB's Price/Earnings is on the same level as the industry average.
UCB is valuated expensively when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 28.33 indicates a quite expensive valuation of UCB.
Based on the Price/Forward Earnings ratio, UCB is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
UCB's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.75 | ||
| Fwd PE | 28.33 |
4.2 Price Multiples
64.58% of the companies in the same industry are cheaper than UCB, based on the Enterprise Value to EBITDA ratio.
62.50% of the companies in the same industry are cheaper than UCB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.69 | ||
| EV/EBITDA | 33.34 |
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 29.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)25.48
PEG (5Y)N/A
EPS Next 2Y27.08%
EPS Next 3Y29.05%
5. Dividend
5.1 Amount
UCB has a yearly dividend return of 0.48%, which is pretty low.
UCB's Dividend Yield is comparable with the industry average which is at 2.79.
Compared to an average S&P500 Dividend Yield of 2.34, UCB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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
UCB pays out 107.92% of its income as dividend. 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 (1/13/2025, 5:29:51 PM)
192.15
-2.95 (-1.51%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners38.24%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap37.38B
Analysts75.83
Price Target194.71 (1.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Dividend Growth(5Y)2.45%
DP107.92%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.3%
PT rev (3m)17.15%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.17%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.28%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.75 | ||
| Fwd PE | 28.33 | ||
| P/S | 6.85 | ||
| P/FCF | 65.69 | ||
| P/OCF | 42.04 | ||
| P/B | 4.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 33.34 |
EPS(TTM)4.2
EY2.19%
EPS(NY)6.78
Fwd EY3.53%
FCF(TTM)2.93
FCFY1.52%
OCF(TTM)4.57
OCFY2.38%
SpS28.04
BVpS46.03
TBVpS-2.87
PEG (NY)25.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 2.68% | ||
| ROCE | 3.95% | ||
| ROIC | 3.16% | ||
| ROICexc | 3.34% | ||
| ROICexgc | 15.42% | ||
| OM | 9.3% | ||
| PM (TTM) | 4.4% | ||
| GM | 67.8% | ||
| FCFM | 10.43% |
ROA(3y)4.1%
ROA(5y)4.99%
ROE(3y)7.02%
ROE(5y)8.47%
ROIC(3y)5.56%
ROIC(5y)7.04%
ROICexc(3y)6.25%
ROICexc(5y)8.14%
ROICexgc(3y)39.79%
ROICexgc(5y)53.15%
ROCE(3y)6.96%
ROCE(5y)8.82%
ROICexcg growth 3Y-40.32%
ROICexcg growth 5Y-25.4%
ROICexc growth 3Y-29.11%
ROICexc growth 5Y-22.83%
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%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 5.34 | ||
| Debt/EBITDA | 2.48 | ||
| Cap/Depr | 46.11% | ||
| Cap/Sales | 5.87% | ||
| Interest Coverage | 3.09 | ||
| Cash Conversion | 74.02% | ||
| Profit Quality | 237.08% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 4.51 |
F-Score6
WACC7.29%
ROIC/WACC0.43
Cap/Depr(3y)87.12%
Cap/Depr(5y)90.77%
Cap/Sales(3y)7.09%
Cap/Sales(5y)6.76%
Profit Quality(3y)136.29%
Profit Quality(5y)116.62%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.89%
EPS 3Y-7.81%
EPS 5Y-2.58%
EPS Q2Q%-33.21%
EPS Next Y1.8%
EPS Next 2Y27.08%
EPS Next 3Y29.05%
EPS Next 5Y24.97%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y-0.6%
Revenue growth 5Y2.54%
Sales Q2Q%7.8%
Revenue Next Year12.38%
Revenue Next 2Y15.12%
Revenue Next 3Y13.76%
Revenue Next 5Y13.17%
EBIT growth 1Y9.03%
EBIT growth 3Y-22.31%
EBIT growth 5Y-14.32%
EBIT Next Year138.32%
EBIT Next 3Y61.14%
EBIT Next 5Y40.64%
FCF growth 1Y-42.06%
FCF growth 3Y-15.29%
FCF growth 5Y-9.87%
OCF growth 1Y-39.19%
OCF growth 3Y-11.04%
OCF growth 5Y-6.92%