UMICORE (UMI.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:UMI - BE0974320526 - Common Stock
20.9 EUR
-0.38 (-1.79%)
We assign a fundamental rating of 3 out of 10 to UMI. UMI was compared to 71 industry peers in the Chemicals industry. While UMI is still in line with the averages on profitability rating, there are concerns on its financial health. UMI has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
- UMI had positive earnings in 4 of the past 5 years.
- UMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 1.50%, UMI perfoms like the industry average, outperforming 53.52% of the companies in the same industry.
- UMI has a Return On Equity of 6.30%. This is comparable to the rest of the industry: UMI outperforms 57.75% of its industry peers.
- UMI has a better Return On Invested Capital (6.40%) than 63.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 6.3% | ||
| ROIC | 6.4% |
ROA(3y)-2.04%
ROA(5y)0.46%
ROE(3y)-16.55%
ROE(5y)-4.93%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- UMI has a Profit Margin (0.80%) which is in line with its industry peers.
- UMI has a Operating Margin of 2.57%. This is in the lower half of the industry: UMI underperforms 60.56% of its industry peers.
- With a Gross Margin value of 7.76%, UMI is not doing good in the industry: 84.51% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of UMI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.57% | ||
| PM (TTM) | 0.8% | ||
| GM | 7.76% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.61%
GM growth 5Y5.16%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UMI is destroying value.
- Compared to 1 year ago, UMI has about the same amount of shares outstanding.
- Compared to 5 years ago, UMI has about the same amount of shares outstanding.
- The debt/assets ratio for UMI is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.89 indicates that UMI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- UMI has a better Altman-Z score (2.89) than 61.97% of its industry peers.
- The Debt to FCF ratio of UMI is 50.79, which is on the high side as it means it would take UMI, 50.79 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of UMI (50.79) is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.10 is on the high side and indicates that UMI has dependencies on debt financing.
- UMI has a Debt to Equity ratio of 1.10. This is amonst the worse of the industry: UMI underperforms 83.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 50.79 | ||
| Altman-Z | 2.89 |
ROIC/WACC1
WACC6.41%
2.3 Liquidity
- UMI has a Current Ratio of 1.37. This is a normal value and indicates that UMI is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.37, UMI is doing worse than 70.42% of the companies in the same industry.
- A Quick Ratio of 0.72 indicates that UMI may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.72, UMI is doing worse than 74.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- UMI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.12%.
- Measured over the past years, UMI shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.85% on average per year.
- Looking at the last year, UMI shows a small growth in Revenue. The Revenue has grown by 2.55% in the last year.
- UMI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.21% yearly.
EPS 1Y (TTM)-18.12%
EPS 3Y-27.4%
EPS 5Y-3.85%
EPS Q2Q%14.29%
Revenue 1Y (TTM)2.55%
Revenue growth 3Y-14.84%
Revenue growth 5Y-3.21%
Sales Q2Q%-0.72%
3.2 Future
- UMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.99% yearly.
- Based on estimates for the next years, UMI will show a small growth in Revenue. The Revenue will grow by 2.12% on average per year.
EPS Next Y19.97%
EPS Next 2Y14.89%
EPS Next 3Y12.98%
EPS Next 5Y9.99%
Revenue Next Year-3.09%
Revenue Next 2Y1.92%
Revenue Next 3Y1.07%
Revenue Next 5Y2.12%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings ratio is 18.50, which indicates a rather expensive current valuation of UMI.
- UMI's Price/Earnings ratio is a bit cheaper when compared to the industry. UMI is cheaper than 67.61% of the companies in the same industry.
- UMI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
- With a Price/Forward Earnings ratio of 14.94, UMI is valued correctly.
- Based on the Price/Forward Earnings ratio, UMI is valued a bit cheaper than the industry average as 71.83% of the companies are valued more expensively.
- UMI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 14.94 |
4.2 Price Multiples
- 60.56% of the companies in the same industry are more expensive than UMI, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of UMI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 91.29 | ||
| EV/EBITDA | 10.01 |
4.3 Compensation for Growth
- UMI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as UMI's earnings are expected to grow with 12.98% in the coming years.
PEG (NY)0.93
PEG (5Y)N/A
EPS Next 2Y14.89%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
- UMI has a Yearly Dividend Yield of 1.72%. Purely for dividend investing, there may be better candidates out there.
- UMI's Dividend Yield is comparable with the industry average which is at 2.45.
- Compared to an average S&P500 Dividend Yield of 1.82, UMI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
- The dividend of UMI has a limited annual growth rate of 0.67%.
Dividend Growth(5Y)0.67%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- 93.29% of the earnings are spent on dividend by UMI. This is not a sustainable payout ratio.
- UMI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP93.29%
EPS Next 2Y14.89%
EPS Next 3Y12.98%
UMICORE / UMI.BR FAQ
What is the fundamental rating for UMI stock?
ChartMill assigns a fundamental rating of 3 / 10 to UMI.BR.
Can you provide the valuation status for UMICORE?
ChartMill assigns a valuation rating of 5 / 10 to UMICORE (UMI.BR). This can be considered as Fairly Valued.
What is the profitability of UMI stock?
UMICORE (UMI.BR) has a profitability rating of 4 / 10.
What are the PE and PB ratios of UMICORE (UMI.BR) stock?
The Price/Earnings (PE) ratio for UMICORE (UMI.BR) is 18.5 and the Price/Book (PB) ratio is 2.52.
How sustainable is the dividend of UMICORE (UMI.BR) stock?
The dividend rating of UMICORE (UMI.BR) is 3 / 10 and the dividend payout ratio is 93.29%.