Is UCB SA (EBR:UCB) Potentially Underrated?

UCB SA (EBR:UCB) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of UCB, it is a dependable dividend-paying company that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on UCB here.

Flawless balance sheet average dividend payer

UCB is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. UCB’s has produced operating cash levels of 0.75x total debt over the past year, which implies that UCB’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

ENXTBR:UCB Historical Debt, September 2nd 2019
ENXTBR:UCB Historical Debt, September 2nd 2019

For those seeking income streams from their portfolio, UCB is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.8%.

ENXTBR:UCB Historical Dividend Yield, September 2nd 2019
ENXTBR:UCB Historical Dividend Yield, September 2nd 2019

Next Steps:

For UCB, I’ve compiled three essential aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for UCB’s future growth? Take a look at our free research report of analyst consensus for UCB’s outlook.
  2. Historical Performance: What has UCB’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of UCB? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.