UCB SA, a biopharmaceutical company, researches, develops, manufactures, sells, and distributes biopharmaceutical solutions for people living with neurology and immunology conditions.
The last earnings update was 84 days ago.
Discounted Cash Flow Calculation for WBAG:UCB using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
WBAG:UCB DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
UCB's share price is below the future cash flow value, but not at a moderate discount (< 20%).
UCB's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
UCB's earnings available for a low price, and how does
this compare to other companies in the same industry?
UCB's earnings are expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
UCB's revenue is expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
UCB's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Jean-Christophe Tellier has been the Chief Executive Officer and Executive Director of UCB SA since January 1, 2015 and April 24, 2014 respectively. Mr. Tellier served as an Executive Vice President at Bio Pharma Brands and Solutions at UCB SA until December 31, 2014. Since joining UCB in 2011, he has played a key role in UCB's successes and has been instrumental in helping establish current strategy. He has over 25 years in the pharmaceutical sector, with Ipsen and Novartis where he held several executive positions. He serves as Member of the Board of BIO, Member of the Board of PhRMA, and Member of the Board of WELBIO. He serves as a Vice-President and President Elect of the EFPIA. He serves as Deputy Chair of the IMI Governing Board and Chairman of the Innovation Board Sponsored.
Jean-Christophe's compensation has been consistent with company performance over the past year, both up more than 20%.
Insufficient data for Jean-Christophe to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the UCB management team is about average.
CEO & Executive Director
CFO & Executive VP
Charl Van Zyl
COO & Executive Vice President
Executive VP & Chief Scientific Officer
Chief Marketing Officer & Executive VP
Chief Medical Officer
Executive VP & Head of Immunology Patient Value Unit
Executive VP & Head of Neurology Patient Value Unit
Head of Bone Disorders Patient Value Unit & Executive VP
Executive VP & Chief Talent Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the UCB board of directors is about average.
UCB SA, a biopharmaceutical company, researches, develops, manufactures, sells, and distributes biopharmaceutical solutions for people living with neurology and immunology conditions. The company’s core products include Cimzia for inflammatory TNF mediated diseases, as well as ankylosing spondylitis, axial spondyloarthritis, Crohn's disease, plaque psoriasis, psoriatic arthritis, and rheumatoid arthritis; Vimpat, Keppra, and Briviact for epilepsy; and Neupro for Parkinson’s disease and restless legs syndrome. It also provides Zyrtec and Xyzal for allergies; Nootropil for memory problems; and Xyrem for narcolepsy. In addition, the company’s product pipeline includes Evenity for the treatment of osteoporosis; midazolam nasal spray to treat acute repetitive seizures; bimekizumab for treating psoriasis, psoriatic arthritis, and axial spondyloarthritis; and dapirolizumab pegol for systemic lupus erythematosus. Further, it is involved in developing padsevonil for the treatment of drug-resistant epilepsy; rozanolixizumab to treat myasthenia gravis, immune thrombocytopenia, and chronic inflammatory demyelinating polyneuropathy; UCB7858 and UCB0159 for immunology; and UCB0599 and UCB0107 for neurology. Additionally, the company engages in contract manufacturing activities. UCB SA has collaboration agreements with Sanofi and Otsuka. The company was founded in 1928 and is headquartered in Brussels, Belgium.
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