ENXTBR:UCB

Stock Analysis Report

Executive Summary

UCB SA, a biopharmaceutical company, develops therapies and solutions for people with neurology and immunology diseases in the United States, Europe, and internationally.

Rewards

Trading at 34.7% below its fair value

Earnings are forecast to grow 5.89% per year

Pays a reliable dividend of 1.55%

Risk Analysis

No risks detected for UCB from our risk checks.


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has UCB's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UCB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

UCB

0.2%

BE Pharmaceuticals

5.7%

BE Market


1 Year Return

5.2%

UCB

7.4%

BE Pharmaceuticals

-24.9%

BE Market

Return vs Industry: UCB matched the Belgian Pharmaceuticals industry which returned 5.3% over the past year.

Return vs Market: UCB exceeded the Belgian Market which returned -25% over the past year.


Shareholder returns

UCBIndustryMarket
7 Day1.9%0.2%5.7%
30 Day-2.1%3.1%-0.4%
90 Day3.6%-8.6%-27.0%
1 Year6.4%5.2%11.0%7.4%-23.4%-24.9%
3 Year13.3%9.2%21.5%7.8%-28.4%-33.1%
5 Year20.2%13.1%14.6%-5.0%-29.4%-37.6%

Price Volatility Vs. Market

How volatile is UCB's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is UCB undervalued compared to its fair value and its price relative to the market?

34.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UCB (€80.24) is trading below our estimate of fair value (€122.87)

Significantly Below Fair Value: UCB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UCB is good value based on its PE Ratio (19x) compared to the Pharmaceuticals industry average (22.4x).

PE vs Market: UCB is poor value based on its PE Ratio (19x) compared to the Belgian market (14x).


Price to Earnings Growth Ratio

PEG Ratio: UCB is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: UCB is good value based on its PB Ratio (2.1x) compared to the XE Pharmaceuticals industry average (2.6x).


Next Steps

Future Growth

How is UCB forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UCB's forecast earnings growth (5.9% per year) is above the savings rate (0.7%).

Earnings vs Market: UCB's earnings (5.9% per year) are forecast to grow faster than the Belgian market (5.8% per year).

High Growth Earnings: UCB's earnings are forecast to grow, but not significantly.

Revenue vs Market: UCB's revenue (1.9% per year) is forecast to grow faster than the Belgian market (0.8% per year).

High Growth Revenue: UCB's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UCB's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has UCB performed over the past 5 years?

27.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UCB has high quality earnings.

Growing Profit Margin: UCB's current net profit margins (16.1%) are lower than last year (17.1%).


Past Earnings Growth Analysis

Earnings Trend: UCB's earnings have grown significantly by 27.9% per year over the past 5 years.

Accelerating Growth: UCB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UCB had negative earnings growth (-0.3%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (4.4%).


Return on Equity

High ROE: UCB's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is UCB's financial position?


Financial Position Analysis

Short Term Liabilities: UCB's short term assets (€3.3B) exceed its short term liabilities (€2.4B).

Long Term Liabilities: UCB's short term assets (€3.3B) exceed its long term liabilities (€1.7B).


Debt to Equity History and Analysis

Debt Level: UCB's debt to equity ratio (16.9%) is considered satisfactory.

Reducing Debt: UCB's debt to equity ratio has reduced from 43.1% to 16.9% over the past 5 years.

Debt Coverage: UCB's debt is well covered by operating cash flow (74.6%).

Interest Coverage: UCB's interest payments on its debt are well covered by EBIT (25.8x coverage).


Balance Sheet


Next Steps

Dividend

What is UCB's current dividend yield, its reliability and sustainability?

1.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UCB's dividend (1.55%) isn’t notable compared to the bottom 25% of dividend payers in the Belgian market (2.63%).

High Dividend: UCB's dividend (1.55%) is low compared to the top 25% of dividend payers in the Belgian market (5.91%).


Stability and Growth of Payments

Stable Dividend: UCB's dividends per share have been stable in the past 10 years.

Growing Dividend: UCB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.4%), UCB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UCB's dividends in 3 years are forecast to be well covered by earnings (22.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Jean-Christophe Tellier (60yo)

5.25s

Tenure

€87,000

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Jean-Christophe's total compensation ($USD95.13K) is below average for companies of similar size in the Belgian market ($USD2.50M).

Compensation vs Earnings: Jean-Christophe's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jean-Christophe Tellier
CEO, Interim CFO & Executive Director5.25yrs€87.00kno data
Detlef Thielgen
Executive VP12.42yrsno datano data
Dhavalkumar Patel
Executive VP & Chief Scientific Officer2.5yrsno datano data
William Silbey
Executive VP & General Counsel1.08yrsno datano data
Jean-Luc Fleurial
Executive VP & Chief Human Resources Officer0.17yrno datano data
Iris Löw-Friedrich
Chief Medical Officer12.08yrsno datano data
Emmanuel Caeymaex
Executive VP of Immunology Solutions & Head of US5.17yrsno datano data
Charl Van Zyl
Executive VP of Neurology Solutions & Head of EU/International0.58yrno datano data
Caroline Vancoillie
Chief Accounting Officer & CFO of Patient Value Functions7.08yrsno datano data
Kirsten Lund-Jurgensen
Executive Vice President of Supply & Technology Solutions0.58yrno datano data

3.8yrs

Average Tenure

59yo

Average Age

Experienced Management: UCB's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jean-Christophe Tellier
CEO, Interim CFO & Executive Director5.25yrs€87.00kno data
Gerhard Mayr
Honorary Chairmanno data€70.00kno data
Mark Eyskens
Honorary Chairman15.25yrs€15.50kno data
Daniel Janssen
Honorary Deputy Chairmanno data€28.50kno data
Frederic Doliveux
Director2.92yrs€87.00kno data
Albrecht De Graeve
Independent Director10yrs€120.50kno data
Georges Jacobs Hagen
Honorary Chairmanno data€30.00kno data
Diégo du de Bergendal
Chairman2.92yrs€262.50kno data
Karel Boone
Honorary Chairmanno data€49.00kno data
Pierre Gurdjian
Independent Vice Chairman2.92yrs€147.50kno data

4.5yrs

Average Tenure

69yo

Average Age

Experienced Board: UCB's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

UCB SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: UCB SA
  • Ticker: UCB
  • Exchange: ENXTBR
  • Founded: 1928
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: €15.132b
  • Shares outstanding: 188.58m
  • Website: https://www.ucb.com

Number of Employees


Location

  • UCB SA
  • AllEe de la Recherche, 60
  • Brussels
  • Brussels
  • 1070
  • Belgium

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UCBJ.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1980
UNCDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1980
UCBENXTBR (Euronext Brussels)YesCommon SharesBEEURJan 1980
0NZTLSE (London Stock Exchange)YesCommon SharesGBEURJan 1980
UCBBBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJan 1980
UCBWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1980
UNCETLX (Eurotlx)YesCommon SharesITEURJan 1980
UCBJ.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDFeb 2009

Biography

UCB SA, a biopharmaceutical company, develops therapies and solutions for people with neurology and immunology diseases in the United States, Europe, and internationally. The company’s primary 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; Neupro for Parkinson’s disease and restless legs syndrome; and Nayzilam, a nasal spray rescue treatment for seizure clusters. It also provides Zyrtec and Xyzal for allergies; Nootropil for memory problems; and Xyrem for narcolepsy. In addition, the company offers Evenity for the treatment of osteoporosis; 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 for immunology; and UCB0599 for neurology; and UCB0107 for progressive supranuclear palsy. Additionally, the company engages in contract manufacturing activities. UCB SA has collaboration agreements with Sanofi, Amgen, Biogen, and Otsuka. The company was founded in 1928 and is headquartered in Brussels, Belgium. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 21:23
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.