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Market Cap

€14.6b

Last Updated

2021/05/13 18:28 UTC

Data Sources

Company Financials +

Executive Summary

UCB SA, a biopharmaceutical company, develops therapies and solutions for people with neurology and immunology diseases. More Details

Rewards

Trading at 49.2% below our estimate of its fair value

Earnings are forecast to grow 6.78% per year

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 is not significantly more volatile than the rest of Belgian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: UCB's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.3%

UCB

1.3%

BE Pharmaceuticals

0.3%

BE Market


1 Year Return

-6.7%

UCB

-3.3%

BE Pharmaceuticals

39.6%

BE Market

Return vs Industry: UCB underperformed the Belgian Pharmaceuticals industry which returned -3.6% over the past year.

Return vs Market: UCB underperformed the Belgian Market which returned 35.6% over the past year.


Shareholder returns

UCBIndustryMarket
7 Day2.3%1.3%0.3%
30 Day-2.0%-2.7%5.6%
90 Day-11.8%-9.7%7.2%
1 Year-5.6%-6.7%-0.3%-3.3%41.7%39.6%
3 Year22.5%18.4%32.1%17.1%0.4%-4.4%
5 Year24.5%17.4%45.1%20.9%-0.02%-9.1%

Long-Term 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?

49.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UCB (€77.38) is trading below our estimate of fair value (€152.41)

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 (20x) compared to the European Pharmaceuticals industry average (25.2x).

PE vs Market: UCB is poor value based on its PE Ratio (20x) compared to the Belgian market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: UCB is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: UCB is good value based on its PB Ratio (2x) compared to the BE Pharmaceuticals industry average (3.7x).


Future Growth

How is UCB forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UCB's forecast earnings growth (6.8% per year) is above the savings rate (1.2%).

Earnings vs Market: UCB's earnings (6.8% per year) are forecast to grow slower than the Belgian market (14.8% per year).

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

Revenue vs Market: UCB's revenue (0.5% per year) is forecast to grow slower than the Belgian market (4.6% per year).

High Growth Revenue: UCB's revenue (0.5% 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 (12.1%).


Past Performance

How has UCB performed over the past 5 years?

14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UCB has high quality earnings.

Growing Profit Margin: UCB's current net profit margins (13.7%) are lower than last year (16.1%).


Past Earnings Growth Analysis

Earnings Trend: UCB's earnings have grown by 14.3% 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 (-7.3%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (6.7%).


Return on Equity

High ROE: UCB's Return on Equity (10.5%) is considered low.


Financial Health

How is UCB's financial position?


Financial Position Analysis

Short Term Liabilities: UCB's short term assets (€3.6B) exceed its short term liabilities (€2.8B).

Long Term Liabilities: UCB's short term assets (€3.6B) exceed its long term liabilities (€3.2B).


Debt to Equity History and Analysis

Debt Level: UCB's debt to equity ratio (36.3%) is considered satisfactory.

Reducing Debt: UCB's debt to equity ratio has reduced from 42.9% to 36.3% over the past 5 years.

Debt Coverage: UCB's debt is well covered by operating cash flow (41%).

Interest Coverage: UCB's interest payments on its debt are well covered by EBIT (20.3x coverage).


Balance Sheet


Dividend

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

1.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UCB's dividend (1.64%) isn’t notable compared to the bottom 25% of dividend payers in the Belgian market (1.78%).

High Dividend: UCB's dividend (1.64%) is low compared to the top 25% of dividend payers in the Belgian market (4.42%).


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 (32.8%), 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 (23.2% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Jean-Christophe Tellier (61 yo)

6.33yrs

Tenure

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 and also was an Interim Chief Financial Officer since...


CEO Compensation Analysis

Compensation vs Market: Jean-Christophe's total compensation ($USD105.07K) is below average for companies of similar size in the Belgian market ($USD2.15M).

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


Leadership Team

Experienced Management: UCB's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: UCB's board of directors are considered experienced (7.1 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: €14.634b
  • Shares outstanding: 189.03m
  • Website: https://www.ucb.com

Number of Employees


Location

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

Listings


Biography

UCB SA, a biopharmaceutical company, develops therapies and solutions for people with neurology and immunology diseases. The company’s primary products include Cimzia for inflammatory TNF mediated diseases...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/13 18:28
End of Day Share Price2021/05/13 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.