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Market Cap

₹290.9b

Last Updated

2021/04/19 12:12 UTC

Data Sources

Company Financials +

Executive Summary

United Breweries Limited manufactures, purchases, and sells beer and non-alcoholic beverages in India and internationally. More Details


Snowflake Analysis

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 532478 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 532478's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.5%

532478

-1.9%

IN Beverage

-2.2%

IN Market


1 Year Return

20.5%

532478

21.4%

IN Beverage

71.1%

IN Market

Return vs Industry: 532478 matched the Indian Beverage industry which returned 21.4% over the past year.

Return vs Market: 532478 underperformed the Indian Market which returned 71.1% over the past year.


Shareholder returns

532478IndustryMarket
7 Day2.5%-1.9%-2.2%
30 Day-8.7%-3.8%0.4%
90 Day-13.1%-7.8%7.1%
1 Year20.8%20.5%21.6%21.4%73.7%71.1%
3 Year0.07%-0.5%2.9%2.5%28.0%20.4%
5 Year45.5%44.2%28.6%28.1%87.2%71.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

509.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532478 (₹1113.35) is trading above our estimate of fair value (₹135.98)

Significantly Below Fair Value: 532478 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532478 is poor value based on its PE Ratio (509.8x) compared to the IN Beverage industry average (30.5x).

PE vs Market: 532478 is poor value based on its PE Ratio (509.8x) compared to the Indian market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: 532478 is poor value based on its PEG Ratio (6.6x)


Price to Book Ratio

PB vs Industry: 532478 is overvalued based on its PB Ratio (8.8x) compared to the IN Beverage industry average (1.8x).


Future Growth

How is United Breweries forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

77.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532478's forecast earnings growth (77% per year) is above the savings rate (7%).

Earnings vs Market: 532478's earnings (77% per year) are forecast to grow faster than the Indian market (23.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 532478's revenue (30.4% per year) is forecast to grow faster than the Indian market (14% per year).

High Growth Revenue: 532478's revenue (30.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 532478's Return on Equity is forecast to be low in 3 years time (16.2%).


Past Performance

How has United Breweries performed over the past 5 years?

-8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532478 has a large one-off gain of ₹560.0M impacting its December 31 2020 financial results.

Growing Profit Margin: 532478's current net profit margins (1.4%) are lower than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: 532478's earnings have declined by 8.3% per year over the past 5 years.

Accelerating Growth: 532478's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532478 had negative earnings growth (-87.3%) over the past year, making it difficult to compare to the Beverage industry average (-15.2%).


Return on Equity

High ROE: 532478's Return on Equity (1.7%) is considered low.


Financial Health

How is United Breweries's financial position?


Financial Position Analysis

Short Term Liabilities: 532478's short term assets (₹25.8B) exceed its short term liabilities (₹16.0B).

Long Term Liabilities: 532478's short term assets (₹25.8B) exceed its long term liabilities (₹2.3B).


Debt to Equity History and Analysis

Debt Level: 532478's debt to equity ratio (5.8%) is considered satisfactory.

Reducing Debt: 532478's debt to equity ratio has reduced from 39.2% to 5.8% over the past 5 years.

Debt Coverage: 532478's debt is well covered by operating cash flow (385.5%).

Interest Coverage: 532478's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet


Dividend

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

0.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 532478's dividend (0.22%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: 532478's dividend (0.22%) is low compared to the top 25% of dividend payers in the Indian market (1.9%).


Stability and Growth of Payments

Stable Dividend: 532478's dividends per share have been stable in the past 10 years.

Growing Dividend: 532478's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (114.5%), 532478's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 532478's dividends in 3 years are forecast to be well covered by earnings (20.7% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Rishi Pardal (47 yo)

0.67

Tenure

Mr. Rishi Pardal serves as Chief Executive Officer, Managing Director and Executive Director at United Breweries Limited August 01, 2020. He served as Vice President and General Manager of Global Apparel S...


Leadership Team

Experienced Management: 532478's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: 532478's board of directors are seasoned and experienced ( 11.1 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

United Breweries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Breweries Limited
  • Ticker: 532478
  • Exchange: BSE
  • Founded: 1915
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹290.938b
  • Shares outstanding: 264.41m
  • Website: https://www.unitedbreweries.com

Number of Employees


Location

  • United Breweries Limited
  • UB Tower
  • UB City
  • Bengaluru
  • Karnataka
  • 560001
  • India

Listings


Biography

United Breweries Limited manufactures, purchases, and sells beer and non-alcoholic beverages in India and internationally. It offers its products under the Kingfisher Premium, Kingfisher Strong, Kingfisher...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/19 12:12
End of Day Share Price2021/04/19 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


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.