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UNVR

Univar Solutions NYSE:UNVR Stock Report

Last Price

US$24.28

Market Cap

US$4.0b

7D

5.5%

1Y

-1.2%

Updated

05 Oct, 2022

Data

Company Financials +

Univar Solutions Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Univar Solutions
Historical stock prices
Current Share PriceUS$24.28
52 Week HighUS$34.00
52 Week LowUS$21.49
Beta1.68
1 Month Change-1.82%
3 Month Change-0.21%
1 Year Change-1.22%
3 Year Change22.63%
5 Year Change-16.10%
Change since IPO-4.41%

Recent News & Updates

Sep 30
What Does Univar Solutions Inc.'s (NYSE:UNVR) Share Price Indicate?

What Does Univar Solutions Inc.'s (NYSE:UNVR) Share Price Indicate?

While Univar Solutions Inc. ( NYSE:UNVR ) might not be the most widely known stock at the moment, it received a lot of...

Sep 15
An Intrinsic Calculation For Univar Solutions Inc. (NYSE:UNVR) Suggests It's 46% Undervalued

An Intrinsic Calculation For Univar Solutions Inc. (NYSE:UNVR) Suggests It's 46% Undervalued

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Univar Solutions Inc...

Aug 24

Rhizome Partners - Univar Solutions: A Buy At A Bargain Basement Price

Univar recently sold off about 25% and is now trading at 9-10 times its 2022 price-to-free-cash-flow (P/FCF) multiple. Univar has dense routes in North America, its key market, a unique advantage tends to compound over time. We believe 15 times P/FCF is reasonable for a high-quality company like Univar with 5% growth rate. We are monitoring the stock price of UNVR and will likely add to our holdings at the right time. The following segment was excerpted from this fund letter. Univar Solutions (UNVR) Univar recently sold off about 25% and is now trading at 9-10 times its 2022 price-to-free-cash-flow (P/FCF) multiple with a little over 2 times net debt/EBITDA. Univar, Brenntag (OTCPK:BNTGF), Tricon (TCN), IMCD (OTCPK:IMCDY), Helm, and Azelis (OTCPK:AZLGF) are the largest chemical distributors in a fragmented industry. Like many distribution businesses, route density is critically important. A truck that can make multiple stops on a route will have structural advantages over its smaller competitors. Univar has dense routes in North America, its key market. This unique advantage tends to compound over time. Traditionally, chemical distribution is a “pick up the phone and call your sale representative” business. Around the world, there are different degrees of digital penetration in the sales process, with Asia at the leading edge of technology adoption. Univar Solutions and Brenntag are the two leaders that have invested heavily in technology and e-commerce solutions for their customers. Smaller mom-and-pop operators lack the financial and human resources to invest in technology solutions. On the other hand, a purely digital marketplace for purchasing chemicals often struggles to gain critical transaction volume because of the lack of logistics and fulfillment capabilities. Customers can place their orders, but they cannot receive the orders in reasonable time. Dense routes consisting of warehouses and trucks located under 60 minutes driving distance are the “atoms” that prevent “bits” players from attacking the chemical-distribution business. Over time, we believe that the top players will consolidate the smaller mom-and-pop operators. A recession will likely accelerate the consolidation trends in the industry. At today’s valuation, shareholders can generate a 10-11% internal rate of return ((IRR)), assuming no growth in earnings, no accretion from acquisitions, and no multiple expansion. This is a bear case scenario where the business merely accumulates the free cashflow generated for the next few years. In a base case, the return is likely 25% IRR over three years after emerging from the recession, assuming a modest 5% growth in free cash flow per year and multiple expansion to 15 times P/FCF. Univar will likely gain market share from undercapitalized competitors and make attractive acquisitions in a recession. In a counterintuitive way, Univar may emerge from a recession with higher free cashflow. We believe 15 times P/FCF is reasonable for a high-quality company like Univar with 5% growth rate. It equates to 6.7% free cashflow yield and can lead to about 12% long turn sustainable return to shareholders due to the 5% growth rate. We are monitoring the share price of Univar and will likely add to our holdings at the right time. At a certain price, we may also invest in Brenntag, because we believe both companies are structurally superior to smaller competitors and will continue to take market share.

Shareholder Returns

UNVRUS Trade DistributorsUS Market
7D5.5%5.0%1.9%
1Y-1.2%-5.6%-18.8%

Return vs Industry: UNVR exceeded the US Trade Distributors industry which returned -5.7% over the past year.

Return vs Market: UNVR exceeded the US Market which returned -18.2% over the past year.

Price Volatility

Is UNVR's price volatile compared to industry and market?
UNVR volatility
UNVR Average Weekly Movement5.1%
Trade Distributors Industry Average Movement6.0%
Market Average Movement7.0%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.9%

Stable Share Price: UNVR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: UNVR's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19249,450David Jukeshttps://www.univar.com

Univar Solutions Inc. distributes commodity and specialty chemical products, and provides related services worldwide. It offers epoxy resins, polyurethanes, titanium dioxide, fumed silica, esters, plasticizers, silicones, and specialty amines; ingredients for cleaners, detergents, and disinfectant products; and base stocks, performance-enhancing additives for lubricants and metalworking fluids. The company also distributes specialty and basic chemicals, and ingredients used in skin and hair care products; and commodity and specialty products for meat processing, baked goods, dairy, grain mill products, processed foods, carbonated soft drinks, fruit drinks, and alcoholic beverage markets, as well as provides excipients, solvents, reactants, active pharmaceutical ingredients, and intermediates to pharmaceutical ingredient producers.

Univar Solutions Fundamentals Summary

How do Univar Solutions's earnings and revenue compare to its market cap?
UNVR fundamental statistics
Market CapUS$4.05b
Earnings (TTM)US$584.90m
Revenue (TTM)US$10.89b

6.9x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
UNVR income statement (TTM)
RevenueUS$10.89b
Cost of RevenueUS$8.15b
Gross ProfitUS$2.74b
Other ExpensesUS$2.15b
EarningsUS$584.90m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 01, 2022

Earnings per share (EPS)3.51
Gross Margin25.14%
Net Profit Margin5.37%
Debt/Equity Ratio94.3%

How did UNVR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is UNVR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for UNVR?

Other financial metrics that can be useful for relative valuation.

UNVR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA6x
PEG Ratio-2x

Price to Earnings Ratio vs Peers

How does UNVR's PE Ratio compare to its peers?

UNVR PE Ratio vs Peers
The above table shows the PE ratio for UNVR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.6x
BECN Beacon Roofing Supply
10.6x0.8%US$3.8b
AIT Applied Industrial Technologies
16.6x7.8%US$4.3b
MSM MSC Industrial Direct
14.1x7.7%US$4.3b
HRI Herc Holdings
12.8x17.2%US$3.5b
UNVR Univar Solutions
6.9x-3.5%US$4.0b

Price-To-Earnings vs Peers: UNVR is good value based on its Price-To-Earnings Ratio (6.9x) compared to the peer average (13.6x).


Price to Earnings Ratio vs Industry

How does UNVR's PE Ratio compare vs other companies in the US Trade Distributors Industry?

Price-To-Earnings vs Industry: UNVR is good value based on its Price-To-Earnings Ratio (6.9x) compared to the US Trade Distributors industry average (12.1x)


Price to Earnings Ratio vs Fair Ratio

What is UNVR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

UNVR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.9x
Fair PE Ratio14.2x

Price-To-Earnings vs Fair Ratio: UNVR is good value based on its Price-To-Earnings Ratio (6.9x) compared to the estimated Fair Price-To-Earnings Ratio (14.2x).


Share Price vs Fair Value

What is the Fair Price of UNVR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: UNVR ($24.28) is trading below our estimate of fair value ($46.76)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is Univar Solutions forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-3.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UNVR's earnings are forecast to decline over the next 3 years (-3.5% per year).

Earnings vs Market: UNVR's earnings are forecast to decline over the next 3 years (-3.5% per year).

High Growth Earnings: UNVR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: UNVR's revenue (1.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: UNVR's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UNVR's Return on Equity is forecast to be low in 3 years time (18.8%).


Discover growth companies

Past Performance

How has Univar Solutions performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


44.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: UNVR has high quality earnings.

Growing Profit Margin: UNVR's current net profit margins (5.4%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: UNVR has become profitable over the past 5 years, growing earnings by 44.7% per year.

Accelerating Growth: UNVR's earnings growth over the past year (172.6%) exceeds its 5-year average (44.7% per year).

Earnings vs Industry: UNVR earnings growth over the past year (172.6%) exceeded the Trade Distributors industry 58.7%.


Return on Equity

High ROE: UNVR's Return on Equity (22.7%) is considered high.


Discover strong past performing companies

Financial Health

How is Univar Solutions's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: UNVR's short term assets ($3.5B) exceed its short term liabilities ($1.7B).

Long Term Liabilities: UNVR's short term assets ($3.5B) exceed its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: UNVR's net debt to equity ratio (84.8%) is considered high.

Reducing Debt: UNVR's debt to equity ratio has reduced from 314.2% to 94.3% over the past 5 years.

Debt Coverage: UNVR's debt is not well covered by operating cash flow (8.7%).

Interest Coverage: UNVR's interest payments on its debt are well covered by EBIT (11.1x coverage).


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.22%

Forecast Dividend Yield

Dividend Yield vs Market

Univar Solutions Dividend Yield vs Market
How does Univar Solutions dividend yield compare to the market?
SegmentDividend Yield
Company (Univar Solutions)n/a
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.5%
Industry Average (Trade Distributors)2.6%
Analyst forecast in 3 Years (Univar Solutions)0.2%

Notable Dividend: Unable to evaluate UNVR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate UNVR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if UNVR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UNVR's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as UNVR has not reported any payouts.


Discover strong dividend paying companies

Management

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

3.2yrs

Average management tenure


CEO

David Jukes (63 yo)

4.42yrs

Tenure

US$8,099,724

Compensation

Mr. David C. Jukes has been the President of Univar Solutions Inc. (formerly known as Univar Inc.) since May 4, 2017 and has been its Chief Executive Officer and Director since May 09, 2018. Mr. Jukes has...


CEO Compensation Analysis

David Jukes's Compensation vs Univar Solutions Earnings
How has David Jukes's remuneration changed compared to Univar Solutions's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$585m

Mar 31 2022n/an/a

US$575m

Dec 31 2021US$8mUS$1m

US$461m

Sep 30 2021n/an/a

US$270m

Jun 30 2021n/an/a

US$215m

Mar 31 2021n/an/a

US$63m

Dec 31 2020US$6mUS$1m

US$53m

Sep 30 2020n/an/a

US$32m

Jun 30 2020n/an/a

US$5m

Mar 31 2020n/an/a

US$20m

Dec 31 2019US$6mUS$946k

-US$106m

Sep 30 2019n/an/a

-US$49m

Jun 30 2019n/an/a

-US$2m

Mar 31 2019n/an/a

US$37m

Dec 31 2018US$5mUS$833k

US$172m

Sep 30 2018n/an/a

US$198m

Jun 30 2018n/an/a

US$187m

Mar 31 2018n/an/a

US$162m

Dec 31 2017US$3mUS$662k

US$120m

Sep 30 2017n/an/a

US$33m

Jun 30 2017n/an/a

-US$68m

Mar 31 2017n/an/a

-US$60m

Dec 31 2016US$2mUS$455k

-US$68m

Sep 30 2016n/an/a

-US$12m

Jun 30 2016n/an/a

US$63m

Mar 31 2016n/an/a

US$11m

Dec 31 2015US$797kUS$371k

US$17m

Compensation vs Market: David's total compensation ($USD8.10M) is about average for companies of similar size in the US market ($USD6.80M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: UNVR's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: UNVR's board of directors are considered experienced (6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: UNVR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:UNVR Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
10 Aug 22BuyUS$654,665Nicholas AlexosIndividual25,000US$26.19
04 Aug 22BuyUS$102,720Christopher PappasIndividual4,000US$25.68
12 May 22BuyUS$136,250Christopher PappasIndividual5,000US$27.25

Ownership Breakdown

What is the ownership structure of UNVR?
Owner TypeNumber of SharesOwnership Percentage
State or Government70,8130.04%
Individual Insiders1,689,1401.0%
Institutions167,227,53399.0%

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


Top Shareholders

Top 25 shareholders own 73.67% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.2%
The Vanguard Group, Inc.
17,017,700$413.2m1.22%0.01%
9.44%
FMR LLC
15,737,264$382.1m-13.44%0.03%
9.36%
BlackRock, Inc.
15,606,545$378.9m7.4%0.01%
5.55%
EdgePoint Investment Group Inc.
9,251,709$224.6m-23.3%1.28%
3.38%
Invesco Ltd.
5,632,497$136.8m-3.97%0.05%
3.27%
Lyrical Asset Management LP
5,461,424$132.6m-0.31%2.29%
3.27%
Franklin Resources, Inc.
5,451,836$132.4m-0.32%0.06%
3.08%
Jane Street Group, LLC, Asset Management Arm
5,139,969$124.8m23010.33%0.25%
2.81%
Dimensional Fund Advisors LP
4,690,341$113.9m2.75%0.03%
2.71%
State Street Global Advisors, Inc.
4,523,895$109.8m-0.84%0.01%
2.55%
First Pacific Advisors, LP
4,257,517$103.4m0.09%1.22%
2.17%
T. Rowe Price Group, Inc.
3,623,705$88.0m4.35%0.01%
1.78%
River Road Asset Management, LLC
2,964,327$72.0m71.37%0.99%
1.63%
Millennium Management LLC
2,713,054$65.9m106.2%0.08%
1.48%
Paradice Investment Management Pty Ltd.
2,470,265$60.0m-5.91%2.09%
1.47%
Massachusetts Financial Services Company
2,458,205$59.7m-27.32%0.01%
1.3%
Schroder Investment Management North America Inc.
2,170,030$52.7m-12.63%0.19%
1.3%
Geode Capital Management, LLC
2,168,115$52.6m-1.35%0.01%
1.2%
Citadel Advisors LLC
1,996,270$48.5m737.97%0.07%
1.01%
SouthernSun Asset Management, LLC
1,677,346$40.7m-0.09%4.77%
1%
First Trust Advisors LP
1,660,784$40.3m3.05%0.04%
0.99%
Russell Investment Management, LLC
1,649,383$40.0m-53.6%0.07%
0.93%
Norges Bank Investment Management
1,552,290$37.7m0%no data
0.93%
BNY Mellon Asset Management
1,545,018$37.5m-1.91%0.01%
0.87%
Northern Trust Global Investments
1,457,491$35.4m-11.79%0.01%

Company Information

Univar Solutions Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Univar Solutions Inc.
  • Ticker: UNVR
  • Exchange: NYSE
  • Founded: 1924
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Implied Market Cap: US$4.050b
  • Shares outstanding: 166.79m
  • Website: https://www.univar.com

Number of Employees


Location

  • Univar Solutions Inc.
  • 3075 Highland Parkway
  • Suite 200
  • Downers Grove
  • Illinois
  • 60515
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UNVRNYSE (New York Stock Exchange)YesCommon SharesUSUSDJun 2015
0UVDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2015
UNVR *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJun 2015

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.