UNVR Stock Overview
Univar Solutions Inc. distributes commodity and specialty chemical products, and provides related services worldwide.
Univar Solutions Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$22.52|
|52 Week High||US$34.00|
|52 Week Low||US$22.01|
|1 Month Change||-14.21%|
|3 Month Change||-11.06%|
|1 Year Change||-5.85%|
|3 Year Change||9.80%|
|5 Year Change||-22.16%|
|Change since IPO||-11.34%|
Recent News & Updates
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...
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.
We Think Univar Solutions (NYSE:UNVR) Can Stay On Top Of Its Debt
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
|UNVR||US Trade Distributors||US Market|
Return vs Industry: UNVR exceeded the US Trade Distributors industry which returned -10.3% over the past year.
Return vs Market: UNVR exceeded the US Market which returned -21.6% over the past year.
|UNVR Average Weekly Movement||4.7%|
|Trade Distributors Industry Average Movement||5.5%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.9%|
|10% least volatile stocks in US Market||2.8%|
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
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
|UNVR fundamental statistics|
Is UNVR overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|UNVR income statement (TTM)|
|Cost of Revenue||US$8.15b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||3.51|
|Net Profit Margin||5.37%|
How did UNVR perform over the long term?See historical performance and comparison
Is UNVR undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is UNVR's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does UNVR's PE Ratio compare to its peers?
|UNVR PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
AIT Applied Industrial Technologies
BECN Beacon Roofing Supply
MSM MSC Industrial Direct
TRTN Triton International
UNVR Univar Solutions
Price-To-Earnings vs Peers: UNVR is good value based on its Price-To-Earnings Ratio (6.4x) compared to the peer average (10.7x).
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 (6.4x) compared to the US Trade Distributors industry average (11.2x)
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.
|Current PE Ratio||6.4x|
|Fair PE Ratio||14x|
Price-To-Earnings vs Fair Ratio: UNVR is good value based on its Price-To-Earnings Ratio (6.4x) compared to the estimated Fair Price-To-Earnings Ratio (14x).
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 ($22.52) is trading below our estimate of fair value ($46.34)
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.
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How is Univar Solutions forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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 (0.9% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: UNVR's revenue (0.9% 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%).
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How has Univar Solutions performed over the past 5 years?
Past Performance Score6/6
Past Performance Score 6/6
Growing Profit Margin
Earnings vs Industry
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.
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How is Univar Solutions's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
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 ($3.1B).
Debt to Equity History and Analysis
Debt Level: UNVR's net debt to equity ratio (84.8%) is considered high.
Reducing Debt: UNVR's debt to equity ratio has reduced from 314.2% to 94.3% over the past 5 years.
Debt Coverage: UNVR's debt is not well covered by operating cash flow (8.7%).
Interest Coverage: UNVR's interest payments on its debt are well covered by EBIT (11.1x coverage).
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What is Univar Solutions's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate UNVR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate UNVR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if UNVR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if UNVR's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as UNVR has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Jukes (63 yo)
Mr. David C. Jukes has been the President of Univar Solutions Inc. (formerly known as Univar Inc.) since May 4, 2017 and has been its Chief Executive Officer and Director since May 09, 2018. Mr. Jukes has...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($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.
Experienced Management: UNVR's management team is considered experienced (3.1 years average tenure).
Experienced Board: UNVR's board of directors are considered experienced (5.9 years average tenure).
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
|10 Aug 22||BuyUS$654,665||Nicholas Alexos||Individual||25,000||US$26.19|
|04 Aug 22||BuyUS$102,720||Christopher Pappas||Individual||4,000||US$25.68|
|12 May 22||BuyUS$136,250||Christopher Pappas||Individual||5,000||US$27.25|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Univar Solutions Inc.'s employee growth, exchange listings and data sources
- Name: Univar Solutions Inc.
- Ticker: UNVR
- Exchange: NYSE
- Founded: 1924
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Implied Market Cap: US$3.756b
- Shares outstanding: 166.79m
- Website: https://www.univar.com
Number of Employees
- Univar Solutions Inc.
- 3075 Highland Parkway
- Suite 200
- Downers Grove
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|UNVR||NYSE (New York Stock Exchange)||Yes||Common Shares||US||USD||Jun 2015|
|0UV||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Jun 2015|
|UNVR *||BMV (Bolsa Mexicana de Valores)||Yes||Common Shares||MX||MXN||Jun 2015|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/23 00:00|
|End of Day Share Price||2022/09/23 00:00|
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.