UCB SA
🇧🇪 UCB.BR · Brussels · BE0003739530
Healthcare
EUR 264.50 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
32.3
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 264.50 ÷ 8.20 = 32.3
TTM period through: 2025-12-31
Forward P/E (estimated): 25.9
Based on analyst estimates
Reference: Provider P/E (Trailing): 32.9
Yield (Fwd)
0.55%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 0.54%
Payout (Fwd)
17.7%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 16.9%
Cash Flow Payout (TTM): 12.2%
FCF Coverage (TTM): 7.13x
ROE
14.9%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
19.7x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
UCB SA is a high-performing biopharmaceutical company with excellent operational momentum and a pristine balance sheet. However, with an elevated P/E ratio exceeding 32x and a negligible dividend yield of 0.54%, it functions strictly as a growth stock rather than a dividend value play. Not recommended for new positions, as the structural characteristics and valuation are a complete mismatch for conservative income strategies.
Sector Context
UCB SA is a global biopharmaceutical company specializing in treatments for severe diseases in immunology and neurology. While healthcare provides vital services, the biopharmaceutical sub-sector relies heavily on continuous R&D success and faces patent cliffs, making cash flows less perpetual and predictable than traditional dividend-paying monopolies like regulated utilities or infrastructure.
📊 Strategy Analysis
- • Maintains a pristine balance sheet with a net debt to EBITDA ratio of zero and a conservative Debt/Equity ratio of 0.21.
- • Demonstrates robust business momentum with revenue growing 87% over the last 10 years to €7.7 billion, supported by expanding EBITDA margins of 25.9%.
⚠ What to Watch
- • Microscopic dividend yield of 0.54% completely fails to meet the strategy's minimum 3% threshold for income generation.
- • Current valuation is highly elevated with a TTM P/E of 32.26, far exceeding the target 8-15x range and offering no margin of safety.
- • Sluggish historical dividend growth of just 1.4% CAGR over 10 years, coupled with a prior cut in 2017, makes the long-term income profile unappealing for conservative strategies.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.