United Corporations (UNC) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 12.97%
• Average Volume (3M): 5.36K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.57
• Revenue Growth: 79.03%
• EPS Growth: -26.89%
• Country: CA
• Employees: 190
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.56
• Shares Outstanding: 112,484,550
• 10 Day Avg. Volume: 5,088
• 30 Day Avg. Volume: 5,356
• PEG Ratio: -0.17
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 5.24
• P/FCF Ratio: 5.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: C$17.00 ▲(11.33% Upside)

The score is primarily supported by strong financial positioning (notably a debt-free balance sheet) and very compelling valuation (low P/E and high dividend yield). These positives are partially offset by volatile revenue/earnings and variable cash flows, while technicals are modestly constructive with the stock trading above key moving averages.

Positive Factors

Strong Profitability

The high net profit margin indicates effective cost management and strong profitability, which supports sustainable financial performance.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities.

Cash Generation Ability

Strong cash generation supports operational stability and provides resources for reinvestment and shareholder returns, enhancing long-term growth prospects.

Negative Factors

Revenue Growth Volatility

Volatile revenue growth can create uncertainty in financial forecasting and planning, potentially impacting long-term strategic initiatives.

Earnings Growth Decline

A decline in earnings growth may signal challenges in maintaining profitability, which could affect investor confidence and future valuation.

Negative Cash Flow from Financing

Negative cash flow from financing may indicate outflows for debt repayment or dividends, potentially limiting funds available for growth investments.

United Corporations Business Overview & Revenue Model

Company Description

United Corporations Limited is a closed ended equity fund launched and managed by Jarislowsky, Fraser Limited. It is co-managed by ValueInvest Asset Management S.A. It invests in the public equity markets of Canada. The fund also makes its investments in units of in Emerging Markets Investors Fund. It makes its investments in stocks of companies operating across diversified sectors. The fund benchmarks the performance of its portfolio against the S&P/TSX Composite Index, MSCI World Index, and S&P 500 Index. It was formerly known as Consolidated Investment Corporation of Canada. United Corporations Limited was formed on February 1, 1929 and is domiciled in Canada.

How the Company Makes Money

United Corporations (UNC) generates revenue through a diverse set of streams aligned with its multiple sectors. In the technology sector, UNC earns income from the sale of proprietary software, hardware products, and IT services, catering to both enterprise and consumer markets. The healthcare division contributes to the company’s earnings by providing medical devices, pharmaceuticals, and healthcare services. In the consumer goods sector, UNC profits from the production and distribution of household products and personal care items. Additionally, strategic partnerships and collaborations with other industry leaders enhance UNC’s market reach and innovation capabilities, further bolstering its revenue. These diversified revenue streams allow UNC to maintain a robust financial performance and adapt to changing market dynamics.

United Corporations Financial Statement Overview

Summary

United Corporations exhibits a robust financial position with strong profitability, low leverage, and healthy cash flows. The company has effectively turned around its revenue trajectory, though past volatility suggests a need for cautious optimism. The balance sheet strength provides a solid foundation for continued growth, while efficient cash management supports operational stability.

Income Statement

United Corporations has demonstrated strong income statement performance, with a notable turnaround in revenue from negative figures in earlier years to a positive trajectory in the TTM period. Gross profit margin is robust at 87.19% in the TTM, indicating efficient cost management. The net profit margin is exceptionally high at 85.54%, reflecting strong profitability. However, revenue growth has been volatile, with significant fluctuations over recent periods.

Balance Sheet

The balance sheet is very strong, characterized by no total debt and a high equity ratio of 96.07% in the TTM, indicating financial stability and low leverage. The company's return on equity is impressive at 16.44%, showcasing effective utilization of equity to generate profits. The equity base is solid, supporting the company's operations and potential future growth.

Cash Flow

The cash flow statement shows positive developments, with operating cash flow exceeding net income, indicating strong cash generation. Free cash flow has grown substantially, and the Free Cash Flow to Net Income Ratio is 0.17, denoting healthy cash conversion. However, cash flow from financing is negative, indicating potential outflows for debt repayment or dividends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	285.60M	257.36M	416.16M	21.34M	-21.63M	488.21M
Gross Profit	285.60M	257.36M	415.90M	20.38M	-21.63M	488.21M
EBITDA	283.34M	255.12M	413.52M	18.10M	-23.82M	486.35M
Net Income	245.77M	221.10M	354.25M	13.87M	-23.09M	422.62M
Balance Sheet
Total Assets	2.40B	2.32B	2.30B	1.95B	2.05B	2.15B
Cash, Cash Equivalents and Short-Term Investments	65.64M	80.43M	55.04M	66.44M	68.40M	99.27M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	95.91M	98.96M	86.61M	40.07M	32.67M	80.76M
Stockholders Equity	2.30B	2.22B	2.21B	1.91B	2.02B	2.07B
Cash Flow
Free Cash Flow	243.94M	230.10M	46.23M	119.07M	-713.00K	86.00M
Operating Cash Flow	243.94M	230.10M	46.23M	119.07M	-713.00K	86.00M
Investing Cash Flow	13.65M	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	-214.28M	-204.72M	-57.62M	-121.03M	-30.15M	-30.63M

United Corporations Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:UNC, the sentiment is Positive. The current price of 15.27 is above the 20-day moving average (MA) of 14.87, above the 50-day MA of 14.55, and above the 200-day MA of 13.73, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 72.52 is Negative, neither overbought nor oversold. The STOCH value of 87.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:UNC.

United Corporations Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNC	79 Outperform	―	5.26	14.47%	12.97%	79.03%	-26.89%
IGM	76 Outperform	C$15.77B	15.37	12.37%	3.59%	-1.02%	-5.65%
ONEX	69 Neutral	C$8.15B	13.61	5.15%	0.36%	2.46%	-27.48%
BAM	68 Neutral	C$120.27B	32.37	36.59%	3.37%	597.75%	50.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BN	65 Neutral	C$163.25B	128.45	2.14%	0.53%	-19.04%	17.82%
WED	49 Neutral	C$836.56M	-10.60	-6.98%	―	333.02%	-196.36%