UCB SA (UCBJY) AI Stock Analysis

• Market Cap: $57.22B
• Dividend Yield: 0.55%
• Average Volume (3M): 2.85K
• Price to Earnings (P/E): 39.5
• Beta (1Y): 0.56
• Revenue Growth: 26.28%
• EPS Growth: 457.14%
• Country: US
• Employees: 9,052
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 2.02
• Shares Outstanding: 389,011,320
• 10 Day Avg. Volume: 1,843
• 30 Day Avg. Volume: 2,850
• PEG Ratio: 0.16
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 5.90
• P/FCF Ratio: 39.43
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 4.95
• Enterprise Value/Gross Profit: 6.74
• Enterprise Value/Ebitda: 14.57
• 1Y Price Target: $165.00
• Price Target Upside: 7.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $171.00 ▲(11.05% Upside)

UCB SA's overall stock score is driven by strong financial performance and a positive earnings call, highlighting significant revenue growth and successful product launches. However, the high P/E ratio and mixed technical indicators suggest caution. The company's ability to navigate pricing pressures and currency headwinds will be crucial for future performance.

Positive Factors

Strong Revenue Growth & Product Launches

Sustained 26% net sales growth driven by recent launches indicates durable commercial momentum. Broad uptake of new assets reduces single-product risk, funds reinvestment into R&D and manufacturing, and supports long-term market share expansion across indications and geographies.

Robust Cash Flow Generation

Doubling of free cash flow and strong cash conversion provide durable funding for pipeline investments and capex. This underpins the $2bn U.S. greenfield manufacturing investment and allows sustained R&D spend without increasing leverage, enhancing strategic optionality.

Solid Balance Sheet & Low Leverage

Low leverage and a healthy equity base afford financial flexibility to fund clinical programs, manufacturing expansion, or M&A. A strong balance sheet helps absorb policy or currency shocks, preserving long-term investment capacity and strategic resilience.

Negative Factors

U.S. Pricing Pressure Risk

Structural U.S. reimbursement changes and expanded discount programs can permanently compress net pricing for biologics. Given U.S. market importance, sustained price erosion would reduce revenue per unit and pressure margins and cash generation over multiple years.

Currency Headwinds

Material FX exposure means a weaker dollar will reduce EUR-reported sales and profits despite operational gains. Over a multi-quarter horizon, persistent currency weakness can offset organic growth and complicate planning for investment, guidance, and capital allocation.

Rising Operating Expenses from Launches

Sustained elevated SG&A from global rollouts raises operating leverage risk: if uptake slows or pricing weakens, higher fixed launch costs can compress margins and reduce ROI on new products, limiting incremental free cash flow available for further pipeline investments.

UCB SA Business Overview & Revenue Model

Company Description

UCB SA, a biopharmaceutical company, develops products and solutions for people with neurology and immunology diseases. The company's primary products include Cimzia for inflammatory TNF mediated diseases, as well as ankylosing spondylitis, axial spondyloarthritis, Crohn's disease, non-radiographic axial spondyloarthritis, plaque psoriasis, psoriatic arthritis, and rheumatoid arthritis; Vimpat, Keppra, and Briviact for epilepsy; Neupro for Parkinson's disease and restless legs syndrome; Nayzilam, a nasal spray rescue treatment for epilepsy seizure clusters; and Zyrtec and Xyzal for allergies. It also offers Evenity for the treatment of osteoporosis in postmenopausal women; BIMZELX for treating psoriasis, psoriatic arthritis, axial spondyloarthritis, and hidradenitis suppurativa; and dapirolizumab pegol for systemic lupus erythematosus. In addition, the company is involved in developing rozanolixizumab to treat myasthenia gravis, immune thrombocytopenia, and chronic inflammatory demyelinating polyneuropathy; zilucoplan to treat myasthenia gravis and immune-mediated necrotizing myopathy; staccato alprazolam to treat tereotypical prolonged seizure; Bepranemab to treat Alzheimer's disease; and UCB0599 to treat Parkinson's disease. Further, it engages in contract manufacturing activities. UCB SA has collaboration agreements with Amgen, Biogen, Roche/Genentech, Novartis, Otsuka, and doc.ai. It operates in the United States, Japan, Germany, rest of Europe, Spain, France, Italy, the United Kingdom, Ireland, China, Belgium, and internationally. The company was incorporated in 1925 and is headquartered in Brussels, Belgium.

How the Company Makes Money

UCB generates revenue primarily through the sale of its pharmaceutical products, which are sold to healthcare providers, hospitals, and pharmacies around the world. The company's revenue model is largely driven by its portfolio of proprietary medications, including established therapies and new product launches. Key revenue streams include direct sales of these products, royalties from licensing agreements, and collaborations with other pharmaceutical companies for joint development and marketing of drugs. UCB also engages in research partnerships with academic institutions and other organizations, which can lead to additional funding and resource sharing that bolster its revenue potential. The company's strategic focus on innovation and its commitment to addressing unmet medical needs contribute significantly to its earnings, ensuring a steady flow of income from both existing and new therapies.

UCB SA Financial Statement Overview

Summary

UCB SA exhibits strong financial performance marked by significant revenue growth, high profitability margins, and solid cash flow generation. The balance sheet is stable with low leverage, providing a strong foundation for future growth. However, maintaining these growth rates and managing industry-specific risks will be crucial for sustained performance.

Income Statement

UCB SA's income statement reflects strong profitability with a robust gross profit margin of 71.6% and a net profit margin of 17.3% for 2024. The company has demonstrated significant revenue growth of 17.1% year-over-year, indicating a positive growth trajectory. Additionally, the EBIT margin is solid at 21.5%, and the EBITDA margin is impressive at 31.9%, showcasing operational efficiency.

Balance Sheet

The balance sheet of UCB SA is solid, with a debt-to-equity ratio of 0.30, indicating low leverage and strong financial stability. The return on equity stands at 10.6%, reflecting moderate profitability relative to shareholder equity. The equity ratio is healthy at 57.8%, signifying a strong equity base relative to total assets.

Cash Flow

UCB SA shows strong cash flow generation capabilities with a 106.7% growth in free cash flow. The operating cash flow to net income ratio is 1.17, indicating effective conversion of net income to cash. The free cash flow to net income ratio is 0.86, highlighting robust cash flow relative to profit, supporting the company's liquidity and investment capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.85B	6.15B	5.25B	5.52B	5.78B	5.35B
Gross Profit	5.03B	4.40B	3.54B	3.84B	4.34B	3.98B
EBITDA	2.33B	1.96B	1.28B	1.17B	1.59B	1.30B
Net Income	1.33B	1.06B	343.00M	418.00M	1.06B	732.00M
Balance Sheet
Total Assets	17.19B	17.35B	15.54B	15.87B	14.21B	13.32B
Cash, Cash Equivalents and Short-Term Investments	2.01B	1.76B	923.00M	1.14B	1.48B	1.52B
Total Debt	2.88B	3.03B	3.04B	2.90B	2.12B	2.75B
Total Liabilities	7.50B	7.32B	6.56B	6.80B	5.82B	6.05B
Stockholders Equity	9.68B	10.03B	8.97B	9.06B	8.39B	7.27B
Cash Flow
Free Cash Flow	1.25B	920.00M	445.00M	748.00M	1.06B	732.00M
Operating Cash Flow	1.58B	1.24B	761.00M	1.12B	1.55B	1.08B
Investing Cash Flow	286.00M	282.00M	-440.00M	-1.58B	-487.00M	-2.23B
Financing Cash Flow	-691.00M	-818.00M	-308.00M	70.00M	-1.12B	1.18B

UCB SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 153.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UCBJY, the sentiment is Positive. The current price of 153.98 is above the 20-day moving average (MA) of 143.81, above the 50-day MA of 139.12, and above the 200-day MA of 115.30, indicating a bullish trend. The MACD of 3.41 indicates Negative momentum. The RSI at 69.44 is Neutral, neither overbought nor oversold. The STOCH value of 98.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UCBJY.

UCB SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REGN	82 Outperform	$77.98B	17.76	15.19%	0.45%	2.89%	0.50%
RPRX	80 Outperform	$22.93B	22.71	11.51%	2.23%	3.72%	-31.46%
ARGX	79 Outperform	$50.06B	37.58	24.75%	―	89.58%	―
UCBJY	72 Outperform	$57.22B	39.55	13.80%	0.55%	26.28%	457.14%
ALNY	60 Neutral	$47.46B	1,494.47	32.73%	―	53.24%	―
BNTX	53 Neutral	$25.51B	-41.43	-2.94%	―	7.04%	-25.24%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%