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UCB SA (UCBJY)
OTHER OTC:UCBJY
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UCB SA
(OTC:UCBJY)
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Rating:68Neutral
Price Target:
$160.00
▲(9.19% Upside)
Action:DowngradedDate:03/04/26
The score is supported primarily by solid financial performance (notably stronger 2025 cash generation and improved leverage) and a positive earnings outlook with growth and margin expansion guidance. These are partially offset by weak current technical momentum and a relatively high P/E with a modest dividend yield.
Positive Factors
Improved cash generation
Material strengthening of operating and free cash flow in 2025 improves the company's ability to self-fund R&D, commercial rollouts and capital projects, lowering dependence on external financing. Sustained cash conversion supports durable investment in growth drivers and balance-sheet resilience.
BIMZELX & growth drivers momentum
Strong, broad commercial traction for BIMZELX and other growth assets demonstrates scalable market adoption across indications and geographies. Durable multi-indication uptake and rising contribution from five growth drivers underpin predictable revenue growth and lower reliance on legacy products.
Deleveraged, stronger balance sheet
Notable debt reduction and a larger equity base enhance financial flexibility, enabling large strategic moves (e.g., manufacturing investment) and lowering liquidity/interest rate risk. Sustained deleveraging improves credit capacity and cushions the P&L against cyclical pressures.
Negative Factors
Margin pressure / lower EBIT
EBIT decline despite revenue growth signals pressure on operating margins driven by rising M&S and R&D or mix shifts. If sustained, this can limit cash conversion and ROI on sales, requiring either efficiency gains or higher pricing to restore historical margin levels.
Net-price & gross-to-net headwinds
Growing rebate and gross-to-net dynamics as access expands can structurally depress realized prices across marketed drugs. Persistent net-price erosion reduces per-unit economics, pressuring long-run margins and requiring higher volumes or cost discipline to preserve profitability.
Loss of exclusivity (BRIVIACT)
LOE for a marketed product introduces durable revenue downside from generic competition and accelerated price declines. Offsetting this requires successful uptake from newer drugs and pipeline approvals; failure to fully offset LOE risks persistent top-line and cash-flow pressure.
UCB SA (UCBJY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$55.91B
Dividend Yield0.55%
Average Volume (3M)2.85K
Price to Earnings (P/E)31.6
Beta (1Y)0.54
Revenue Growth26.28%
EPS Growth457.14%
CountryUS
Employees9,052
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)3.81
Shares Outstanding389,011,320
10 Day Avg. Volume1,843
30 Day Avg. Volume2,850
Financial Highlights & Ratios
PEG Ratio1.82
Price to Book (P/B)4.96
Price to Sales (P/S)6.21
P/FCF Ratio24.59
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue6.40
Enterprise Value/Gross Profit8.80
Enterprise Value/Ebitda18.98
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)6.2
Revenue Forecast (FY)$10.00B
UCB SA Business Overview & Revenue Model
Company DescriptionUCB 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 MoneyUCB 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 Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial story: strong top-line growth, meaningful margin expansion, doubled EPS, sizable commercial traction for BIMZELX and other growth drivers, important regulatory wins (KYGEVVI) and pipeline momentum. Challenges noted include net-price/gross-to-net pressure as access expands, near-term LOE for BRIVIACT, industry headwinds in clinical trials and competitive risks in several programs. On balance the positives (robust growth, profitability, pipeline progress and a strengthened balance sheet) outweigh the challenges, although execution on pricing, trial execution and competitive positioning will be important in 2026.Q4-2025 Updates
Positive Updates
Strong Top-Line Growth
Total revenues of EUR 7.7 billion in FY2025, up 26% (29% at constant exchange rates); net sales near EUR 7.4 billion, up 32% (35% at constant exchange rates).
Five Growth Drivers Doubling Contribution
The five growth drivers reached EUR 3.3 billion in 2025 — more than double the revenue they delivered in the prior year — with BIMZELX contributing >EUR 2.2 billion.
BIMZELX Commercial Momentum
BIMZELX net sales >EUR 2.2 billion in 2025, approved in 50+ countries, treated >116,000 patients; dynamic patient share ~30% in psoriasis, ~20% in rheumatology, ~45% in HS; U.S. HS market share ~32% (up from ~25% in July).
Significant Profitability Expansion
Adjusted gross profit EUR 6.1 billion (up 27%), gross margin 79.2%; adjusted EBITDA EUR 2.6 billion (up 79%, 87% at constant FX) with EBITDA margin up 10 percentage points to 34%; group profit EUR 1.6 billion (vs EUR 1.1 billion prior year).
EPS and Cash / Balance Sheet Strength
Core EPS EUR 9.99, roughly doubled year-over-year. Strong cash generation allowed the company to fully deleverage the balance sheet and reduce net financial expenses to EUR 126 million.
Pipeline and Regulatory Milestones
KYGEVVI received U.S. approval and positive CHMP opinion (TK2 deficiency) with U.S. launch planned Q1 2026; two bispecifics in atopic dermatitis met primary endpoints and UCB is prioritizing galvokimig; bepranemab (anti-tau) achieved positive Phase II and received FDA fast-track designation.
Clinical & Development Momentum
Upcoming/accelerated readouts and starts: BE BOLD psoriatic arthritis results moved earlier to H1 2026; FINTEPLA headed to Rett syndrome Phase III; RYSTIGGO ocular myasthenia gravis Phase III to start; galvokimig entering COPD and bronchiectasis programs.
Strategic Manufacturing Investment
Announced a major U.S. investment of $5 billion (direct and indirect) to build a mammalian manufacturing site to produce BIMZELX, strengthening supply and U.S. footprint.
Partner Contributions and Other Franchise Strength
EVENITY partner net contribution EUR 632 million (up 32%); RYSTIGGO + ZILBRYSQ generated incremental net sales >EUR 270 million; FINTEPLA grew 26% YoY to EUR 427 million and >14,000 patients treated; CIMZIA volumes grew 4% despite pricing pressures.
2026 Guidance & Margin Upside
2026 guidance: revenues expected to grow high single-digit to low double-digit at constant FX; adjusted EBITDA expected to grow high single-digit to high-teens (and on an adjusted EUR 2.4B base, high-teens to high-20s), driven by portfolio mix and margin expansion.
ESG Recognition
Improved CDP climate change rating to A and ranked #2 Industry Leader in Global Biotech by Sustainalytics.
Negative Updates
Pricing Pressure and Gross-to-Net Dynamics
H2 2025 true-up on BIMZELX gross-to-net amounted to ~5% of total BIMZELX; company expects net price decreases as U.S. access expands and more scripts become rebated, weighing on net pricing despite volume growth.
Loss of Exclusivity and Near-Term Headwinds
BRIVIACT reached loss of exclusivity in the U.S. (this week) and will in Europe in August 2026; LOE and expected LOE impacts, plus a modest negative perimeter effect from the prior-year asset disposal, are accounted for in 2026 guidance.
CIMZIA Pricing Headwinds
CIMZIA net sales EUR 1.95 billion, down 4% (flat at constant exchange); pricing pressure in the U.S., driven by IRA Medicare Part D changes and growing 340B impact, offsetting 4% volume growth.
Clinical Trial & Competitive Risk in Immunology
Management acknowledged industry-wide increased trial noise and recruitment challenges in I&I (higher placebo rates, harder to recruit biologically naive moderate-to-severe patients). Donzakimig deprioritized in favor of galvokimig. Alzheimer's and some respiratory/dermatology programs remain competitive and inherently risky.
One-Off Costs and Portfolio Simplification Charges
EUR 111 million of one-off costs related to contractual commitments on a non-core asset; while an asset sale of EUR 315 million boosted other operating income, these items add noise and indicate ongoing portfolio reshaping.
Tax Rate Headwind for 2026
Effective tax rate in 2025 was 14% (benefiting from R&D incentives); company expects the tax rate to increase to around 20% in 2026, which will pressure net profit relative to 2025.
High-Risk Areas Require Further De-risking
Promising assets in high-risk spaces (e.g., bepranemab in Alzheimer’s) still require substantial clinical and regulatory de-risking; management indicated openness to partnerships to share development risk.
Company Guidance
UCB guided 2026 revenue growth of high-single-digit to low-double-digit at constant exchange rates (building off 2025’s €7.7bn total revenues and ~€7.4bn net sales, +32% YoY) and EBITDA growth of high-single-digit to high‑teens at CER — or, starting from an adjusted 2025 EBITDA base of €2.4bn, growth in the high‑teens to high‑20s % at CER — driven by the five growth drivers (BIMZELX, RYSTIGGO, ZILBRYSQ, FINTEPLA, EVENITY), continued gross‑margin improvement despite net‑price pressure (2025 adjusted gross profit €6.1bn; gross margin 79.2%), rising marketing & selling and R&D spend (M&S €2.5bn; R&D €1.8bn, 24% of revenues) with tight G&A control, an expected tax rate around ~20% (versus a 14% effective rate in 2025), guidance given at constant exchange rates excluding MFN/tariff impacts, and no planned established‑brand disposals this year.UCB SA Financial Statement Overview
Summary
Overall fundamentals are solid: income statement trends show improving net income and constructive revenue growth, cash flow strengthened materially with strong 2025 operating cash flow and free cash flow growth, and the balance sheet improved with notably lower debt in 2025. The main offset is margin pressure signaled by lower 2025 EBIT versus 2024 and some historical cash-flow variability.Income Statement
Revenue growth is solid in the most recent annual period (up ~9% in 2025 after a strong 2024), showing a constructive top-line trajectory after the 2022–2023 dip. Profitability is healthy with strong gross profit dollars, and net income improved materially from 2023 to 2025, indicating better operating leverage. Offsetting this, operating profit (EBIT) was lower in 2025 versus 2024 despite higher revenue, suggesting margin pressure or higher operating costs that bears monitoring.78
Positive
Balance Sheet
The balance sheet looks stable with a meaningful equity base (equity rising from ~8.4B in 2021 to ~10.9B in 2025) and moderate leverage; debt-to-equity was around ~0.30 in 2024 and in a similar range in prior years. Total debt declined notably in 2025 versus 2024, improving financial flexibility. A watch item is the leverage trend versus earlier years (debt increased from 2021 levels before improving in 2025), so sustained deleveraging would strengthen the profile further.76
Positive
Cash Flow
Cash generation strengthened significantly: operating cash flow rose sharply in 2025 and free cash flow grew strongly (up ~44% in 2025), pointing to improving cash earnings quality. Free cash flow has generally tracked net income reasonably well in recent years (e.g., ~74% of net income in 2024 and ~58% in 2023), supporting earnings durability. The main weakness is volatility across the period (free cash flow declined in 2022–2023 before re-accelerating), which suggests cash conversion can fluctuate.82
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.44B | 6.15B | 5.25B | 5.52B | 5.78B |
| Gross Profit | 5.29B | 4.40B | 3.54B | 3.84B | 4.34B |
| EBITDA | 1.72B | 1.96B | 1.28B | 1.17B | 1.59B |
| Net Income | 1.50B | 1.06B | 343.00M | 418.00M | 1.06B |
Balance Sheet | |||||
| Total Assets | 18.15B | 17.35B | 15.54B | 15.87B | 14.21B |
| Cash, Cash Equivalents and Short-Term Investments | 2.47B | 1.76B | 923.00M | 1.14B | 1.48B |
| Total Debt | 2.24B | 3.03B | 3.04B | 2.90B | 2.12B |
| Total Liabilities | 7.29B | 7.32B | 6.56B | 6.80B | 5.82B |
| Stockholders Equity | 10.86B | 10.03B | 8.97B | 9.06B | 8.39B |
Cash Flow | |||||
| Free Cash Flow | 1.81B | 920.00M | 445.00M | 748.00M | 1.06B |
| Operating Cash Flow | 2.08B | 1.24B | 761.00M | 1.12B | 1.55B |
| Investing Cash Flow | -373.65M | 282.00M | -440.00M | -1.58B | -487.00M |
| Financing Cash Flow | -1.04B | -818.00M | -308.00M | 70.00M | -1.12B |
UCB SA Technical Analysis
Neutral
146.54
Price Trends
151.05
Negative
144.73
Positive
126.05
Positive
Market Momentum
-0.68
Positive
38.34
Neutral
4.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UCBJY, the sentiment is Neutral. The current price of 146.54 is below the 20-day moving average (MA) of 157.83, below the 50-day MA of 151.05, and above the 200-day MA of 126.05, indicating a neutral trend. The MACD of -0.68 indicates Positive momentum. The RSI at 38.34 is Neutral, neither overbought nor oversold. The STOCH value of 4.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UCBJY.
UCB SA Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $81.04B | 18.48 | 14.87% | 0.45% | 2.89% | 0.50% | |
75 Outperform | $46.40B | 35.49 | 20.17% | ― | 89.58% | ― | |
75 Outperform | $27.39B | 26.65 | 11.48% | 2.23% | 3.72% | -31.46% | |
68 Neutral | $55.91B | 31.65 | 13.80% | 0.55% | 26.28% | 457.14% | |
55 Neutral | $42.26B | 141.18 | 73.28% | ― | 53.24% | ― | |
53 Neutral | $24.23B | ― | -2.94% | ― | 7.04% | -25.24% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
UCBJY
UCB SA
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41.65
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.