UBS Group AG Fundamental Analysis
UBS Group AG (UBS) shows weak financial fundamentals with a PE ratio of 23.04, profit margin of 12.41%, and ROE of 8.69%. The company generates $53.7B in annual revenue with weak year-over-year growth of -20.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 14.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze UBS's fundamental strength across five key dimensions:
Efficiency Score
WeakUBS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentUBS trades at attractive valuation levels.
Growth Score
ModerateUBS shows steady but slowing expansion.
Financial Health Score
ModerateUBS shows balanced financial health with some risks.
Profitability Score
WeakUBS struggles to sustain strong margins.
Key Financial Metrics
Is UBS Expensive or Cheap?
P/E Ratio
UBS trades at 23.04 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, UBS's PEG of 0.29 indicates potential undervaluation.
Price to Book
The market values UBS Group AG at 1.95 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.99 times EBITDA. This is generally considered low.
How Well Does UBS Make Money?
Net Profit Margin
For every $100 in sales, UBS Group AG keeps $12.41 as profit after all expenses.
Operating Margin
Core operations generate 14.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.69 in profit for every $100 of shareholder equity.
ROA
UBS Group AG generates $0.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
UBS Group AG generates strong operating cash flow of $17.65B, reflecting robust business health.
Free Cash Flow
UBS Group AG generates strong free cash flow of $15.77B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.81 in free cash annually.
FCF Yield
UBS converts 12.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
11.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.005
vs 25 benchmark
How UBS Stacks Against Its Sector Peers
| Metric | UBS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.04 | 19.38 | Worse (Expensive) |
| ROE | 8.69% | 804.00% | Weak |
| Net Margin | 12.41% | -7623.00% (disorted) | Strong |
| Debt/Equity | 4.23 | 1.07 | Weak (High Leverage) |
| Current Ratio | 11.16 | 609.22 | Strong Liquidity |
| ROA | 0.46% | -20946.00% (disorted) | Weak |
UBS outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews UBS Group AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
107.65%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
6.99%
Industry Style: Value, Dividend, Cyclical
GrowingFCF CAGR
-46.53%
Industry Style: Value, Dividend, Cyclical
Declining