Overall Fundamental outlook

Business Operations:

Sector: Consumer Defensive
Industry: Beverages - Brewers

United Breweries Limited engages in manufacture, purchase, and sale of beer and non-alcoholic beverages in India and internationally. The company offers beer products under the Heineken, Heineken Silver, Kingfisher Premium, Kingfisher Strong, Kingfisher Ultra, Kingfisher Ultra Max, Kingfisher Ultra Witbier, Amstel Bier, Bullet, Bullet Super Strong, Cannon 10000, Zingaro, Kingfisher Storm, Kingfisher Blue, Kalyani Black Label, UB Export Large, UB Export Strong, London Pilsner, and London Pilsner Strong brands; and non-alcoholic products under the Kingfisher Premium Packaged Drinking Water, Kingfisher Strong Power Soda, Kingfisher Storm Strong Soda, Kingfisher Ultra Non-Alcoholic, and Heineken 0.0. It also licenses its brands; and offers contract manufacturing services. The company was founded in 1915 and is based in Bengaluru, India. United Breweries Limited operates as a subsidiary of Heineken N.V.

Revenue projections:

Revenue projections for UBL
Revenue projections for UBL

UBL's revenue projections indicate a decrease from the prior year, which may make investors hesitant. A revenue decline could harm the company's bottom line, prompting investors to be more careful, as lower earnings often signal potential issues with profitability and future performance.

Financial Ratios:

currentRatio 1.338000
forwardPE 57.225273
debtToEquity 17.864000
earningsGrowth -0.648000
revenueGrowth -0.030000
grossMargins 0.413930
operatingMargins 0.031950
trailingEps 13.930000
forwardEps 33.800000

UBL's current ratio of 1.338, indicating that the company can meet its short-term debt obligations with ease. This high liquidity level is a positive sign, as UBL has enough cash and current assets to handle its immediate liabilities comfortably.
UBL's elevated forward PE points to potential overvaluation, limiting further price gains and increasing the likelihood of a correction. This valuation metric must be assessed in conjunction with other fundamentals for a balanced investment outlook.
UBL's Debt-to-Equity ratio is low, indicating the company is not over-leveraged. This suggests a prudent approach to financing, with minimal dependence on debt, reducing the financial risk associated with high leverage, and signaling a stable financial outlook.
With both earnings and revenue growth in low territory, UBL is likely to see shrinking profits. This signals a possible downturn in the company's financial health and may raise concerns about its future profitability.
UBL's negative gross and operating margins indicate that the company is unable to generate profit from its core business activities. This suggests financial strain and could be a sign of deeper cost management issues.
UBL's forward EPS being higher than its trailing EPS signals anticipated growth in profitability for the current financial year. This suggests that UBL is on track to improve its earnings, outpacing the previous year's performance and reflecting positive market expectations.

Price projections:

Price projections for UBL
Price projections for UBL

Over time, UBL's price projections have been consistently revised lower. This suggests analysts are becoming less optimistic about the company's future prospects and are adjusting their forecasts accordingly.

Recommendation changes over time:

Recommendations trend for UBL
Recommendations trend for UBL


United Breweries Limited has received a mixed assessment from analysts, with no definitive buy or sell recommendations. Investors might find it prudent to take a broader approach, considering various market factors, as the analysts' lack of clarity leaves room for different interpretations.