UBS Investment Analysis Report & Stock Research, Ubs AG

Ubs AG (UBS)

UBS Stock Report

2-Year Price History

View Larger UBS Chart
NYSE:UBS
$12.78
(2/9 1:26PM)
-0.5%
Open$12.98 Mkt Cap$45.2 Billion
High$13.11 52Wk High$23.80
Low$12.43 52Wk Low$7.04
Volume7.7 Million Avg Vol 10D6.4 Million

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UBS Revenue

Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, UBS the high and low end of the Price to Sales per share ratios are 1.35x and 0.70x respectively.

Notice that UBS's current Price to Sales per share ratio is 0.69x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $13.11, UBS is 33% below where we would expect to see it. This will beneficially factor into our final analysis of UBS as it is not often that this stock sinks to these levels.

UBS Cash Earnings

Price to Cash Earnings analysis is inappropriate for this company due to anticipated negative cash flows for this year. A negative cash flow presents many complications when comparing the company's current value to historically normal valuations. Clearly, when a company fails to earn a profit, it should be a concern for investors. As such, we have taken a negative view on UBS from a cash perspective. We should point out that this metric is a significant element in Ockham’s methodology for analyzing the outlook for any company. Many young companies have come through difficult times like this before; these companies have an opportunity to grow revenue appropriately to bring them around to profitablity. However, for mature company's with a history of positive cash flow this can be much more distressing. Therefore, for UBS, our overall valutaion is now more dependent on the Price to Sales analysis, and investors should be cautious with a company with very limited, if any, positive cash earnings.

UBS Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.

Peer Comparison

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Ubs AG Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including UBS) 18.06 7.30 » 25.84 1.85 0.82 » 2.89 13.92% 19.74%
*10 year range does not include current year values
Toronto Dominion Bank TD $50.3 Billion $58.51 18.46 8.08 » 29.46 2.15 0.94 » 2.82 12.43% 15.94%
Banco Bilbao Vizcaya Argentaria SA BBVA $49.8 Billion $13.07 6.76 2.84 » 25.20 0.89 0.55 » 2.49 18.89% 22.40%
Ubs AG UBS $45.2 Billion $12.84 -1.00 7.12 » 25.22 0.69 0.29 » 1.57 10.91% 15.75%
US Bancorp USB $44.9 Billion $23.49 27.55 8.95 » 29.54 2.35 0.85 » 3.99 5.70% 20.94%
The Bank of Nova Scotia BNS $43.3 Billion $42.25 18.59 7.91 » 22.50 2.03 0.91 » 2.56 11.08% 20.42%
Westpac Banking Corp. WBK $37.7 Billion $99.48 18.92 8.73 » 22.52 1.85 0.85 » 2.59 21.47% 19.02%
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1:18:49 PM UBS $12.77 Ubs AG
Tech Trader Daily-Barron's

Cost Structure at Ubs AG Discussed on Tech Trader Daily-Barron's

UBS costs were discussed on Tech Trader Daily-Barron's, and may be of interest to investors.

It is also notable that we have recently upgraded this stock on Saturday, January 30, 2010 because UBS is more attractive in many of the valuation metrics we evaluate. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Ubs AG underperforming. The Ockham valuation currently has a Fairly Valued stance on UBS because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Ubs AG has actually sunk a bit in comparison to the others.

“… Brian Pitz, UBS: Cuts target to $20, from $23, but keeps Buy rating, and says that “the company’s focus on quality games with a leaner cost structure should provide significant ... …”

1:05:30 PM UBS $12.77 Ubs AG
Power Lunch

Be Aware There is a Lot of News Today On UBS and This Instance Comes from Power Lunch

UBS has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.

Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Power Lunch said about UBS AG

Learn About RazorWire?
10:02:40 AM UBS $12.66 Ubs AG
Squawk On The Street

UBS Having an Active Day in News, Now on Squawk On The Street

Something important is going on with UBS today, as it is getting a lot of attention on business television and influential blogs.

The crowd at The Motley Fool does not like UBS and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on UBS. The improving valuation of Ubs AG has prompted us to upgrade this stock as of Saturday, January 30, 2010. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, UBS has been less covered in the news compared to the rest of our universe of stocks.

“… We had generally good reports from UBS, although clients are still terribly leaving UBS, but they posted a profit. The other banks are all trading to the upside. …”

9:10:21 AM UBS $13.02 Ubs AG
Zero Hedge

Regulators Interested in UBS? Possibly as Both Were Discussed on Zero Hedge

RazorWire news analytics has noted a discussion of UBS that may be related to a regulators or the Fed on Zero Hedge.

The crowd at The Motley Fool does not like UBS and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on UBS. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, UBS has been less covered in the news compared to the rest of our universe of stocks. The improving valuation of Ubs AG has prompted us to upgrade this stock as of Saturday, January 30, 2010.

“… UBS reports higher client outflows, return to profit (UBS)Overbought conditions: Junk Bonds show ebbing distress on record sales (Bloomberg)Republicans and the populist ... …”

9:08:53 AM UBS $13.00 Ubs AG
Squawk On The Street

UBS's Earnings Were Talked About on Squawk On The Street

The name of the game in business is profit, and we always pay attention for UBS news as it relates to earnings.

Ubs AG receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; UBS has received less coverage from the financial media in business television and blogs. Please have a look at our report for our reasons to upgrade the stock to Fairly Valued on our report dated Saturday, January 30, 2010.

“… UBS, reported earnings today. The stock is down about 2. 5% in the early going there. All right, mr. Hanes, back to you. > > thank you very much, mr. Faber. …”

8:53:12 AM UBS $13.04 Ubs AG
Zero Hedge

Look Out for Ubs AG: Its Very Active in the News

Something important is going on with UBS today, as it is getting a lot of attention on business television and influential blogs.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, UBS has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on UBS. The improving valuation of Ubs AG has prompted us to upgrade this stock as of Saturday, January 30, 2010. The crowd at The Motley Fool does not like UBS and believes that it will Underperform.

“… Washington was closed yesterday. Despite expectations that did not help the stock market.Source: UBS Financial Services, Cashin's …”

8:49:35 AM UBS $13.04 Ubs AG
Squawk Box

UBS Gets Mentioned in the Financial Media

The latest news from Squawk Box on UBS is available through Ockham's news analytics platform RazorWire.

Ubs AG receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Please have a look at our report for our reasons to upgrade the stock to Fairly Valued on our report dated Saturday, January 30, 2010. We noticed recently that in comparison to all other stocks we analyze in the news; UBS has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… Joing us is art cashin, director of floor operations at UBS financial services. Art, looks like a major rebound after yesterday's disappointling performance for the market. …”

8:41:16 AM UBS $13.08 Ubs AG
Zero Hedge

UBS Having an Active Day in News, Now on Zero Hedge

Something important is going on with UBS today, as it is getting a lot of attention on business television and influential blogs.

Please have a look at our report for our reasons to upgrade the stock to Fairly Valued on our report dated Saturday, January 30, 2010. We noticed recently that in comparison to all other stocks we analyze in the news; UBS has received less coverage from the financial media in business television and blogs. Ubs AG receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… Earnings: AFG, AGCO, BIIB, CHD, CNC, CXW, DIS, EOG, IACI, QUIK, TAP, TCO, UBS, UDR, VMC, WMG, XL. RECENT RATING ACTIONSALLIANT TECHSYSTEMS INC (ATK)MGM MIRAGE (MGM)NCR CORP ... …”

8:25:25 AM UBS $13.10 Ubs AG
Deal Breaker

UBS's Costs at the Forefront on Deal Breaker

UBS costs were discussed on Deal Breaker, and may be of interest to investors.

Ubs AG receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; UBS has received less coverage from the financial media in business television and blogs. Please have a look at our report for our reasons to upgrade the stock to Fairly Valued on our report dated Saturday, January 30, 2010.

“… UBS Posts First Profit In More Than A Year (Bloomberg) UBS earned 1. 21 billion francs in the fourth quarter, its first profit since the third quarter of 2008, helped by lower ... …”

8:25:25 AM UBS $13.10 Ubs AG
Deal Breaker

See Who is Talking About News from UBS on Deal Breaker

The latest news on Deal Breaker in regards to UBS came through on RazorWire recently.

Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Ubs AG underperforming. It is also notable that we have recently upgraded this stock on Saturday, January 30, 2010 because UBS is more attractive in many of the valuation metrics we evaluate. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Ubs AG has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on UBS because it trades within the price range that we would expect given current market conditions and fundamentals.

“… UBS bankers' 2009 cash bonuses up a third on year (Reuters) UBS will pay about 2. 9 billion Swiss francs ($2. 7 billion) in cash bonuses for 2009, up about a third from ... …”

View All Ubs AG Stock News

Key Fundamentals

UBS - Ubs AG Fundamentals
Price (2/9 1:26PM) $12.78
Volume (2/9 1:26PM) 7.7 Million
Last Close Price $12.84
10 Day Average Volume 6.4 Million
13 Week Price Range $12.60 - $17.55
52 Week Price Range $7.04 - $23.80
LTM Revenue $66.4 Billion
 
Shares Outstanding (12/2008) 3.5 Billion
Market Capitalization $45.2 Billion
Shares Held By Institutions 892.3 Million
Institutional Holders 660
% Shares Held By Institutions 25.10%
Earnings Per Share (EPS) ($7.04)
P/E Ratio n/a
Book Value Per Share $10.82
 
Gross Margin n/a%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 1.78
Fiscal Year Ends December

About Ubs AG

Ubs AG is considered to operate in the Financial sector. They specifically operate in the Foreign Money Center Banks business segment contained within the Banking industry.

The Company operates as a global financial services provider and a major bank in Switzerland.