PHILADELPHIA, March 25, 2023 /PRNewswire/ — Kaskela Law LLC announces that it is investigating Univar Solutions Inc. (NYSE: UNVR) (“Univar”) on behalf of the company’s investors.
On March 14, 2023, Univar announced that it would be acquired by private equity firm Apollo at a price of $36.15 per share. Following the closing of the proposed transaction, Univar investors will be cashed out of their investment position, and Univar’s shares will no longer be publicly traded.
The investigation seeks to determine whether $36.15 per share provides UNVR shareholders with sufficient consideration for their shares, and whether Univar’s officers and/or directors breached their fiduciary duties in agreeing to sell the company at that price.
Univar shareholders are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by email ([email protected] / [email protected]) or online at https://kaskelalaw.com/cases/univar-solutions/ , to receive additional information about this investigation and their legal rights and options.
Kaskela Law LLC represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com. This notice may constitute attorney advertising in certain jurisdictions.
CONTACT:
D. Seamus Kaskela, Esq. Adrienne Bell, Esq. KASKELA LAW LLC 18 Campus Blvd., Suite 100 Newtown Square, PA 19073 (484) 229 – 0750 (888) 715 – 1740 www.kaskelalaw.com
Shares of Univar Solns (NYSE:UNVR) moved lower in after-market trading after the company reported Q2 results.
Quarterly Results
Earnings per share increased 72.73% year over year to $0.57, which beat the estimate of $0.47.
Revenue of $2,394,000,000 higher by 19.16% year over year, which beat the estimate of $2,250,000,000.
Outlook
Univar Sees Q3 Adj. EBITDA $175M-$185M
Technicals
Company’s 52-week high was at $28.00
52-week low: $15.70
Price action over last quarter: down 0.61%
Company Profile
Univar Solutions Inc manufactures and sells a variety of specialty chemicals and chemical-based products. The company sells chemicals to a variety of end-users including customers in the coating and adhesives, agriculture, chemical manufacturing, food ingredients, cleaning and sanitization, pharmaceuticals, personal care, and mining industries. Univar also offers a range of services that include automated tank monitoring, chemical waste management, and specialty chemical blending. The company organizes itself into four segments based on geography: the United States; Canada; Europe and the Middle East and Africa; and the rest of the world. The majority of revenue comes from the United States.
On Monday, August 02, Univar (NYSE:UNVR) will release its latest earnings report. Benzinga’s report can help you figure out the ins and outs of the earnings release.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Sell-side analysts expect Univar’s EPS to be near $0.47 on sales of $2.25 billion. In the same quarter last year, Univar announced EPS of $0.33 on revenue of $2.01 billion.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the “consensus estimates.” A company posting earnings or revenue above or below the consensus estimate is known as an “earnings surprise” and may move the stock by a considerable margin.
The Wall Street estimate would represent a 42.42% increase in the company’s earnings. Sales would be up 12.0% from the year-ago period. Here is how the Univar’s reported EPS has stacked up against analyst estimates in the past:
Quarter
Q1 2021
Q4 2020
Q3 2020
Q2 2020
EPS Estimate
0.32
0.25
0.26
0.23
EPS Actual
0.43
0.27
0.34
0.33
Revenue Estimate
2.16 B
1.97 B
2.15 B
2.10 B
Revenue Actual
2.15 B
2.04 B
2.01 B
2.01 B
Want Real-Time Earnings Calendar Updates?
Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.
Stock Performance
Over the last 52-week period, shares are up 38.91%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Univar is scheduled to hold the call at 09:00:00 ET and can be accessed here.
Momentum investing is all about the idea of following a stock’s recent trend, which can be in either direction. In the ‘long’ context, investors will essentially be “buying high, but hoping to sell even higher.” And for investors following this methodology, taking advantage of trends in a stock’s price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Univar (UNVR – Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It’s also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Univar currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
Let’s discuss some of the components of the Momentum Style Score for UNVR that show why this specialty chemicals company shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For UNVR, shares are up 3.9% over the past week while the Zacks Chemical – Diversified industry is up 4.69% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 13.7% compares favorably with the industry’s 2.81% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Univar have increased 28.44% over the past quarter, and have gained 112.08% in the last year. In comparison, the S&P 500 has only moved 6.42% and 48.24%, respectively.
Investors should also pay attention to UNVR’s average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. UNVR is currently averaging 971,819 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with UNVR.
Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost UNVR’s consensus estimate, increasing from $1.33 to $1.69 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Taking into account all of these elements, it should come as no surprise that UNVR is a #1 (Strong Buy) stock with a Momentum Score of A. If you’ve been searching for a fresh pick that’s set to rise in the near-term, make sure to keep Univar on your short list.
Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage — “buy low and sell high.” Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by “buying high and selling higher.”
Who doesn’t like betting on fast-moving trending stocks? But determining the right entry point isn’t easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock’s price or earnings, our ‘Fast-Paced Momentum at a Bargain’ screen comes handy in spotting fast-moving stocks that are still attractively priced.
There are several stocks that currently pass through the screen and Univar (UNVR – Free Report) is one of them. Here are the key reasons why this stock is a great candidate.
Investors’ growing interest in a stock is reflected in its recent price increase. A price change of 11.2% over the past four weeks positions the stock of this specialty chemicals company well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. UNVR meets this criterion too, as the stock gained 25.6% over the past 12 weeks.
Moreover, the momentum for UNVR is fast paced, as the stock currently has a beta of 1.95. This indicates that the stock moves 95% higher than the market in either direction.
Given this price performance, it is no surprise that UNVR has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped UNVR earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That’s because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, UNVR is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. UNVR is currently trading at 0.53 times its sales. In other words, investors need to pay only 53 cents for each dollar of sales.
So, UNVR appears to have plenty of room to run, and that too at a fast pace.
In addition to UNVR, there are several other stocks that currently pass through our ‘Fast-Paced Momentum at a Bargain’ screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Univar Solutions Inc.’s (UNVR – Free Report) subsidiary, ChemPoint, announced the expansion of its distribution agreement with Niacet Corporation. The agreement is extended to include the sales, marketing and distribution of Niaproof anionic surfactant 08 in Mexico.
This agreement is an addition to the existing relationship between the companies, which commenced in the United States in 2009 and later expanded into Europe, the Middle East, and Africa before entering Mexico.
Niaproof anionic surfactant 08 is an alcohol sulfate used in building and construction, homecare and industrial cleaning, metal processing and fabrication. Due to solubilizing power in electrolytes, Niaproof anionic surfactant 08 can also be found in industrial detergents and textile conditioning agents.
Niacet’s proven track record in production along with ChemPoint’s technologies, focused product teams and digital marketing capabilities are expected to attract new customers and grow differentiated applications.
Shares of Univar have gained 70.2% in the past year compared with 89.2% rise of the industry.
Univar recently announced an agreement to expand its existing partnership with Novozymes into the U.S. and Canadian homecare, industrial cleaning and beverages markets. The expanded relationship signifies a shared dedication toward providing customers with a portfolio of ingredients designed to improve product performance.
The company, in its last reported quarter’s earnings call, stated that it expects adjusted EBITDA of $630-$650 million for 2021. It also anticipates adjusted EBITDA of $150-$160 million for first-quarter 2021.
Univar is also actively managing its expenses and reducing costs to maintain its financial strength. These savings represented more than $20 million in cost reductions for 2020, which are incremental to the net synergies achieved from the Nexeo acquisition of $46 million. It expects to achieve $120 million in annual Nexeo net synergies by early 2022.
Zacks Rank &Other Key Picks
Univar currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY – Free Report) , Ashland Global Holdings Inc. (ASH – Free Report) and Impala Platinum Holdings Limited (IMPUY – Free Report) .
Fortescue has a projected earnings growth rate of 107.8% for the current fiscal year. The company’s shares have surged 138.2% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ashland has an expected earnings growth rate of 83.9% for the current fiscal year. The company’s shares have gained 83.6% in the past year. It currently sports a Zacks Rank #1.
Impala has an expected earnings growth rate of 197.6% for the current fiscal year. The company’s shares have skyrocketed 254.7% in the past year. It currently flaunts a Zacks Rank #1.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Univar Solutions Inc. (UNVR – Free Report) announced an expansion in its agreement with Sensient Technologies for the distribution of synthetic coloring products in Mexico for the food, beverage, nutraceutical and pharmaceutical markets. There is already an existing distribution agreement with Sensient in Canada and Europe.
The deal reinforces Univar’s product portfolio for food, beverage, nutraceutical and pharmaceutical markets. Univar is well-placed to provide differential value to customers throughout the above-mentioned markets through a consistent global approach across the key industries and a global footprint of technical solution centers and a wide product portfolio.
This also complements Sensient’s products as a global producer of customized color solutions with color technology innovation, which helps manufacturers and brands differentiate their products and achieve a competitive advantage.
Univar’s technical team has the expertise to efficiently and effectively support customers’ complex color formulation demand through a fully equipped solution center in Mexico City, with both formulation and testing capabilities.
Shares of Univar have surged 198.3% in the past year compared with a 102.1% rise of the industry.
The company, on its last reported quarter’s earnings call, stated that it expects adjusted EBITDA of $630-$650 million for 2021. It also anticipates adjusted EBITDA of $150-$160 million for first-quarter 2021.
Univar is also actively managing its expenses and reducing costs to maintain its financial strength. These savings represented more than $20 million in cost reductions for 2020, which are incremental to the net synergies achieved from the Nexeo acquisition of $46 million. It expects to achieve $120 million in annual Nexeo net synergies by early 2022.
Zacks Rank & Key Picks
Univar currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY – Free Report) , Ashland Global Holdings Inc. (ASH – Free Report) and Impala Platinum Holdings Limited (IMPUY – Free Report) .
Fortescue has a projected earnings growth rate of 107.8% for the current fiscal year. The company’s shares have surged 182.3% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ashland has an expected earnings growth rate of 83.9% for the current fiscal year. The company’s shares have gained 106.9% in the past year. It currently sports a Zacks Rank #1.
Impala has an expected earnings growth rate of 197.6% for the current fiscal year. The company’s shares have rallied 483.3% in the past year. It currently flaunts a Zacks Rank #1.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Univar Solutions Inc. (UNVR–Free Report) recently announced an agreement with EverGrain. The terms of the agreement name Univar as the exclusive distributor for EverGrain’s portfolio of plant-based protein and fiber ingredients in Latin America. The agreement marks an extension of the company’s successful partnership with EverGrain.
The portfolio of EverGrain will help Univar expand its range of plant-based food and nutraceutical products across Latin America. Moreover, it will enable the company to cater to the increasing demand and emerging market trends in sustainable food supplies as well as plant-based offerings.
The agreement includes a number of products like EverPro, EverVita Pro and EverVita Fiber which have varied applications in beverages, bread, cakes, tortillas and pasta.
EverGrain manufactures nutritious and functional ingredients for food and beverage products. The agreement with Univar enables it to widen the reach of its plant-based ingredients to Latin America and other regions globally. As partners, the companies can offer sustainable, nutritious, and functional protein and fiber-rich ingredient solutions to more consumers.
Univar’s technical team is fully equipped to support EverGrain’s products and customers’ formulation needs and looks forward to meet the demands of its food and beverage customers for plant-based ingredients in Latin America.
Shares of Univar have declined 6.2% in the past year compared with 21.2% rise of the industry.
Univar is expected to benefit from market expansion and strategic acquisitions. The company is also focused on expense management and productivity actions. It also has a strong liquidity position. The company expects adjusted EBITDA in the range of $140-$145 million for the fourth quarter of 2020. Univar projects adjusted EBITDA in the band of $629-$634 million for 2020.
Zacks Rank & Key Picks
Univar currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY–Free Report) , BHP Group (BHP–Free Report) and Impala Platinum Holdings Limited (IMPUY–Free Report) .
Fortescue has a projected earnings growth rate of 74.2% for the current fiscal. The company’s shares have surged around 145.8% in a year. It currently sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BHP has an expected earnings growth rate of 59.5% for the current fiscal. The company’s shares have gained around 32.8% in the past year. It currently flaunts a Zacks Rank #1.
Impala has an expected earnings growth rate of 189.4% for the current fiscal. The company’s shares have rallied around 51.3% in the past year. It currently sports a Zacks Rank #1.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
