Unilever (GB:ULVR)
LSE:ULVR
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Unilever
(LSE:ULVR)
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Rating:71Outperform
Price Target:
4,814.00 p
▲(11.98% Upside)
Action:Reiterated
Date:02/18/26
The score is driven mainly by steady profitability and reliable free cash flow, tempered by higher leverage. Technicals are supportive (price above key averages, positive MACD) but appear overextended on RSI/Stoch. Valuation is somewhat demanding at ~22.7x earnings, while the ~3.44% dividend yield and earnings-call outlook (cautious growth guidance plus buyback and cash generation) provide support.
Positive Factors
Strong free cash flow
Sustained high free cash flow and near-100% cash conversion provide durable financial flexibility to fund dividends, buybacks and productivity programs. Over 2–6 months this underpins capital allocation, supports deleveraging and funds brand investment without relying on new external financing.
Negative Factors
Elevated leverage
A capital structure skewed toward debt reduces financial flexibility and increases sensitivity to interest-rate or earnings shocks. Even with strong FCF, elevated leverage constrains room for large M&A, increases refinancing risk and limits buffer during regional or commodity-driven downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Sustained high free cash flow and near-100% cash conversion provide durable financial flexibility to fund dividends, buybacks and productivity programs. Over 2–6 months this underpins capital allocation, supports deleveraging and funds brand investment without relying on new external financing.
Read all positive factors
Unilever (ULVR) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£93.86B
Dividend Yield3.85%
Average Volume (3M)3.51M
Price to Earnings (P/E)25.6
Beta (1Y)0.30
Revenue Growth-16.19%
EPS Growth8.30%
CountryUK
Employees115,964
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)1.89
Shares Outstanding2,154,501,500
10 Day Avg. Volume3,332,911
30 Day Avg. Volume3,509,998
Financial Highlights & Ratios
PEG Ratio1.06
Price to Book (P/B)7.83
Price to Sales (P/S)2.41
P/FCF Ratio19.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£5,121.54Price Target Upside19.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)3.18
Revenue Forecast (FY)£51.47B
Unilever Business Overview & Revenue Model
Company Description
Unilever PLC operates as a major producer in the fast-moving consumer goods (FMCG) industry. Its business activities are organized into three primary divisions: Beauty & Personal Care, Foods & Refreshment, and Home Care. The Beauty & Personal Care...
How the Company Makes Money
Unilever primarily makes money by selling branded consumer products to retailers, distributors, and other customers, recognizing revenue from the transfer of goods (with a smaller portion from services where applicable). The company’s key revenue ...
Unilever Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Neutral
The call presents a broadly positive operational and strategic story: volume-led growth, Power Brands outperformance, margin expansion, strong cash generation, active portfolio reshaping and a clear capital allocation framework. However, significant near-term headwinds persist from currency, regional softness (notably Latin America and China for the year), pockets of underperformance (non-Power Brands, certain Hair Care and Prestige assets), demerger-related costs and selective commodity inflation. Management guidance for 2026 is cautious (bottom end of the 4-6% multiyear range, volumes at least 2% and modest margin improvement), reflecting both confidence in the transformation and recognition of continuing external risks.Positive Updates
Group underlying sales growth and quarter-on-quarter improvement
Underlying sales growth of 3.5% for FY2025 (volumes +1.5%, price +2.0%) with clear sequential improvement into Q4: Q4 underlying sales growth 4.2% (volumes +2.1%, price +2.0%).
Negative Updates
Significant currency headwinds and reported turnover decline
Turnover EUR 50.5bn, down 3.8% versus prior year driven by FX which reduced turnover by 5.9%; on a constant currency basis turnover increased by 2.3%.
Read all updates
Q4-2025 Updates
Positive
Negative
Group underlying sales growth and quarter-on-quarter improvement
Underlying sales growth of 3.5% for FY2025 (volumes +1.5%, price +2.0%) with clear sequential improvement into Q4: Q4 underlying sales growth 4.2% (volumes +2.1%, price +2.0%).
Read all positive updates
Company Guidance
The company guided 2026 underlying sales growth at the bottom end of its 4–6% multiyear range (c.4%), with underlying volume growth of at least 2% and a “modest” further improvement to underlying operating margin (2025 margin: 20%); it expects overall inflation to be lower than 2025 but selective commodity pressure (palm, canola, surfactants), currency headwinds that are heavier in H1, and continued reinvestment into brands. Capital allocation guidance included a new €1.5bn share buyback, continued attractive/growing dividends (in principle a 70:30 dividend:buyback balance), CapEx around ~3% of turnover (3.1% in 2025) with ~55–60% focused on productivity/margin initiatives, completion of the €800m productivity program (€670m delivered in 2025 with ~€130m remaining in 2026), and a commitment to strong cash generation/100% cash conversion and a balanced capital structure (net debt/EBITDA ~2x).Unilever Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 50.50B | 60.76B | 59.60B | 60.07B | 52.44B |
| Gross Profit | 23.71B | 27.37B | 25.18B | 24.17B | 22.18B |
| EBITDA | 11.11B | 11.74B | 11.99B | 13.07B | 10.82B |
| Net Income | 5.99B | 5.74B | 6.49B | 7.64B | 6.05B |
Balance Sheet | |||||
| Total Assets | 70.56B | 79.75B | 75.27B | 77.82B | 75.09B |
| Cash, Cash Equivalents and Short-Term Investments | 5.07B | 7.63B | 6.11B | 5.52B | 4.50B |
| Total Debt | 29.64B | 30.66B | 28.59B | 28.44B | 29.67B |
| Total Liabilities | 52.95B | 57.20B | 54.50B | 56.12B | 55.35B |
| Stockholders Equity | 15.55B | 19.99B | 18.10B | 19.02B | 17.11B |
Cash Flow | |||||
| Free Cash Flow | 6.39B | 7.55B | 7.68B | 5.66B | 6.73B |
| Operating Cash Flow | 7.78B | 9.52B | 9.43B | 7.28B | 7.97B |
| Investing Cash Flow | -3.65B | -625.00M | -2.29B | 2.45B | -3.25B |
| Financing Cash Flow | -5.69B | -6.94B | -7.19B | -8.89B | -7.10B |
Unilever Technical Analysis
Negative
4299.00
Price Trends
4840.38
Negative
Market Momentum
-159.59
Negative
36.08
Neutral
56.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ULVR, the sentiment is Negative. The current price of 4299 is below the 20-day moving average (MA) of 4361.07, below the 50-day MA of 4840.38, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -159.59 indicates Negative momentum. The RSI at 36.08 is Neutral, neither overbought nor oversold. The STOCH value of 56.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ULVR.
Unilever Risk Analysis
Unilever disclosed 14 risk factors in its most recent earnings report. Unilever reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Unilever Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £1.75B | 7.91 | 15.61% | 1.62% | 2.31% | 9.04% | |
71 Outperform | £93.86B | 25.61 | 26.01% | 3.85% | -16.19% | 8.30% | |
68 Neutral | £13.48B | 14.16 | 8.44% | 2.98% | -2.16% | -24.87% | |
66 Neutral | £33.39B | 18.53 | 21.39% | 5.00% | -4.98% | -35.54% | |
66 Neutral | £29.29B | 9.41 | 38.45% | 3.44% | 0.25% | 131.13% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
54 Neutral | £374.61M | -78.41 | -2.16% | 4.82% | 6.74% | 26.11% |
* Consumer Defensive Sector Average
GB:ULVR
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Unilever Corporate Events
Business Operations and StrategyStock Buyback
Unilever Completes Latest Tranche of Share Buyback Programme
Positive
Jun 10, 2026
Unilever has completed a tranche of its existing share buyback programme, repurchasing several million ordinary shares between 1 and 5 June 2026 across the London Stock Exchange and multiple alternative trading venues, with prices averaging just o...
Business Operations and StrategyStock Buyback
Unilever Completes €1.5 Billion 2026 Share Buyback Programme
Positive
Jun 5, 2026
Unilever has completed its 2026 share buyback programme of up to €1.5 billion, first outlined with its 2025 full-year results and launched on 30 April 2026. The company repurchased 30,703,780 ordinary shares, with an aggregate market value j...
Business Operations and StrategyStock Buyback
Unilever Adds to Treasury Stock with Latest Wave of Share Buybacks
Positive
Jun 3, 2026
Unilever has continued to execute its share buyback programme, repurchasing millions of ordinary shares between 26 and 29 May 2026 across multiple trading venues including the London Stock Exchange, BATS, Chi-X, Turquoise and Aquis. The company bo...
Regulatory Filings and Compliance
Unilever Updates Share Capital and Voting Rights Denominator
Neutral
Jun 1, 2026
Unilever PLC has reported an update on its issued share capital and voting rights, confirming that as of 29 May 2026 it had more than 2.18 billion ordinary shares in issue, of which a portion is held in treasury and by group companies without exer...
Other
Unilever Non-Executive Directors Increase Holdings in Transatlantic Share Purchases
Positive
Jun 1, 2026
Unilever has disclosed share purchases by two of its non-executive directors, underscoring board-level alignment with shareholders. Judith McKenna acquired 4,295 Unilever PLC American Depositary Receipts on the New York Stock Exchange on 28 May 20...
Other
Unilever Directors Boost Holdings With Six-Figure Share Purchases
Positive
Jun 1, 2026
Unilever has disclosed share purchases by two non-executive directors, underscoring insider confidence in the company’s equity. Judith McKenna acquired 4,295 Unilever American Depositary Receipts on the New York Stock Exchange, in a transact...
Business Operations and StrategyStock Buyback
Unilever Expands Share Buyback, Lifts Treasury Stock Holdings
Positive
May 27, 2026
Unilever has continued its capital return strategy by repurchasing ordinary shares between 18 and 22 May 2026 across multiple trading venues, including the London Stock Exchange, BATS, Chi-X, Turquoise, and Aquis. The purchases were executed via M...
Business Operations and StrategyStock Buyback
Unilever Expands Treasury Stock with Latest Share Buybacks
Positive
May 20, 2026
Unilever has continued its share buyback programme with the repurchase of several million ordinary shares between 11 and 15 May 2026 across multiple trading venues, including the London Stock Exchange and alternative platforms. The shares, bought ...
Executive/Board ChangesRegulatory Filings and Compliance
Unilever grants multi-million pound share awards to CEO and CFO
Neutral
May 18, 2026
Unilever has disclosed grants of performance share plan (PSP) awards in the form of ordinary shares to its top leadership, underscoring the company’s ongoing use of equity-based incentives to align management with shareholder interests. Chie...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Unilever launches U.S.$25 billion global debt issuance programme
Positive
May 15, 2026
Unilever has published an Information Memorandum for a U.S.$25 billion debt issuance programme involving Unilever Finance Netherlands B.V., Unilever Capital Corporation and Unilever PLC as issuers, with Unilever PLC and Unilever United States, Inc...
Financial DisclosuresRegulatory Filings and Compliance
Unilever Finance Netherlands Publishes 2025 Audited Accounts for Bond Investors
Neutral
May 15, 2026
Unilever Finance Netherlands B.V., a financing arm of consumer goods group Unilever, has released its audited financial statements for the year ended 31 December 2025. The documents have been made available to investors via Unilever’s websit...
Business Operations and StrategyStock BuybackFinancial DisclosuresShareholder Meetings
Unilever Wins Strong Shareholder Backing for All AGM Resolutions
Positive
May 13, 2026
Unilever shareholders overwhelmingly approved all 21 resolutions at the 2026 annual general meeting, including the receipt of the 2025 accounts, the directors’ remuneration report and policy, and the reappointment of KPMG as auditor. The boa...
Stock Buyback
Unilever Adds 2.2 Million Shares to Treasury in Latest Buyback
Positive
May 13, 2026
Unilever PLC has repurchased a total of 2,232,804 ordinary shares on 5 May 2026 across the London Stock Exchange and multiple alternative trading venues, at volume‑weighted average prices around 4,275–4,296 pence per share, as part of ...
Business Operations and StrategyExecutive/Board Changes
Unilever Grants Deferred Share Awards to Top Executives Across Markets
Neutral
May 6, 2026
Unilever has disclosed a series of share-based bonus deferral awards to senior leadership, including CEO Fernando Fernandez, CFO Srinivas Phatak, and business group presidents Fabian Garcia and Heiko Schipper. The transactions, executed on 30 Apri...
Business Operations and StrategyStock Buyback
Unilever Adds to Treasury Stock With Latest Share Buybacks
Positive
May 6, 2026
Unilever has repurchased a total of several million ordinary shares on the London Stock Exchange and other European trading venues between 30 April and 1 May 2026 as part of its existing share buyback programme. The shares, acquired via Morgan Sta...
Regulatory Filings and Compliance
Unilever Non-Executive Director Zoe Yujnovich Buys Additional Shares
Neutral
May 6, 2026
Unilever PLC has disclosed a share purchase by non-executive director Zoe Yujnovich, who acquired 345 ordinary shares in the company on May 1, 2026. The transaction, executed on the London Stock Exchange at £44.18 per share for a total value ...
Regulatory Filings and Compliance
Unilever Updates Share Capital and Voting Rights Ahead of Disclosure Assessments
Neutral
May 1, 2026
Unilever PLC reported that as of 30 April 2026 its issued share capital comprised 2,185,205,247 ordinary shares, with no treasury shares and 253,651 shares held by Unilever group companies whose voting rights are not exercisable. This leaves 2,184...
Business Operations and StrategyStock Buyback
Unilever Launches €1.5 Billion Share Buyback to Cut Capital
Positive
Apr 30, 2026
Unilever has launched a new share buyback programme of up to €1.5 billion, aimed at reducing its share capital and executing within existing shareholder authorities. The buyback, capped at 223,263,040 shares, runs from 30 April to no later t...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Unilever Delivers Volume-Led Q1 Growth as It Repositions Around Core HPC
Positive
Apr 30, 2026
Unilever reported first-quarter 2026 underlying sales growth of 3.8%, driven mainly by 2.9% volume growth, with broad-based gains across all business groups and strong contributions from its Power Brands. Emerging markets led performance, notably ...
DividendsRegulatory Filings and Compliance
Unilever Executives Reinvest Dividends in Routine Share Purchases
Positive
Apr 20, 2026
Unilever has disclosed a series of share transactions by several senior executives, including its chief financial officer, business group presidents and other leadership members, who reinvested cash dividends into additional Unilever PLC ordinary ...
Business Operations and StrategyRegulatory Filings and Compliance
Unilever Clarifies Voting Share Capital for Regulatory Disclosure
Neutral
Apr 1, 2026
Unilever PLC has updated the market on its voting rights and capital structure as of 31 March 2026, reporting an issued share capital of 2,185,205,247 ordinary shares, with no treasury shares and 256,282 shares held within the Unilever group that ...
Regulatory Filings and ComplianceShareholder Meetings
Unilever Sets Date and Details for 2026 Annual General Meeting
Neutral
Mar 31, 2026
Unilever PLC has scheduled its 2026 Annual General Meeting for 13 May 2026 at the Hilton London Bankside in London, providing shareholders with key governance and voting information ahead of the event. The company has distributed the chair’s...
Business Operations and StrategyStock BuybackM&A Transactions
Unilever Spins Off Foods in $44.8bn McCormick Tie-Up to Sharpen HPC Focus
Positive
Mar 31, 2026
Unilever has agreed to combine its Foods business with McCormick Company, creating a $20 billion-revenue global flavour group spanning herbs, spices, seasonings, cooking aids, sauces and condiments. The combined business, which will retain the Mc...
Business Operations and StrategyM&A Transactions
Unilever in advanced talks to fold most Foods unit into McCormick
Positive
Mar 31, 2026
Unilever PLC said it is in advanced talks with U.S.-based McCormick Company over a potential strategic transaction involving most of its Foods business. The move follows earlier market speculation and reflects Unilever’s ongoing portfolio m...
Business Operations and StrategyM&A Transactions
Unilever Confirms Offer From McCormick for Foods Business
Neutral
Mar 20, 2026
Unilever has acknowledged recent media speculation by confirming it has received an unsolicited offer from McCormick Company, Inc. for its Foods business and is currently in discussions regarding a potential transaction. The board maintains that ...
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.