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Unilever plc (UL)
:UL
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Unilever
(NYSE:UL)73Outperform
Unilever (UL) vs. S&P 500 (SPY)
Market Cap
$148.52B
Dividend Yield3.21%
Average Volume (3M)2.81M
Price to Earnings (P/E)23.3
Beta (1Y)0.36
Revenue Growth1.99%
EPS Growth-10.59%
CountryUS
Employees128,000
SectorConsumer Defensive
Sector Strength73
IndustryConsumer Products - Household & Personal
Share Statistics
EPS (TTM)2.49
Shares Outstanding2,517,650,600
10 Day Avg. Volume2,762,991
30 Day Avg. Volume2,808,783
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.28
Price to Cash Flow (P/CF)20.50
P/FCF Ratio19.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$70.00Price Target Upside20.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Unilever Business Overview & Revenue Model
Company DescriptionUnilever (UL) is a leading multinational corporation that operates in the fast-moving consumer goods (FMCG) sector. The company is renowned for its diverse portfolio of products, which includes food and beverages, cleaning agents, beauty and personal care items, and health and wellbeing products. Unilever's brands, such as Dove, Knorr, Lipton, and Hellmann's, are household names and are sold in over 190 countries worldwide, reaching billions of consumers daily.
How the Company Makes MoneyUnilever makes money primarily through the sale of its extensive range of consumer products across various segments, including beauty and personal care, home care, and foods and refreshments. The company's revenue streams are diversified across these segments, with each contributing significantly to its total earnings. Unilever's global presence and strong brand portfolio enable it to maintain a steady stream of income through both direct sales to retailers and distributors and through online channels. Significant factors contributing to Unilever's earnings include its ability to innovate and adapt to consumer trends, strategic acquisitions that expand its product offerings, and partnerships with large retailers and distribution networks that enhance its market reach. Additionally, Unilever's commitment to sustainability and responsible sourcing strengthens its brand value and appeals to environmentally conscious consumers, further bolstering its revenue potential.
Unilever Financial Statement Overview
Summary
Unilever's financial statements reflect a strong and stable performance with solid revenue growth and operational efficiency. However, challenges in maintaining net profitability and free cash flow levels are evident. The balance sheet is robust with a balanced mix of debt and equity financing, despite a slight decline in ROE. The cash flow statement indicates strong cash generation, albeit with declining free cash flow ratios.Income Statement
Unilever's income statement shows a steady revenue growth with a 1.94% increase in 2024 from the previous year. The gross profit margin is strong at approximately 100%, indicating efficient cost management. However, the net profit margin has slightly decreased to 9.45% from 10.88% in 2023, reflecting challenges in maintaining net profitability. EBIT and EBITDA margins remain robust at 15.47% and 21.42%, respectively, demonstrating solid operational efficiency.80
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio of 1.60, indicating a balanced use of debt financing. The return on equity (ROE) has slightly declined to 28.74% from 35.84% in 2023, suggesting reduced efficiency in generating profit from shareholders' equity. The equity ratio stands at 25.06%, highlighting a stable capital structure with a focus on equity financing.75
Positive
Cash Flow
Unilever's cash flow statement shows a stable operating cash flow to net income ratio of 1.66, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio has decreased to 1.35 from 1.22 in 2023, which could signal declining free cash flow efficiency. The free cash flow growth rate shows a slight decrease, reflecting challenges in maintaining free cash flow levels.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 60.76B | 59.60B | 60.07B | 52.44B | 50.72B | Gross Profit |
| 60.76B | 25.18B | 24.17B | 22.18B | 22.04B | EBIT |
| 9.40B | 10.07B | 9.64B | 9.64B | 9.36B | EBITDA |
| 13.01B | 11.99B | 10.71B | 10.82B | 10.72B | Net Income Common Stockholders |
| 5.74B | 6.49B | 7.64B | 6.05B | 5.58B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 7.52B | 6.11B | 5.52B | 4.50B | 6.30B | Total Assets |
| 79.75B | 75.27B | 77.82B | 75.09B | 67.66B | Total Debt |
| 32.05B | 28.59B | 28.44B | 29.67B | 26.77B | Net Debt |
| 25.92B | 24.43B | 24.11B | 26.26B | 21.22B | Total Liabilities |
| 57.20B | 54.50B | 56.12B | 55.35B | 50.00B | Stockholders Equity |
| 19.99B | 18.10B | 19.02B | 17.11B | 15.27B |
| Cash Flow | Free Cash Flow | |||
| 7.78B | 7.92B | 5.83B | 6.86B | 8.20B | Operating Cash Flow |
| 9.52B | 9.43B | 7.28B | 7.97B | 9.06B | Investing Cash Flow |
| -625.00M | -2.29B | 2.45B | -3.25B | -1.48B | Financing Cash Flow |
| -6.94B | -7.19B | -8.89B | -7.10B | -5.80B |
Unilever Technical Analysis
Positive
58.02
Price Trends
56.31
Positive
57.89
Positive
58.15
Negative
Market Momentum
0.07
Negative
60.75
Neutral
87.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UL, the sentiment is Positive. The current price of 58.02 is above the 20-day moving average (MA) of 56.52, above the 50-day MA of 56.31, and below the 200-day MA of 58.15, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 60.75 is Neutral, neither overbought nor oversold. The STOCH value of 87.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UL.
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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $406.08B | 27.59 | 30.25% | 2.29% | 0.49% | 5.02% | |
78 Outperform | $84.45B | 19.07 | 17.12% | 2.72% | 1.18% | -5.47% | |
74 Outperform | $73.90B | 25.95 | 1362.74% | 2.15% | 3.30% | 26.83% | |
73 Outperform | $148.52B | 23.28 | 28.73% | 3.21% | 1.99% | -10.59% | |
71 Outperform | $47.10B | 18.80 | 302.98% | 3.40% | -1.83% | 45.13% | |
69 Neutral | $211.47B | 22.18 | 53.09% | 3.42% | 0.42% | 5.77% | |
63 Neutral | $20.85B | 13.27 | -10.88% | 7.48% | 1.13% | 11.50% |
* Consumer Defensive Sector Average
Performance Comparison
UL
Unilever
58.02
10.53
22.17%
CL
Colgate-Palmolive
91.06
6.18
7.28%
KMB
Kimberly Clark
141.14
21.88
18.35%
PEP
PepsiCo
154.19
-4.02
-2.54%
PG
Procter & Gamble
173.18
17.70
11.38%
MDLZ
Mondelez International
65.29
-3.68
-5.34%
Unilever Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -1.09% | Next Earnings Date: Jul 31, 2025
Earnings Call Sentiment Neutral
Unilever delivered strong volume-led growth and significant improvements in gross margin and shareholder returns. However, challenges in key markets like China and Indonesia, coupled with inflationary pressures and increased finance costs, present ongoing challenges.Highlights
Volume-Led Growth
Unilever reported underlying volume growth of 2.9% for 2024, with all five Business Groups contributing to this growth.
Gross Margin Improvement
Gross margin increased by 280 basis points to 45%, exceeding pre-COVID levels in all Business Groups except Ice Cream.
Strong Performance in Beauty & Wellbeing
The Beauty & Wellbeing segment achieved a 6.5% increase in underlying sales growth, driven by 5.1% volume growth.
Significant Capital Return to Shareholders
Unilever returned €5.8 billion to shareholders in 2024 through dividends and share buybacks.
Productivity Program Ahead of Schedule
The program led to a reduction of 4,300 full-time roles by the end of 2024, ahead of the planned reduction of 7,500 roles by the end of 2025.
Strong Performance in North America
North America saw a 7% growth with volumes in excess of 6%, reflecting the strong performance of Wellbeing and Prestige segments.
Improved Cash Conversion
Cash conversion was strong at 106%, above the long-term ambition of around 100%.
Lowlights
Challenges in China
China experienced mid-single-digit declines due to market weakness and a transition to tailored customer development and digital routes.
Subdued Growth in Ice Cream
Ice Cream experienced a 3.7% underlying sales growth, with ongoing challenges in achieving gross margin improvements.
Increased Net Finance Costs
Higher interest rates impacted net finance costs, which were 2.5% of average net debt.
Inflationary Pressures
Significant inflation in key materials like cocoa and dairy expected to impact 2025, influencing pricing strategies.
Softness in Indonesia
Indonesia saw an 8.7% decline due to longstanding portfolio and brand proposition issues.
Company Guidance
In the 2024 fiscal year, Unilever reported a robust performance characterized by volume-led growth and notable improvements in gross margin, which increased by 280 basis points to 45%. This expansion exceeded pre-COVID levels across all business groups except Ice Cream, facilitating a €0.9 billion increase in brand and marketing investment to 15.5% of group turnover. The company achieved an underlying sales growth of 4.2%, driven primarily by a 2.9% increase in volume, with price contributing 1.3%. Unilever's 30 Power Brands, representing over 75% of group turnover, saw a 5.3% underlying sales growth, propelled by a 3.8% increase in volume. The company completed a significant portfolio shift with the separation of its Ice Cream business and reduced full-time roles by 4,300, with plans for a total reduction of 7,500 by 2025. Unilever also returned €5.8 billion to shareholders through dividends and buybacks. Looking ahead, Unilever anticipates a balanced contribution between volume and price growth in 2025, with a modest improvement in underlying operating margin expected in the latter half of the year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.