Unilever (UL) AI Stock Analysis

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Unilever

(NYSE:UL)

Select Model

Outperform 73 (OpenAI - 4o)

Rating:73Outperform

Price Target:

$68.00

▲(8.13% Upside)

Unilever's overall stock score reflects a strong financial performance and positive earnings call sentiment, particularly in developed markets. However, technical indicators and valuation suggest caution, with mixed signals and a relatively high P/E ratio. The company's strategic focus on growth and innovation provides a positive outlook, despite regional challenges.

Positive Factors

Revenue Growth

Consistent revenue growth driven by volume and price increases indicates strong market demand and effective pricing strategy, supporting long-term business expansion.

Market Position

Strong performance in developed markets, particularly North America, highlights Unilever's competitive positioning and ability to capitalize on stable economies.

Leadership Stability

Leadership stability with a new CFO can strengthen financial strategy and execution, supporting consistent growth and operational efficiency.

Negative Factors

Net Profit Margin Decline

Declining net profit margins suggest challenges in cost management or pricing power, potentially impacting long-term profitability and shareholder returns.

Currency Impact

Significant currency impacts can affect revenue and profit, complicating financial planning and potentially reducing international competitiveness.

Free Cash Flow Efficiency

Decreasing free cash flow efficiency may limit Unilever's ability to invest in growth opportunities and return capital to shareholders, affecting long-term financial health.

Unilever (UL) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$141.53B

Dividend Yield3.74%

Average Volume (3M)2.47M

Price to Earnings (P/E)23.7

Beta (1Y)-0.01

Revenue Growth-0.30%

EPS Growth-14.60%

CountryUS

Employees115,964

SectorConsumer Defensive

Sector Strength42

IndustryHousehold & Personal Products

Share Statistics

EPS (TTM)1.97

Shares Outstanding2,180,690,400

10 Day Avg. Volume1,907,636

30 Day Avg. Volume2,469,020

Financial Highlights & Ratios

PEG Ratio-2.20

Price to Book (P/B)6.87

Price to Sales (P/S)2.26

P/FCF Ratio17.65

Enterprise Value/Market Cap1.10

Enterprise Value/Revenue2.61

Enterprise Value/Gross Profit2.61

Enterprise Value/Ebitda12.42

Forecast

1Y Price Target

$68.37

Price Target Upside8.71% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

Unilever Business Overview & Revenue Model

Company DescriptionUnilever PLC operates as a fast-moving consumer goods company. It operates through Beauty & Personal Care, Foods & Refreshment, and Home Care segments. The Beauty & Personal Care segment provides skin care and hair care products, deodorants, and skin cleansing products. The Foods & Refreshment segment offers ice cream, soups, bouillons, seasonings, mayonnaise, ketchups, and tea categories. The Home Care segment provides fabric solutions and various cleaning products. The company offers its products under the Domestos, OMO, Seventh Generation, Ben & Jerry's, Knorr, Magnum, Wall's, Bango, the Vegetarian Butcher, Axe, Cif, Comfort, Dove, Lifebuoy, Lux, Rexona, Sunsilk, Equilibra, OLLY, Liquid I.V., SmartyPants, Onnit, Hellmann's, and Vaseline brands. Unilever PLC was incorporated in 1894 and is headquartered in London, the United Kingdom.

How the Company Makes MoneyUnilever generates revenue through the sale of its vast array of consumer products across multiple segments. The company's revenue model is primarily based on the retail distribution of its branded goods, which are sold through supermarkets, convenience stores, and online platforms. Key revenue streams include personal care products, which contribute a significant portion of sales, followed by food and refreshments, and home care items. Unilever also benefits from strategic partnerships with retailers and e-commerce platforms, enhancing its market reach and product availability. Additionally, the company focuses on sustainability initiatives, which not only align with consumer preferences but also drive brand loyalty and long-term profitability.

Unilever Key Performance Indicators (KPIs)

Any

Sales Growth by Segment

Sales Growth by Segment
Analyzes sales increases in various product segments, highlighting areas of strong demand and potential for future expansion.

Chart InsightsUnilever's Beauty and Wellbeing segment shows a steady decline in growth, while Personal Care maintains moderate growth. Home Care and Nutrition segments are experiencing a slowdown, reflecting broader market challenges. The Ice Cream segment, despite recent fluctuations, is on track for a demerger, which could unlock value. The latest earnings call highlights strong performance in developed markets and emerging regions like Asia Pacific, but challenges persist in Latin America and China. The strategic focus on premium segments and brand investments suggests a cautious yet optimistic outlook for sustained growth.

Data provided by:

The Fly

Unilever Earnings Call Summary

Earnings Call Date:Jul 31, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Feb 05, 2026

Earnings Call Sentiment Neutral

The earnings call reflects a strong performance in developed markets, particularly North America, and promising growth in Asia. However, challenges in Latin America and currency impacts weigh on overall results. The company shows confidence in future growth, particularly with the upcoming Ice Cream demerger and continued investment in innovation.

Q2-2025 Updates

Positive Updates

Strong Developed Markets Performance

Developed markets, which represented 44% of group turnover, continued to perform strongly with first half USG of 4.3%, driven by 3.4% volume and 0.9% price. North America underlying sales grew 5.4% with 3.7% from volume.

Emerging Markets Growth in Asia

Asia Pacific Africa, representing 43% of group turnover, delivered underlying first half sales growth of 3.5% with 1.9% from volume and 1.6% from price. India performed well with 5% USG in second quarter largely driven by volume.

Ice Cream Segment Growth and Demerger

Ice Cream underlying sales grew 5.9%, driven by a 3.8% increase in volume and 2% price growth. The demerger of Ice Cream will take place in mid-November.

Successful Brand Innovations

Strong performances included double-digit growth from Vaseline, Liquid IV, Nutrafol, and Magnum, and high single-digit growth from Dove and Comfort.

Negative Updates

Challenges in Latin America

Latin America, representing 13% of the group turnover, grew 0.5% with a 4.6% decline in volume. Market volume growth turned negative in the second quarter due to economic challenges in Brazil and Mexico.

Volume Decline in Personal Care

Personal Care delivered 4.8% underlying sales growth driven mainly by price (3.3%) with only 1.4% from volume, reflecting subdued macro conditions in Latin America.

Currency Impact on Turnover

Turnover for the first half was EUR 30.1 billion, down 3.2% year-on-year, with a negative currency impact of 4% primarily due to the depreciation of the U.S. dollar versus the euro.

Company Guidance

In the second quarter of 2025, Unilever delivered a robust performance with underlying sales growth of 3.8%, an improvement from the first quarter, driven by a balanced contribution from volume growth of 1.8% and price growth of 2%. For the first half of the year, the company achieved underlying sales growth of 3.4%, with volumes up 1.5% and prices increasing by 1.9%. Notably, developed markets, which constitute 44% of Unilever's turnover, performed strongly with a 4.3% growth, propelled by a 3.4% rise in volumes. North America, in particular, saw underlying sales growth of 5.4%, supported by a 3.7% increase in volume. In emerging markets, the Asia Pacific Africa region reported a 3.5% growth in the first half, with an acceleration to over 5% in the second quarter. Despite challenges in Latin America, where volumes declined by 4.6%, Unilever maintained a competitive edge with ongoing share gains across the region. The company also highlighted its strategic focus on accelerating growth in key categories, including Beauty & Wellbeing, Personal Care, and Ice Cream, noting strong performances in brands like Vaseline, Liquid IV, and Magnum. Unilever remains confident in its full-year outlook, projecting underlying sales growth within the 3% to 5% range and anticipates an improvement in operating margins, driven by volume growth leverage and productivity initiatives.

Unilever Financial Statement Overview

Summary

Unilever's financial statements reflect strong revenue growth and operational efficiency, with robust EBIT and EBITDA margins. However, challenges in maintaining net profitability and free cash flow levels, along with a slight decline in ROE, indicate areas for improvement.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	59.77B	60.76B	59.60B	60.07B	52.44B	50.72B
Gross Profit	59.77B	60.76B	25.18B	24.17B	22.18B	22.04B
EBITDA	12.56B	13.01B	11.06B	10.58B	11.38B	11.38B
Net Income	5.55B	5.74B	6.49B	7.64B	6.05B	5.58B
Balance Sheet
Total Assets	76.00B	79.75B	75.27B	77.82B	75.09B	67.66B
Cash, Cash Equivalents and Short-Term Investments	5.31B	7.63B	6.11B	5.52B	4.50B	6.30B
Total Debt	32.02B	30.66B	28.59B	28.44B	29.67B	26.77B
Total Liabilities	56.07B	57.20B	54.50B	56.12B	55.35B	50.00B
Stockholders Equity	17.80B	19.99B	18.10B	19.02B	17.11B	15.27B
Cash Flow
Free Cash Flow	6.62B	7.78B	7.92B	5.83B	6.86B	8.20B
Operating Cash Flow	8.44B	9.52B	9.43B	7.28B	7.97B	9.06B
Investing Cash Flow	-881.00M	-625.00M	-2.29B	2.45B	-3.25B	-1.48B
Financing Cash Flow	-7.73B	-6.94B	-7.19B	-8.89B	-7.10B	-5.80B

Unilever Technical Analysis

Technical Analysis Sentiment

Positive

Last Price62.89

Price Trends

50DMA

64.53

Positive

100DMA

64.91

Positive

200DMA

64.91

Positive

Market Momentum

MACD

-0.05

Positive

RSI

54.57

Neutral

STOCH

80.11

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 62.89 is below the 20-day moving average (MA) of 64.89, below the 50-day MA of 64.53, and below the 200-day MA of 64.91, indicating a bullish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 80.11 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 (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	74 Outperform	$341.98B	21.36	31.90%	2.92%	1.23%	17.97%
UL	73 Outperform	$141.53B	23.70	28.36%	3.74%	-0.30%	-14.60%
KVUE	73 Outperform	$32.80B	23.01	13.47%	4.85%	-2.94%	34.54%
CL	63 Neutral	$68.15B	23.69	450.35%	2.67%	-0.05%	2.49%
KMB	63 Neutral	$32.90B	16.79	136.87%	5.03%	-10.04%	-23.41%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EL	56 Neutral	$42.13B	-45.26	-20.73%	1.30%	-6.36%	-554.84%

* Consumer Defensive Sector Average

Performance Comparison

Unilever

65.33

7.90

13.76%

Colgate-Palmolive

84.55

-1.92

-2.22%

The Estée Lauder Companies

116.91

40.19

52.39%

KMB

Kimberly Clark

99.15

-22.52

-18.51%

Procter & Gamble

146.35

-10.02

-6.41%

KVUE

Kenvue, Inc.

17.12

-3.23

-15.87%

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.Date of analysis: Oct 30, 2025