Unilever (UL) AI Stock Analysis

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Unilever

(NYSE:UL)

Rating:73Outperform

Price Target:

$67.00

▲(4.18% Upside)

Unilever demonstrates strong financial health with notable revenue and operational efficiency. Positive earnings call insights, particularly in developed markets, further enhance its outlook. However, technical indicators and valuation suggest cautious optimism due to mixed market signals and premium valuation metrics.

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

Market Cap

$157.91B

Dividend Yield3.09%

Average Volume (3M)2.32M

Price to Earnings (P/E)26.3

Beta (1Y)0.07

Revenue Growth-0.30%

EPS Growth-14.60%

CountryUS

Employees115,964

SectorConsumer Defensive

Sector Strength45

IndustryHousehold & Personal Products

Share Statistics

EPS (TTM)1.84

Shares Outstanding2,451,884,800

10 Day Avg. Volume2,421,990

30 Day Avg. Volume2,324,765

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.17

Enterprise Value/Revenue3.04

Enterprise Value/Gross Profit3.04

Enterprise Value/Ebitda14.22

Forecast

1Y Price Target

$67.00

Price Target Upside4.18% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

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 diverse range of consumer products across different segments. The company operates a multi-channel distribution strategy, including traditional retail, e-commerce, and direct-to-consumer platforms, allowing it to reach a wide customer base. Key revenue streams include personal care products, which account for a significant portion of sales, followed by food and refreshments, and home care products. Unilever's significant partnerships with retailers, both physical and online, enhance its market presence and accessibility. Additionally, the company invests in marketing and innovation to drive brand loyalty and expand its product offerings, further contributing to its earnings.

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:

Main Street Data

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 performance is robust with steady revenue growth and strong operational efficiency. However, challenges exist in maintaining net profitability and free cash flow levels, and there's a slight decline in ROE.

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	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
EBITDA	13.01B	11.06B	10.71B	11.38B	11.38B
Net Income	5.74B	6.49B	7.64B	6.05B	5.58B
Balance Sheet
Total Assets	79.75B	75.27B	77.82B	75.09B	67.66B
Cash, Cash Equivalents and Short-Term Investments	7.63B	6.11B	5.52B	4.50B	6.30B
Total Debt	30.66B	28.59B	28.44B	29.67B	26.77B
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

Technical Analysis Sentiment

Positive

Last Price64.31

Price Trends

50DMA

60.95

Positive

100DMA

61.54

Positive

200DMA

59.08

Positive

Market Momentum

MACD

0.97

Negative

RSI

64.48

Neutral

STOCH

90.65

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 64.31 is above the 20-day moving average (MA) of 62.40, above the 50-day MA of 60.95, and above the 200-day MA of 59.08, indicating a bullish trend. The MACD of 0.97 indicates Negative momentum. The RSI at 64.48 is Neutral, neither overbought nor oversold. The STOCH value of 90.65 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
PG	78 Outperform	$374.83B	24.59	31.23%	2.58%	0.29%	7.85%
UL	73 Outperform	$157.91B	26.25	28.36%	3.09%	-0.30%	-14.60%
CL	63 Neutral	$68.80B	23.93	705.21%	2.40%	0.05%	3.55%
Sector *	63 Neutral	$20.52B	14.80	-2.68%	3.09%	1.95%	-4.76%
KMB	60 Neutral	$43.09B	17.90	196.26%	3.85%	-6.89%	7.52%
KVUE	58 Neutral	$35.73B	25.30	13.56%	4.42%	-2.15%	26.65%
EL	50 Neutral	$32.10B	147.29	-24.69%	1.57%	-8.14%	-389.12%

* Consumer Defensive Sector Average

Performance Comparison

Unilever

64.31

0.85

1.34%

Colgate-Palmolive

85.13

-19.63

-18.74%

The Estée Lauder Companies

89.20

3.88

4.55%

KMB

Kimberly Clark

129.89

-11.95

-8.42%

Procter & Gamble

160.02

-11.70

-6.81%

KVUE

Kenvue, Inc.

18.62

-3.74

-16.73%

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: Aug 02, 2025