Unilever (UL) AI Stock Analysis

• Market Cap: $145.29B
• Dividend Yield: 3.35%
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.06
• Revenue Growth: -0.30%
• EPS Growth: -14.60%
• Country: US
• Employees: 115,964
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 1.84
• Shares Outstanding: 2,451,884,800
• 10 Day Avg. Volume: 2,360,468
• 30 Day Avg. Volume: 2,278,379
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 3.04
• Enterprise Value/Gross Profit: 3.04
• Enterprise Value/Ebitda: 14.22
• 1Y Price Target: $68.00
• Price Target Upside: 14.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $68.00 ▲(14.71% Upside)

Unilever's overall stock score is driven by strong financial performance and positive earnings call insights, particularly in developed markets and strategic growth areas. However, technical analysis and valuation present a more cautious outlook, with mixed signals and moderate attractiveness.

Unilever Business Overview & Revenue Model

Company Description

Unilever 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 Money

Unilever 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 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

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

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

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: Negative
• Last Price: 59.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UL, the sentiment is Negative. The current price of 59.28 is below the 20-day moving average (MA) of 62.28, below the 50-day MA of 61.33, and below the 200-day MA of 59.40, indicating a bearish trend. The MACD of -0.61 indicates Positive momentum. The RSI at 32.88 is Neutral, neither overbought nor oversold. The STOCH value of 3.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UL.

Unilever Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	74 Outperform	$356.92B	23.43	30.71%	2.71%	0.29%	7.85%
UL	71 Outperform	$145.29B	24.20	28.36%	3.35%	-0.30%	-14.60%
CL	63 Neutral	$64.33B	22.37	414.39%	2.56%	0.05%	3.55%
KVUE	59 Neutral	$31.51B	22.31	10.65%	5.01%	-2.15%	26.65%
KMB	57 Neutral	$40.55B	16.85	191.19%	4.09%	-6.89%	7.52%
EL	50 Neutral	$31.19B	-27.54	-29.31%	1.62%	-8.14%	-389.12%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Unilever Corporate Events

Unilever’s Leadership Reinvests in Company Shares

On September 15, 2025, Unilever PLC reported a transaction involving Esi Bracey, the Chief Growth and Marketing Officer, who reinvested dividends into 912.833 PLC ADR shares at a price of $62.4924 per share, totaling $57,045.12. This transaction, conducted on the New York Stock Exchange, underscores Unilever’s commitment to aligning its leadership’s interests with shareholder value, potentially impacting investor confidence and market perception.

Unilever’s Executive Transactions Reflect Strategic Alignment

On September 12, 2025, Unilever PLC disclosed several transactions involving its top executives, including CEO Fernando Fernandez, CFO Srinivas Phatak, Chief Growth and Marketing Officer Esi Bracey, and Business Group President Eduardo Campanella. These transactions, conducted on the London and New York Stock Exchanges, involved the accrual of dividend equivalents on unvested share awards, reflecting the company’s ongoing commitment to aligning executive incentives with shareholder interests.

Unilever Announces Directorate Change on September 16, 2025

On September 16, 2025, Unilever PLC, a leading multinational company in the consumer goods industry, announced a directorate change. This announcement, filed under Form 6-K with the SEC, signifies a strategic shift in the company’s leadership structure, potentially impacting its market positioning and stakeholder relations.

Unilever Appoints Srinivas Phatak as New CFO

Unilever PLC has appointed Srinivas Phatak as its new Chief Financial Officer, effective immediately, following a comprehensive search process. Srinivas, who previously served as Deputy CFO and Group Controller, was acting CFO since February 2025. His appointment is expected to enhance Unilever’s financial strategy and growth, as noted by CEO Fernando Fernandez, who praised Srinivas’s financial acumen and leadership. This strategic move is anticipated to drive consistent volume growth and margin expansion, benefiting stakeholders and strengthening Unilever’s market position.

Unilever Maintains Stability in Equity Compensation Plans

On September 15, 2025, Unilever PLC released its six-monthly block listing return, reporting no change in the number of unallotted securities under its share schemes, which include the Unilever Share Plan 2017 and the SHARES Plan. The balance of unallotted securities remains at 6,500,000, indicating stability in the company’s equity compensation plans. This stability may reflect Unilever’s steady approach to managing its equity distribution, which can reassure stakeholders about the company’s financial strategies and market positioning.