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Unilever (GB:ULVR)
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Unilever (ULVR) AI Stock Analysis

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GB:ULVR

Unilever

(LSE:ULVR)

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Outperform 77 (OpenAI - 4o)
Rating:77Outperform
Price Target:
5,173.00p
▲(10.82% Upside)
Unilever's overall stock score is driven by its strong financial performance and positive earnings outlook, despite some technical and valuation concerns. The company's ability to maintain profitability and growth in developed markets, along with strategic initiatives in emerging markets, supports a favorable investment case.
Positive Factors
Strong Developed Markets Performance
Unilever's strong sales growth in developed markets like North America and Europe indicates robust brand strength and market penetration, which are crucial for sustaining long-term revenue and profitability.
Power Brands Growth
The growth of Power Brands, which make up a significant portion of Unilever's turnover, underscores the company's ability to leverage its strong brand portfolio for sustained revenue growth.
Productivity Savings
Achieving significant productivity savings enhances Unilever's operational efficiency, allowing for reinvestment in growth initiatives and margin improvement, supporting long-term financial health.
Negative Factors
Challenges in Latin America
Volume declines in Latin America highlight vulnerability to economic fluctuations and currency impacts, which can hinder growth prospects in this key emerging market.
Higher Costs Impacting Margins
Rising costs and margin pressures could limit Unilever's ability to maintain profitability, affecting its capacity to invest in growth and innovation over the long term.
Currency Impact on Turnover
Currency fluctuations pose a risk to Unilever's revenue stability, especially given its global operations, potentially affecting financial performance and strategic planning.

Unilever (ULVR) vs. iShares MSCI United Kingdom ETF (EWC)

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 primarily through the sales of its diverse range of consumer products. The company operates under a multi-channel distribution model, selling its products in supermarkets, hypermarkets, online platforms, and convenience stores. Key revenue streams include beauty and personal care products, which account for a significant portion of sales, followed by food and refreshments. Unilever also benefits from strong brand loyalty and extensive market penetration. Strategic partnerships with retailers and e-commerce platforms enhance its distribution capabilities, while ongoing investments in marketing and product innovation help drive sales growth. Additionally, Unilever's commitment to sustainability and socially responsible practices resonates with consumers, contributing to its competitive advantage and revenue generation.

Unilever Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
Unilever's earnings call presented a balanced outlook with strong performance in developed markets and improving trends in emerging markets, particularly in Asia. However, challenges in Latin America and China, along with currency impacts and margin pressures, tempered the overall positive growth narrative.
Q2-2025 Updates
Positive Updates
Strong Developed Markets Performance
Unilever outperformed markets in developed economies with underlying sales growth of 5.4% in North America and 3.4% in Europe for the first half of 2025.
Positive Emerging Markets Growth
Asia Pacific Africa region grew by 3.5% in the first half, accelerating to over 5% growth in the second quarter. India showed 5% USG in the second quarter, largely driven by volume.
Power Brands Growth
Power Brands, which contribute over 75% of group turnover, grew 3.8% in the first half, with notable double-digit growth from Vaseline, Liquid IV, Nutrafol, and Magnum.
Ice Cream Segment Progress
Ice Cream segment grew 5.9% in the first half, supported by strong innovations and preparations for an upcoming demerger.
Productivity Savings
Unilever's productivity program is ahead of expectations, with cumulative savings now expected to reach EUR 650 million by year-end.
Negative Updates
Challenges in Latin America
Latin America saw a decline in volume by 4.6% due to pricing actions to offset currency movements and challenging macroeconomic conditions.
Continued Struggles in China
Underlying sales in China remained flat with market conditions described as challenging.
Volume Decline in Indonesia
Indonesia experienced a volume decline of around 5%, though improvements are expected in the second half.
Higher Costs Impacting Margins
Underlying operating margin decreased by 30 basis points to 19.3%, with increased marketing investments and input cost inflation.
Currency Impact on Turnover
Turnover was negatively impacted by a 4% currency fluctuation, primarily due to the depreciation of the U.S. dollar versus the euro.
Company Guidance
During Unilever's second quarter trading statement for 2025, the company reported a 3.4% underlying sales growth for the first half, driven by a balanced contribution from volume (1.5%) and price (1.9%) increases. Developed markets, such as North America and Europe, showed robust performance with a respective underlying sales growth of 5.4% and 3.4%. Emerging markets also saw improvement, notably in Asia Pacific Africa, which recorded a 3.5% growth in the first half, accelerating to over 5% in the second quarter. Despite challenges in Latin America, where volume declined by 4.6% due to pricing actions to offset currency depreciation, Unilever remains confident in its portfolio and anticipates recovery. The company also highlighted the positive performance of its Ice Cream segment, with a 5.9% sales growth, and the strategic progress toward its demerger planned for November. Unilever's underlying operating margin stood at 19.3%, down 30 basis points from the previous year, reflecting increased brand investment. The company maintains a positive outlook for the year, expecting full-year sales growth between 3% and 5% and an operating margin improvement in the second half, despite macroeconomic uncertainties.

Unilever Financial Statement Overview

Summary
Unilever's financials are solid with consistent revenue growth, strong profitability, and efficient cash flow management. The company maintains a stable financial position with strong operational efficiency and profitability, suitable for sustaining its market position in the consumer products industry.
Income Statement
85
Very Positive
Unilever demonstrates strong profitability with a consistent gross profit margin around 45% over recent years. Despite a slight decline in EBIT and EBITDA margins from 2022 to 2023, the company maintains solid net profit margins and shows an impressive revenue growth rate of 1.92% in the latest period.
Balance Sheet
78
Positive
The balance sheet reflects moderate leverage with a debt-to-equity ratio of 1.53. Return on Equity is robust at 28.75%, indicating effective use of equity. However, the equity ratio stands at 25.06%, which suggests a reliance on debt financing but remains within manageable levels for the industry.
Cash Flow
82
Very Positive
Unilever's cash flow is strong with a high operating cash flow to net income ratio of 1.66, indicating efficient cash generation. Although free cash flow growth shows a slight decline, the company maintains a healthy free cash flow to net income ratio of 1.31, ensuring liquidity for operations and investments.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue44.71B60.76B59.60B60.07B52.44B50.72B
Gross Profit11.32B27.37B25.18B24.17B22.18B22.04B
EBITDA8.60B11.74B11.99B13.07B10.82B10.72B
Net Income3.80B5.74B6.49B7.64B6.05B5.58B
Balance Sheet
Total Assets76.00B79.75B75.27B77.82B75.09B67.66B
Cash, Cash Equivalents and Short-Term Investments5.37B7.63B6.11B5.52B4.50B6.30B
Total Debt32.02B30.66B28.59B28.44B29.67B26.77B
Total Liabilities56.07B57.20B54.50B56.12B55.35B50.00B
Stockholders Equity17.80B19.99B18.10B19.02B17.11B15.27B
Cash Flow
Free Cash Flow5.83B7.55B7.68B5.66B6.73B8.13B
Operating Cash Flow7.30B9.52B9.43B7.28B7.97B9.06B
Investing Cash Flow-557.00M-625.00M-2.29B2.45B-3.25B-1.48B
Financing Cash Flow-6.26B-6.94B-7.19B-8.89B-7.10B-5.80B

Unilever Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4668.00
Price Trends
50DMA
4565.00
Positive
100DMA
4518.73
Positive
200DMA
4523.01
Positive
Market Momentum
MACD
48.48
Negative
RSI
63.05
Neutral
STOCH
76.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ULVR, the sentiment is Positive. The current price of 4668 is above the 20-day moving average (MA) of 4515.30, above the 50-day MA of 4565.00, and above the 200-day MA of 4523.01, indicating a bullish trend. The MACD of 48.48 indicates Negative momentum. The RSI at 63.05 is Neutral, neither overbought nor oversold. The STOCH value of 76.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
£114.97B24.7828.78%3.12%-2.98%-16.91%
£39.73B32.4117.41%3.50%-2.41%-16.41%
£16.32B12.9311.89%2.75%-0.38%14.68%
$40.27B22.1222.29%4.41%-2.83%-40.42%
$20.33B14.63-3.31%3.23%1.93%-12.26%
£84.93B28.056.03%6.11%-2.24%
£323.85M-55.94-2.51%1.93%-2.67%89.86%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ULVR
Unilever
4,668.00
46.50
1.01%
GB:DGE
Diageo
1,785.00
-629.72
-26.08%
GB:ABF
Associated British Foods
2,290.00
95.34
4.34%
GB:BATS
British American Tobacco
3,911.00
1,438.89
58.20%
GB:PZC
PZ Cussons
77.70
-4.98
-6.02%
GB:RKT
Reckitt
5,890.00
1,258.22
27.16%

Unilever Corporate Events

Business Operations and StrategyFinancial DisclosuresM&A Transactions
Unilever Reports Strong Q3 Growth and Prepares for Ice Cream Demerger
Positive
Oct 23, 2025

Unilever reported a 3.9% underlying sales growth in the third quarter of 2025, driven by strong performances across its business groups, particularly in beauty and wellbeing. The company is on track to meet its full-year outlook, despite a decline in turnover due to currency impacts and net disposals. Unilever is set to complete the demerger of its ice cream business, which will simplify its operations and enhance its focus on higher-margin segments. The demerger is expected to create a world-leading ice cream business, The Magnum Ice Cream Company, and improve Unilever’s structural margin profile. The company continues to see growth in developed markets, with a notable performance in North America, and is making strides in emerging markets, particularly in Indonesia and China.

The most recent analyst rating on (GB:ULVR) stock is a Sell with a £4120.00 price target. To see the full list of analyst forecasts on Unilever stock, see the GB:ULVR Stock Forecast page.

Business Operations and StrategyStock BuybackShareholder Meetings
Unilever Shareholders Approve Key Resolutions Amidst Demerger Plans
Positive
Oct 21, 2025

Unilever PLC announced the successful passage of two special resolutions at its general meeting, which were related to the consolidation of its share capital following the demerger of The Magnum Ice Cream Company N.V. The resolutions, which include amendments to the company’s articles of association and authority to purchase its own shares, were overwhelmingly approved by shareholders. This strategic move is part of Unilever’s broader efforts to streamline its operations and enhance shareholder value, although the timeline for the demerger will be adjusted due to the ongoing US federal government shutdown.

The most recent analyst rating on (GB:ULVR) stock is a Sell with a £4120.00 price target. To see the full list of analyst forecasts on Unilever stock, see the GB:ULVR Stock Forecast page.

Business Operations and StrategyM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Unilever Revises Demerger Timetable Amid US Government Shutdown
Neutral
Oct 21, 2025

Unilever PLC has announced a revision to the timetable for the demerger of The Magnum Ice Cream Company N.V. due to the ongoing US federal government shutdown, which has delayed the US Securities and Exchange Commission’s ability to approve necessary registration statements. Despite this delay, Unilever remains committed to completing the demerger within 2025 and will provide further updates on the revised schedule. The shareholder meeting to vote on the proposed share consolidation related to the demerger will proceed as planned, although its implementation timeline will also be adjusted. This development could impact Unilever’s strategic operations and market positioning, particularly in the ice cream sector, and stakeholders should be aware of potential changes in the company’s structural and financial dynamics.

The most recent analyst rating on (GB:ULVR) stock is a Sell with a £4120.00 price target. To see the full list of analyst forecasts on Unilever stock, see the GB:ULVR Stock Forecast page.

Executive/Board Changes
Unilever Appoints Belén Garijo López as Independent Non-Executive Director
Positive
Oct 7, 2025

Unilever PLC has appointed Belén Garijo López as an independent Non-Executive Director, effective from May 13, 2026. Belén, who brings extensive experience from the FMCG and healthcare sectors, is expected to enhance the board’s capabilities with her proven leadership in diversity and international collaboration. This strategic appointment is anticipated to strengthen Unilever’s board, potentially impacting its operations and market positioning positively.

The most recent analyst rating on (GB:ULVR) stock is a Buy with a £5300.00 price target. To see the full list of analyst forecasts on Unilever stock, see the GB:ULVR Stock Forecast page.

Business Operations and StrategyDelistings and Listing Changes
Unilever to Demerge Ice Cream Business, Creating New Listed Entity
Neutral
Oct 2, 2025

Unilever PLC has announced the separation of its ice cream business, which will be executed through a demerger, resulting in the creation of The Magnum Ice Cream Company N.V. as a separate listed entity. This strategic move is accompanied by a proposed share consolidation to maintain share price comparability, requiring shareholder approval at a general meeting. The demerger is expected to complete by November 2025, with the new company’s shares commencing trading shortly thereafter. This separation is part of Unilever’s broader strategy to streamline operations and focus on its core business areas, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (GB:ULVR) stock is a Sell with a £3800.00 price target. To see the full list of analyst forecasts on Unilever stock, see the GB:ULVR Stock Forecast page.

Regulatory Filings and Compliance
Unilever Updates Voting Rights and Capital Structure
Neutral
Oct 1, 2025

Unilever PLC announced an update on its voting rights and capital structure as of September 30, 2025. The company reported an issued share capital of 2,524,997,338 ordinary shares, with 2,451,885,256 shares having voting rights. This update is in accordance with the UK Financial Conduct Authority’s rules and is crucial for shareholders to determine their notification requirements regarding their interest in the company.

The most recent analyst rating on (GB:ULVR) stock is a Sell with a £3800.00 price target. To see the full list of analyst forecasts on Unilever stock, see the GB:ULVR Stock Forecast page.

Regulatory Filings and Compliance
Unilever Issues Corrective Statement on Director Shareholding
Neutral
Sep 22, 2025

Unilever PLC issued a corrective statement regarding a previous announcement about Director/PDMR shareholding, specifically updating the number of shares for Peter Ter Kulve, Business Group President of Ice Cream. The amendment reflects changes in the aggregated volume of EUR shares due to reinvestment of dividends, highlighting transparency in Unilever’s managerial disclosures.

The most recent analyst rating on (GB:ULVR) stock is a Buy with a £5128.00 price target. To see the full list of analyst forecasts on Unilever stock, see the GB:ULVR Stock Forecast page.

Business Operations and StrategyDividends
Unilever Executives Reinvest Dividends in Company Shares
Positive
Sep 19, 2025

Unilever PLC has disclosed transactions involving its senior executives reinvesting dividends into company shares during an open trading period. This move, involving key figures such as the CFO and other leadership executives, underscores confidence in the company’s financial health and strategic direction, potentially boosting stakeholder trust and market perception.

The most recent analyst rating on (GB:ULVR) stock is a Buy with a £5128.00 price target. To see the full list of analyst forecasts on Unilever stock, see the GB:ULVR Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Unilever Publishes Final Terms for €600 Million Notes
Positive
Sep 3, 2025

Unilever has announced the publication of the final terms for its €600 million Floating Rate Notes due in September 2027, guaranteed by Unilever PLC and Unilever United States, Inc. This issuance is part of its $25 billion Debt Issuance Programme, reflecting the company’s strategic financial management and positioning in the capital markets. The move is expected to bolster Unilever’s financial flexibility and support its ongoing operations and growth initiatives.

The most recent analyst rating on (GB:ULVR) stock is a Buy with a £64.00 price target. To see the full list of analyst forecasts on Unilever stock, see the GB:ULVR Stock Forecast page.

Regulatory Filings and Compliance
Unilever Updates Voting Rights and Share Capital Structure
Neutral
Sep 1, 2025

Unilever PLC has updated its voting rights and capital structure as of August 29, 2025, with a total issued share capital of 2,524,997,338 ordinary shares. Of these, 71,366,436 are held as treasury shares, and 1,746,200 shares are held by Unilever group companies, leaving 2,451,884,702 shares with voting rights. This figure is crucial for shareholders to determine their notification requirements under the UK Financial Conduct Authority’s rules.

The most recent analyst rating on (GB:ULVR) stock is a Buy with a £64.00 price target. To see the full list of analyst forecasts on Unilever stock, see the GB:ULVR Stock Forecast page.

Regulatory Filings and Compliance
Unilever Updates Share Capital and Voting Rights
Neutral
Aug 1, 2025

Unilever PLC has announced an update on its voting rights and capital, revealing that as of July 31, 2025, the company had an issued share capital of 2,524,997,338 ordinary shares. Out of these, 71,366,436 were held as treasury shares and 1,786,723 were held by companies within the Unilever group, with the latter’s voting rights being non-exercisable. This leaves 2,451,844,179 shares with voting rights, a figure that shareholders can use to determine their notification requirements under the UK Financial Conduct Authority’s rules. This update is crucial for stakeholders to understand their position and obligations concerning Unilever’s shares.

The most recent analyst rating on (GB:ULVR) stock is a Sell with a £40.00 price target. To see the full list of analyst forecasts on Unilever stock, see the GB:ULVR Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Unilever Publishes Supplement for $25 Billion Debt Programme
Neutral
Jul 31, 2025

Unilever PLC has announced the publication of a Supplement related to its $25 billion Debt Issuance Programme, which has been approved by the Financial Conduct Authority. This move is part of Unilever’s financial strategy to support its operations and growth, potentially impacting its market positioning and providing assurance to stakeholders about its financial health.

The most recent analyst rating on (GB:ULVR) stock is a Buy with a £63.50 price target. To see the full list of analyst forecasts on Unilever stock, see the GB:ULVR Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Unilever Reports 3.4% Sales Growth in H1 2025 Amid Ice Cream Demerger Plans
Positive
Jul 31, 2025

Unilever reported a 3.4% underlying sales growth in the first half of 2025, driven by a balance of volume and price increases, despite a 3.2% decline in turnover due to adverse currency impacts and net disposals. The company completed the operational separation of its Ice Cream business, which is set for demerger in November, aiming to transform Unilever into a more focused organization and create a leading standalone ice cream entity. The company anticipates further growth acceleration in emerging markets and sustained momentum in developed markets for the second half of 2025.

The most recent analyst rating on (GB:ULVR) stock is a Buy with a £63.50 price target. To see the full list of analyst forecasts on Unilever stock, see the GB:ULVR Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Unilever Reports 3.4% Sales Growth Amid Strategic Ice Cream Demerger
Positive
Jul 31, 2025

Unilever reported a 3.4% underlying sales growth in the first half of 2025, driven by balanced volume and price increases across its business segments. Despite a 3.2% decline in turnover due to adverse currency impacts and disposals, the company maintained a strong gross margin and increased brand investment. The operational separation of its Ice Cream business is complete, with a demerger planned for mid-November, positioning Unilever to focus more on its core segments and enhancing its market competitiveness. The company anticipates further growth in the second half, particularly in emerging markets like India, Indonesia, and China, and aims to improve its operating margins.

The most recent analyst rating on (GB:ULVR) stock is a Sell with a £4000.00 price target. To see the full list of analyst forecasts on Unilever stock, see the GB:ULVR Stock Forecast page.

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 16, 2025