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Unilever (GB:ULVR)
LSE:ULVR
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Unilever
(LSE:ULVR)
Select Model
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Rating:76Outperform
Price Target:
5,128.00p
▲(15.13% Upside)
Unilever's overall stock score is driven by its solid financial performance and positive earnings call, which highlight strong market presence and growth potential. While technical indicators suggest a neutral to slightly positive outlook, valuation concerns due to a high P/E ratio are partially mitigated by a strong dividend yield. Challenges in certain regions and margin pressures are notable risks but are balanced by strategic growth initiatives.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective pricing strategies, supporting long-term business expansion.
Cash Generation
Efficient cash generation ensures liquidity for operations and strategic investments, bolstering financial stability and growth potential.
Management Changes
Refreshing management can drive performance improvements and strategic realignment, enhancing long-term competitiveness and execution.
Negative Factors
Margin Pressures
Decreasing margins due to higher costs can impact profitability, requiring strategic cost management to maintain financial health.
Challenges in Latin America
Regional challenges can hinder growth and require targeted strategies to overcome economic and competitive pressures.
Leadership Departure
Leadership changes may disrupt brand strategy and impact consumer perception, necessitating careful management to maintain brand equity.
Unilever (ULVR) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£109.87B
Dividend Yield3.28%
Average Volume (3M)3.48M
Price to Earnings (P/E)24.1
Beta (1Y)0.36
Revenue Growth-2.98%
EPS Growth-16.91%
CountryUK
Employees115,964
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)1.38
Shares Outstanding2,451,884,800
10 Day Avg. Volume4,194,879
30 Day Avg. Volume3,481,267
Financial Highlights & Ratios
PEG Ratio-2.36
Price to Book (P/B)6.89
Price to Sales (P/S)2.27
P/FCF Ratio18.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£5,079.94Price Target Upside14.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
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
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 44.71B | 60.76B | 59.60B | 60.07B | 52.44B | 50.72B |
| Gross Profit | 11.32B | 27.37B | 25.18B | 24.17B | 22.18B | 22.04B |
| EBITDA | 8.60B | 11.74B | 11.99B | 13.07B | 10.82B | 10.72B |
| Net Income | 3.80B | 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 | 5.37B | 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 | 5.83B | 7.55B | 7.68B | 5.66B | 6.73B | 8.13B |
| Operating Cash Flow | 7.30B | 9.52B | 9.43B | 7.28B | 7.97B | 9.06B |
| Investing Cash Flow | -557.00M | -625.00M | -2.29B | 2.45B | -3.25B | -1.48B |
| Financing Cash Flow | -6.26B | -6.94B | -7.19B | -8.89B | -7.10B | -5.80B |
Unilever Technical Analysis
Negative
4454.00
Price Trends
4536.67
Negative
4548.40
Negative
4518.43
Negative
Market Momentum
-18.15
Positive
35.47
Neutral
8.85
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ULVR, the sentiment is Negative. The current price of 4454 is below the 20-day moving average (MA) of 4626.95, below the 50-day MA of 4536.67, and below the 200-day MA of 4518.43, indicating a bearish trend. The MACD of -18.15 indicates Positive momentum. The RSI at 35.47 is Neutral, neither overbought nor oversold. The STOCH value of 8.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | £109.87B | 24.06 | 28.78% | 3.28% | -2.98% | -16.91% | |
75 Outperform | 38.27B | 31.15 | 21.29% | 3.69% | -2.41% | -16.41% | |
66 Neutral | 86.63B | 28.56 | 6.18% | 6.10% | -2.24% | 0.00% | |
65 Neutral | 14.06B | 11.14 | 13.01% | 3.16% | -0.38% | 14.68% | |
60 Neutral | 39.56B | 21.74 | 21.23% | 4.42% | -2.83% | -40.42% | |
50 Neutral | 327.20M | -57.39 | 0.00% | 1.89% | -2.67% | 89.86% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
Performance Comparison
GB:ULVR
Unilever
4,454.00
-284.49
-6.00%
DGEAF
Diageo
24.26
-8.88
-26.80%
GB:ABF
Associated British Foods
1,991.50
-198.36
-9.06%
GB:BATS
British American Tobacco
3,897.00
1,267.11
48.18%
GB:PZC
PZ Cussons
78.00
-8.23
-9.54%
GB:RKT
Reckitt
5,588.00
1,184.64
26.90%
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.