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Unilever
(LSE:ULVR)
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Rating:71Outperform
Price Target:
5,406.00 p
▲(13.54% Upside)
Action:Upgraded
Date:10/28/26
The score is driven primarily by solid financial quality (strong profitability and reliable free cash flow) and a constructive technical uptrend. The upgraded guidance and strong volume-led momentum from the earnings call further support the outlook, while elevated leverage and a moderate valuation (P/E ~22.8) temper the upside.
Positive Factors
Volume-led brand growth
Broad volume growth indicates stronger consumer demand and product adoption rather than growth relying mainly on price increases. The scale and performance of power brands support retailer presence, marketing efficiency, and more durable revenue momentum across future quarters.
Negative Factors
Elevated leverage
High debt relative to equity leaves less financial flexibility if earnings weaken or interest costs remain elevated. It can constrain acquisitions, investment, and shareholder returns, while making operating setbacks more consequential for cash allocation and balance-sheet resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Volume-led brand growth
Broad volume growth indicates stronger consumer demand and product adoption rather than growth relying mainly on price increases. The scale and performance of power brands support retailer presence, marketing efficiency, and more durable revenue momentum across future quarters.
Read all positive factors
Unilever (ULVR) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£105.40B
Dividend Yield3.37%
Average Volume (3M)3.30M
Price to Earnings (P/E)22.8
Beta (1Y)0.46
Revenue Growth-20.44%
EPS Growth4.96%
CountryUK
Employees93,732
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)2.57
Shares Outstanding2,154,328,000
10 Day Avg. Volume3,120,430
30 Day Avg. Volume3,299,969
Financial Highlights & Ratios
PEG Ratio3.51
Price to Book (P/B)7.83
Price to Sales (P/S)2.41
P/FCF Ratio19.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£5,154.44Price Target Upside8.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)3.21
Revenue Forecast (FY)£51.87B
Unilever Business Overview & Revenue Model
Company Description
Unilever Plc engages in the manufacture and sale of consumer goods. It operates through the following segments: Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream. The Beauty & Wellbeing segment offers hair care, skin care, and...
How the Company Makes Money
Unilever makes money primarily by selling branded consumer goods to retailers, distributors, and other trade customers (and to a lesser extent directly to consumers via e-commerce and direct-to-consumer channels). Revenue is generated from the vol...
Unilever Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 11, 2027
Earnings Call Sentiment Positive
The call conveyed strong operational momentum — notably robust, broad-based volume-led growth, power brand outperformance, margin resilience and improved cash generation — while acknowledging discrete challenges: Foods/condiments weakness in the U.S., gross margin pressure from commodity inflation, currency headwinds and some regional/category pockets of underperformance. Management upgraded full-year guidance (underlying sales growth 4–6% with ~3% volume) and outlined actions (pricing, productivity, targeted innovations) to address headwinds.Positive Updates
Strong volume-led growth across the group
Underlying sales grew 4.8% in H1 with 4.2% from volume; Q2 underlying sales +5.8% and volume +5.5% — Unilever's best quarterly volume performance since 2010. Four-quarter average volume growth ~3%, 10-quarter average 2.7%.
Negative Updates
Foods underperformance and U.S. condiments weakness
Foods grew only +1.2% in H1 (Q2 slowed to +2%). Underlying operating profit for Foods EUR 1.5bn, down 4.3%. U.S. condiments below expectations—lost share in faster-growing premium mayonnaise segments (e.g., avocado-oil formulations); targeted innovation and execution plans in place.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong volume-led growth across the group
Underlying sales grew 4.8% in H1 with 4.2% from volume; Q2 underlying sales +5.8% and volume +5.5% — Unilever's best quarterly volume performance since 2010. Four-quarter average volume growth ~3%, 10-quarter average 2.7%.
Read all positive updates
Company Guidance
Unilever upgraded its full‑year outlook and gave detailed forward metrics: underlying sales growth is now guided to 4–6% for 2026 with around 3% volume growth (UVG) for the year, and second‑half growth of 4–5% led by pricing; management expects H2 commodity/inflation headwinds of ~€550m (full‑year inflation impact ~€800–900m, center ≈€850m), gross margins broadly similar to H1 (~46.8%), and a modest improvement in underlying operating margin versus 2025 (H1 margin 20.3%). Normative brand & marketing spend remains 15–16% of turnover (H1: 16.1%); overheads have improved ~70bps after completing an €800m productivity programme; finance costs are expected to stay below 3% for the year (H1: 2.5% of average net debt); underlying effective tax rate ~26%; currency headwinds should moderate (H1 FX cut turnover by ~4.9%; July spot implies a full‑year FX hit ≈3%); free cash flow stayed strong at €1.5bn in H1 and supports planned share buybacks of €6bn between 2026–2029.Unilever Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.97B | 50.50B | 60.76B | 59.60B | 60.07B | 52.44B |
| Gross Profit | 45.51B | 23.71B | 27.37B | 25.18B | 24.17B | 22.18B |
| EBITDA | 10.40B | 11.11B | 11.74B | 11.99B | 13.07B | 10.82B |
| Net Income | 5.90B | 5.99B | 5.74B | 6.49B | 7.64B | 6.05B |
Balance Sheet | ||||||
| Total Assets | 76.93B | 70.56B | 79.75B | 75.27B | 77.82B | 75.09B |
| Cash, Cash Equivalents and Short-Term Investments | 5.87B | 5.07B | 7.63B | 6.11B | 5.52B | 4.50B |
| Total Debt | 32.29B | 29.64B | 30.66B | 28.59B | 28.44B | 29.67B |
| Total Liabilities | 58.63B | 52.95B | 57.20B | 54.50B | 56.12B | 55.35B |
| Stockholders Equity | 16.28B | 15.55B | 19.99B | 18.10B | 19.02B | 17.11B |
Cash Flow | ||||||
| Free Cash Flow | 7.22B | 6.39B | 7.55B | 7.68B | 5.66B | 6.73B |
| Operating Cash Flow | 8.50B | 7.78B | 9.52B | 9.43B | 7.28B | 7.97B |
| Investing Cash Flow | -3.86B | -3.65B | -625.00M | -2.29B | 2.45B | -3.25B |
| Financing Cash Flow | -4.23B | -5.69B | -6.94B | -7.19B | -8.89B | -7.10B |
Unilever Technical Analysis
Positive
4761.50
Price Trends
4711.96
Positive
4631.85
Positive
4595.58
Positive
Market Momentum
75.81
Negative
58.50
Neutral
66.18
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 4761.5 is above the 20-day moving average (MA) of 4754.43, above the 50-day MA of 4711.96, and above the 200-day MA of 4595.58, indicating a bullish trend. The MACD of 75.81 indicates Negative momentum. The RSI at 58.50 is Neutral, neither overbought nor oversold. The STOCH value of 66.18 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | £33.05B | 11.70 | 42.87% | 6.39% | -2.49% | 133.91% | |
71 Outperform | £105.40B | 22.77 | 37.05% | 3.37% | -20.44% | 4.96% | |
67 Neutral | £1.75B | 13.24 | 9.74% | 1.65% | 2.31% | 9.04% | |
65 Neutral | £399.34M | 20.47 | 8.44% | 3.89% | 5.37% | ― | |
64 Neutral | £38.97B | 29.88 | 15.52% | 2.13% | -6.47% | -28.83% | |
63 Neutral | £13.47B | 14.38 | 8.44% | 3.27% | -2.16% | -24.87% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
GB:ULVR
Unilever
4,892.50
119.19
2.50%
GB:DGE
Diageo
1,751.00
35.94
2.10%
GB:ABF
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1,927.00
-297.58
-13.38%
GB:PFD
Premier Foods
203.40
23.39
12.99%
GB:PZC
PZ Cussons
95.00
22.53
31.09%
GB:RKT
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5,218.00
-415.34
-7.37%
Unilever Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Unilever Updates Share Capital and Voting Rights for Investor Disclosure
Positive
Oct 1, 2026
Unilever PLC has updated investors on its voting rights and capital structure as of 30 September 2026. The company reported total issued share capital of 2,185,205,247 ordinary shares, of which 30,703,780 are held in treasury and 173,514 are Unile...
Regulatory Filings and Compliance
Unilever Executives Reinvest Dividends in Routine Share Purchases
Neutral
Sep 25, 2026
Unilever has disclosed routine share transactions by three senior executives under regulatory rules for persons discharging managerial responsibilities. Chief Financial Officer Srinivas Phatak, Home Care Business Group President Eduardo Campanella...
Regulatory Filings and Compliance
Unilever Discloses Share Sale by Foods Business President
Neutral
Sep 24, 2026
Unilever PLC has disclosed a share transaction by Heiko Schipper, Business Group President, Foods and member of the Unilever Leadership Executive. The filing reports the sale of 345 Unilever PLC ordinary shares on Euronext Amsterdam at a price of ...
Business Operations and StrategyRegulatory Filings and Compliance
Unilever Updates Share Capital and Voting Rights Denominator for Investors
Positive
Sep 1, 2026
Unilever PLC has disclosed an update on its share capital and voting rights as of 31 August 2026, in line with UK financial disclosure rules, confirming an issued share capital of just over 2.18 billion ordinary shares, including a sizable number ...
Regulatory Filings and Compliance
Unilever Discloses ADR Sale by Personal Care President Fabian Garcia
Neutral
Aug 24, 2026
Unilever PLC has disclosed a share transaction involving Fabian Garcia, Business Group President for Personal Care and a member of the Unilever Leadership Executive. The notification details his position and confirms this is an initial disclosure ...
Business Operations and StrategyRegulatory Filings and Compliance
Unilever Updates Share Capital and Voting Rights for UK Disclosure Rules
Neutral
Aug 3, 2026
Unilever PLC reported an update on its voting rights and share capital as of 31 July 2026, detailing that its issued share capital comprised over 2.18 billion ordinary shares. A portion of these shares is held as treasury stock and by group compan...
Regulatory Filings and Compliance
Unilever Discloses Share Sale by Foods Division President Heiko Schipper
Neutral
Aug 3, 2026
Unilever has disclosed that Heiko Schipper, Business Group President for Foods and a member of the Unilever Leadership Executive, conducted a sale of company shares as required under market regulations. The transaction underscores Unilever’s...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Unilever lifts outlook as volume-led growth and portfolio reshaping bolster H1 results
Positive
Jul 28, 2026
Unilever reported first-half 2026 underlying sales growth of 4.8%, driven mainly by a 4.2% increase in volumes and led by its Power Brands, with all business groups delivering volume-led growth and emerging markets showing particular strength. Tur...
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.