Unilever AI Stock Analysis
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Unilever (UL) AI Stock Analysis
Unilever
(NYSE:UL)
The score is driven mainly by solid operating profitability and cash generation, reinforced by a positive earnings update with upgraded guidance and strong volume momentum. Offsetting this are financial risks from elevated leverage and the sharp 2025 revenue contraction, while technicals are constructive but not strongly bullish and valuation is reasonable but not cheap given the P/E despite a supportive dividend yield.
Unilever Key Performance Indicators (KPIs)
Sales Growth by SegmentAnalyzes sales increases in various product segments, highlighting areas of strong demand and potential for future expansion.
Beauty & Wellbeing and Personal Care are the clear outperformers, lifted by Power Brands and premium innovation, while Home Care and Nutrition have largely normalized from their 2022 spikes into low-single-digit growth. Ice Cream’s volatility and the demerger have removed a cyclical swing from the group, leaving steadier but slower segment growth. Management’s push for volume-led growth, higher brand reinvestment and remaining productivity savings fits this mix, but selective commodity inflation and FX remain the main risks to reported results and near-term EPS momentum.
The FlyUnilever (UL) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $145.21B
- Dividend Yield
- 3.38%
- Average Volume (3M)
- 3.66M
- Price to Earnings (P/E)
- 13.8
- Beta (1Y)
- -0.04
- Revenue Growth
- -17.45%
- EPS Growth
- 8.84%
- Country
- US
- Employees
- 96,092
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Household & Personal Products
Unilever Business Overview & Revenue Model
Company Description
Unilever PLC operates as a fast-moving consumer goods company in the Asia Pacific, Africa, the Americas, and Europe. It operates through four segments: Beauty & Wellbeing, Personal Care, Home Care, and Foods. The Beauty & Wellbeing segment offers hai...
How the Company Makes Money
Unilever makes money mainly by selling fast-moving consumer goods (FMCG) under well-known brands to retailers, distributors, and e-commerce platforms, who then sell to end consumers. Revenue is generated across its operating groups—Beauty & Wellbeing...
Unilever Earnings Call Summary
Overall the call was positive: management reported sustained, accelerating volume-led growth (best quarterly volumes in over a decade), stronger performance from power brands, robust emerging market momentum, improved cash generation and an upgraded full-year outlook. Notable challenges remain — meaningful currency headwinds, commodity-driven gross margin pressure, underperformance in Foods (U.S. condiments) and near-term risks (Brazil tax reform and potential volume sensitivity as pricing lands). On balance, the operational momentum, margin discipline and cash strength outweigh the headwinds, supporting an optimistic outlook.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Unilever upgraded its full‑year outlook, now guiding underlying sales growth of 4–6% with around 3% volume growth (UVG) for 2026 and second‑half growth of 4–5% led by pricing; management expects pricing to build in H2 as commodity inflation lands (≈€550m in H2, ≈€850m full year, range €800–900m). Gross margins are expected to be broadly similar to H1 (≈46.8%) while delivering a modest full‑year improvement in underlying operating margin versus 2025 (H1 margin 20.3%, +10bps); H1 turnover was €25.6bn, free cash flow €1.5bn (+€0.5bn), underlying EPS €1.61 (+2.4%), brand & marketing at 16.1% of turnover (normative 15–16%), overheads improved ≈70bps and the €800m productivity program was completed. Finance costs ran at ~2.5% of average net debt (expected <3% FY), underlying effective tax rate is ~26%, and currency was a headwind in H1 (−4.9% turnover, ~−6pp EPS) but is expected to moderate to ~−3% for the full year.
Unilever Financial Statement Overview
Summary
Profitability and cash generation are solid (net margin improved to ~12.1% in 2025; free cash flow ~82% of net income), but the sharp 2025 revenue decline (-18.8% YoY) and elevated leverage (~1.9x debt-to-equity) meaningfully increase near-term risk and reduce flexibility.
Income Statement
72PositiveBalance Sheet
54NeutralCash Flow
76Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.85B | 50.50B | 60.76B | 59.60B | 60.07B | 52.44B |
| Gross Profit | 46.00B | 50.50B | 60.76B | 25.18B | 24.17B | 22.18B |
| EBITDA | 10.52B | 11.04B | 12.49B | 11.68B | 11.24B | 11.38B |
| Net Income | 5.88B | 9.47B | 5.74B | 6.49B | 7.64B | 6.05B |
Balance Sheet | ||||||
| Total Assets | 76.93B | 70.44B | 79.75B | 75.26B | 77.82B | 75.09B |
| Cash, Cash Equivalents and Short-Term Investments | 5.87B | 5.06B | 7.63B | 6.11B | 5.52B | 4.50B |
| Total Debt | 32.10B | 29.59B | 30.66B | 28.59B | 28.44B | 29.67B |
| Total Liabilities | 58.63B | 52.86B | 57.20B | 54.50B | 56.12B | 55.35B |
| Stockholders Equity | 16.19B | 15.52B | 19.99B | 18.10B | 19.02B | 17.11B |
Cash Flow | ||||||
| Free Cash Flow | 7.24B | 6.93B | 7.78B | 7.92B | 5.83B | 6.88B |
| Operating Cash Flow | 8.53B | 8.35B | 9.52B | 9.43B | 7.28B | 7.99B |
| Investing Cash Flow | -3.87B | -3.12B | -625.00M | -2.29B | 2.45B | -3.25B |
| Financing Cash Flow | -4.29B | -6.81B | -6.94B | -7.19B | -8.89B | -5.90B |
Unilever Technical Analysis
Price Trends
Market Momentum
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 65.78 is above the 20-day moving average (MA) of 65.58, above the 50-day MA of 63.57, and above the 200-day MA of 61.97, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 56.40 is Neutral, neither overbought nor oversold. The STOCH value of 50.86 is Neutral, 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.
Latest Risks Added
0 New RisksUnilever Peers Comparison
Overall Rating
CHD78Outperform
PG72Outperform- UL70Outperform
KMB69Neutral
CL67Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| CHD | 78Outperform | $26.38B | 34.36 | 18.21% | 1.09% | 1.70% | 2.07% |
| PG | 72Outperform | $390.92B | 24.84 | 29.55% | 2.58% | 3.52% | -3.74% |
| UL | 70Outperform | $141.29B | 13.84 | 58.26% | 3.38% | -17.45% | 8.84% |
| KMB | 69Neutral | $67.97B | 10.96 | 162.62% | 4.68% | -8.38% | 67.47% |
| CL | 67Neutral | $77.97B | 38.07 | 1135.82% | 2.15% | 5.91% | -28.30% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| UL | Unilever plc | 65.78 | 2.77 | 4.39% | |
| CHD | Church & Dwight Company | 112.02 | 28.16 | 33.59% | |
| CL | Colgate-palmolive Company | 98.00 | 21.06 | 27.37% | |
| KMB | Kimberly Clark | 108.86 | 9.50 | 9.56% | |
| PG | Procter & Gamble Company | 167.67 | 23.88 | 16.61% |
Unilever Corporate Events
Unilever lifts 2026 outlook as Q3 growth accelerates and Foods spin-off advances
Unilever reported continued strong performance in the third quarter of 2026, with underlying sales growth of 5.2% driven by 2.9% volume and 2.3% pricing, lifting turnover 6.7% to €13.3bn versus a year earlier. Home Care, Personal Care and Beauty & We...
Unilever Announces October 2026 Board Change as Ruby Lu Resigns
Unilever PLC has announced a change to its board, with non-executive director Ruby Lu resigning from the Board of Unilever PLC effective 24 October 2026. Chair Ian Meakins publicly thanked Lu for her five years of service, highlighting the perspectiv...
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 29, 2026