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Unilever
(NYSE:UL)
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Rating:70Outperform
Price Target:
$74.00
▲(20.58% Upside)
Action:Reiterated
Date:07/29/26
The score is driven primarily by resilient profitability/cash generation and a positive, guidance-upgraded earnings call with strong volume momentum. These positives are tempered by balance-sheet leverage and a notable 2025 revenue contraction, while valuation is less compelling at a ~30.9 P/E despite a ~3.4% dividend yield. Technically, the stock is in a constructive trend as it trades above major moving averages.
Positive Factors
Volume-led growth and power-brand strength
Sustained, accelerating volume growth—including best quarterly volumes since 2010—and power brands driving most sales indicates durable consumer demand and strong brand equity. This supports long-term unit growth, improves leverage on fixed costs and underpins pricing power and channel relationships.
Negative Factors
Elevated financial leverage
Higher debt-to-equity weakens financial flexibility and increases refinancing and interest-rate risk over the medium term. With equity and assets step-down noted in 2025, elevated leverage constrains ability to absorb shocks or fund opportunistic M&A without either cutting payout or raising costly capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Volume-led growth and power-brand strength
Sustained, accelerating volume growth—including best quarterly volumes since 2010—and power brands driving most sales indicates durable consumer demand and strong brand equity. This supports long-term unit growth, improves leverage on fixed costs and underpins pricing power and channel relationships.
Read all positive factors
Unilever Key Performance Indicators (KPIs)
Any
Sales Growth by Segment
Analyzes sales increases in various product segments, highlighting areas of strong demand and potential for future expansion.
Analyzes sales increases in various product segments, highlighting areas of strong demand and potential for future expansion.
Data provided by:
The Fly
The FlyUnilever (UL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$137.69B
Dividend Yield3.59%
Average Volume (3M)3.65M
Price to Earnings (P/E)21.5
Beta (1Y)-0.04
Revenue Growth-17.45%
EPS Growth8.84%
CountryUS
Employees96,092
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)2.59
Shares Outstanding2,154,262,200
10 Day Avg. Volume3,740,152
30 Day Avg. Volume3,646,896
Financial Highlights & Ratios
PEG Ratio1.26
Price to Book (P/B)7.83
Price to Sales (P/S)2.41
P/FCF Ratio17.53
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$76.00Price Target Upside23.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)3.68
Revenue Forecast (FY)$59.02B
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 ...
How the Company Makes Money
Unilever makes money mainly by selling branded consumer products to retailers and distributors (and increasingly directly via e-commerce) across its operating groups: Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream. Revenue ...
Unilever Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| Next Earnings Date:Feb 11, 2027
Earnings Call Sentiment Positive
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.Positive Updates
Strong Volume-Led Growth
Underlying sales growth of 4.8% in H1 2026, with 4.2% from volume; Q2 underlying sales growth accelerated to 5.8% with volume up 5.5% — the best quarterly volume performance since 2010.
Negative Updates
Foods Underperformance (Condiments / U.S.)
Foods grew only 1.2% in H1 (volume-driven) and slowed to ~2% in Q2; underlying operating profit for Foods down 4.3% to EUR 1.5bn. U.S. condiments underperformed due to increased competition in premium mayonnaise segments and lost share; targeted remediation plans in place.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Volume-Led Growth
Underlying sales growth of 4.8% in H1 2026, with 4.2% from volume; Q2 underlying sales growth accelerated to 5.8% with volume up 5.5% — the best quarterly volume performance since 2010.
Read all positive 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
Income Statement
72
Positive
Balance Sheet
54
Neutral
Cash Flow
76
Positive
| 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 | 11.52B | 13.01B | 11.06B | 10.58B | 11.38B |
| Net Income | 5.64B | 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 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $336.46B | 21.41 | 29.84% | 2.91% | 3.26% | 1.21% | |
70 Outperform | $137.69B | 21.49 | 35.40% | 3.71% | -17.45% | 8.84% | |
64 Neutral | $36.28B | 17.16 | 143.64% | 4.63% | -16.17% | -13.40% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $73.06B | 35.89 | 631.14% | 2.31% | 5.24% | -29.04% | |
61 Neutral | $36.94B | 22.64 | 15.18% | 4.30% | -0.08% | 53.37% | |
54 Neutral | $30.35B | -123.38 | -6.29% | 1.74% | 0.71% | 71.47% |
* Consumer Defensive Sector Average
UL
Unilever
64.43
0.94
1.48%
CL
Colgate-Palmolive
93.28
10.64
12.87%
EL
The Estée Lauder Companies
86.96
-2.94
-3.27%
KMB
Kimberly Clark
112.37
-18.02
-13.82%
PG
Procter & Gamble
146.80
-2.31
-1.55%
KVUE
Kenvue, Inc.
19.67
-1.13
-5.41%
Unilever Corporate Events
Unilever Executives Reinvest Dividends in PLC Shares After July 2026 Payout
Jul 6, 2026
On 1 July 2026, several members of Unilever’s leadership team reinvested cash dividends into additional Unilever PLC ordinary shares on the London and Amsterdam exchanges. Chief Financial Officer Srinivas Phatak, Home Care Business Group Pre...
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.