UNILEVER PLC-SPONSORED ADR (UL) Stock Fundamental Analysis
NYSE:UL - New York Stock Exchange, Inc. - US9047677045 - ADR - Currency: USD
Overall UL gets a fundamental rating of 4 out of 10. We evaluated UL against 37 industry peers in the Personal Care Products industry. While UL is still in line with the averages on profitability rating, there are concerns on its financial health. UL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year UL was profitable.
In the past year UL had a positive cash flow from operations.
Each year in the past 5 years UL has been profitable.
UL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UL has a Return On Assets of 8.32%. This is amongst the best in the industry. UL outperforms 80.56% of its industry peers.
UL's Return On Equity of 32.70% is amongst the best of the industry. UL outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.94%, UL belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 32.7% | ||
| ROIC | 14.94% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of UL (11.01%) is better than 88.89% of its industry peers.
In the last couple of years the Profit Margin of UL has declined.
UL's Operating Margin of 17.95% is amongst the best of the industry. UL outperforms 80.56% of its industry peers.
UL's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.95% | ||
| PM (TTM) | 11.01% | ||
| GM | N/A |
OM growth 3Y0.04%
OM growth 5Y-0.78%
PM growth 3Y-6.42%
PM growth 5Y-2.67%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UL is creating some value.
UL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 1.87 indicates that UL is not a great score, but indicates only limited risk for bankruptcy at the moment.
UL has a Altman-Z score of 1.87. This is in the lower half of the industry: UL underperforms 61.11% of its industry peers.
UL has a debt to FCF ratio of 4.21. This is a neutral value as UL would need 4.21 years to pay back of all of its debts.
The Debt to FCF ratio of UL (4.21) is better than 72.22% of its industry peers.
A Debt/Equity ratio of 1.18 is on the high side and indicates that UL has dependencies on debt financing.
The Debt to Equity ratio of UL (1.18) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 4.21 | ||
| Altman-Z | 1.87 |
ROIC/WACC1.72
WACC8.71%
2.3 Liquidity
A Current Ratio of 0.77 indicates that UL may have some problems paying its short term obligations.
The Current ratio of UL (0.77) is worse than 88.89% of its industry peers.
A Quick Ratio of 0.56 indicates that UL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.56, UL is doing worse than 86.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for UL have decreased strongly by -10.36% in the last year.
UL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.36% yearly.
The Revenue has been growing slightly by 1.94% in the past year.
Measured over the past years, UL shows a small growth in Revenue. The Revenue has been growing by 3.17% on average per year.
EPS 1Y (TTM)-10.36%
EPS 3Y-0.39%
EPS 5Y1.36%
EPS Q2Q%-29.29%
Revenue 1Y (TTM)1.94%
Revenue growth 3Y5.03%
Revenue growth 5Y3.17%
Sales Q2Q%1.6%
3.2 Future
UL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.17% yearly.
The Revenue is expected to grow by 3.84% on average over the next years.
EPS Next Y7.69%
EPS Next 2Y7.04%
EPS Next 3Y6.56%
EPS Next 5Y6.17%
Revenue Next Year4.7%
Revenue Next 2Y3.83%
Revenue Next 3Y3.6%
Revenue Next 5Y3.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.29, UL is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of UL indicates a somewhat cheap valuation: UL is cheaper than 61.11% of the companies listed in the same industry.
UL is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
UL is valuated correctly with a Price/Forward Earnings ratio of 16.91.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UL indicates a somewhat cheap valuation: UL is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of UL to the average of the S&P500 Index (22.68), we can say UL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 16.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UL indicates a somewhat cheap valuation: UL is cheaper than 69.44% of the companies listed in the same industry.
72.22% of the companies in the same industry are more expensive than UL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.7 | ||
| EV/EBITDA | 12.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UL does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of UL may justify a higher PE ratio.
PEG (NY)3.03
PEG (5Y)17.13
EPS Next 2Y7.04%
EPS Next 3Y6.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.36%, UL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.99, UL pays a better dividend. On top of this UL pays more dividend than 86.11% of the companies listed in the same industry.
UL's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
5.2 History
The dividend of UL has a limited annual growth rate of 2.68%.
UL has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of UL decreased in the last 3 years.
Dividend Growth(5Y)2.68%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
64.71% of the earnings are spent on dividend by UL. This is not a sustainable payout ratio.
The dividend of UL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.71%
EPS Next 2Y7.04%
EPS Next 3Y6.56%
56.13
+0.59 (+1.06%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners54.41%
Inst Owner Change1.56%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap138.82B
Analysts71.67
Price Target65.01 (15.82%)
Short Float %0.06%
Short Ratio0.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
Yearly Dividend1.73
Dividend Growth(5Y)2.68%
DP64.71%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.41%
PT rev (3m)-2.76%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.56%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 16.91 | ||
| P/S | 2.2 | ||
| P/FCF | 17.7 | ||
| P/OCF | 14.11 | ||
| P/B | 6.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.48 |
EPS(TTM)2.41
EY4.29%
EPS(NY)3.32
Fwd EY5.91%
FCF(TTM)3.17
FCFY5.65%
OCF(TTM)3.98
OCFY7.09%
SpS25.46
BVpS8.57
TBVpS-8.78
PEG (NY)3.03
PEG (5Y)17.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 32.7% | ||
| ROCE | 20.15% | ||
| ROIC | 14.94% | ||
| ROICexc | 16.97% | ||
| ROICexgc | 129.7% | ||
| OM | 17.95% | ||
| PM (TTM) | 11.01% | ||
| GM | N/A | ||
| FCFM | 12.46% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y0.04%
OM growth 5Y-0.78%
PM growth 3Y-6.42%
PM growth 5Y-2.67%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 4.21 | ||
| Debt/EBITDA | 1.93 | ||
| Cap/Depr | 118.1% | ||
| Cap/Sales | 3.17% | ||
| Interest Coverage | 9.96 | ||
| Cash Conversion | 75.74% | ||
| Profit Quality | 113.13% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.87 |
F-Score6
WACC8.71%
ROIC/WACC1.72
Cap/Depr(3y)103.51%
Cap/Depr(5y)87.42%
Cap/Sales(3y)3.01%
Cap/Sales(5y)2.72%
Profit Quality(3y)107.58%
Profit Quality(5y)115.28%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.36%
EPS 3Y-0.39%
EPS 5Y1.36%
EPS Q2Q%-29.29%
EPS Next Y7.69%
EPS Next 2Y7.04%
EPS Next 3Y6.56%
EPS Next 5Y6.17%
Revenue 1Y (TTM)1.94%
Revenue growth 3Y5.03%
Revenue growth 5Y3.17%
Sales Q2Q%1.6%
Revenue Next Year4.7%
Revenue Next 2Y3.83%
Revenue Next 3Y3.6%
Revenue Next 5Y3.84%
EBIT growth 1Y9.91%
EBIT growth 3Y5.08%
EBIT growth 5Y2.36%
EBIT Next Year21.34%
EBIT Next 3Y8.81%
EBIT Next 5Y7.99%
FCF growth 1Y26.57%
FCF growth 3Y4.41%
FCF growth 5Y2.77%
OCF growth 1Y24.02%
OCF growth 3Y6.09%
OCF growth 5Y3.26%