UNILEVER PLC-SPONSORED ADR (UL) Stock Fundamental Analysis
NYSE:UL - New York Stock Exchange, Inc. - US9047677045 - ADR
We assign a fundamental rating of 4 out of 10 to UL. UL was compared to 37 industry peers in the Personal Care Products industry. While UL has a great profitability rating, there are quite some concerns on its financial health. UL has a valuation in line with the averages, but it does not seem to be growing.
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.
UL had positive earnings in each of the past 5 years.
Each year in the past 5 years UL had a positive operating cash flow.
1.2 Ratios
UL has a Return On Assets of 8.62%. This is amongst the best in the industry. UL outperforms 80.56% of its industry peers.
Looking at the Return On Equity, with a value of 35.84%, UL belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.01%, UL belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UL is in line with the industry average of 13.52%.
The 3 year average ROIC (14.82%) for UL is below the current ROIC(15.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 35.84% | ||
| ROIC | 15.01% |
ROA(3y)8.83%
ROA(5y)8.68%
ROE(3y)37.12%
ROE(5y)38.11%
ROIC(3y)14.82%
ROIC(5y)15.55%
1.3 Margins
UL's Profit Margin of 10.88% is amongst the best of the industry. UL outperforms 86.11% of its industry peers.
UL's Profit Margin has declined in the last couple of years.
UL has a better Operating Margin (16.66%) than 77.78% of its industry peers.
UL's Operating Margin has declined in the last couple of years.
UL has a worse Gross Margin (42.24%) than 72.22% of its industry peers.
In the last couple of years the Gross Margin of UL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.66% | ||
| PM (TTM) | 10.88% | ||
| GM | 42.24% |
OM growth 3Y-3.37%
OM growth 5Y-2.14%
PM growth 3Y-0.36%
PM growth 5Y-9.95%
GM growth 3Y-0.94%
GM growth 5Y-0.68%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), UL is creating value.
UL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, UL has less shares outstanding
UL has a worse debt/assets ratio than last year.
2.2 Solvency
UL has an Altman-Z score of 2.04. This is not the best score and indicates that UL is in the grey zone with still only limited risk for bankruptcy at the moment.
UL has a Altman-Z score (2.04) which is comparable to the rest of the industry.
UL has a debt to FCF ratio of 3.72. This is a good value and a sign of high solvency as UL would need 3.72 years to pay back of all of its debts.
The Debt to FCF ratio of UL (3.72) is better than 72.22% of its industry peers.
UL has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of UL (1.31) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 2.04 |
ROIC/WACC1.9
WACC7.9%
2.3 Liquidity
A Current Ratio of 0.76 indicates that UL may have some problems paying its short term obligations.
UL's Current ratio of 0.76 is on the low side compared to the rest of the industry. UL is outperformed by 91.67% of its industry peers.
UL has a Quick Ratio of 0.76. This is a bad value and indicates that UL is not financially healthy enough and could expect problems in meeting its short term obligations.
UL has a worse Quick ratio (0.54) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for UL have decreased strongly by -18.97% in the last year.
Measured over the past years, UL shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.98% on average per year.
The Revenue has decreased by -0.96% in the past year.
The Revenue has been growing slightly by 3.17% on average over the past years.
EPS 1Y (TTM)-18.97%
EPS 3Y6.47%
EPS 5Y-5.98%
EPS Q2Q%5.38%
Revenue 1Y (TTM)-0.96%
Revenue growth 3Y5.52%
Revenue growth 5Y3.17%
Sales Q2Q%2.26%
3.2 Future
Based on estimates for the next years, UL will show a small growth in Earnings Per Share. The EPS will grow by 7.31% on average per year.
UL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.46% yearly.
EPS Next Y10.94%
EPS Next 2Y8.82%
EPS Next 3Y7.44%
EPS Next 5Y7.31%
Revenue Next Year1.23%
Revenue Next 2Y2.31%
Revenue Next 3Y2.86%
Revenue Next 5Y3.46%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.24, the valuation of UL can be described as rather expensive.
Based on the Price/Earnings ratio, UL is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.96, UL is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.12, which indicates a rather expensive current valuation of UL.
Based on the Price/Forward Earnings ratio, UL is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of UL to the average of the S&P500 Index (24.11), we can say UL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 17.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UL is valued a bit cheaper than the industry average as 69.44% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UL indicates a somewhat cheap valuation: UL is cheaper than 77.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.45 | ||
| EV/EBITDA | 13.67 |
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.
UL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.85
PEG (5Y)N/A
EPS Next 2Y8.82%
EPS Next 3Y7.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.20%, UL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.18, UL pays a better dividend. On top of this UL pays more dividend than 83.33% of the companies listed in the same industry.
UL's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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
67.26% of the earnings are spent on dividend by UL. This is not a sustainable payout ratio.
UL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP67.26%
EPS Next 2Y8.82%
EPS Next 3Y7.44%
UNILEVER PLC-SPONSORED ADR
NYSE:UL (1/17/2025, 8:04:00 PM)
After market: 55.7 +0.04 (+0.07%)55.66
+0.22 (+0.4%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners54.41%
Inst Owner Change-0.12%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap137.66B
Analysts70.83
Price Target64.74 (16.31%)
Short Float %0.1%
Short Ratio1.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend1.73
Dividend Growth(5Y)2.68%
DP67.26%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)-1.29%
PT rev (3m)-6.28%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.31%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 17.12 | ||
| P/S | 2.25 | ||
| P/FCF | 17.45 | ||
| P/OCF | 14.22 | ||
| P/B | 7.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.67 |
EPS(TTM)2.75
EY4.94%
EPS(NY)3.25
Fwd EY5.84%
FCF(TTM)3.19
FCFY5.73%
OCF(TTM)3.91
OCFY7.03%
SpS24.76
BVpS7.52
TBVpS-8.87
PEG (NY)1.85
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 35.84% | ||
| ROCE | 19.19% | ||
| ROIC | 15.01% | ||
| ROICexc | 15.93% | ||
| ROICexgc | 83.51% | ||
| OM | 16.66% | ||
| PM (TTM) | 10.88% | ||
| GM | 42.24% | ||
| FCFM | 12.89% |
ROA(3y)8.83%
ROA(5y)8.68%
ROE(3y)37.12%
ROE(5y)38.11%
ROIC(3y)14.82%
ROIC(5y)15.55%
ROICexc(3y)16.51%
ROICexc(5y)17.52%
ROICexgc(3y)114.52%
ROICexgc(5y)113.99%
ROCE(3y)18.94%
ROCE(5y)19.88%
ROICexcg growth 3Y-1.36%
ROICexcg growth 5Y4.26%
ROICexc growth 3Y-1.99%
ROICexc growth 5Y-3.27%
OM growth 3Y-3.37%
OM growth 5Y-2.14%
PM growth 3Y-0.36%
PM growth 5Y-9.95%
GM growth 3Y-0.94%
GM growth 5Y-0.68%
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.72 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 110.51% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 11.05 | ||
| Cash Conversion | 81.89% | ||
| Profit Quality | 118.41% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.04 |
F-Score7
WACC7.9%
ROIC/WACC1.9
Cap/Depr(3y)91.45%
Cap/Depr(5y)80.39%
Cap/Sales(3y)2.78%
Cap/Sales(5y)2.66%
Profit Quality(3y)100.32%
Profit Quality(5y)112.4%
High Growth Momentum
Growth
EPS 1Y (TTM)-18.97%
EPS 3Y6.47%
EPS 5Y-5.98%
EPS Q2Q%5.38%
EPS Next Y10.94%
EPS Next 2Y8.82%
EPS Next 3Y7.44%
EPS Next 5Y7.31%
Revenue 1Y (TTM)-0.96%
Revenue growth 3Y5.52%
Revenue growth 5Y3.17%
Sales Q2Q%2.26%
Revenue Next Year1.23%
Revenue Next 2Y2.31%
Revenue Next 3Y2.86%
Revenue Next 5Y3.46%
EBIT growth 1Y2.56%
EBIT growth 3Y1.97%
EBIT growth 5Y0.97%
EBIT Next Year27.8%
EBIT Next 3Y11.75%
EBIT Next 5Y9.14%
FCF growth 1Y37.83%
FCF growth 3Y-1.5%
FCF growth 5Y5.83%
OCF growth 1Y29.44%
OCF growth 3Y1.34%
OCF growth 5Y5.19%