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 5 out of 10. We evaluated UL against 35 industry peers in the Personal Care Products industry. UL scores excellent on profitability, but there are concerns on its financial health. UL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
UL had positive earnings in the past year.
UL had a positive operating cash flow in the past year.
In the past 5 years UL has always been profitable.
In the past 5 years UL always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 7.20%, UL is doing good in the industry, outperforming 71.43% of the companies in the same industry.
The Return On Equity of UL (28.73%) is better than 91.43% of its industry peers.
UL has a Return On Invested Capital of 15.20%. This is in the better half of the industry: UL outperforms 77.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UL is in line with the industry average of 15.96%.
The last Return On Invested Capital (15.20%) for UL is above the 3 year average (14.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.2% | ||
| ROE | 28.73% | ||
| ROIC | 15.2% |
ROA(3y)8.55%
ROA(5y)8.39%
ROE(3y)34.92%
ROE(5y)35.33%
ROIC(3y)14.38%
ROIC(5y)14.42%
1.3 Margins
UL's Profit Margin of 9.45% is amongst the best of the industry. UL outperforms 82.86% of its industry peers.
UL's Profit Margin has declined in the last couple of years.
UL has a better Operating Margin (18.40%) than 91.43% of its industry peers.
In the last couple of years the Operating Margin of UL has remained more or less at the same level.
UL has a worse Gross Margin (45.05%) than 65.71% of its industry peers.
UL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.4% | ||
| PM (TTM) | 9.45% | ||
| GM | 45.05% |
OM growth 3Y0.04%
OM growth 5Y-0.78%
PM growth 3Y-6.42%
PM growth 5Y-2.67%
GM growth 3Y2.12%
GM growth 5Y0.46%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
Compared to 1 year ago, UL has a worse debt to assets ratio.
2.2 Solvency
UL has an Altman-Z score of 1.94. 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.
The Altman-Z score of UL (1.94) is comparable to the rest of the industry.
The Debt to FCF ratio of UL is 4.25, which is a neutral value as it means it would take UL, 4.25 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of UL (4.25) is better than 71.43% of its industry peers.
UL has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
UL's Debt to Equity ratio of 1.25 is on the low side compared to the rest of the industry. UL is outperformed by 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 1.94 |
ROIC/WACC1.9
WACC8.01%
2.3 Liquidity
A Current Ratio of 0.76 indicates that UL may have some problems paying its short term obligations.
With a Current ratio value of 0.76, UL is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
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 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
UL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.55%.
UL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.36% yearly.
Looking at the last year, UL shows a small growth in Revenue. The Revenue has grown by 1.94% in the last year.
The Revenue has been growing slightly by 3.17% on average over the past years.
EPS 1Y (TTM)-10.55%
EPS 3Y-0.43%
EPS 5Y1.36%
EPS Q2Q%-29.31%
Revenue 1Y (TTM)1.94%
Revenue growth 3Y5.03%
Revenue growth 5Y3.17%
Sales Q2Q%-50.7%
3.2 Future
The Earnings Per Share is expected to grow by 3.69% on average over the next years.
Based on estimates for the next years, UL will show a small growth in Revenue. The Revenue will grow by 3.26% on average per year.
EPS Next Y6.45%
EPS Next 2Y6.39%
EPS Next 3Y5.85%
EPS Next 5Y3.69%
Revenue Next Year4.71%
Revenue Next 2Y3.88%
Revenue Next 3Y3.9%
Revenue Next 5Y3.26%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
UL is valuated rather expensively with a Price/Earnings ratio of 24.09.
Compared to the rest of the industry, the Price/Earnings ratio of UL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of UL to the average of the S&P500 Index (28.29), we can say UL is valued inline with the index average.
With a Price/Forward Earnings ratio of 17.64, UL is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UL indicates a somewhat cheap valuation: UL is cheaper than 68.57% 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 (21.08), we can say UL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.09 | ||
| Fwd PE | 17.64 |
4.2 Price Multiples
UL's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UL indicates a somewhat cheap valuation: UL is cheaper than 62.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.29 | ||
| EV/EBITDA | 12.47 |
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)3.74
PEG (5Y)17.66
EPS Next 2Y6.39%
EPS Next 3Y5.85%
5. Dividend
5.1 Amount
UL has a Yearly Dividend Yield of 3.08%.
UL's Dividend Yield is rather good when compared to the industry average which is at 5.81. UL pays more dividend than 82.86% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, UL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
The dividend of UL has a limited annual growth rate of 1.52%.
UL has been paying a dividend for at least 10 years, so it has a reliable track record.
UL has decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.52%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
75.19% 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.
DP75.19%
EPS Next 2Y6.39%
EPS Next 3Y5.85%
63.84
+1.27 (+2.03%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners54.6%
Inst Owner Change0.59%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap156.82B
Analysts73.91
Price Target65.21 (2.15%)
Short Float %0.09%
Short Ratio0.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend2.01
Dividend Growth(5Y)1.52%
DP75.19%
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)0.04%
PT rev (3m)0.72%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.09 | ||
| Fwd PE | 17.64 | ||
| P/S | 2.27 | ||
| P/FCF | 18.29 | ||
| P/OCF | 14.5 | ||
| P/B | 6.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.47 |
EPS(TTM)2.65
EY4.15%
EPS(NY)3.62
Fwd EY5.67%
FCF(TTM)3.49
FCFY5.47%
OCF(TTM)4.4
OCFY6.9%
SpS28.1
BVpS9.24
TBVpS-9.67
PEG (NY)3.74
PEG (5Y)17.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.2% | ||
| ROE | 28.73% | ||
| ROCE | 20.51% | ||
| ROIC | 15.2% | ||
| ROICexc | 17.61% | ||
| ROICexgc | 134.78% | ||
| OM | 18.4% | ||
| PM (TTM) | 9.45% | ||
| GM | 45.05% | ||
| FCFM | 12.42% |
ROA(3y)8.55%
ROA(5y)8.39%
ROE(3y)34.92%
ROE(5y)35.33%
ROIC(3y)14.38%
ROIC(5y)14.42%
ROICexc(3y)16.3%
ROICexc(5y)16.31%
ROICexgc(3y)119.46%
ROICexgc(5y)115.26%
ROCE(3y)19.39%
ROCE(5y)19.45%
ROICexcg growth 3Y10.03%
ROICexcg growth 5Y6.64%
ROICexc growth 3Y4.04%
ROICexc growth 5Y-1.59%
OM growth 3Y0.04%
OM growth 5Y-0.78%
PM growth 3Y-6.42%
PM growth 5Y-2.67%
GM growth 3Y2.12%
GM growth 5Y0.46%
F-Score6
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 4.25 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 112.18% | ||
| Cap/Sales | 3.24% | ||
| Interest Coverage | 10.3 | ||
| Cash Conversion | 73.59% | ||
| Profit Quality | 131.41% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.94 |
F-Score6
WACC8.01%
ROIC/WACC1.9
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)-10.55%
EPS 3Y-0.43%
EPS 5Y1.36%
EPS Q2Q%-29.31%
EPS Next Y6.45%
EPS Next 2Y6.39%
EPS Next 3Y5.85%
EPS Next 5Y3.69%
Revenue 1Y (TTM)1.94%
Revenue growth 3Y5.03%
Revenue growth 5Y3.17%
Sales Q2Q%-50.7%
Revenue Next Year4.71%
Revenue Next 2Y3.88%
Revenue Next 3Y3.9%
Revenue Next 5Y3.26%
EBIT growth 1Y12.57%
EBIT growth 3Y5.08%
EBIT growth 5Y2.36%
EBIT Next Year23.06%
EBIT Next 3Y10.4%
EBIT Next 5Y6.08%
FCF growth 1Y-1.73%
FCF growth 3Y4.41%
FCF growth 5Y2.77%
OCF growth 1Y0.99%
OCF growth 3Y6.09%
OCF growth 5Y3.26%