UNILEVER PLC-SPONSORED ADR (UL) Stock Fundamental Analysis
NYSE:UL - New York Stock Exchange, Inc. - US9047677045 - ADR - Currency: USD
Taking everything into account, UL scores 4 out of 10 in our fundamental rating. UL was compared to 35 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
UL had positive earnings in the past year.
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's Return On Assets of 7.31% is fine compared to the rest of the industry. UL outperforms 71.43% of its industry peers.
UL has a Return On Equity of 31.22%. This is amongst the best in the industry. UL outperforms 97.14% of its industry peers.
UL has a Return On Invested Capital of 15.85%. This is in the better half of the industry: UL outperforms 80.00% 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 13.78%.
The 3 year average ROIC (14.38%) for UL is below the current ROIC(15.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.31% | ||
| ROE | 31.22% | ||
| ROIC | 15.85% |
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
The Profit Margin of UL (9.29%) is better than 82.86% of its industry peers.
In the last couple of years the Profit Margin of UL has declined.
UL has a Operating Margin of 18.21%. This is amongst the best in the industry. UL outperforms 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.
The Gross Margin of UL (45.79%) is worse than 65.71% 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 | 18.21% | ||
| PM (TTM) | 9.29% | ||
| GM | 45.79% |
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
UL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, UL has less shares outstanding
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 1.85. 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 of 1.85. This is in the lower half of the industry: UL underperforms 65.71% of its industry peers.
The Debt to FCF ratio of UL is 4.98, which is a neutral value as it means it would take UL, 4.98 years of fcf income to pay off all of its debts.
UL has a better Debt to FCF ratio (4.98) than 74.29% of its industry peers.
A Debt/Equity ratio of 1.40 is on the high side and indicates that UL has dependencies on debt financing.
UL has a worse Debt to Equity ratio (1.40) than 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 4.98 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.96
WACC8.1%
2.3 Liquidity
UL has a Current 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.
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.
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.
The Quick ratio of UL (0.55) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for UL have decreased strongly by -14.83% in the last year.
The Earnings Per Share has been growing slightly by 1.36% on average over the past years.
The Revenue has decreased by -0.87% 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)-14.83%
EPS 3Y-0.43%
EPS 5Y1.36%
EPS Q2Q%-3.4%
Revenue 1Y (TTM)-0.87%
Revenue growth 3Y5.03%
Revenue growth 5Y3.17%
Sales Q2Q%-3.18%
3.2 Future
UL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.96% yearly.
Based on estimates for the next years, UL will show a small growth in Revenue. The Revenue will grow by 1.97% on average per year.
EPS Next Y6.45%
EPS Next 2Y6.39%
EPS Next 3Y5.85%
EPS Next 5Y3.96%
Revenue Next Year-1.48%
Revenue Next 2Y0.81%
Revenue Next 3Y1.88%
Revenue Next 5Y1.97%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.11, which indicates a rather expensive current valuation of UL.
Compared to the rest of the industry, the Price/Earnings ratio of UL is on the same level as its industry peers.
UL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.87, which is the current average of the S&P500 Index.
UL is valuated correctly with a Price/Forward Earnings ratio of 15.56.
UL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UL is cheaper than 74.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UL to the average of the S&P500 Index (35.34), we can say UL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 15.56 |
4.2 Price Multiples
UL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, UL is valued a bit cheaper than the industry average as 77.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.88 | ||
| EV/EBITDA | 12.22 |
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)3.58
PEG (5Y)16.94
EPS Next 2Y6.39%
EPS Next 3Y5.85%
5. Dividend
5.1 Amount
UL has a Yearly Dividend Yield of 3.37%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.35, UL pays a better dividend. On top of this UL pays more dividend than 85.71% of the companies listed in the same industry.
UL's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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.
The dividend of UL decreased in the last 3 years.
Dividend Growth(5Y)1.52%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
79.51% 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.
DP79.51%
EPS Next 2Y6.39%
EPS Next 3Y5.85%
61
-0.68 (-1.1%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners52.78%
Inst Owner Change-0.91%
Ins Owners1.37%
Ins Owner ChangeN/A
Market Cap149.56B
Analysts72.73
Price Target68.3 (11.97%)
Short Float %0.12%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Yearly Dividend2.04
Dividend Growth(5Y)1.52%
DP79.51%
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)-1.38%
PT rev (3m)0.07%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.2%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-4.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 15.56 | ||
| P/S | 2.14 | ||
| P/FCF | 19.88 | ||
| P/OCF | 15.15 | ||
| P/B | 7.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.22 |
EPS(TTM)2.64
EY4.33%
EPS(NY)3.92
Fwd EY6.43%
FCF(TTM)3.07
FCFY5.03%
OCF(TTM)4.03
OCFY6.6%
SpS28.5
BVpS8.48
TBVpS-9.65
PEG (NY)3.58
PEG (5Y)16.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.31% | ||
| ROE | 31.22% | ||
| ROCE | 21.39% | ||
| ROIC | 15.85% | ||
| ROICexc | 17.7% | ||
| ROICexgc | 106.89% | ||
| OM | 18.21% | ||
| PM (TTM) | 9.29% | ||
| GM | 45.79% | ||
| FCFM | 10.77% |
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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 4.98 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 110.84% | ||
| Cap/Sales | 3.35% | ||
| Interest Coverage | 9.87 | ||
| Cash Conversion | 66.5% | ||
| Profit Quality | 115.88% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 1.85 |
F-Score6
WACC8.1%
ROIC/WACC1.96
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)-14.83%
EPS 3Y-0.43%
EPS 5Y1.36%
EPS Q2Q%-3.4%
EPS Next Y6.45%
EPS Next 2Y6.39%
EPS Next 3Y5.85%
EPS Next 5Y3.96%
Revenue 1Y (TTM)-0.87%
Revenue growth 3Y5.03%
Revenue growth 5Y3.17%
Sales Q2Q%-3.18%
Revenue Next Year-1.48%
Revenue Next 2Y0.81%
Revenue Next 3Y1.88%
Revenue Next 5Y1.97%
EBIT growth 1Y0.57%
EBIT growth 3Y5.08%
EBIT growth 5Y2.36%
EBIT Next Year18.25%
EBIT Next 3Y8.74%
EBIT Next 5Y5.41%
FCF growth 1Y8.46%
FCF growth 3Y4.41%
FCF growth 5Y2.77%
OCF growth 1Y11.09%
OCF growth 3Y6.09%
OCF growth 5Y3.26%