UNILEVER PLC-SPONSORED ADR (UL) Stock Fundamental Analysis
NYSE:UL - New York Stock Exchange, Inc. - US9047677045 - ADR - Currency: USD
UL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 35 industry peers in the Personal Care Products industry. While UL belongs to the best of the industry regarding profitability, there are 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
UL had positive earnings in the past year.
UL had a positive operating cash flow in the past year.
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 7.20%. This is in the better half of the industry: UL outperforms 71.43% of its industry peers.
UL has a better Return On Equity (28.73%) than 97.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.20%, UL is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
UL had an Average Return On Invested Capital over the past 3 years of 14.38%. This is in line with the industry average of 15.14%.
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 has a Profit Margin of 9.45%. This is amongst the best in the industry. UL outperforms 85.71% 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 88.57% of its industry peers.
UL's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 45.05%, UL is not doing good in the industry: 65.71% of the companies in the same industry are doing better.
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 | 18.4% | ||
| 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
UL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
UL has less shares outstanding than it did 1 year ago.
UL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for UL is higher compared to a year ago.
2.2 Solvency
UL has an Altman-Z score of 1.91. 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's Altman-Z score of 1.91 is on the low side compared to the rest of the industry. UL is outperformed by 62.86% of its industry peers.
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.
UL has a Debt to FCF ratio of 4.25. This is in the better half of the industry: UL outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that UL has dependencies on debt financing.
The Debt to Equity ratio of UL (1.25) is worse than 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 1.91 |
ROIC/WACC1.86
WACC8.17%
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.
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.
UL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.17% yearly.
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
UL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.34% yearly.
Based on estimates for the next years, UL will show a small growth in Revenue. The Revenue will grow by 2.33% on average per year.
EPS Next Y6.45%
EPS Next 2Y6.39%
EPS Next 3Y5.85%
EPS Next 5Y4.34%
Revenue Next Year-0.81%
Revenue Next 2Y1.36%
Revenue Next 3Y2.26%
Revenue Next 5Y2.33%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
UL is valuated rather expensively with a Price/Earnings ratio of 23.13.
Based on the Price/Earnings ratio, UL is valued a bit cheaper than the industry average as 62.86% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of UL to the average of the S&P500 Index (26.31), we can say UL is valued inline with the index average.
The Price/Forward Earnings ratio is 16.94, which indicates a correct valuation of UL.
71.43% of the companies in the same industry are more expensive than UL, based on the Price/Forward Earnings ratio.
UL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.13 | ||
| Fwd PE | 16.94 |
4.2 Price Multiples
UL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UL is cheaper than 62.86% of the companies in the same industry.
74.29% 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 | 17.56 | ||
| EV/EBITDA | 12.2 |
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)3.59
PEG (5Y)16.95
EPS Next 2Y6.39%
EPS Next 3Y5.85%
5. Dividend
5.1 Amount
UL has a Yearly Dividend Yield of 3.24%.
UL's Dividend Yield is rather good when compared to the industry average which is at 5.65. UL pays more dividend than 85.71% of the companies 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 | 3.24% |
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
UL pays out 75.19% of its income as dividend. This is not a sustainable payout ratio.
UL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP75.19%
EPS Next 2Y6.39%
EPS Next 3Y5.85%
62.67
-0.98 (-1.54%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners54.6%
Inst Owner Change0.27%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap153.65B
Analysts72.73
Price Target67.82 (8.22%)
Short Float %0.11%
Short Ratio0.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend2.02
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)-0.63%
PT rev (3m)4.33%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.18%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.13 | ||
| Fwd PE | 16.94 | ||
| P/S | 2.18 | ||
| P/FCF | 17.56 | ||
| P/OCF | 13.92 | ||
| P/B | 6.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.2 |
EPS(TTM)2.71
EY4.32%
EPS(NY)3.7
Fwd EY5.9%
FCF(TTM)3.57
FCFY5.7%
OCF(TTM)4.5
OCFY7.18%
SpS28.73
BVpS9.45
TBVpS-9.89
PEG (NY)3.59
PEG (5Y)16.95
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 | 1.91 |
F-Score6
WACC8.17%
ROIC/WACC1.86
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 5Y4.34%
Revenue 1Y (TTM)1.94%
Revenue growth 3Y5.03%
Revenue growth 5Y3.17%
Sales Q2Q%-50.7%
Revenue Next Year-0.81%
Revenue Next 2Y1.36%
Revenue Next 3Y2.26%
Revenue Next 5Y2.33%
EBIT growth 1Y12.57%
EBIT growth 3Y5.08%
EBIT growth 5Y2.36%
EBIT Next Year18.25%
EBIT Next 3Y8.74%
EBIT Next 5Y5.79%
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%