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. While UL has a great profitability rating, there are quite some concerns on its financial health. UL has a correct valuation and a medium growth rate.
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.
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
Looking at the Return On Assets, with a value of 7.20%, UL is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
UL has a Return On Equity of 28.73%. This is amongst the best in the industry. UL outperforms 94.29% 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 16.31%.
The 3 year average ROIC (14.38%) for UL is below the current ROIC(15.20%), indicating increased profibility in the last year.
| 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
The Profit Margin of UL (9.45%) is better than 85.71% of its industry peers.
In the last couple of years the Profit Margin of UL has declined.
Looking at the Operating Margin, with a value of 18.40%, UL belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
UL's Operating Margin has been stable in the last couple of years.
UL has a Gross Margin of 45.05%. This is in the lower half of the industry: UL underperforms 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
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
UL has less shares outstanding than it did 5 years ago.
UL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.92 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 1.92. This is in the lower half of the industry: UL underperforms 60.00% 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.
Looking at the Debt to FCF ratio, with a value of 4.25, UL is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 1.25 is on the high side and indicates that UL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.25, UL is doing worse than 77.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 1.92 |
ROIC/WACC1.87
WACC8.11%
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.
Looking at the Current ratio, with a value of 0.76, UL is doing worse than 88.57% of the companies in the same industry.
A Quick Ratio of 0.56 indicates that UL may have some problems paying its short term obligations.
With a Quick ratio value of 0.56, UL is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| 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.
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)-10.55%
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 3.69% yearly.
UL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.26% yearly.
EPS Next Y6.45%
EPS Next 2Y6.39%
EPS Next 3Y5.85%
EPS Next 5Y3.69%
Revenue Next Year-0.81%
Revenue Next 2Y1.36%
Revenue Next 3Y2.26%
Revenue Next 5Y3.26%
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
The Price/Earnings ratio is 23.66, which indicates a rather expensive current valuation of UL.
The rest of the industry has a similar Price/Earnings ratio as UL.
UL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.25.
UL is valuated rather expensively with a Price/Forward Earnings ratio of 17.33.
68.57% of the companies in the same industry are more expensive than UL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.27. UL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 17.33 |
4.2 Price Multiples
62.86% of the companies in the same industry are more expensive than UL, based on the Enterprise Value to EBITDA ratio.
71.43% 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 | 17.96 | ||
| EV/EBITDA | 12.3 |
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)3.67
PEG (5Y)17.34
EPS Next 2Y6.39%
EPS Next 3Y5.85%
5. Dividend
5.1 Amount
UL has a Yearly Dividend Yield of 3.20%. Purely for dividend investing, there may be better candidates out there.
UL's Dividend Yield is rather good when compared to the industry average which is at 5.65. UL pays more dividend than 82.86% of the companies in the same industry.
UL's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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
75.19% 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.
DP75.19%
EPS Next 2Y6.39%
EPS Next 3Y5.85%
61.75
-0.09 (-0.15%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners54.6%
Inst Owner Change1.01%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap151.66B
Analysts72.73
Price Target68.25 (10.53%)
Short Float %0.1%
Short Ratio0.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend1.99
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)4.66%
PT rev (3m)4.99%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.84%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-5.27%
Revenue NY rev (3m)-4.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 17.33 | ||
| P/S | 2.23 | ||
| P/FCF | 17.96 | ||
| P/OCF | 14.24 | ||
| P/B | 6.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.3 |
EPS(TTM)2.61
EY4.23%
EPS(NY)3.56
Fwd EY5.77%
FCF(TTM)3.44
FCFY5.57%
OCF(TTM)4.33
OCFY7.02%
SpS27.67
BVpS9.1
TBVpS-9.52
PEG (NY)3.67
PEG (5Y)17.34
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 | 1.92 |
F-Score6
WACC8.11%
ROIC/WACC1.87
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 Year-0.81%
Revenue Next 2Y1.36%
Revenue Next 3Y2.26%
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%