UNILEVER PLC-SPONSORED ADR (UL) Stock Fundamental Analysis
USA - NYSE:UL - US9047677045 - ADR
59.17 USD
-0.11 (-0.19%)
59.17 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to UL. UL was compared to 36 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year UL was profitable.
UL had a positive operating cash flow in the past year.
Each year in the past 5 years UL has been profitable.
UL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.31%, UL is doing good in the industry, outperforming 72.22% of the companies in the same industry.
The Return On Equity of UL (31.22%) is better than 97.22% of its industry peers.
UL has a better Return On Invested Capital (15.85%) than 80.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UL is in line with the industry average of 12.97%.
The last Return On Invested Capital (15.85%) for UL is above the 3 year average (14.38%), which is a sign of increasing profitability.
| 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 83.33% of its industry peers.
In the last couple of years the Profit Margin of UL has declined.
The Operating Margin of UL (18.21%) is better than 91.67% of its industry peers.
UL's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 45.79%, UL is doing worse than 63.89% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so UL is creating value.
Compared to 1 year ago, UL has less shares outstanding
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 1.80. This is a bad value and indicates that UL is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of UL (1.80) is worse than 61.11% 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 72.22% 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.
With a Debt to Equity ratio value of 1.40, UL is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 4.98 | ||
| Altman-Z | 1.8 |
ROIC/WACC1.94
WACC8.16%
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.
The Current ratio of UL (0.76) is worse than 86.11% of its industry peers.
A Quick Ratio of 0.55 indicates that UL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.55, UL is doing worse than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
UL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.83%.
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.
UL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.17% yearly.
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
Based on estimates for the next years, UL will show a small growth in Earnings Per Share. The EPS will grow by 5.36% on average per year.
Based on estimates for the next years, UL will show a small growth in Revenue. The Revenue will grow by 2.41% on average per year.
EPS Next Y3.15%
EPS Next 2Y4.08%
EPS Next 3Y4.79%
EPS Next 5Y5.36%
Revenue Next Year-2.82%
Revenue Next 2Y-0.36%
Revenue Next 3Y1.08%
Revenue Next 5Y2.41%
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
UL is valuated rather expensively with a Price/Earnings ratio of 22.41.
Based on the Price/Earnings ratio, UL is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.54, UL is valued at the same level.
Based on the Price/Forward Earnings ratio of 15.80, the valuation of UL can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UL indicates a somewhat cheap valuation: UL is cheaper than 72.22% 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 (23.05), we can say UL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 15.8 |
4.2 Price Multiples
63.89% of the companies in the same industry are more expensive than UL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, UL is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.31 | ||
| EV/EBITDA | 11.84 |
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)7.12
PEG (5Y)16.43
EPS Next 2Y4.08%
EPS Next 3Y4.79%
5. Dividend
5.1 Amount
UL has a Yearly Dividend Yield of 3.42%.
Compared to an average industry Dividend Yield of 5.76, UL pays a better dividend. On top of this UL pays more dividend than 86.11% of the companies listed in the same industry.
UL's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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
79.51% 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.
DP79.51%
EPS Next 2Y4.08%
EPS Next 3Y4.79%
59.17
-0.11 (-0.19%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners48.04%
Inst Owner Change5.52%
Ins Owners1.35%
Ins Owner ChangeN/A
Market Cap145.08B
Analysts74.78
Price Target71.05 (20.08%)
Short Float %0.14%
Short Ratio1.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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)3.07%
PT rev (3m)2.58%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.04%
EPS NY rev (3m)-4.27%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 15.8 | ||
| P/S | 2.08 | ||
| P/FCF | 19.31 | ||
| P/OCF | 14.72 | ||
| P/B | 6.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.84 |
EPS(TTM)2.64
EY4.46%
EPS(NY)3.75
Fwd EY6.33%
FCF(TTM)3.06
FCFY5.18%
OCF(TTM)4.02
OCFY6.79%
SpS28.45
BVpS8.47
TBVpS-9.64
PEG (NY)7.12
PEG (5Y)16.43
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 | 1.8 |
F-Score6
WACC8.16%
ROIC/WACC1.94
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 Y3.15%
EPS Next 2Y4.08%
EPS Next 3Y4.79%
EPS Next 5Y5.36%
Revenue 1Y (TTM)-0.87%
Revenue growth 3Y5.03%
Revenue growth 5Y3.17%
Sales Q2Q%-3.18%
Revenue Next Year-2.82%
Revenue Next 2Y-0.36%
Revenue Next 3Y1.08%
Revenue Next 5Y2.41%
EBIT growth 1Y0.57%
EBIT growth 3Y5.08%
EBIT growth 5Y2.36%
EBIT Next Year17.82%
EBIT Next 3Y8.4%
EBIT Next 5Y6.41%
FCF growth 1Y8.46%
FCF growth 3Y4.41%
FCF growth 5Y2.77%
OCF growth 1Y11.09%
OCF growth 3Y6.09%
OCF growth 5Y3.26%