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Unilever

LSE:ULVR
Snowflake Description

Solid track record second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ULVR
LSE
£129B
Market Cap
  1. Home
  2. GB
  3. Household
Company description

Unilever PLC operates in the fast moving consumer goods industry worldwide. The last earnings update was 100 days ago. More info.


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ULVR Share Price and Events
7 Day Returns
-0.9%
LSE:ULVR
1.3%
GB Personal Products
0.4%
GB Market
1 Year Returns
20.9%
LSE:ULVR
22.5%
GB Personal Products
-2.2%
GB Market
ULVR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Unilever (ULVR) -0.9% 2.9% 12% 20.9% 56% 85.3%
GB Personal Products 1.3% 3.9% 16.1% 22.5% 57.9% 84.4%
GB Market 0.4% 1.3% 2% -2.2% 16.2% 5.1%
1 Year Return vs Industry and Market
  • ULVR underperformed the Personal Products industry which returned 22.5% over the past year.
  • ULVR outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2.2% over the past year.
Price Volatility
ULVR
Industry
5yr Volatility vs Market

Value

 Is Unilever undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Unilever to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Unilever.

LSE:ULVR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.9%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:ULVR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Personal Products Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.693 (1 + (1- 19%) (17.17%))
0.859
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.86
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.859 * 6.65%)
6.94%

Discounted Cash Flow Calculation for LSE:ULVR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Unilever is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:ULVR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 6.94%)
2019 6,491.17 Analyst x8 6,070.04
2020 7,092.15 Analyst x9 6,201.76
2021 7,716.68 Analyst x6 6,310.10
2022 8,472.00 Analyst x1 6,478.29
2023 9,026.33 Est @ 6.54% 6,454.38
2024 9,472.98 Est @ 4.95% 6,334.29
2025 9,835.97 Est @ 3.83% 6,150.32
2026 10,136.01 Est @ 3.05% 5,926.74
2027 10,389.76 Est @ 2.5% 5,680.98
2028 10,610.07 Est @ 2.12% 5,425.06
Present value of next 10 years cash flows €61,031.96
LSE:ULVR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €10,610.07 × (1 + 1.23%) ÷ (6.94% – 1.23%)
€188,068.05
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €188,068.05 ÷ (1 + 6.94%)10
€96,161.48
LSE:ULVR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €61,031.96 + €96,161.48
€157,193.44
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €157,193.44 / 2,612.30
€60.17
LSE:ULVR Discount to Share Price
Calculation Result
Exchange Rate EUR/GBP
(Reporting currency to currency of LSE:ULVR)
0.888
Value per Share
(GBP)
= Value per Share in EUR x Exchange Rate (EUR/GBP)
= €60.17 x 0.888
£53.42
Value per share (GBP) From above. £53.42
Current discount Discount to share price of £49.27
= -1 x (£49.27 - £53.42) / £53.42
7.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Unilever is available for.
Intrinsic value
8%
Share price is £49.27 vs Future cash flow value of £53.42
Current Discount Checks
For Unilever to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Unilever's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Unilever's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Unilever's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Unilever's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:ULVR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €3.50
LSE:ULVR Share Price ** LSE (2019-06-19) in GBP £49.27
LSE:ULVR Share Price converted to EUR reporting currency Exchange rate (GBP/ EUR) 1.126 €55.5
United Kingdom of Great Britain and Northern Ireland Personal Products Industry PE Ratio Median Figure of 5 Publicly-Listed Personal Products Companies 17.53x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.2x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Unilever.

LSE:ULVR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:ULVR Share Price ÷ EPS (both in EUR)

= 55.5 ÷ 3.50

15.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unilever is good value based on earnings compared to the GB Personal Products industry average.
  • Unilever is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Unilever's expected growth come at a high price?
Raw Data
LSE:ULVR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.86x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
-4.8%per year
Europe Personal Products Industry PEG Ratio Median Figure of 17 Publicly-Listed Personal Products Companies 0.86x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 576 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

LSE:ULVR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.86x ÷ -4.8%

-3.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unilever earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Unilever's assets?
Raw Data
LSE:ULVR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €4.43
LSE:ULVR Share Price * LSE (2019-06-19) in GBP £49.27
LSE:ULVR Share Price converted to EUR reporting currency Exchange rate (GBP/ EUR) 1.126 €55.5
United Kingdom of Great Britain and Northern Ireland Personal Products Industry PB Ratio Median Figure of 8 Publicly-Listed Personal Products Companies 1.73x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,371 Publicly-Listed Companies 1.51x
LSE:ULVR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:ULVR Share Price ÷ Book Value per Share (both in EUR)

= 55.5 ÷ 4.43

12.54x

* Primary Listing of Unilever.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unilever is overvalued based on assets compared to the GB Personal Products industry average.
X
Value checks
We assess Unilever's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Personal Products industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Personal Products industry average (and greater than 0)? (1 check)
  5. Unilever has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Unilever expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-4.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Unilever expected to grow at an attractive rate?
  • Unilever's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Unilever's earnings are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
  • Unilever's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:ULVR Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:ULVR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts -4.8%
LSE:ULVR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 3.7%
United Kingdom of Great Britain and Northern Ireland Personal Products Industry Earnings Growth Rate Market Cap Weighted Average -4.7%
United Kingdom of Great Britain and Northern Ireland Personal Products Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:ULVR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:ULVR Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 60,143 10,207 8,382 2
2021-12-31 56,605 10,110 7,427 10
2020-12-31 54,484 9,265 6,944 15
2019-12-31 52,273 7,959 6,234 15
LSE:ULVR Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 50,982 6,753 9,389
2018-09-30 51,662 7,133 7,686
2018-06-30 52,342 7,513 5,982
2018-03-31 53,029 7,403 6,018
2017-12-31 53,715 7,292 6,053
2017-09-30 53,935 7,353 5,918
2017-06-30 54,155 7,413 5,782
2017-03-31 53,434 7,230 5,483
2016-12-31 52,713 7,047 5,184
2016-09-30 52,639 6,975 5,058
2016-06-30 52,564 6,903 4,932
2016-03-31 52,918 7,117 4,921

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unilever's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unilever's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:ULVR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Unilever Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:ULVR Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 3.09 3.09 3.09 1.00
2021-12-31 2.85 2.97 2.67 5.00
2020-12-31 2.63 2.75 2.35 8.00
2019-12-31 2.32 2.55 2.05 8.00
LSE:ULVR Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 3.50
2018-09-30 2.83
2018-06-30 2.18
2018-03-31 2.17
2017-12-31 2.16
2017-09-30 2.10
2017-06-30 2.04
2017-03-31 1.93
2016-12-31 1.83
2016-09-30 1.78
2016-06-30 1.74
2016-03-31 1.73

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unilever is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Unilever's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Unilever has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Unilever performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Unilever's growth in the last year to its industry (Personal Products).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Unilever's year on year earnings growth rate has been positive over the past 5 years.
  • Unilever's 1-year earnings growth exceeds its 5-year average (55.1% vs 9%)
  • Unilever's earnings growth has exceeded the Europe Personal Products industry average in the past year (55.1% vs 11%).
Earnings and Revenue History
Unilever's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Unilever Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:ULVR Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 50,982.00 9,389.00 8,803.00 900.00
2018-09-30 51,662.00 7,685.50 11,116.50 900.00
2018-06-30 52,342.00 5,982.00 13,430.00 900.00
2018-03-31 53,028.50 6,017.50 13,468.50 900.00
2017-12-31 53,715.00 6,053.00 13,507.00 900.00
2017-09-30 53,935.00 5,917.50 13,680.50 939.00
2017-06-30 54,155.00 5,782.00 13,854.00 978.00
2017-03-31 53,434.00 5,483.00 13,826.50 978.00
2016-12-31 52,713.00 5,184.00 13,799.00 978.00
2016-09-30 52,638.50 5,058.00 13,936.00 991.50
2016-06-30 52,564.00 4,932.00 14,073.00 1,005.00
2016-03-31 52,918.00 4,920.50 14,069.00 1,005.00
2015-12-31 53,272.00 4,909.00 14,065.00 1,005.00
2015-09-30 52,300.50 4,875.50 12,626.00 980.00
2015-06-30 51,329.00 4,842.00 11,187.00 955.00
2015-03-31 49,882.50 5,006.50 11,197.50 955.00
2014-12-31 48,436.00 5,171.00 11,208.00 955.00
2014-09-30 48,415.50 5,201.00 11,744.50 997.50
2014-06-30 48,395.00 5,231.00 12,281.00 1,040.00
2014-03-31 49,096.00 5,036.50 12,294.50 1,040.00
2013-12-31 49,797.00 4,842.00 12,308.00 1,040.00
2013-09-30 50,611.50 4,757.00 12,244.50 1,523.00
2013-06-30 51,426.00 4,672.00 13,841.00
2013-03-31 51,375.00 4,520.00 13,815.00
2012-12-31 51,324.00 4,368.00 12,959.00 1,003.00
2012-09-30 50,200.50 4,123.00 13,142.00
2012-06-30 49,077.00 4,142.00 12,137.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Unilever made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Unilever used its assets more efficiently than the GB Personal Products industry average last year based on Return on Assets.
  • Unilever has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Unilever's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Personal Products industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Unilever has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Unilever's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Unilever's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Unilever's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Unilever's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Unilever's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Unilever Company Filings, last reported 5 months ago.

LSE:ULVR Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 12,292.00 24,885.00 4,197.00
2018-09-30 12,292.00 24,885.00 4,197.00
2018-06-30 12,301.00 29,621.00 4,857.00
2018-03-31 12,301.00 29,621.00 4,857.00
2017-12-31 14,387.00 24,430.00 3,952.00
2017-09-30 14,387.00 24,430.00 3,952.00
2017-06-30 16,818.00 19,633.00 5,841.00
2017-03-31 16,818.00 19,633.00 5,841.00
2016-12-31 16,980.00 16,595.00 3,993.00
2016-09-30 16,980.00 16,595.00 3,993.00
2016-06-30 15,106.00 16,371.00 3,797.00
2016-03-31 15,106.00 16,371.00 3,797.00
2015-12-31 16,082.00 14,643.00 3,022.00
2015-09-30 16,082.00 14,643.00 3,022.00
2015-06-30 15,885.00 15,382.00 3,578.00
2015-03-31 15,885.00 15,382.00 3,578.00
2014-12-31 14,263.00 12,722.00 2,771.00
2014-09-30 14,263.00 12,722.00 2,771.00
2014-06-30 14,469.00 13,436.00 4,163.00
2014-03-31 14,469.00 13,436.00 4,163.00
2013-12-31 14,815.00 11,501.00 3,239.00
2013-09-30 14,815.00 11,501.00 3,239.00
2013-06-30 13,317.00 15,907.00 4,271.00
2013-03-31 13,317.00 15,907.00 4,271.00
2012-12-31 15,949.00 10,221.00 3,232.00
2012-09-30 15,949.00 10,221.00 3,232.00
2012-06-30 14,948.00 13,812.00 4,661.00
  • Unilever's level of debt (202.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (77.8% vs 202.4% today).
  • Debt is well covered by operating cash flow (27.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 26.6x coverage).
X
Financial health checks
We assess Unilever's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Unilever has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Unilever's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.73%
Current annual income from Unilever dividends. Estimated to be 3.29% next year.
If you bought £2,000 of Unilever shares you are expected to receive £55 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unilever's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.99%).
  • Unilever's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:ULVR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
Europe Personal Products Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 2.3%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:ULVR Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 2.24 2.00
2021-12-31 1.95 12.00
2020-12-31 1.81 16.00
2019-12-31 1.69 15.00
LSE:ULVR Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-03-11 1.513 2.959
2019-01-31 1.534 3.267
2018-04-19 1.416 3.084
2018-02-28 1.405 3.267
2018-02-01 1.412 3.291
2017-02-28 1.173 2.597
2017-01-26 1.264 3.194
2016-02-23 0.977 2.664
2016-01-19 1.126 2.968
2015-03-06 1.172 3.203
2015-01-20 1.176 3.174
2014-03-04 1.086 3.507
2014-01-21 1.094 3.788
2013-01-23 0.901 3.049
2012-10-25 0.941 3.322
2012-07-26 0.928 3.313
2012-04-26 0.969 3.781
2012-02-02 0.885 3.650
2011-11-03 0.891 3.692
2011-08-04 0.885 3.887
2011-04-28 0.883 4.046
2011-03-04 0.801 3.780
2011-02-04 0.826 3.899
2011-02-03 0.843 3.884
2010-11-04 0.833 3.849
2010-04-29 0.812 3.960
2010-03-05 0.747 3.498
2010-02-04 0.750 3.577

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Unilever has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Unilever only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Unilever's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess Unilever's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Unilever afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Unilever has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Unilever's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alan Jope
AGE 54
TENURE AS CEO 0.4 years
CEO Bio

Mr. Alan W. Jope serves as an Executive Director at Unilever PLC and Unilever N.V. since May 02, 2019. He has been President of North Asia at Unilever South Africa (Pty) Ltd. since September 2011. Mr. Jope has been President of Beauty & Personal Care at Unilever plc since September 2014 and has also been its Chief Executive Officer since January 01, 2019. Mr. Jope had served as President of Personal Care at Unilever NV since September 2014 until January 01, 2019 and serves as its Chief Executive Officer from January 2019 and served as its President of Russia, Africa & Middle East from October 2013 to September 2014. He has an excellent track record of leading Unilever's business in both developed and emerging markets, having run the company's North Asia business for four years. Mr. Jope served as the President of North Asia Operations at Unilever Plc and Unilever NV since September 2011 to September 2014. Prior to this, he served as the Chief Operating Officer of Unilever Home and Personal Care, North America. He served as President of Unilever’s Home & Personal Care business in North America - both based just outside New York City. From 1995 to 1998, he served as Vice President of Personal Care for Unilever Thailand with additional responsibility for Hair Care in Asia Pacific. He served as Group Vice President of Global Spreads Cooking Products and Dressings Foods Category at Unilever Plc since January 1, 2006. He served as Group Vice President of Home and Personal Care, U.S. of Unilever Plc. He joined Unilever in 1985 and worked in a number of Sales and Marketing roles in London and Connecticut until 1995. He was President at Unilever Russia, Africa and Middle East. He was President at Unilever North Asia. He was Global Category Leaderat CC and Dressings. From 1995 to 1998, he served as Division Director for Unilever Thailand, where he built the Thai Personal Products and the Asia-Pacific Hair Care businesses. From 1999 to 2000, he served as in Chicago as Vice President of Marketing for Unilever's Hair and Deodorant businesses (Unilever's Helene Curtis business). He serves as the Chairman of The Soap and Detergent Association. He served as Chairman of Unilever Greater China since 2009. He served as the Chairman of the Board of Unilever (China) Ltd. since 2009 and serves as its Director. He served as the Chairman of The American Cleaning Institute. Mr. Jope has a Bachelor of Commerce with Honors from Edinburgh University, Scotland. In addition, he graduated from Harvard Business School's General Manager Program in 2001.

CEO Compensation
  • Insufficient data for Alan to compare compensation growth.
  • Insufficient data for Alan to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Unilever management team in years:

5
Average Tenure
54
Average Age
  • The average tenure for the Unilever management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Graeme Pitkethly

TITLE
CFO & Executive Director
COMPENSATION
€5M
AGE
51
TENURE
3.7 yrs

Alan Jope

TITLE
CEO & Executive Director
AGE
54
TENURE
0.4 yrs

Nitin Paranjpe

TITLE
Chief Operating Officer
AGE
54
TENURE
0.1 yrs

Richard Williams

TITLE
Investor Relations Officer

Ritva Sotamaa

TITLE
Chief Legal Officer & Group Secretary
AGE
54
TENURE
6.4 yrs

Leena Nair

TITLE
Chief Human Resources Officer
AGE
48
TENURE
3.3 yrs

Jan van der Bijl

TITLE
Head of Group Taxation
AGE
68
TENURE
17.9 yrs

Herald Belton

TITLE
Head of Deodorants Business

Kevin Havelock

TITLE
President of the Refreshment
AGE
60
TENURE
7.8 yrs

Julian Thurston

TITLE
Head of Secretariat
TENURE
14.7 yrs
Board of Directors Tenure

Average tenure and age of the Unilever board of directors in years:

3.5
Average Tenure
56.5
Average Age
  • The tenure for the Unilever board of directors is about average.
Board of Directors

Marijn Dekkers

TITLE
Non-Executive Chairman
COMPENSATION
€757K
AGE
60
TENURE
3.2 yrs

Youngme Moon

TITLE
Vice Chairperson & Senior Independent Director
COMPENSATION
€147K
AGE
54
TENURE
1.1 yrs

Graeme Pitkethly

TITLE
CFO & Executive Director
COMPENSATION
€5M
AGE
51
TENURE
3.2 yrs

Alan Jope

TITLE
CEO & Executive Director
AGE
54
TENURE
0.1 yrs

John Rishton

TITLE
Non-Executive Director
COMPENSATION
€143K
AGE
60
TENURE
6.1 yrs

Vittorio Colao

TITLE
Non-Executive Director
COMPENSATION
€127K
AGE
56
TENURE
3.9 yrs

Strive Masiyiwa

TITLE
Non-Executive Director
COMPENSATION
€131K
AGE
57
TENURE
3.2 yrs

Laura Cha

TITLE
Independent Non-Executive Director
COMPENSATION
€115K
AGE
68
TENURE
6.1 yrs

Feike Sijbesma

TITLE
Non-Executive Director
COMPENSATION
€135K
AGE
59
TENURE
4.6 yrs

Judith Hartmann

TITLE
Non-Executive Director
COMPENSATION
€128K
AGE
49
TENURE
4.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Unilever insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
12. Jun 19 Buy Graeme Pitkethly Individual 10. Jun 19 10. Jun 19 2 £48.98 £98
19. Mar 19 Sell Graeme Pitkethly Individual 15. Mar 19 15. Mar 19 -1,600 £42.28 £-67,648
13. Mar 19 Buy Xuezheng Z. Ma Individual 13. Mar 19 13. Mar 19 1,000 £41.54 £41,537
14. Dec 18 Sell Douglas Baillie Individual 19. Nov 18 19. Nov 18 -11,608 £40.14 £-465,899
X
Management checks
We assess Unilever's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Unilever has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Have Insiders Been Selling Unilever PLC (LON:ULVR) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Unilever PLC (LON:ULVR). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' Check out our latest analysis for Unilever Unilever Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the , Douglas Baillie, for UK£466k worth of shares, at about UK£40.14 per share.

Simply Wall St -

Is Unilever PLC (LON:ULVR) An Attractive Dividend Stock?

LSE:ULVR Historical Dividend Yield, June 5th 2019 Payout ratios Dividends are typically paid from company earnings. … A company paying out less than a quarter of its earnings as dividends, and growing earnings at more than 10% per annum, looks to be right in the cusp of its growth phase. … Conclusion To summarise, shareholders should always check that Unilever's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Is Unilever PLC's (LON:ULVR) ROE Of 80% Impressive?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Unilever: 80% = €9.4b ÷ €12b (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining Unilever's Debt And Its 80% Return On Equity Unilever clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 2.02. … Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.

Simply Wall St -

A Look At The Fair Value Of Unilever PLC (LON:ULVR)

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (€, Millions) €6.59k €7.09k €7.75k €8.47k €9.00k €9.43k €9.78k €10.07k €10.32k €10.53k Growth Rate Estimate Source Analyst x7 Analyst x9 Analyst x6 Analyst x1 Est @ 6.29% Est @ 4.77% Est @ 3.71% Est @ 2.96% Est @ 2.44% Est @ 2.08% Present Value (€, Millions) Discounted @ 6.86% €6.16k €6.21k €6.35k €6.50k €6.46k €6.34k €6.15k €5.92k €5.68k €5.42k Present Value of 10-year Cash Flow (PVCF)= €61.19b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = €11b × (1 + 1.2%) ÷ (6.9% – 1.2%) = €189b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = €€189b ÷ ( 1 + 6.9%)10 = €97.45b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is €158.64b. … LSE:ULVR Intrinsic value, May 10th 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Unilever (LON:ULVR) Shareholders Booked A 76% Gain In The Last Five Years

For example, long term Unilever PLC (LON:ULVR) shareholders have enjoyed a 76% share price rise over the last half decade, well in excess of the market return of around 4.6% (not including dividends). … During five years of share price growth, Unilever achieved compound earnings per share (EPS) growth of 15% per year. … This EPS growth is higher than the 12% average annual increase in the share price.

Simply Wall St -

Could The Unilever PLC (LON:ULVR) Ownership Structure Tell Us Something Useful?

A look at the shareholders of Unilever PLC (LON:ULVR) can tell us which group is most powerful. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … We'd expect to see both institutions and retail investors owning a portion of the company.

Simply Wall St -

Unilever PLC (LON:ULVR) Earns Among The Best Returns In Its Industry

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Who Has Been Selling Unilever PLC (LON:ULVR) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Unilever PLC (LON:ULVR). … That means that even when the share price was below the current price of UK£42.69, an insider wanted to cash in some shares. … Over the last year we saw more insider selling of Unilever shares, than buying.

Simply Wall St -

Unilever PLC (LON:ULVR) Has Attractive Fundamentals

Attractive stocks have exceptional fundamentals. … In the case of Unilever PLC (LON:ULVR), there's … dividend-paying company

Simply Wall St -

Estimating The Fair Value Of Unilever PLC (LON:ULVR)

by taking the foreast future cash flows of the company and discounting them back to today's value. … Discounted Cash Flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

Company Info

Description

Unilever PLC operates in the fast moving consumer goods industry worldwide. It operates through Beauty & Personal Care, Foods & Refreshment, and Home Care segments. The Beauty & Personal Care segment offers skin care and hair care products, deodorants, and oral care products primarily under the Axe, Dove, Lux, Rexona, Sunsilk, TRESemmé, Signal, Lifebuoy, and Vaseline brands. The Foods & Refreshment segment provides soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads, ice creams, and tea-based beverages primarily under the Knorr, Hellmann’s, Magnum, Lipton, Heart, Brooke Bond, and Ben & Jerry’s brand names. The Home Care segment offers home care products, such as powders, liquids and capsules, soap bars, and a range of cleaning products, as well as water purification products primarily under the Dirt is Good, Surf, Comfort, Domestos, Sunlight, Cif, Seventh Generation, Blueair, Pureit, and Truliva/Qinyuan brands. Unilever PLC was founded in 1885 and is headquartered in London, the United Kingdom.

Details
Name: Unilever PLC
ULVR
Exchange: LSE
Founded: 1885
£128,708,061,844
2,612,300,829
Website: http://www.unilever.com
Address: Unilever PLC
Unilever House,
100 Victoria Embankment,
London,
Greater London, EC4Y 0DY,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE ULVR PLC Ordinary Shares London Stock Exchange GB GBP 06. Jan 1975
OTCPK UNLY.F PLC Ordinary Shares Pink Sheets LLC US USD 06. Jan 1975
DB UNVB PLC Ordinary Shares Deutsche Boerse AG DE EUR 06. Jan 1975
SEP ULVR PLC Ordinary Shares The Stock Exchange Prague Co. Ltd. CZ CZK 06. Jan 1975
BATS-CHIXE ULVRL PLC Ordinary Shares BATS 'Chi-X Europe' GB GBP 06. Jan 1975
NYSE UL ADS-EA REPR 1 ORD GPB0.03111 New York Stock Exchange US USD 02. Jan 1968
DB UNVA ADS-EA REPR 1 ORD GPB0.03111 Deutsche Boerse AG DE EUR 02. Jan 1968
BMV UL N ADS-EA REPR 1 ORD GPB0.03111 Bolsa Mexicana de Valores MX MXN 02. Jan 1968
Number of employees
Current staff
Staff numbers
154,848
Unilever employees.
Industry
Personal Products
Household
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 20:54
End of day share price update: 2019/06/19 00:00
Last estimates confirmation: 2019/06/19
Last earnings filing: 2019/03/11
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.