Unilever Caribbean (TTSE:UCL) - Share price, News & Analysis

Q: What is the Fair Price of UCL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

UCL (TTD13.36) is trading below our estimate of [[fair value]] (TTD43.92)

UCL fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	0/6
Financial Health	6/6
Dividends	3/6

UCL Stock Overview

Unilever Caribbean Limited manufactures and sells home care, personal care, and food and refreshment products in Trinidad and Tobago, and internationally.

Rewards

Trading at 69.6% below our estimate of its fair value

Risk Analysis

Earnings have declined by 15% per year over past 5 years

Dividend of 33.68% is not well covered by earnings or forecast to be in the next 3 years

Highly volatile share price over the past 3 months

High level of non-cash earnings

+ 1 more risk

Unilever Caribbean Competitors

Bibica

HOSE:BBC

₫1.3t

Coastal

BSE:501831

₹3.7b

Oman Fisheries Company SAOG

MSM:OFCI

ر.ع20.6m

Old Chang Kee

Catalist:5ML

S$80.7m

Price History & Performance

Summary of all time highs, changes and price drops for Unilever Caribbean
Historical stock prices
Current Share Price	TT$13.36
52 Week High	TT$20.50
52 Week Low	TT$12.61
Beta	0.17
1 Month Change	-3.47%
3 Month Change	-17.28%
1 Year Change	-18.29%
3 Year Change	-46.56%
5 Year Change	-73.80%
Change since IPO	142.91%

Shareholder Returns

	UCL	TT Food	TT Market
7D	-3.4%	-0.8%	-0.8%
1Y	-18.3%	9.4%	3.0%

Return vs Industry: UCL underperformed the TT Food industry which returned 9.4% over the past year.

Return vs Market: UCL underperformed the TT Market which returned 3% over the past year.

Price Volatility

Is UCL's price volatile compared to industry and market?
UCL volatility
UCL Average Weekly Movement	7.9%
Food Industry Average Movement	5.9%
Market Average Movement	3.0%
10% most volatile stocks in TT Market	6.0%
10% least volatile stocks in TT Market	1.3%

Stable Share Price: UCL is more volatile than 90% of TT stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: UCL's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of TT stocks.

About the Company

Founded	Employees	CEO	Website
1929	n/a	Jean-Marc Mouttet	https://www.unilever.tt

Unilever Caribbean Limited manufactures and sells home care, personal care, and food and refreshment products in Trinidad and Tobago, and internationally. The company’s Home Care segment manufactures and sells a range of laundry detergents, dishwashing liquids, fabric conditioners, and other general purpose household cleaners under the Breeze, Radiante, Comfort, Quix, and CIF brands. Its Beauty and Personal Care segment sells various skin care, skin cleansing, deodorants, and hair care products under the Axe, Degree, Dove, Lifebuoy, Lux, Suave, Tresemme, and Vaseline brands.

Unilever Caribbean Fundamentals Summary

How do Unilever Caribbean's earnings and revenue compare to its market cap?
UCL fundamental statistics
Market Cap	TT$350.62m
Earnings (TTM)	TT$16.83m
Revenue (TTM)	TT$235.60m

20.8x

P/E Ratio

1.5x

P/S Ratio

Is UCL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
UCL income statement (TTM)
Revenue	TT$235.60m
Cost of Revenue	TT$130.65m
Gross Profit	TT$104.95m
Other Expenses	TT$88.12m
Earnings	TT$16.83m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.64
Gross Margin	44.55%
Net Profit Margin	7.14%
Debt/Equity Ratio	0%

How did UCL perform over the long term?

See historical performance and comparison

Dividends

33.7%

Current Dividend Yield

706%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is UCL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for UCL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for UCL. This is calculated by dividing UCL's market cap by their current preferred multiple.
What is UCL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	TT$350.62m

UCL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.9x
Enterprise Value/EBITDA	8.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does UCL's PE Ratio compare to its peers?

UCL PE Ratio vs Peers

The above table shows the PE ratio for UCL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	17x
BBC Bibica	8.9x	n/a	₫1.3t
501831 Coastal	24.2x	n/a	₹3.7b
OFCI Oman Fisheries Company SAOG	21.1x	n/a	ر.ع20.6m
5ML Old Chang Kee	14.2x	n/a	S$80.7m
UCL Unilever Caribbean	20.8x	n/a	TT$350.6m

Price-To-Earnings vs Peers: UCL is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the peer average (17x).

Price to Earnings Ratio vs Industry

How does UCL's PE Ratio compare vs other companies in the South American Food Industry?

Price-To-Earnings vs Industry: UCL is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the South American Food industry average (8.7x)

Price to Earnings Ratio vs Fair Ratio

What is UCL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

UCL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	20.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate UCL's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of UCL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: UCL (TTD13.36) is trading below our estimate of fair value (TTD43.92)

Significantly Below Fair Value: UCL is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Unilever Caribbean forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.7%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Unilever Caribbean has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine Unilever Caribbean's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Unilever Caribbean performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-15.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: UCL has a high level of non-cash earnings.

Growing Profit Margin: UCL's current net profit margins (7.1%) are lower than last year (7.3%).

Past Earnings Growth Analysis

Earnings Trend: UCL's earnings have declined by 15% per year over the past 5 years.

Accelerating Growth: UCL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UCL had negative earnings growth (-14.6%) over the past year, making it difficult to compare to the Food industry average (23.8%).

Return on Equity

High ROE: UCL's Return on Equity (4.6%) is considered low.

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Financial Health

How is Unilever Caribbean's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: UCL's short term assets (TTD495.8M) exceed its short term liabilities (TTD228.2M).

Long Term Liabilities: UCL's short term assets (TTD495.8M) exceed its long term liabilities (TTD48.3M).

Debt to Equity History and Analysis

Debt Level: UCL is debt free.

Reducing Debt: UCL has not had any debt for past 5 years.

Debt Coverage: UCL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: UCL has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

33.68%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: UCL's dividend (33.68%) is higher than the bottom 25% of dividend payers in the TT market (2.66%).

High Dividend: UCL's dividend (33.68%) is in the top 25% of dividend payers in the TT market (3.96%)

Stability and Growth of Payments

Stable Dividend: UCL's dividend payments have been volatile in the past 10 years.

Growing Dividend: UCL's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (705.5%), UCL's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: UCL is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure

CEO

Jean-Marc Mouttet (55 yo)

1.75yrs

Tenure

Mr. Jean-Marc Mouttet serves as Managing Director at Unilever Caribbean Limited since November 13, 2020. He joined Unilever Caribbean Limited in September 2019 as National Sales Manager. He is responsible...

Leadership Team

Experienced Management: UCL's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: UCL's board of directors are not considered experienced ( 3 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/07 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31