Unilever PLC logged a 0.7% change during today's morning session, and is now trading at a price of $54.15 per share.
Unilever PLC shares moved 18.4% over the last 52 weeks, with a high of $54.23 and a low of $42.44. During this time, the stock outperformed the S&P 500 index by 25.0%. As of January 2022, the company's 50-day average price is $51.0. Unilever PLC operates as a fast-moving consumer goods company. The large-cap Consumer Discretionary company has 126,988 full time employees and is based in London, United Kingdom. Unilever PLC has returned a 3.1% dividend yield over the last 12 months.
The Company Has a Steady Stream of Positive Cash Flows:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $51,980 | $50,724 | $52,444 | $60,073 |
| Revenue Growth | n/a | -2.42% | 3.39% | 14.55% |
| Gross Margins | 44.0% | 43.4% | 42.3% | 40.2% |
| Gross Margins Growth | n/a | -1.36% | -2.53% | -4.96% |
| Operating Margins | 16.8% | 16.4% | 16.6% | 17.9% |
| Operating Margins Growth | n/a | -2.38% | 1.22% | 7.83% |
| Net Margins | 10.82% | 11.0% | 11.53% | 12.72% |
| Net Margins Growth | n/a | 1.66% | 4.82% | 10.32% |
| Earnings Per Share | $2.14 | $2.12 | $2.32 | $3.29 |
| EPS Growth | n/a | -0.93% | 9.43% | 41.81% |
| Diluted Shares (MM) | 2,627 | 2,630 | 2,610 | 2,526 |
| Free Cash Flow (MM) | $6,680 | $8,126 | $6,733 | $5,655 |
| FCF Growth | n/a | 21.65% | -17.14% | -16.01% |
| Capital Expenditures (MM) | -$1,429 | -$932 | -$1,239 | -$1,627 |
| Net Debt / EBITDA | 2.14 | 1.98 | 2.47 | 1.89 |
Unilever PLC Is Fairly Valued:
Compared to the Consumer Discretionary sector's average of 22.33, Unilever PLC has a trailing twelve month P/E ratio of 16.5 and, according to its EPS guidance of 2.44, an expected P/E ratio of 22.2. Unilever PLC's PEG ratio is 5.84 based on its 2.7% compound average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 6.0%, because the growth rate implied by Unilever PLC's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 2.59, which suggests that the company's shares are actually overvalued.
Unilever PLC's P/B ratio is 7.2 compared to its sector average of 3.12. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 164.9% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 2.47 * 7.52) = $20.44
Unilever PLC's elevated P/B ratio notwithstanding, the company's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued.
Most of the Market Indicators on Unilever PLC Are Negative:
2 analysts are following Unilever PLC and have set target prices ranging from $53.8 to $55.9 per share. On average, they have given the company a rating of buy. At the current price of $54.15, UL is trading -1.29% away from its average analyst target price of $54.85 per share, implying an analyst consensus of some upside potential for the stock.
