UN  Unilever Nv

Exchange

NYSE

Sector

Consumer Non-Durables

Industry

Packaged Foods

Market Cap.

132.27B

Vuru Grade

79.34/100

Current Price

$46.58
-0.17 (-0.36%)

Growth Price

$44.21
Overvalued by 5.10%

Stability Price

$104.19
Undervalued by 123.68%

Company Metrics

  • P/E 23.99
  • P/S 2.36
  • P/B 7.61
  • EPS 1.94
  • Cash ROIC 18.09%
  • Cash Ratio -
  • Dividend 1.38 / 3.05 %
  • Avg. Vol. 3.20M
  • Shares 2.84B
  • Market Cap. 132.27B

Company Description

Unilever N.V. and its subsidiaries produce and supply fast moving consumer goods in food, personal care, and home care categories in Asia, Africa, central and eastern Europe, the Americas, and western Europe. It offers savoury, dressings, and spreads, such as soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines, spreads, and cooking products under the Knorr, Hellmann's, Becel/... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Stock under Consideration: Unilever NV (ADR) (NYSE:UN)
Post Registrar - Feb 22, 2017
Unilever N.V. (ADR) (NYSE:UN) share price plunged -7.58% or -3.70 points to reach at $45.09 during previous trading session.
Smart Money Buying the Price Weakness of Unilever NV (UN) - Money Flow Index & Trends
Overbuying Alert on: Unilever NV (ADR) (NYSE:UN)
Post Registrar - Feb 20, 2017
Unilever N.V. (ADR) (NYSE:UN) share price soared 15.29% or +6.47 points to reach at $48.79 during previous trading session.
Analyst's Review under Consideration: Unilever NV (ADR) (NYSE:UN)
Post Registrar - Dec 27, 2016
Unilever N.V. (ADR) (NYSE:UN) plunged -0.15% during previous trade, a total of 1.17M shares exchanged hands compared with its average trading volume of 2.94M shares whereas its relative volume is 0.45.
Choosing Which Unilever Share Class Is Right For You
Seeking Alpha - Apr 1, 2013
For this article I am looking at Unilever. For American investors buying shares on the NYSE there are two options for investing in Unilever: Unilever NV (NYSE:UN) and Unilever PLC (NYSE:UL). This article will investigate which shares are right for you ...
Stock Rating and Recommendation Update on the Shares of : Unilever NV (ADR ...
Post Registrar - Dec 14, 2016
Unilever N.V. (ADR) (NYSE:UN) rose 1.59% during previous trade. Jefferies issued rating on the stock of Unilever N.V. (ADR) (NYSE:UN) in a research note issued to investors on Dec-13-16, the stock received “Upgrade” rating from Hold to Buy ...
Honeywell International Inc. (NYSE:HON) & Unilever NV (ADR) (NYSE:UN) Traders ...
Money News - Feb 6, 2017
On Friday, Shares of Honeywell International Inc. (NYSE:HON) gained 1.02% to $119.19. The share price is trading in a range of $117.91 - 119.36.
Societe Generale upgraded Unilever NV (ADR) (NYSE:UN) to Buy in a report ...
Breaking Finance News - 20 hours ago
Just yesterday Unilever N.V. (ADR) (NYSE:UN) traded 0.48% higher at $46.75. Unilever N.V. (ADR)'s 50-day moving average is $41.75 and its 200-day moving average is $42.83.
Forward Earnings Estimate of Unilever NV(UN)
Highland Mirror - Feb 10, 2017
Several Stock Research Financial Advisors from Investment Banking firms have advised their client and investors on the stock.Unilever N.V. (ADR) was Upgraded by Jefferies to Buy on Dec 13, 2016. Unilever N.V. (ADR) was Downgraded by JP Morgan to ...
AT&T Inc. (NYSE:T) & Unilever NV (ADR) (NYSE:UN) Stocks in the Spotlight
Money News - Jan 30, 2017
On Friday, Shares of AT&T Inc. (NYSE:T) gained 0.57% to $42.01. The share price is trading in a range of $41.75 - 42.30. The stock exchanged hands with 19.02 million shares contrast to its average daily volume of 21.15 million shares.
Analysts Rating Stocks in Review: Unilever NV (ADR) (NYSE:UN) & Yum China ...
Daily News Journal (press release) - 19 hours ago
On Wednesday, Shares of Unilever N.V. (ADR) (NYSE:UN) gained 3.66% to $46.75. The share price is trading in a range of $46.01 - 47.51.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for UN to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate UN's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$46.58 Current Price

$44.21 Growth Price (DCF)

Overvalued by 5.10%


Growth Rate Assumed by Market: 14.13%


Future Free Cash Flow Growth Rate: 12.6%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$104.19 Stability Price (EPV)

Undervalued by 123.68%


Discount Rate: 15.0%


Excellent Cash Return on Invested Capital over the past 5 years

UN has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. Annual Reports can be useful in identifying the cause of one-time events and future sustainability.

UN has created $18.09 of cash for every $100 invested.
Figures in EUR. Fiscal year ends in December
20112012201320142015
Free Cash Flow 3.48B 4.69B 4.27B 5.54B 7.33B
divided by
Invested Capital 24.65B 27.49B 25.09B 28.39B 32.28B
Cash ROIC 14.11% 17.07% 17.01% 19.53% 22.71%

Excellent Return on Equity over the past 5 years

Over the past 5 years, UN has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

UN has generated $34.71 of Earnings for every $100 of Shareholders' Equity.
Figures in EUR. Fiscal year ends in December
20112012201320142015
Net Income 4.25B 4.95B 5.26B 5.52B 5.26B
divided by
Stockholders' Equity 14.29B 15.16B 14.34B 13.65B 15.44B
Return on Equity 29.75% 32.64% 36.69% 40.40% 34.06%

Excellent Business Performance over the past 10 years

UN has been able to maintain profitability in good times and bad. This could mean UN has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

UN has created positive free cash flow for 9 or more of the past 10 years.
Figures in EUR. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 3.39B 2.69B 2.59B 4.53B 3.79B 3.48B 4.69B 4.27B 5.54B 7.33B

Weak Balance Sheet

UN's financial position is not ideal. The key is to check whether UN is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in EUR. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 1.28B 1.31B 3.21B 3.61B 2.87B 4.94B 2.87B 3.05B - -
Current Assets 9.51B 9.92B 11.22B 10.81B 12.48B 14.29B 12.15B 12.12B 12.35B 12.69B
Total Assets 37.10B 37.26B 36.28B 37.02B 41.17B 47.51B 46.17B 45.51B 48.03B 52.30B
Current Liabilities 13.90B 13.54B 13.85B 11.60B 13.61B 17.93B 15.82B 17.38B 19.64B 20.02B
Total Liabilities 25.87B 24.88B 26.30B 24.95B 26.68B 33.22B 31.01B 31.17B 34.38B 36.86B
Stockholder' Equity 11.24B 12.37B 9.99B 12.07B 14.49B 14.29B 15.16B 14.34B 13.65B 15.44B
Current Ratio 0.68 0.73 0.81 0.93 0.92 0.80 0.77 0.70 0.63 0.63
TL-to-TA 0.70 0.67 0.72 0.67 0.65 0.70 0.67 0.68 0.72 0.70

Low or No Reinvestment of Profits over the past 10 years

UN has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to UN operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in EUR. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 12.73B 15.14B 15.87B 11.45B 13.87B 19.68B 20.73B 20.47B - -
Retained Earnings Growth - 18.91% 4.81% -27.86% 21.11% 41.89% 5.36% -1.27% -100.00% -

Potential Competitive Advantage over the past 10 years

UN potentially has a competitive advantage. This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at its future prospects to determine sustainability and whether the economic moat will strengthen.

$10.34 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in EUR. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 4.75B 3.88B 5.05B 3.66B 4.24B 4.25B 4.95B 5.26B 5.52B 5.26B
divided by
Revenue 39.68B 40.14B 40.68B 39.82B 44.26B 46.47B 51.32B 49.80B 48.44B 53.27B
Net Profit Margin 11.97% 9.68% 12.41% 9.19% 9.59% 9.15% 9.64% 10.57% 11.39% 9.87%

Strong Pricing Power over the past 10 years

UN has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$79.38 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in EUR. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 19.57B 19.61B 19.25B 19.24B 44.26B 46.47B 51.32B 49.80B 48.44B 53.27B
divided by
Revenue 39.68B 40.14B 40.68B 39.82B 44.26B 46.47B 51.32B 49.80B 48.44B 53.27B
Gross Margin 49.31% 48.84% 47.33% 48.32% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Medium Capital Intensity over the past 10 years

UN has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

35.28% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in EUR. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 1.13B 1.18B 1.29B 1.25B 1.70B 1.97B 2.14B 2.03B - -
divided by
Net Income 4.75B 3.88B 5.05B 3.66B 4.24B 4.25B 4.95B 5.26B 5.52B 5.26B
Capital Expenditure Ratio 23.73% 30.40% 25.65% 34.11% 40.08% 46.43% 43.31% 38.51% - -

Inconsistent Dividend History over the past 10 years

UN has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in EUR. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 2.60B 2.73B 2.09B 2.62B 2.82B 2.98B 3.21B 3.50B - -
divided by
Shares Outstanding 2.97B 2.98B 2.91B 2.89B - - - - - -
Dividend Paid Per Share 1.17 1.23 0.96 1.22 - - - - - -
Price at Year End 22.48 31.62 21.69 29.94 30.09 34.07 37.87 40.25 39.29 44.04
Dividend Yield 5.22% 3.88% 4.45% 4.06% - - - - - -

History of Stock Buybacks over the past 10 years

UN has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in EUR. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 2.97B 2.98B 2.91B 2.89B - - - - - -
Stock Bought Back - -0.12% 2.42% 0.55% - - - - - -
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