UN  Unilever Nv

Exchange

NYSE

Sector

Consumer Non-Durables

Industry

Packaged Foods

Market Cap.

157.75B

Vuru Grade

79.29/100

Current Price

$56.09
-0.23 (-0.41%)

Growth Price

$33.27
Overvalued by 40.68%

Stability Price

$85.76
Undervalued by 52.90%

Company Metrics

  • P/E 23
  • P/S 2.43
  • P/B 8.14
  • EPS 2.44
  • Cash ROIC 18.41%
  • Cash Ratio 0.19
  • Dividend 1.66 / 2.87%
  • Avg. Vol. 1.46M
  • Shares 2.81B
  • Market Cap. 157.75B

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

Unilever NV (ADR) (UN) Is At $56.09 Formed Wedge; Brookfield Infrastructure ...
Key Gazette - 15 hours ago
Among 9 analysts covering Brookfield Infrastructure Partners (NYSE:BIP), 6 have Buy rating, 0 Sell and 3 Hold. Therefore 67% are positive.
What's Next for Unilever NV (ADR) (UN) After Forming Wedge Up?
BZ Weekly - Oct 19, 2017
The stock of Unilever NV (ADR) (UN) formed an up wedge with $59.11 target or 3.00 % above today's $57.39 share price.
Time to Reconsider Unilever NV (ADR) (UN) After Achieving 52-Week High?
WeeklyHub - Oct 14, 2017
The stock of Unilever NV (ADR) (NYSE:UN) hit a new 52-week high and has $65.00 target or 6.00 % above today's $61.32 share price.
Unilever NV (ADR) (UN) Reaches $58.16 After 8.00% Down Move; Spirit Realty ...
Herald KS - Oct 19, 2017
About 1.38M shares traded. Spirit Realty Capital, Inc (New) (SRC) has declined 36.20% since October 19, 2016 and is downtrending. It has underperformed by 52.90% the S&P500.
Cobblestone Capital Advisors Upped By $385330 Its Unilever Nv Ny Shs New (UN ...
Key Gazette - 17 hours ago
Unilever Nv Ny Shs New now has $165.46B valuation. The stock decreased 2.29% or $1.32 during the last trading session, reaching $56.32.
Gardner Russo & Gardner Decreased Its Position in Unilever Nv Adr (UN) by $8 ...
San Times - Oct 21, 2017
Tom Russo decreased its stake in Unilever Nv Adr (UN) by 1.03% based on its latest 2017Q2 regulatory filing with the SEC. Gardner Russo & Gardner Llc sold 156,558 shares as the company's stock rose 12.65% with the market.
Heitman Real Estate Securities Lowered Its Lasalle Hotel Properties (LHO ...
UtahHerald.com - 16 hours ago
Gardner Russo & Gardner Llc decreased Unilever Nv Adr (UN) stake by 1.03% reported in 2017Q2 SEC filing. Gardner Russo & Gardner Llc sold 156,558 shares as Unilever Nv Adr (UN)'s stock rose 12.65%. The Gardner Russo & Gardner Llc holds 15.08M ...
Gardner Russo & Gardner Holding in Unilever Nv Adr (UN) Has Cut as Market ...
BZ Weekly - Sep 29, 2017
Tom Russo decreased its stake in Unilever Nv Adr (UN) by 1.03% based on its latest 2017Q2 regulatory filing with the SEC. Gardner Russo & Gardner Llc sold 156,558 shares as the company's stock rose 12.65% with the market.
Gardner Russo & Gardner LLC Trimmed Its Unilever Nv Adr (UN) Holding by $8.61 ...
BZ Weekly - Oct 6, 2017
Tom Russo decreased its stake in Unilever Nv Adr (UN) by 1.03% based on its latest 2017Q2 regulatory filing with the SEC. Gardner Russo & Gardner Llc sold 156,558 shares as the company's stock rose 12.65% with the market.
Cullen Capital Management Has Lowered Unilever Nv (Adr) (UN) Position By $22 ...
NormanObserver.com - Oct 19, 2017
Cullen Capital Management Llc decreased Unilever Nv (Adr) (UN) stake by 23.09% reported in 2017Q2 SEC filing. Cullen Capital Management Llc sold 402,526 shares as Unilever Nv (Adr) (UN)'s stock rose 12.65%. The Cullen Capital Management Llc ...
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.

$56.09 Current Price

$33.27 Growth Price (DCF)

Overvalued by 40.68%


Growth Rate Assumed by Market: 27.89%


Future Free Cash Flow Growth Rate: 12.6%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$85.76 Stability Price (EPV)

Undervalued by 52.90%


Discount Rate: 15.0%

$18.52 Book Price

Overvalued by 66.99%


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 $18.41 of cash for every $100 invested.
Figures in EUR. Fiscal year ends in December
20122013201420152016
Free Cash Flow 4.69B 4.27B 5.54B 7.33B 5.01B
divided by
Invested Capital 27.49B 25.09B 28.39B 32.28B 31.89B
Cash ROIC 17.07% 17.01% 19.53% 22.71% 15.71%

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 $35.54 of Earnings for every $100 of Shareholders' Equity.
Figures in EUR. Fiscal year ends in December
20122013201420152016
Net Income 4.95B 5.26B 5.52B 5.26B 5.55B
divided by
Stockholders' Equity 15.16B 14.34B 13.65B 15.44B 16.35B
Return on Equity 32.64% 36.69% 40.40% 34.06% 33.92%

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
2007200820092010201120122013201420152016
Free Cash Flow 2.69B 2.59B 4.53B 3.79B 3.48B 4.69B 4.27B 5.54B 7.33B 5.01B

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
2007200820092010201120122013201420152016
Cash 1.31B 3.21B 3.61B 2.87B 4.94B 2.87B 3.05B - - 3.98B
Current Assets 9.92B 11.22B 10.81B 12.48B 14.29B 12.15B 12.12B 12.35B 12.69B 13.88B
Total Assets 37.26B 36.28B 37.02B 41.17B 47.51B 46.17B 45.51B 48.03B 52.30B 56.43B
Current Liabilities 13.54B 13.85B 11.60B 13.61B 17.93B 15.82B 17.38B 19.64B 20.02B 20.56B
Total Liabilities 24.88B 26.30B 24.95B 26.68B 33.22B 31.01B 31.17B 34.38B 36.86B 40.08B
Stockholder' Equity 12.37B 9.99B 12.07B 14.49B 14.29B 15.16B 14.34B 13.65B 15.44B 16.35B
Current Ratio 0.73 0.81 0.93 0.92 0.80 0.77 0.70 0.63 0.63 0.68
TL-to-TA 0.67 0.72 0.67 0.65 0.70 0.67 0.68 0.72 0.70 0.71

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
2007200820092010201120122013201420152016
Retained Earnings 15.14B 15.87B 11.45B 13.87B 19.68B 20.73B 20.47B - - 23.18B
Retained Earnings Growth - 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.

$10.20 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in EUR. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 3.88B 5.05B 3.66B 4.24B 4.25B 4.95B 5.26B 5.52B 5.26B 5.55B
divided by
Revenue 40.14B 40.68B 39.82B 44.26B 46.47B 51.32B 49.80B 48.44B 53.27B 52.71B
Net Profit Margin 9.68% 12.41% 9.19% 9.59% 9.15% 9.64% 10.57% 11.39% 9.87% 10.52%

Varying 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. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$78.72 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
2007200820092010201120122013201420152016
Gross Profit 19.61B 19.25B 19.24B 44.26B 46.47B 51.32B 49.80B 48.44B 53.27B 22.48B
divided by
Revenue 40.14B 40.68B 39.82B 44.26B 46.47B 51.32B 49.80B 48.44B 53.27B 52.71B
Gross Margin 48.84% 47.33% 48.32% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 42.65%

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.

36.90% 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
2007200820092010201120122013201420152016
Capital Expenditure 1.18B 1.29B 1.25B 1.70B 1.97B 2.14B 2.03B - - 2.04B
divided by
Net Income 3.88B 5.05B 3.66B 4.24B 4.25B 4.95B 5.26B 5.52B 5.26B 5.55B
Capital Expenditure Ratio 30.40% 25.65% 34.11% 40.08% 46.43% 43.31% 38.51% - - 36.70%

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
2007200820092010201120122013201420152016
Dividend Paid 2.73B 2.09B 2.62B 2.82B 2.98B 3.21B 3.50B - - 4.08B
divided by
Shares Outstanding 2.98B 2.91B 2.89B - - - - - - 2.85B
Dividend Paid Per Share 1.23 0.96 1.22 - - - - - - 1.92
Price at Year End 31.62 21.69 29.94 30.09 34.07 37.87 40.25 39.29 44.04 41.06
Dividend Yield 3.88% 4.45% 4.06% - - - - - - 4.67%

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
2007200820092010201120122013201420152016
Shares Outstanding 2.98B 2.91B 2.89B - - - - - - 2.85B
Stock Bought Back - 2.42% 0.55% - - - - - - -100.00%
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