Unilever PLC
🇬🇧 ULVR.LSE · London · GB00BVZK7T90
Consumer
GBX 4172.50 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
15.3
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 4172.50 ÷ 272.67 = 15.3
TTM period through: 2025-12-31
Forward P/E (estimated): 12.3
Based on analyst estimates
Reference: Provider P/E (Trailing): 18.5
Yield (Fwd)
4.12%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 4.72%
Net Debt/EBITDA (TTM)
2.3x
Latest quarter: 5.5x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 5.5x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
63.1%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 73.0%
Cash Flow Payout (TTM): 56.2%
FCF Coverage (TTM): 1.46x
ROE
31.0%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
11.4x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Unilever is a dominant global consumer staples giant undergoing a massive strategic transformation to become a higher-margin pure-play beauty and personal care business. The recent market sell-off, driven by uncertainty over the complex $45B McCormick foods deal and a proportional 13.6% dividend right-sizing following these spin-offs, creates a compelling temporary opportunity. Trading at 4,172 GBX within our fair value range of 4,090-4,908 GBX, this is an attractive entry point for dividend investors seeking defensive cash flows, as the dividend remains highly secure with 56% free cash flow coverage.
Sector Context
Unilever is a global consumer staples manufacturer that sells everyday essential products across beauty, personal care, home care, and food. In dividend investing, consumer staples with strong brand power offer reliable, recession-resistant cash flows, though they can face short-term margin pressures from raw material inflation or supply chain disruptions.
Temporary Opportunity Identified
Market overreaction to the execution risks and complex structure of the $45B McCormick Foods merger, combined with geopolitical supply chain fears and a strategic 13.6% dividend right-sizing following major portfolio spin-offs.
📊 Strategy Analysis
- • Trading at 4,172 GBX within our fair value range of 4,090-4,908 GBX, the forward P/E of 12.3x offers an attractive valuation for a global staples monopoly.
- • The announced 13.6% dividend cut is a proportional right-sizing following the massive foods and ice cream spin-offs, leaving a highly sustainable payout backed by 56.1% free cash flow coverage despite an elevated accounting payout ratio.
- • Net Debt/EBITDA of 2.31x remains well below the 3.0x strategy threshold, ensuring balance sheet stability during the complex corporate restructuring.
- • The strategic transition into a pure-play beauty, wellbeing, and personal care company promises higher future margins, supported by current robust ROE of 31%.
⚠ What to Watch
- • The massive $45B combination of the Foods division with McCormick introduces significant execution risk, prolonged timelines, and potential antitrust scrutiny.
- • Recent global hiring freezes highlight immediate operational pressures from Middle East supply chain disruptions and geopolitical input cost inflation.
- • Recent trajectory shows slightly declining revenues and earnings over the last 8 quarters as the company navigates the friction of its extensive portfolio restructuring.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.