Unilever Stock: Buy, Hold, or Sell?

PUBLISHED Apr 26, 2025, 12:33:36 PM        SHARE

img
imgjp_dividends on YouTube

In today's analysis, we're diving deep into Unilever stock to determine whether it's a buy, a hold, or a sell. This overview will cover several key aspects: what Unilever does, its financial performance, dividend analysis, and valuation. Let's break it down!

What Does Unilever Do?

Unilever is a global consumer goods company headquartered in the UK. It operates across diverse sectors, blending attributes of Procter & Gamble and PepsiCo. Here’s how:

  • Household & Personal Care: Unilever owns popular brands like Dove, Axe, Vaseline, and Liquid IV.
  • Food & Ice Cream: Their portfolio includes household names such as Ben & Jerry’s, Hellman’s, and several others.

Unilever boasts an impressive lineup of 31 distinct brands, making it a staple in homes worldwide. However, this diversity comes with occasional volatility—a factor to keep in mind for long-term investors.

Unilever’s Financials: A Mixed Bag

Revenue: Unilever's revenue has shown steady growth in recent years, bouncing back robustly after a dip between 2017 and 2020. This upward trend checks the box for consistency.

Net Income: A less promising picture. Net income displays volatility, with growth stalled over recent years due to inconsistent expenses. As of 2024, net income is flat, compared to past performance metrics.

Free Cash Flow: Unilever shines here! Despite cyclical fluctuations, free cash flow shows a positive upward trend, making it a reliable metric.

Other financial metrics include:

  • PE Ratio: 24 – typical for the industry.
  • Net Profit Margin: 9.45% – solid performance.
  • ROA: 9% – exceeding the benchmark of 5%.
  • ROE: 29% – well above the desired 15%.

While revenue and free cash flow look strong, volatility in net income warrants caution.

Dividend Analysis: UK Investor Advantage

Unilever offers a dividend yield of 3%, with steady payouts since 1984. However, the 5-year growth rate appears low at 0.54%, likely skewed by currency conversions between pounds and dollars. For UK investors, dividends are unaffected by this conversion—making Unilever an attractive long-term consumer staple stock.

American investors should factor in currency risks when considering dividend performance over time.

Valuation: Intrinsic Value Insights

The intrinsic value of Unilever stock ranges based on different models:

  • JP Dividends' DCF Model: $116 per share.
  • Simply Wall Street: $59 per share (matching current market price).

The average valuation suggests an intrinsic value of around $88, indicating potential upside of 49%. However, JP Dividends leans closer to the Simply Wall Street valuation, estimating intrinsic value at $65–70 per share.

Final Verdict: Is Unilever a Buy?

Unilever is a consistent player in the consumer staples sector, resembling the steady growth patterns of Procter & Gamble. While it offers reliable long-term performance, its slower growth may not appeal to all investors. Currency risks are an additional factor for American investors to consider.

Recommendation: Unilever is a buy for those seeking consistent dividend growth and portfolio stability. For faster-growing alternatives, this stock might not fit the bill.

https://youtu.be/1-uqncp69Ac?si=vR_NvtZqqlOkkoGl



Sound investments
don't happen alone

Find your crew, build teams, compete in VS MODE, and identify investment trends in our evergrowing investment ecosystem. You aren't on an island anymore, and our community is here to help you make informed decisions in a complex world.

More Reads
Are monthly dividends worth it?
Image

Dividend investing is a tried-and-true method for generating passive income by investing in companies that share a portion of their profits with shareholders. These dividends are typically distributed on a regular schedule, making them an attractive option for investors looking for predictable returns.

Is Home Depot Stock a Buy, Hold, or Sell? A Comprehensive Analysis
Image

Today, we're diving deep into Home Depot (HD), the go-to retailer for all things home improvement. We'll analyze whether it's a buy, hold, or sell by examining its business model, financials, dividend performance, and valuation.

Are dividend stocks good for passive income?
Image

Dividend stocks are shares of companies that regularly distribute a portion of their earnings to shareholders in the form of dividends. These payouts often serve as an incentive for investors seeking steady income, making dividend stocks a popular choice for passive income strategies.

The Big Flaw of the P/E Ratio (and How to Fix it)
Image

The stock market's current turbulence has left retail investors searching for reliable indicators to guide them back into equities. Among these indicators, the price-to-earnings (P/E) ratio stands out as one of the most commonly discussed metrics, having been a cornerstone of investing for nearly a century.

Lululemon: Undervalued Opportunity or Value Trap?
Image

Ticker symbol LULU has seen a significant drop of over 20%, leaving investors questioning whether Lululemon represents an undervalued opportunity or a value trap.

The Trade Desk (Ticker: TTD): A Look at Explosive Growth and Unique Offerings
Image

Ticker symbol TTD has skyrocketed over 80% in the past year, making The Trade Desk a standout performer in the stock market. With a remarkable 102% year-over-year net income growth and consistent margin expansion, this digital advertising powerhouse is revolutionizing the way businesses approach marketing campaigns.

Novo Nordisk: A Stock Under Pressure, but Is It a Value Opportunity?
Image

Novo Nordisk, the Danish pharmaceutical giant, has experienced a significant price dip, falling over 40% from its all-time highs in June 2024. This decline stems from several challenges, including the entrance of competitors offering weight-loss drugs, less successful clinical trial results than anticipated, and heightened uncertainty due to new U.S. political administration policies and potential tariffs on foreign pharmaceutical companies.

ASML Stock: Balancing Risk and Reward Amid Cyclicality
Image

Good day, fellow investors! ASML Holding (ASML) has faced a challenging stretch in recent months, with the stock down 42% over the last 10 months. Tariff concerns and market uncertainty have weighed heavily on its price.

BHP Stock: Long-Term Potential Amid Cyclical Downturns
Image

Good day, fellow investors! BHP Group (BHP) has faced a challenging period, with its stock down 30% over the last two years. Yet, the fundamentals remain strong—cash flows are healthy, dividends are consistent, and the market capitalization stands at a notable $126 billion.

STAG Industrial Stock: Is It Time to Invest?
Image

The stock market’s recent volatility has impacted all sectors, including Real Estate Investment Trusts (REITs). Among those facing a downturn is STAG Industrial (STAG), with its stock down approximately 25% from its 52-week high and nearing its 52-week low.

ARCC Stock: A Dividend Investor’s Dream?
Image

If you’re a dividend enthusiast, Ares Capital Corporation (ARCC) might already be on your radar. Known for its stellar dividend yields, ARCC has recently taken a hit, with its stock falling 15-20% from its year-to-date high.

LTC Stock Analysis: Is This Real Estate Investment Trust (REIT) Worth Your Attention?
Image

The stock market has been tumultuous lately, making it crucial for investors to seek out promising opportunities. One such contender is LTC Properties, Inc. (NYSE: LTC), a REIT specializing in healthcare facilities such as assisted living and skilled nursing properties.

Eli Lilly Stock: Analyzing its Valuation and Future Potential
Image

Eli Lilly (NYSE: LLY), a pharmaceutical giant with a market cap of $658 billion, has achieved impressive growth in recent years, primarily driven by its diabetes drugs, Mounjaro and Trulicity. But with a current stock price of $732, is Eli Lilly overvalued, or does it present an opportunity for long-term investors? Let’s break down the numbers and evaluate its valuation.

Pfizer Stock: A Deep Dive into Valuation and Investment Potential
Image

When it comes to the pharmaceutical industry, Pfizer stands tall as a legacy company with a rich history of innovation. However, its recent financial performance and stock price movements have left investors questioning its valuation. At a market cap of $124 billion and a trading price of $22 per share, is Pfizer undervalued, or does the dip signal deeper challenges?

Is Sanofi Stock Trading at an Undervalued Price? Here's What You Need to Know
Image

Investing in pharmaceutical stocks often means betting on innovation and consistent cash flow. With a strong market presence and a robust portfolio, Sanofi is no exception. But is it currently undervalued or an opportunity waiting to be seized? In this detailed analysis, we’ll dissect Sanofi’s financial statements and ratios to determine whether this large-cap stock should be on your radar.

Unlocking the Value of Boyd Gaming Stock: Is It a Buy or Sell?
Image

In the ever-evolving world of investing, evaluating stocks to determine their worth and potential can be as thrilling as a game of chance at a casino. Boyd Gaming Corporation (NYSE: BYD), a prominent player in the gaming and hospitality industry, is no exception.

Why Miners Are Losing Faith, But MicroStrategy Holds Strong: A Deep Dive into CleanSpark, Iron, and MARA
Image

The cryptocurrency landscape is no stranger to volatility, but recent developments in the Bitcoin mining sector have sparked heated debates among investors. With miners like CleanSpark making controversial strategic shifts and MicroStrategy steadfastly holding its Bitcoin, the industry is at a pivotal crossroads.

Why HIMS is a Recession-Proof Investment: Essential, Affordable, and Growing
Image

When economic uncertainties arise, investors tend to react by selling stocks across the board. Yet, there are companies that not only weather recessions but thrive during them. **HIMS & HERS Health Inc.**, a telehealth pioneer, stands out as one such example. Here's why HIMS remains a compelling investment, even in the face of economic downturns.

Pfizer Stock: Analyzing Opportunities Amid a 63% Decline
Image

Pfizer Inc. (NYSE: PFE) has experienced a dramatic decline in its stock price, plummeting 63% from its all-time high. With the dividend yield now approaching 8%, many investors are evaluating whether this is a lucrative buying opportunity or a potential trap.

Visa: The Ultimate Tariff Stock to Watch Amid Economic Shifts
Image

Economic uncertainties often spark debates around the most resilient stocks in the face of inflation and evolving tariff policies. Amid such volatility, Visa Inc. (NYSE: V) emerges as a standout player, not just surviving but thriving in inflationary periods.

Resources for Publishers
Resources for New Investors
Boosted with BossCoin
Top Investors
user_profile
Tom Hamilton
user_profile
Wise Intelligent
user_profile
Mark Robertson
user_profile
Kevin Matthews II
user_profile
Akeiva Ellis
user_profile
Brendan Dale
user_profile
Kenneth Chavis IV
user_profile
Sharita Humphrey