UN Investment Analysis Report & Stock Research, Unilever N.V.

Unilever N.V. (UN)

UN Stock Report

2-Year Price History

View Larger UN Chart
(11/20 4:04PM)
Open$30.73 Mkt Cap$47.5 Billion
High$30.96 52Wk High$32.23
Low$30.7 52Wk Low$16.91
Volume1.4 Million Avg Vol 10D1.6 Million

Ockham’s Rating/Recommendation Summary

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UN Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at UN through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 2.09x and 1.42x respectively.

Utilizing this range we can see that UN’s current Price to Sales per share ratio of 1.68x is slightly under its historical average. This level of Price to Sales gives us a fairly neutral position on the UN shares. We would like to see a drop in the Price to Sales ratio just a little bit more (given current sales figures) before we would become more positive on a Price to Sales basis. Such a drop would increase the attractiveness of the stock but, as always, would need to be considered in the context of all other valuation factors.

UN Cash Earnings

Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. UN is below its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from UN. For example, UN’s Cash Earnings ratio per share has fluctuated between 11.73 and 17.27 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where UN is with respect to prior business periods.

So what does a Cash Earnings ratio below the historical norm mean for UN? Generally, UN’s investors have paid slightly higher stock prices for this level of Cash Earnings, which bodes well as a return to historical norms is statistically likely. However, it is never a guarantee that history gives us proper direction, particularly in fluctuating market cycles. So by utilizing a long term view and incorporating other areas of analysis (like Sales, Dividends, and management analysis), each investor can gain a more complete view of UN. Remember, that the average Cash Earnings level for UN has been 14.50, so the current Cash Earnings level of 12.77 is a positive in our view, but by no means is it overwhelming.

UN Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don’t require dividend payments for company’s whose management has elected to forgo them entirely.

When reviewing dividend yields for UN, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management’s confidence in the company. UN’s estimated annual dividend is $0.79 resulting in a current dividend yield of 2.56%. The highest dividend yield from UN over recent history was 5.27% while the lowest dividend yield was 1.68%. It is never a good sign for a company to pay significantly lower dividends, in this case 26.33% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.

Peer Comparison


Unilever N.V. Industry Grouping

Company Ticker Market Cap (Ml) Latest
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding UN) 12.84 6.82 » 24.33 2.31 1.01 » 3.67 11.02% 20.80%
*10 year range does not include current year values
Diageo PLC ADS DEO $47.9 Billion $67.95 14.55 7.14 » 29.03 2.37 1.51 » 4.25 4.77% 43.84%
Unilever N.V. UN $47.5 Billion $30.91 12.77 6.99 » 20.35 1.68 0.75 » 1.83 1.05% 40.78%
Kraft Foods, Inc. Class A KFT $40.1 Billion $27.17 11.86 9.09 » 18.52 1.00 0.72 » 2.56 6.36% 10.22%
Companhia de das Bebidas Americas ADS AmBev PF ABV $26.5 Billion $98.28 15.43 5.68 » 23.58 6.34 1.65 » 7.38 24.26% 14.08%
General Mills, Inc. GIS $22.2 Billion $67.94 11.67 8.65 » 34.91 1.53 1.04 » 3.34 5.82% 21.64%
Archer Daniels Midland Company ADM $20.3 Billion $31.62 10.68 3.56 » 15.60 0.31 0.13 » 0.84 13.87% 14.20%

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Key Fundamentals

UN – Unilever N.V. Fundamentals
Price (11/20 4:04PM) $30.91
Volume (11/20 4:04PM) 1.4 Million
Last Close Price $31.04
10 Day Average Volume 1.6 Million
13 Week Price Range $26.61 – $32.23
52 Week Price Range $16.91 – $32.23
LTM Revenue $51.3 Billion
Shares Outstanding (12/2008) 2.8 Billion
Market Capitalization $47.5 Billion
Shares Held By Institutions 202.2 Million
Institutional Holders 360
% Shares Held By Institutions 11.80%
Earnings Per Share (EPS) $2.41
P/E Ratio 19.40
Book Value Per Share $5.07
Gross Margin 89.70%
Annual Dividend 0.79
Dividend Yield 2.60%
Beta 0.85
Fiscal Year Ends December

About Unilever N.V.

Unilever N.V. is considered to operate in the Consumer Goods sector. They specifically operate in the Processed/Packaged Goods business segment contained within the Food & Beverage industry.

The Company is a supplier of fast moving consumer goods.