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Unilever

UL
53
Household & Personal Products · Consumer Defensive
Price
$62.39
-0.32 (-0.51%)
Market Cap
$134.40B
Exchange
New York Stock Exchange
Winston Score
53
Winston is curious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

15.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 2.61B (2021) → 2.20B (2025)

Unilever is a British consumer goods company that makes everyday products people use at home. Its brands include Dove soap, Hellmann's mayonnaise, Lipton tea, Ben & Jerry's ice cream, and Vaseline. It sells to ordinary consumers around the world through grocery stores, pharmacies, and online retailers.

Unilever makes money by selling physical products at a markup, relying on high brand recognition to support pricing power. It operates in over 190 countries, with a large share of sales coming from emerging markets like India, Indonesia, and Brazil, where a growing middle class buys more packaged goods. The company owns roughly 400 brands, which gives it strong shelf space and retailer relationships, but it faces constant pressure from cheaper store-brand alternatives and rising raw material costs. Its biggest growth opportunity is continued expansion in emerging markets, while its main risk is losing price-sensitive consumers to lower-cost competitors during periods of high inflation.

Winston Score History

Politician Trades

4 trades / 12mo

2 Congressional buys and 2 sells on UL in the last 12 months.

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Score breakdown

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Quality

Gross Margin
100.7%
Premium pricing power — 100.7% gross margin
Operating Margin
20.6%
Excellent — 20.6% operating margin
ROCE
9.5%
Below par — 9.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
-7.2%
Shrinking sales (-7.2% YoY)
EPS YoY
-11.9%
Earnings shrinking (-11.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
153%
Turns 153% of profit into real cash
FCF Margin
13.4%
Converts sales into free cash efficiently (13.4%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
1.82
Elevated debt (1.82)
Interest Cover
12.56x
Comfortably covers interest (12.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
12.7x
Attractive valuation — P/E 12.7

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
-4.9
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield
3.66%
Moderate income — 3.66% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+10.7%
Dividend growing fast (10.7% YoY)

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