| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 54.30 | 14 |
| Intrinsic value (DCF) | 25.57 | -46 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 23.14 | -52 |
Unilever PLC (UNVB.DE) is a global leader in the fast-moving consumer goods (FMCG) sector, operating across Beauty & Personal Care, Foods & Refreshment, and Home Care segments. Headquartered in London, the company boasts a diverse portfolio of iconic brands such as Dove, Hellmann's, Knorr, Ben & Jerry's, and Vaseline, catering to everyday consumer needs worldwide. With a strong presence in over 190 countries, Unilever leverages its extensive distribution network and innovation-driven approach to maintain market leadership. The company's commitment to sustainability, evidenced by initiatives like reducing plastic waste and promoting plant-based foods under 'The Vegetarian Butcher,' aligns with evolving consumer preferences. As a key player in the Consumer Defensive sector, Unilever's resilient business model and brand strength position it well for long-term growth despite macroeconomic fluctuations.
Unilever presents a stable investment opportunity within the defensive consumer goods sector, supported by its diversified brand portfolio and global reach. The company's €139.9B market capitalization and €60.8B revenue (FY 2024) reflect its scale, while a beta of 0.233 indicates lower volatility relative to the market. However, investors should note challenges such as €30.7B in total debt and modest net income margins (~9.5%). Positive operating cash flow (€9.5B) and a consistent dividend (€1.8/share) enhance appeal, but rising competition in plant-based foods and premium beauty segments may pressure growth. Unilever's sustainability focus could drive long-term value, though execution risks in emerging markets remain.
Unilever competes in the global FMCG space through a three-pronged advantage: 1) **Brand Power**: Its 25+ '€1B brands' (e.g., Dove, Magnum) command premium pricing and customer loyalty. 2) **Emerging Markets Footprint**: ~60% of sales come from high-growth regions like Asia and Africa, outpacing many peers. 3) **Sustainability Leadership**: Its 'Sustainable Living' brands grow 69% faster than others, per internal data. However, the company faces intensifying competition in key niches: Nestlé challenges in plant-based foods, while L'Oréal dominates premium skincare. Unilever's Home Care segment also battles Procter & Gamble's innovation scale. While its decentralized structure aids local responsiveness, it risks slower decision-making versus agile rivals like upstart DTC brands. The recent €1.8B acquisition of Nutrafol signals a push into high-margin wellness categories, but integration execution will be critical against specialized players.