Stock FAQs

why is unilever stock down

by Mr. Timmy Weber PhD Published 3 years ago Updated 2 years ago
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Unilever's shares were down 1.3% at 1230 GMT. The company said the fall in margins was also due to investments in advertising, R&D and operational capital expenditure and that it expected them to be "restored after 2022, with the bulk coming back in 2023 and the rest in 2024."Feb 10, 2022

Why are Unilever shares falling?

With its bid in the region of £50bn, shareholders deemed the move unsustainable given the firm's financial position. With many holding a preference for focusing on sales and profit growth, the Unilever share price dropped 11% as a result.

Is Unilever stock a good buy?

Sure, Unilever produces great profit margins. The rate was 18.4 per cent in 2021, but it has averaged 17.4 per cent since 2011 and was never been less than 14.2 per cent in that period.

Is Unilever a Buy Sell or Hold?

Unilever has received a consensus rating of Hold. The company's average rating score is 2.00, and is based on 2 buy ratings, 5 hold ratings, and 2 sell ratings.

Is Unilever a good dividend stock?

Unilever's paradox You are able to buy some shares at a dividend yield of 4.19% based on today's share price. The dividend still grew in 2021 by 2.97% compared to the total amount of dividends paid in 2020.

Is Unilever undervalued?

In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of UK£35.4, the company appears a touch undervalued at a 27% discount to where the stock price trades currently.

Why you should invest in Unilever?

Unilever is one of the strongest large cap consumer staples companies which is also trading cheaply relative to its free cash flow. The business is successfully transitioning into higher margin product segments and on track to further improve overall profitability.

What is the forecast for Unilever?

The 21 analysts offering 12-month price forecasts for Unilever PLC have a median target of 50.65, with a high estimate of 67.54 and a low estimate of 40.83. The median estimate represents a +9.69% increase from the last price of 46.17.

How many years has Unilever paid a dividend?

Unilever - 32 Year Dividend History | UL | MacroTrends.

Is Persimmon a good buy?

Since Persimmon's share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Is PG a good stock to buy now?

Shares of PG currently trade for $153.54. The average 12-month price target of the 14 analysts that cover PG is $162.38. The average price target of the nine analysts that rated the company since the last earnings report is $167.88. The company's forward P/E is 27.05x.

Should I buy Unilever Zacks?

Unilever PLC - Sell Zacks' proprietary data indicates that Unilever PLC is currently rated as a Zacks Rank 4 and we are expecting a below average return from the UL shares relative to the market in the next few months.

Who is bigger Unilever or PG?

However, in recent years their portfolios have diverged. Unilever is bigger in food – where it competes with the likes of Nestlé and Danone – while P&G is more of a rival to L'Oréal as it has expanded its personal care and beauty interests.

What is the debt to equity ratio of Unilever?

It's worth noting the high use of debt by Unilever, leading to its debt to equity ratio of 1.33.

Key Points

Unilever is looking to broaden its reach into a new product category, but investors seem to think the efforts it's making to do it are the wrong ones.

NYSE: UL

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What happened

Shares of European consumer goods Goliath Unilever ( UL 1.18% ) fell a quick 10% at the open of trading on Jan. 18. The drop seems to be related to news that Unilever had failed to secure a deal to buy its way into a new product category. There's a lot going on here.

So what

Unilever has been overhauling its business, most notably by switching from a dual listing to a single listing in late 2020. That change is important because it will make it easier for the consumer goods giant, which sells everything from food to soap, to buy and sell assets.

Now what

Unilever is a generally well respected company with a very long and impressive history. Still, repositioning efforts are often difficult, particularly for big companies. Still, it is probably good that Unilever is looking to revamp its product offerings to focus more heavily on growth.

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Is Unilever stock dropping?

Unilever shares have been dropping since the consumer products giant released first-half results on 22 July. While turnover edged ahead slightly, margins and profits declined a little. The firm’s operating margin fell by a percentage point to 18.8% on an underlying basis, with underlying EPS down 2%. EPS measured by GAAP standards dropped 5%.

Is Unilever dividend stable?

The dividend has remained stable too. If the 2020 payment is repeated in the current year, it would provide a yield of 3.1% on the latest Unilever share price. For Unilever and its long tradition of progressive dividends, I find that attractive. On top of that, it’s a stock that’s attracted top investors who know a good long-term pick when they see one.

Has EPS gone down in 2020?

So we’re looking at a quality stock, whose share price has essentially gone nowhere in more than four years. And in that time, with the exception of a small decline in 2020, EPS has continued to grow.

How much is Unilever stock worth in 2020?

Unilever's stock was trading at $52.47 on March 11th, 2020 when COVID-19 reached pandemic status according to the World Health Organization (WHO). Since then, UL stock has increased by 8.6% and is now trading at $57.00. View which stocks have been most impacted by COVID-19.

What is Unilever's business?

Unilever Plc engages in the manufacture and sale of consumer goods. It operates through the following segments: Beauty and Personal Care, Foods and Refreshment, and Home Care. The Beauty and Personal Care segment offers skin cleansing, hair care, skin care, and deodorants categories. The Foods and Refreshment segment sells ice cream, savory, dressings, and tea. The Home Care segment includes fabric category and a wide range of cleaning products. The company was founded by Antonius Johannes Jurgens, Samuel van den Bergh, and William Hulme Lever on January 1, 1930 and is headquartered in London, the United Kingdom.

What is the dividend payout ratio of Unilever?

Unilever does not yet have a strong track record of dividend growth. The dividend payout ratio of Unilever is 72.08%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Unilever will have a dividend payout ratio of 64.76% next year.

What is the UL symbol?

Unilever trades on the New York Stock Exchange (NYSE) under the ticker symbol "UL."

What is the rating of Unilever?

Unilever has received a consensus rating of Hold. The company's average rating score is 1.50, and is based on no buy ratings, 2 hold ratings, and 2 sell ratings.

Is Unilever a dividend payer?

Unilever is a leading dividend payer. It pays a dividend yield of 3.75%, putting its dividend yield in the top 25% of dividend-paying stocks.

What happens if you buy Unilever stock?

Answer: If you buy and hold Unilever stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you - at least if the company is otherwise strong.

Is Forbes opinion their own?

Opinions expressed by Forbes Contributors are their own.

Does patience pay for most stocks?

Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!

Is the average return after a rise lower than after a fall?

Answer: The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks.

Stock analysis: How has the FMCG company fared recently?

According to Unilever historical share prices, its London-listed stock has fallen about 6% in the past year. Investors have preferred rival defensive stocks like food and beverage-focused Nestle, hygiene-oriented Procter & Gamble and chocolate-maker Hershey, which have seen share price rises of 17%, 27% and 38%, respectively, for the same period.

Unilever stock news: reorganisation and activist investors

As mentioned, Unilever is reorganising into five business groups. The company will be slashing 1,500 jobs globally as a result of the changes.

Volume growth declines as Covid bites

In the third quarter of 2021, Unilever reported a turnover of €13.5bn, up 4% year-on-year.

Analyst commentary: ULVR targets for 2022, 2025 and 2027

Research firm Morningstar in its latest report on ULVR has given the stock a fair value estimate of £43.00, representing an upside of over 11% on 4 February’s trading price of £38.15.

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