Unilever Stock Analysis

Unilever Stock Analysis

What do Axe body spray, Hellman’s mayonnaise, Seventh Generation Laundry Detergent, and Ben & Jerry’s ice cream all have in common? You can own a share of all those brands with Unilever stock.

All in all Unilever has over 400 brands under its umbrella, with products in 190 countries.  

With such incredible reach and success, we thought Unilever was worth investigating. Should you invest in Unilever stock?

Let’s dive in.

Who is Unilever?

Unilever is a British multinational consumer goods company… That basically means they have products that regular people in almost every country use. They produce and sell cleaning products, toothpaste, food, and air purifiers. Many of their brands are the most popular in their category, like Axe, Old Spice, Dove, and so on.

Unilever currently trades on the New York Stock Exchange at a share price of $44.82 (as of close of 5/5/22). They’re usually a steady and strong company so their stock price doesn’t fluctuate very much. 

Here is a daily chart of Unilever showing their stock price from the beginning of the year till now.

Chart of $UL year to date – Daily Candles

How does Unilever make money?

Unilever operates on a D2C (Direct-to-Consumer) business model. This eliminates the need for middlemen (similar to Tesla).

They’ve put a lot of time and money into understanding what their customers actually want. And they’ve invested heavily in making their brands super sticky. That means when they establish a connection with people, those customers are more likely to stay loyal to their brands. 

Centered around this model Unilever has created an effective global supply chain that has allowed its products to reach over 190 countries worldwide. 

Unilever Stock Fundamentals

Total Revenue (2021)Net Income (2021)Gross Profit (2021)
Price to Sales (Current)Price to Earnings (Current)Market capitalization
Equity (2021)Debt (2021)Cash in the Bank (2021)

Unilever’s push for sustainability

Unilever shifted its focus over the years to personal care and beauty products. That’s come with its fair share of backlash. Most of this backlash is centered around many accusations of ethical issues, like pollution, animal testing, irresponsible marketing, and more. 

To combat this Unilever is focusing a lot of their investment and communications around efforts to decrease their environmental impact.

There’s no doubt their environmental footprint is large. Most of their products are packed in plastic. And when your brand reaches all over the world, you have a responsibility to make sure you’re taking care of that world.

What do I do with this information?

Use this info as a launch pad for your own investigation.

How do you feel about Unilever as a company? After seeing their business model and financials, how confident are you that Unilever stock is a safe investment?

Start answering these questions and you’re well on your way to making your own informed investment decisions.

You could buy stocks like this in your TFSA or even start trading stock options on them. It’s up to you.

That’s all for now.

Happy trading,

Your fellow Stock Hackers,

🍒Cherry & Erwin

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