Why Unilever PLC (UL) Stock Is A Buy? Acquirer’s Multiple Stock Screener Analysis

As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.

One of the cheapest stocks in our Stock Screeners is:

Unilever PLC (UL)

Unilever is a diversified personal-care (52% of 2022 sales by value), homecare (14%), and packaged food (34%) company. Its brands include Knorr soups and sauces, Hellmann’s mayonnaise, Axe and Dove skin products, and the TRESemmé haircare brand. The firm has been acquisitive in recent years; notable purchases include Paula’s Choice, Liquid I.V., Horlicks, Garancia, and The Vegetarian Butcher.

A quick look at the share price history (below) over the past twelve months shows that the price is up 11.01%. Here’s why the company is undervalued.

Source: Google Finance

Key Stats

Market Cap: $145.44 Billion

Enterprise Value: $173.46 Billion

Operating Earnings

Operating Earnings: $10.74 Billion

Acquirer’s Multiple

Acquirer’s Multiple: 16.20

Free Cash Flow (TTM)

Free Cash Flow: $7.68 Billion

FCF/MC Yield %:

FCF/MC Yield: 5.60

Shareholder Yield %:

Shareholder Yield: 4.40

Other Indicators

Piotroski F Score: 7.00

Dividend Yield: 3.20

ROA (5 Year Avge%): 13