ULUnilever PLC
Is the business good?
The checks split: earnings fully cash-backed (1.3×), but returns that lean on debt.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Margins have held roughly steady, a stable cost structure.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 61% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is UL?
Unilever PLC earns 20% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 11 points above what the capital costs: growth creates value
- Operating margin
- 18%
Operating margin · Household & Personal Products median 11% · fiscal year to FY2025
- Cash conversion
- 1.29×
Cash conversion · 1.49× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 16% |
| FY2021 | 17% |
| FY2022 | 18% |
| FY2023 | 17% |
| FY2024 | 17% |
| FY2025 | 18% |
Details›
- Gross marginfiscal year to FY2025
- 47%
- Operating marginfiscal year to FY2025
- 18%
- Net marginfiscal year to FY2025
- 19%
- Free cash flow margin
- 14%
- R&D as % of revenue
- 1.7%
- Revenue, trailing twelve months
- $50.5B
- Free cash flow, trailing twelve months
- $6.93B
- Net income, trailing twelve months
- $9.47B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 20%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Household & Personal Products
Ranks #4 of 11 by RyuScore