Unilever -ULVR-

I am still up, but will happily add if it shows a little more weakness. Good, steady and profitable company with good ethics and a pro investor track record.

Don’t worry I haven’t yolo’d into random risky stocks lol. I am diversified across many sectors I am bullish on and solid companies

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I am interested in your point about “good ethics”. Could you expand?

Unilever look goof as a Div stock reslly with some growth potential.

Need a stock that does Household Items in my Portfolio

I understand the earnings report this week werent glowing, but nothing that rang alarm bells to me, dividend still strong and growing. At ~4000p looks an absolute bargain surely?

I am wondering how do you value UL to give current price a good buy?
When I look at future growth, historical PE / AFFOs I personally don’t see bargain, it is trading in standard range for last 3Y/5Y/10Y.

It has a good balance sheet however. A+ rating and low LT debt/Capital at 28%.

Rather sluggish growth in the last 10 years, apart from 2017.

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Well absolute bargain maybe is over stating it :smiley:. However its PE is less than most companies that compete with it in various spaces I am including PG/PEP/CG so whilst PE for me isn’t everything its certainly not at a premium.
When looking through their presentations an figures this week I thought it generally sounded positive, things that pleased were:

  • Embracing/increasing e-commerce
  • Free cash flow good
  • Investing more in things like prestige beauty (can get great margins if done well) and plant based foods (global shift towards this, could see them buy up some emerging brands)
  • Restructuring is short term pain but nothing too big IMO
  • Emerging markets look to be growing nicely (India/China are two I look at and they are focusing on)

In short, I am not saying if someone looking for high growth to go with ULVR, for me they are one of my ‘safer’ plays I own and part of my dividend paying selection. I am confident they will grow solidly, get a big boost from reopening too, and their strong cash flow supports their ever increasing dividend (3.7% based on about 148p annual, 4000p buy price).

I think comparing company based on others in sector should be bonus part, not a relevant factor in decision making. They are not of same quality and historical premium.

I stick to historical valuation for the company at hand.

In the sector KMB seems to be “best” bargain at current price vs history. But I don’t touch the sector currently.

Yeah agreed thats why I don’t use PE much, just a quick look stat. I may well be wrong with ULVR, but its not a big portion, I wouldn’t put a large chunk of portfolio as it wouldn’t be enough growth for my age, but equally I am not embracing risk to the point where go for pure massive growth plays. As an example my higher conviction to ULVR plays are things like BABA, SBUX, MSFT, NEE, JNJ, AMZN, NVDA.

To be honest part of ULVR conviction for me is gut feeling on strong brands, I feel they have some great brands that are popular in west as well as China (where I have experience knowledge of market) which some of the other big brands dont have as much.

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Big jump down today for ULVR, It is probably mostly about earnings being not ideal (large part to FX impact/inflation) but also some amount through the political issue with Ben and Jerries.

Whilst some less then ideal things in earnings I am not worried, still a solid company if you want a reliable dividend payer/grower that has great portfolio of strong brands. Highlights for me were increase in ecommerce in emerging markets like India and China, also prestige (one of their core focuses) great sales growth and also for the nutritional side of things too.

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Nice to see them accelerating the buybacks when price is depressed. Recently been 100k-300k shares a day range, last two days been about 1 million a day.