Too much (debt) for ULVR to handle at the moment imo. They need to focus on organically growing their many strong brands and also stop their political views from impacting performance.
This is hurting. But, been buying singles on the way down.
Anyone have any views on if the drop ? More to go or over done ?
It must have triggered loads of stop losses.
I’ve got 11 Shs on another platform. I’m down 9% and not going to lie, it’s painful.
Not selling though.
What do you consider Unilever’s political views to be and how are they impacting sales?
I assume he means Ben&Jerrys Israel boycott.
Have a read up on the Ben & Jerry’s Boycott and the knock on impact to pension funds etc., if you’re interested that is. It’s certainly hurting the company
I looked it up. Wow what an absolute mess. You could argue that it would compromise B&J brand image to do nothing. They certainly don’t make sales through product quality so the marketing around it must be doing something.
I read that Ben and Jerrys was one of the brands they were considering offloading to help fund the GSK bid so maybe won’t be an issue for investors for much longer if they’re trying to move away from food and into pharmaceuticals and cosmetics. I’ll be holding for the long term anyway
Unilever time stamp: 1:40
I think they might be. I know people who don’t like ‘woke capitalism’ very much and would be reluctant to buy a product that has some social message printed on the packaging.
I fried of mine told me about how Gillette had some campaign about toxic masculinity both in its television advertising, and on the packaging. This completely turned him off and he said he used another brand which was a better quality razor, and without the finger wagging message.
Those opinions work both ways.
Imagine the brain storming session when gravy x mayonnaise was one of the good ideas!
How exposed are they to roubles.
Is this a good dip to enter?
It depends on wether you like gravy & mayonnaise.
If they have plenty in the bank they are in a good position to buy some gas now that Putin has decided we have to pay for it all in roubles!
As someone who doesn’t like mayo, I’m sure gravy can’t make it any worse. Only one of those two belongs on chips of course.
If you are interested, I have recently completed some analysis on Unilever:
Relative Valuation - Comparable Analysis, Analysts’ Consensus, Valuation Multiples
Intrinsic Value - Fundamental Review & DCF Models
Relative Valuation:
EV/Revenue: £64.00
EV/EBITDA: £55.53
P/E: £52.31
P/S: £67.04
P/FCF: £71.64
Intrinsic Value (Base Case Scenario):
DCF (5y) EBITDA Exit = £44.25
DCF (5y) Perpetual Growth = £54.66
I would be interested to hear your thoughts and if anyone else has completed any analysis recently for Unilever.
You can see my full Unilever valuation analysis here:
Relative Valuation:
IS UNILEVER A BUY? ULVR STOCK PRICE VALUATION (bull-headed-bear.com)
Intrinsical Valuation:
UNILEVER’S INTRINSIC VALUE | UNILEVER DCF (bull-headed-bear.com)
NOTE: NOT Investment Advice - Sharing personal analysis based on personal assumptions.
Underlying sales growth of 7.3%, with 8.3% price and (1.0)% volume
Turnover increased by 11.8%, including a currency impact of 3.5%
They do expect input cost inflation for H2 to be around €2.7 billion. Which is €0.6 billion higher than previously forecast. The update says the greatest area of uncertainty and volatility is around the costs, and they will update with their half year results.
Everything else is in the guidance.
They expect the new organisational structure they announced in January to generate around €600 million of cost savings over two years and to be achieved within existing restructuring investment plans.
The global tea business sale should compete in the second half of 2022.
Anyway, Unilever has done poorly since the year started so let’s see what the market makes of it.