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As part of our ongoing series, we will focus on one of the stocks from our stock screeners, and take a short look at why it’s a ‘buy’ based on key fundamentals. One of the cheapest stocks in our stock screeners is: Unilever PLC.

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 over the past twelve months shows that the price is up 11.01%. Here’s a brief look into why the company is undervalued.

Image 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 Percentage

• FCF/MC yield: 5.60

Shareholder Yield Percentage

• Shareholder yield: 4.40

Other Indicators

• Piotroski F score: 7.00
• Dividend yield: 3.20
• ROA (five-year average percentage): 13

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