I am also happy to share my analysis from my blog with you here:
Portfolio position (as at July 2025):
⤷ 83.84 shares | Average purchase price: € 47.18 | Current price: € 52.11 | Performance: +10.46 %
⤷ Dividend yield at cost: ~3.7% gross
🧼 What does Unilever actually do?
Unilever is a real long-distance runner in the global consumer goods business. Over 400 brands in more than 190 countries - many of which are familiar from everyday life: Dove, Knorr, Ben & Jerry's, Domestos, Rexona, Magnum, Lipton, Hellmann's and many more. Unilever is represented almost everywhere on supermarket shelves around the world.
The Group is currently divided into five divisions:
- Beauty & Wellbeing (hair care, wellness, nutritional supplements)
- Personal Care (deodorants, soaps, body care)
- Home Care (detergents, cleaners)
- Nutrition (soups, sauces, ready meals)
- Ice Cream (Magnum, Langnese, Ben & Jerry's)
About 60% of sales come from emerging marketswhich makes Unilever particularly globally positioned compared to its competitors. At the same time, however, this is also a double-edged sword - more on this later.
📊 Figures: no growth, but a solid basis
Key figure2023Assessment
Turnover
59.6 billion €
+7% organic, slight decline in real terms
EBIT margin
16,7 %
Need for improvement remains
Free cash flow
7.1 billion €
Strong
Dividend
1.73 €/share
Stable, slightly increasing
Payout ratio
approx. 70-75 %
High, but covered by cash
Net debt
~€23.7 billion
Leverage at ~2.1× EBITDA
Equity ratio
~30 %
Low, but acceptable
The cash flow is the rock in the surf. The operating margin has stabilized recently - this is important because the cost explosion due to raw materials and logistics in 2021/22 has taken its toll on profitability. Unilever is losing a little in terms of volume, but can compensate for this through prices. You can't do that forever - but it still worked in 2023.
🧮 Valuation: fair, but not a bargain
The P/E ratio is approx. 19the EV/EBITDA is around 13-14and the dividend yield is 3,3 %. Unilever is therefore not cheap, but not overpriced either. For a stable, high-margin company with a global presence and a good dividend history, this is fine.
A conservative DCF model (3 % growth, 7.5 % WACC) results in a fair value of around 40 per share. We currently stand at around 52 € - therefore not a value playbut not a bubble either.
🤼 Competitor analysis: Who is fighting Unilever for the bathroom shelf?
This is where it gets exciting. Because space on the shelf is limited, especially for consumer goods. And consumers often make impulsive decisions. Unilever's biggest rivals are old acquaintances - with their very own strengths:
🥇 Procter & Gamble (P&G) - The focused efficiency giant
- Brands: Ariel, Pampers, Head & Shoulders, Gillette, Always
- Focus: USA & industrialized countries, high brand loyalty, excellent marketing
- EBIT margin: ~22-23 % - significantly higher than Unilever
- Valuation: P/E ratio ~23 - premium for premium
Classification:
P&G has significantly streamlined its portfolio and is focusing on high-margin brands. P&G is clearly more dominant in detergents, diapers, hair care - Unilever looks broader in comparison, but also somewhat more arbitrary. What P&G lacks in EM growth, it makes up for in operational excellence. For those looking for benchmarking: This is where the bar is set for Unilever.
🍫 Nestlé - The food giant
- Brands: Nescafé, KitKat, Maggi, Purina, Mövenpick
- Focus: Nutrition, pet food, coffee - hardly any cosmetics
- EBIT margin: ~17-18 %
- Valuation: P/E ratio ~24
Classification:
In the Food division, Nestlé is is vastly superior. More focus, higher margins, greater innovative strength (e.g. health science, pet food). Unilever has good brands with Knorr and Hellmann's - but not the breadth and depth of Nestlé. Nestlé also remains a relevant competitor in ice cream despite partial disposals.
😁 Colgate-Palmolive - The specialist for dental care
- Brands: Colgate, Palmolive, Ajax, Sanex, Hill's Pet
- Focus: Oral care, hygiene, animal nutrition
- EBIT margin: ~22 %
Classification:
Colgate dominates the toothpaste world - with a market share of almost 40%. Unilever can compete here with Signal and Pepsodent, but mostly only in emerging markets. There are overlaps in personal care - but overall Colgate is more sharply positioned and more profitable.
💄 L'Oréal - The beauty power
- Brands: L'Oréal Paris, Garnier, Kiehl's, Lancôme, Maybelline
- Focus: Cosmetics, skin care, hair color
- EBIT margin: ~20-21 %
Classification:
L'Oréal plays in a different league - premium, luxury, huge innovation apparatus. Unilever is trying to compete with acquisitions such as Paula's Choice or Nutrafol, but remains stuck in the mass market. This works in India and Africa - but L'Oréal has little competition to fear in the high-end segment.
🧼 Henkel & Reckitt - The regional challengers
- Brands: Persil, Pril, Schwarzkopf, Finish, Sagrotan, Durex
- Focus: Household & hygiene
- Both with challenges: Henkel undergoing restructuring, Reckitt with partly shrinking margins
Classification:
In Europe, these brands are better known than Dove, for example - Persil versus Omo in particular is a classic. Unilever scores here with its global reach, while Henkel & Co. are particularly strong in Germany and Western Europe.
👨👩👧👦 The biggest threat? Own brands
The fiercest competition is now sitting directly on the supermarket shelfNo-name products, private labels, cheap alternatives. Lidl, Aldi, Carrefour, Tesco - they are massively expanding their own brands. And the quality is often "good enough".
Unilever lost market share in 2023, especially in Europe, where consumers switched to private labels as prices rose. This shows: The pricing power of brands is not limitless. The competition has fundamentally changed.
📬 Conclusion - What to do with Unilever?
Unilever is not a rocket candidate. But it is a company with strong brands, a robust balance sheet and a global setup reliably pays dividends - even in a tough environment.
Pros:
✅ Broad brand portfolio with global presence
✅ Focus on cash flow, dividends & efficiency
✅ Strong position in emerging markets
✅ Sustainability profile & transformation potential
Contra:
❌ Weak growth story
Margins under pressure due to price sensitivity & private labels
❌ No clear focus - many things, but nothing dominant
💡 Recommendation for action
DecisionAssessment
Hold
Yes - for dividend strategy & stability
Savings plan
Possible, but rather in case of price weakness (< €50)
Buy more
Only selectively - not a bargain
Sell
No - as long as cash & dividends are running
📊 SteFinanz-Ampel
CriterionValuation
Growth
🟡 Mediocre
Balance sheet quality
🟢 Solid
Dividend
🟢 Reliable
Valuation
🟡 Fair to neutral
Competitive advantages
🟢 Brands
Risk exposure
🟡 Emerging markets, inflation
✍️ My personal conclusion
I see Unilever as a stabilizer in the portfolio. Not a growth miracle, but a reliable dividend payer with a defensive profile .. The competition is strong - P&G, Nestlé, Colgate - all with their strengths. But Unilever, with its global diversification, its presence in emerging markets and its brand mix a good foundation.
I remain invested - and am considering a small savings plan in the event of setbacks below €50 to benefit from EM growth and the focus on efficiency in the long term. But there is still a lot to be done in terms of the margin for real share price fantasy.
