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With its stock returning less than 20% over the past five years, Unilever (NYSE:UL) shareholders haven't had much to cheer about in recent times. The business doesn't appear to have fared very well either, with underlying EPS stalling for
Unilever: Quality And Improving Growth Are Largely In The Price
Summary
- Unilever's recent history has been marked by a lackluster performance at both the business and stock level.
- Margins and currency have weighed on earnings growth. While there's not much management can do about the latter, the headwind from the former shouldn't repeat.
- Unilever deserves a premium valuation, but its earnings quality and growth potential are largely reflected in its current multiple.
I like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK names on 'The UK Income Investor'.
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