Hindustan Unilever Limited
Hindustan Unilever Limited Fundamental Analysis
Hindustan Unilever Limited (HINDUNILVR.BO) shows moderate financial fundamentals with a PE ratio of 36.04, profit margin of 22.44%, and ROE of 29.21%. The company generates $646.6B in annual revenue with weak year-over-year growth of 1.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HINDUNILVR.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHINDUNILVR.BO demonstrates superior asset utilization.
Valuation Score
ModerateHINDUNILVR.BO shows balanced valuation metrics.
Growth Score
WeakHINDUNILVR.BO faces weak or negative growth trends.
Financial Health Score
ExcellentHINDUNILVR.BO maintains a strong and stable balance sheet.
Profitability Score
ModerateHINDUNILVR.BO maintains healthy but balanced margins.
Key Financial Metrics
Is HINDUNILVR.BO Expensive or Cheap?
P/E Ratio
HINDUNILVR.BO trades at 36.04 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HINDUNILVR.BO's PEG of 1.08 indicates fair valuation.
Price to Book
The market values Hindustan Unilever Limited at 10.73 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 35.07 times EBITDA. This signals the market has high growth expectations.
How Well Does HINDUNILVR.BO Make Money?
Net Profit Margin
For every $100 in sales, Hindustan Unilever Limited keeps $22.44 as profit after all expenses.
Operating Margin
Core operations generate 20.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.21 in profit for every $100 of shareholder equity.
ROA
Hindustan Unilever Limited generates $17.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hindustan Unilever Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Hindustan Unilever Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
HINDUNILVR.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How HINDUNILVR.BO Stacks Against Its Sector Peers
| Metric | HINDUNILVR.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.04 | 22.76 | Worse (Expensive) |
| ROE | 29.21% | 1266.00% | Weak |
| Net Margin | 22.44% | -6316.00% (disorted) | Strong |
| Debt/Equity | 0.04 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.09 | 2.41 | Neutral |
| ROA | 17.69% | -200217.00% (disorted) | Strong |
HINDUNILVR.BO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hindustan Unilever Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
46.25%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
45.39%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
43.65%
Industry Style: Defensive, Dividend, Low Volatility
High Growth