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What Should We Expect From Unilever NV.’s (AMS:UNA) Earnings Over The Next Few Years?

Gabriel Boyd

Unilever NV.’s (ENXTAM:UNA) released its most recent earnings update in December 2017, which indicated that the business benefited from a strong tailwind, eventuating to a double-digit earnings growth of 16.76%. Below, I’ve presented key growth figures on how market analysts view Unilever’s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for Unilever

Analysts’ expectations for the coming year seems rather subdued, with earnings growing by a single digit 2.57%. The following year doesn’t look much more exciting, though earnings does reach €6.99B in 2021.

ENXTAM:UNA Future Profit May 9th 18

Although it’s helpful to understand the growth rate each year relative to today’s figure, it may be more valuable determining the rate at which the earnings are rising or falling every year, on average. The pro of this approach is that it ignores near term flucuations and accounts for the overarching direction of Unilever’s earnings trajectory over time, be more volatile. To calculate this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 5.06%. This means, we can expect Unilever will grow its earnings by 5.06% every year for the next couple of years.

Next Steps:

For Unilever, I’ve put together three pertinent factors you should look at:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is UNA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether UNA is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of UNA? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.