Unilever PLC (UL, Financial), a leading player in the Consumer Packaged Goods industry, is currently trading at $53.91 with a market capitalization of $135.67 billion. The company's stock price has seen a gain of 4.7% today and a 4.18% increase over the past four weeks. In this article, we will delve into Unilever's GF Score and its implications for the company's future performance potential.
Unilever's GF Score Analysis
Unilever's GF Score stands at 86 out of 100, indicating good outperformance potential. The GF Score is a stock performance ranking system developed by GuruFocus, which is closely correlated to the long-term performances of stocks. It takes into account five key aspects: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. A higher GF Score generally suggests higher returns. 
Financial Strength Analysis
Unilever's Financial Strength Rank is 5 out of 10. This rank measures the robustness of a company's financial situation, considering factors such as interest coverage (12.33), debt to revenue ratio (0.48), and Altman Z score (3.29). These figures suggest that Unilever has a moderate financial strength.
Profitability Rank Analysis
The company's Profitability Rank is 8 out of 10, indicating a high level of profitability. This rank is based on factors such as Operating Margin (16.20%), Piotroski F-Score (7), and the trend of the Operating Margin over the past five years (-0.50%). Unilever has consistently been profitable over the past 10 years, which is a positive sign for investors.
Growth Rank Analysis
Unilever's Growth Rank is 7 out of 10, suggesting a good growth potential. This rank measures the growth of a company in terms of its revenue and profitability. Unilever's 5-year revenue growth rate is 2.90%, and its 3-year revenue growth rate is 6.80%. The 5-year EBITDA growth rate is 1.40%, indicating steady growth in the company's business operations.
GF Value Rank Analysis
The GF Value Rank of Unilever is 7 out of 10. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth. This suggests that Unilever's valuation is reasonable.
Momentum Rank Analysis
Unilever's Momentum Rank is 10 out of 10, indicating strong stock price performance. This rank is determined using the standardized momentum ratio and other momentum indicators, suggesting that Unilever's stock has strong momentum.
Competitor Analysis
Unilever's main competitors in the Consumer Packaged Goods industry include Reckitt Benckiser Group PLC (GF Score: 77), PZ Cussons PLC (GF Score: 64), and Warpaint London PLC (GF Score: 71). Compared to its competitors, Unilever's GF Score of 86 suggests a stronger performance potential in the industry.
In conclusion, Unilever's high GF Score, coupled with its strong profitability, growth, and momentum ranks, make it a compelling choice for investors. However, as with any investment, it's crucial to conduct thorough research and consider the company's financial strength and market conditions before making a decision.
