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Opinions Lorne Steinberg
Unilever PLCULBUY ON WEAKNESSOct 17, 2019
Lorne SteinbergUnknown
$60.11
Stock price when the opinion was issued
$58.38
As of Jun 18, 2026. Market Open.
food processing
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HOLD
60% of revenues come outside North America, which are currencies that are fading against the strong US dollar which rose along with interest rates. If the USD falls, then the S&P could underperform (they've outperformed the past 10 years). UL needs a lower USD to increase earnings. He still owns it. Pays a near-4% dividend, so he's holding onto it and waiting.
David DriscollOwned
food processing
PAST TOP PICK
(A Top Pick May 11/22, Up 23%)
Very slow growth however excellent underlying business.
Great franchise that has excellent brand.
M&A will continue to enhance shareholder value.
Steady dividend yield.
Expecting further share price appreciation.
Strong management team.
Lorne SteinbergOwned
food processing
DON'T BUY
UL vs. NSRGY Two quality names that have performed well over time, but relatively expensive. He prefers Danone, #1 in both dairy and plant-based, cheaper. Over the last decade, Danone has maintained its #1 position but has lost market share, stock's not up at all, slow to innovate. UL has outperformed Danone in the past decade. Real catalyst is new CEO who's made sweeping changes that will boost top and bottom line growth.
food processing
BUY
It's has lagged, but is a great consumer company with a strong presence in emerging markets. There is an activist investors on the board, so expect big changes at UL. It's a phenomenal company that will raise its dividend beyond inflation for years.
Lorne SteinbergOwned
food processing
DON'T BUY
They have too many brands, and overextended themselves. Not managed well, though managers are addressing issues. Little earnings growth short-term. Commodity input costs are another worry.
Jamie Murray No
food processing
TOP PICK
Underperformer over the last few years. Well-known brands. Consistent, consumer company. Phenomenal presence in EM. Current valuation is 12x earnings. Share buybacks, niche acquisitions, growing dividend. Yield is 4%. (Analysts’ price target is $56.00)
Lorne SteinbergOwned
food processing
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Premium contentPAST TOP PICK
(A Top Pick Oct 26/21, Down 7.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with UL has triggered its stop at $50. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss 12%, when combined with our previous buy recommendation.
food processing
WAIT
She's owned this for many years. It gives emerging market exposure which account for 60% of sales. Their growth has lagged, because the food division is lower growth while Covid has made growth uneven by country. This trades at a discount to Nestle, but offers higher growth. Making an acquisition will raise their debt, which is a concern. She's waiting and seeing as they sell their lower-growth businesses. They could sell their food business. Pays around a 3.7% dividend.
Christine PooleOwned
food processing
PAST TOP PICK
(A Top Pick Dec 14/20, Down 5%) Some of their product categories are price-sensitive. Their exposure to emerging markets will see later on strong secular growth than developed markets. EM markets have had a tough time containing Covid, so their recoveries have lagged, impacting UL. Also, higher costs in transportation and raw materials is another headwind. UL has raised prices to offset these issues, but also some volumes have softened. They are re-positioning by selling weaker divisions and expanding further into personal care, but this will all take time. Pays over a 3% dividend.
Christine PooleOwned
food processing
DON'T BUY
UL vs. NSRGY Challenged. Mature consumer staples businesses are trying to hold onto market share, revenue growth isn't great, financial engineering helps the bottom line. Prefers Nestle. Buying the leader is often better than buying the catch-up trade. Nestle is holding or gaining market share in 60% of its categories. Exposed to high growth areas like pet food, nutrition, and coffee.
food processing
WEAK BUY
UL vs. PG Canadians can't ignore the Chinese and Indian markets. They do have political risk, but they will be delivering meaningful prosperity, so ignore that at your peril. PG had a very tough time after the global financial crisis. Still a great company and continues to do well, has outperformed UL. UL is going through changes, and these could lead to outperformance over PG. If you want safe and steady bond proxies, these are the types of companies you want to be thinking about.
food processing
Same thing as applies to Nestle. You are getting a brilliantly run company but you are paying a very high price in the market. They are just on the watch list in case they come back down to earth.