PT Unilever Indonesia Tbk (UNLRY) Stock Analysis

PT Unilever Indonesia Tbk (UNLRY) Consumer Business Overview

PT Unilever Indonesia Tbk (UNLRY) is a major player in the Indonesian consumer goods market, offering diverse products from soaps to ice cream under well-known brands. As a subsidiary of Unilever Indonesia Holding B.V., UNLRY benefits from global expertise while maintaining a strong local presence and high dividend yield.

What Is the Investment Thesis for UNLRY?

The company's consistent profitability, reflected in a profit margin of 23.9%, and a gross margin of 46.6%, demonstrates its ability to manage costs and maintain pricing power. With a low beta of 0.17, UNLRY offers stability in a volatile market. Growth catalysts include expanding into new product categories, increasing market penetration in rural areas, and leveraging digital channels for marketing and distribution. However, investors should be aware of potential risks such as currency fluctuations and increased competition from local players.

Based on FMP financials and quantitative analysis

UNLRY Key Highlights

Market capitalization of $4.08B, reflecting its significant presence in the Indonesian consumer goods market.

• P/E ratio of 16.35, suggesting a potentially undervalued stock compared to its earnings.
• Profit margin of 23.9%, indicating strong profitability and efficient operations.
• Gross margin of 46.6%, showcasing the company's ability to maintain pricing power and manage production costs.
• Dividend yield of 7.22%, offering a high income stream for investors.

Who Are UNLRY's Competitors?

UNLRY is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are UNLRY's Key Strengths?

Strong brand portfolio with well-known brands.

• Extensive distribution network across Indonesia.
• High brand recognition and customer loyalty.
• Proven track record of profitability and growth.

What Are UNLRY's Weaknesses?

Reliance on the Indonesian market.

• Exposure to currency fluctuations.
• Potential impact of regulatory changes.
• Dependence on parent company Unilever.

What Could Drive UNLRY Stock Higher?

Expansion into new product categories to cater to evolving consumer preferences.

• Increased market penetration in rural areas through targeted distribution and marketing efforts.
• Leveraging digital channels to enhance brand awareness and drive online sales.
• Product innovation and diversification to maintain a competitive edge.
• Strategic partnerships and acquisitions to expand market reach and product portfolio.

What Are the Key Risks for UNLRY?

Intense competition from local and multinational players in the Indonesian consumer goods market.

• Fluctuations in the Indonesian Rupiah exchange rate impacting the value of ADR for U.S. investors.
• Changes in consumer preferences and trends affecting demand for the company's products.
• Economic slowdown in Indonesia impacting consumer spending and overall market growth.
• Limited liquidity and trading volume as an OTC stock.

What Are the Growth Opportunities for UNLRY?

• Expansion into premium product segments: The rising disposable incomes in Indonesia present an opportunity for UNLRY to expand its offerings in the premium product segments. By introducing higher-value products with enhanced features and benefits, the company can capture a larger share of the affluent consumer market. This strategy could involve launching new brands or extending existing brands into premium categories. The timeline for this growth opportunity is ongoing, as the demand for premium products continues to increase.
• Increased market penetration in rural areas: While UNLRY has a strong presence in urban areas, there is significant potential to increase market penetration in rural areas of Indonesia. This can be achieved by strengthening its distribution network, tailoring products to local preferences, and implementing targeted marketing campaigns. The rural market represents a large and untapped opportunity for growth, with a timeline of 3-5 years to fully realize its potential.
• Leveraging digital channels for marketing and distribution: The increasing adoption of digital technologies in Indonesia provides an opportunity for UNLRY to leverage digital channels for marketing and distribution. This includes utilizing social media platforms, e-commerce websites, and mobile apps to reach consumers, promote products, and facilitate online sales. By embracing digital transformation, the company can enhance its brand awareness, improve customer engagement, and expand its market reach. This is an ongoing growth opportunity.
• Product innovation and diversification: Continuous product innovation and diversification are essential for maintaining a competitive edge and driving growth in the consumer goods market. UNLRY can invest in research and development to create new products that meet the evolving needs and preferences of Indonesian consumers. This includes developing products with natural ingredients, sustainable packaging, and health and wellness benefits. The timeline for this growth opportunity is ongoing, as consumer preferences are constantly changing.
• Strategic partnerships and acquisitions: UNLRY can pursue strategic partnerships and acquisitions to expand its product portfolio, enter new market segments, and strengthen its competitive position. This could involve partnering with local companies to leverage their distribution networks or acquiring companies with complementary product offerings. Strategic alliances can provide access to new technologies, markets, and expertise, accelerating growth and enhancing shareholder value. This is an ongoing growth opportunity.

What Are UNLRY's Competitive Advantages?

• Strong brand recognition and loyalty in Indonesia.
• Extensive distribution network across the archipelago.
• Diverse product portfolio catering to various consumer needs.
• Parent company Unilever's global resources and expertise.

What Does UNLRY Do?

Founded in 1933, PT Unilever Indonesia Tbk has grown to become one of the leading consumer goods companies in Indonesia. The company manufactures, markets, and distributes a wide array of products, including soaps, detergents, dairy-based foods, ice creams, savories, soy sauce, cosmetic products, tea-based beverages, and fruit juices. These products are marketed under a diverse portfolio of well-known brands such as Axe, Bango, Buavita, Cif, Citra, Clear, Dove, Knorr, Lifebuoy, Lipton, Lux, Magnum, Pepsodent, Pond's, Rexona, Rinso, Royco, SariWangi, Sunsilk, Wall's, and Zwitsal. PT Unilever Indonesia Tbk operates primarily within Indonesia, catering to the needs of Indonesian consumers with products tailored to local preferences and market demands. The company's extensive distribution network ensures that its products are available across the archipelago, from major urban centers to remote rural areas. As a subsidiary of Unilever Indonesia Holding B.V., the company benefits from the global resources and expertise of its parent company, while maintaining a strong focus on the Indonesian market. The company is headquartered in Tangerang, Indonesia, and employs over 4,000 people.

What Products and Services Does UNLRY Offer?

• Manufactures and markets a wide range of consumer goods.
• Offers soaps, detergents, and personal care products.
• Produces dairy-based foods, ice creams, and savories.
• Provides tea-based beverages and fruit juices.
• Markets products under well-known brands like Axe, Dove, and Lipton.
• Distributes products throughout Indonesia.

How Does UNLRY Make Money?

• Manufactures consumer goods in Indonesia.
• Markets and distributes products through an extensive network.
• Generates revenue through the sale of its products to consumers.
• Focuses on brand building and product innovation.

What Industry Does UNLRY Operate In?

PT Unilever Indonesia Tbk operates in the consumer defensive sector, specifically within the household and personal products industry. This sector is generally considered stable, as demand for essential consumer goods remains relatively constant regardless of economic conditions. The Indonesian market is characterized by a large and growing population, increasing urbanization, and rising disposable incomes, all of which contribute to the demand for consumer goods. The competitive landscape includes both multinational corporations and local players, with competition based on brand recognition, product innovation, and distribution network. UNLRY benefits from its well-established brands and extensive distribution network, giving it a competitive edge in the market.

Who Are UNLRY's Key Customers?

• Indonesian consumers across various demographics.
• Households seeking everyday consumer goods.
• Retail outlets and distributors throughout Indonesia.
• Businesses utilizing Unilever Professional products.

Company Profile

PT Unilever Indonesia Tbk operates in the Household & Personal Products industry within the Consumer Defensive sector. It is headquartered in Tangerang, ID. The company is led by CEO Benjie Yap. UNLRY has traded publicly since 2012.

Return on equity for PT Unilever Indonesia Tbk stands at 174.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 46.1%, showing how much profit it generates from its asset base. UNLRY trades at a trailing price-to-earnings ratio of 16.35, below the Consumer Defensive sector average of ~27.60x. Its free cash flow yield is 5.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.57 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 12.1%, the inverse of the P/E and a quick read on earnings relative to price.

UNLRY Valuation & Market Position

With a $4.08B market cap, PT Unilever Indonesia Tbk sits in the mid-cap segment of the market.

Quarterly Financial Performance: PT Unilever Indonesia Tbk

Revenue for PT Unilever Indonesia Tbk came in at $479.1M during Q2 FY2026. The company recorded net income of $47.0M, with diluted EPS of $0.02. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Consumer Defensive company. Across the four most recent quarters, UNLRY averaged $0.03 in diluted EPS.

PT Unilever Indonesia Tbk's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 5.86 places it in the safe zone, indicating low near-term bankruptcy risk.

UNLRY Financials

UNLRY Latest News

No recent news available for UNLRY.

UNLRY Analyst Consensus

UNLRY MoonshotScore

UNLRY Consumer Defensive Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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