ESTEE LAUDER COMPANIES-CL A (EL) Fundamental Analysis & Valuation

NYSE:EL • US5184391044

92.72 USD
-3.15 (-3.29%)
At close: Mar 6, 2026
90.7503 USD
-1.97 (-2.12%)
Pre-Market: 3/9/2026, 8:30:26 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This EL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

EL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 37 industry peers in the Personal Care Products industry. While EL is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, EL is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

5

1. EL Profitability Analysis

1.1 Basic Checks

  • In the past year EL was profitable.
  • EL had a positive operating cash flow in the past year.
  • Of the past 5 years EL 4 years were profitable.
  • In the past 5 years EL always reported a positive cash flow from operatings.
EL Yearly Net Income VS EBIT VS OCF VS FCFEL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B 3B

1.2 Ratios

  • EL has a Return On Assets (-0.91%) which is in line with its industry peers.
  • EL's Return On Equity of -4.42% is in line compared to the rest of the industry. EL outperforms 56.76% of its industry peers.
  • EL's Return On Invested Capital of 7.73% is fine compared to the rest of the industry. EL outperforms 67.57% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for EL is below the industry average of 11.35%.
  • The last Return On Invested Capital (7.73%) for EL is above the 3 year average (7.43%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -0.91%
ROE -4.42%
ROIC 7.73%
ROA(3y)0.13%
ROA(5y)4.98%
ROE(3y)-1.32%
ROE(5y)17.24%
ROIC(3y)7.43%
ROIC(5y)11.04%
EL Yearly ROA, ROE, ROICEL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

1.3 Margins

  • EL has a better Operating Margin (9.59%) than 72.97% of its industry peers.
  • EL's Operating Margin has declined in the last couple of years.
  • EL's Gross Margin of 74.33% is amongst the best of the industry. EL outperforms 81.08% of its industry peers.
  • EL's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 9.59%
PM (TTM) N/A
GM 74.33%
OM growth 3Y-26.29%
OM growth 5Y-11.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.76%
GM growth 5Y-0.3%
EL Yearly Profit, Operating, Gross MarginsEL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. EL Health Analysis

2.1 Basic Checks

  • EL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, EL has more shares outstanding
  • The number of shares outstanding for EL has been reduced compared to 5 years ago.
  • EL has a worse debt/assets ratio than last year.
EL Yearly Shares OutstandingEL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
EL Yearly Total Debt VS Total AssetsEL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • EL has an Altman-Z score of 3.22. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
  • EL has a Altman-Z score of 3.22. This is in the better half of the industry: EL outperforms 67.57% of its industry peers.
  • The Debt to FCF ratio of EL is 6.44, which is on the high side as it means it would take EL, 6.44 years of fcf income to pay off all of its debts.
  • EL has a Debt to FCF ratio of 6.44. This is comparable to the rest of the industry: EL outperforms 59.46% of its industry peers.
  • A Debt/Equity ratio of 1.82 is on the high side and indicates that EL has dependencies on debt financing.
  • EL has a worse Debt to Equity ratio (1.82) than 72.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 6.44
Altman-Z 3.22
ROIC/WACC0.99
WACC7.85%
EL Yearly LT Debt VS Equity VS FCFEL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

2.3 Liquidity

  • EL has a Current Ratio of 1.36. This is a normal value and indicates that EL is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of EL (1.36) is worse than 64.86% of its industry peers.
  • A Quick Ratio of 1.00 indicates that EL may have some problems paying its short term obligations.
  • EL's Quick ratio of 1.00 is in line compared to the rest of the industry. EL outperforms 40.54% of its industry peers.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1
EL Yearly Current Assets VS Current LiabilitesEL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. EL Growth Analysis

3.1 Past

  • The earnings per share for EL have decreased strongly by -17.72% in the last year.
  • EL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.22% yearly.
  • The Revenue has decreased by -3.35% in the past year.
  • EL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.04% yearly.
EPS 1Y (TTM)-17.72%
EPS 3Y-40.77%
EPS 5Y-18.22%
EPS Q2Q%43.55%
Revenue 1Y (TTM)-3.35%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%5.62%

3.2 Future

  • Based on estimates for the next years, EL will show a very strong growth in Earnings Per Share. The EPS will grow by 28.85% on average per year.
  • The Revenue is expected to grow by 4.55% on average over the next years.
EPS Next Y48.01%
EPS Next 2Y43.32%
EPS Next 3Y36.97%
EPS Next 5Y28.85%
Revenue Next Year4.56%
Revenue Next 2Y4.39%
Revenue Next 3Y4.48%
Revenue Next 5Y4.55%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
EL Yearly Revenue VS EstimatesEL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
EL Yearly EPS VS EstimatesEL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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3

4. EL Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 47.55, EL can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of EL is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 26.29, EL is valued quite expensively.
  • A Price/Forward Earnings ratio of 30.09 indicates a quite expensive valuation of EL.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of EL is on the same level as its industry peers.
  • EL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.60, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 47.55
Fwd PE 30.09
EL Price Earnings VS Forward Price EarningsEL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as EL.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as EL.
Industry RankSector Rank
P/FCF 29.5
EV/EBITDA 17.04
EL Per share dataEL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • EL's earnings are expected to grow with 36.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y43.32%
EPS Next 3Y36.97%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. EL Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.25%, EL has a reasonable but not impressive dividend return.
  • EL's Dividend Yield is a higher than the industry average which is at 1.66.
  • Compared to the average S&P500 Dividend Yield of 1.82, EL is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.25%

5.2 History

  • The dividend of EL has a limited annual growth rate of 4.31%.
  • EL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.31%
Div Incr Years0
Div Non Decr Years0
EL Yearly Dividends per shareEL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • The earnings of EL are negative and hence is the payout ratio. EL will probably not be able to sustain this dividend level.
  • The dividend of EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-284.83%
EPS Next 2Y43.32%
EPS Next 3Y36.97%
EL Yearly Income VS Free CF VS DividendEL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B

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EL Fundamentals: All Metrics, Ratios and Statistics

ESTEE LAUDER COMPANIES-CL A

NYSE:EL (3/6/2026, 8:13:59 PM)

Premarket: 90.7503 -1.97 (-2.12%)

92.72

-3.15 (-3.29%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)02-05
Earnings (Next)05-01
Inst Owners91.48%
Inst Owner Change7.22%
Ins Owners0.12%
Ins Owner Change-15.98%
Market Cap33.54B
Revenue(TTM)14.67B
Net Income(TTM)-178.00M
Analysts73.14
Price Target109.5 (18.1%)
Short Float %3.35%
Short Ratio2.09
Dividend
Industry RankSector Rank
Dividend Yield 1.25%
Yearly Dividend1.72
Dividend Growth(5Y)4.31%
DP-284.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-27
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)39.67%
Min EPS beat(2)3.39%
Max EPS beat(2)75.96%
EPS beat(4)4
Avg EPS beat(4)44.7%
Min EPS beat(4)0.44%
Max EPS beat(4)99.01%
EPS beat(8)8
Avg EPS beat(8)67.28%
EPS beat(12)11
Avg EPS beat(12)85.85%
EPS beat(16)15
Avg EPS beat(16)67.66%
Revenue beat(2)0
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-2.83%
Max Revenue beat(2)-0.06%
Revenue beat(4)0
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-2.83%
Max Revenue beat(4)-0.06%
Revenue beat(8)0
Avg Revenue beat(8)-2.05%
Revenue beat(12)1
Avg Revenue beat(12)-1.74%
Revenue beat(16)2
Avg Revenue beat(16)-1.86%
PT rev (1m)0.06%
PT rev (3m)6.83%
EPS NQ rev (1m)-12.36%
EPS NQ rev (3m)-11.65%
EPS NY rev (1m)0%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.3%
Valuation
Industry RankSector Rank
PE 47.55
Fwd PE 30.09
P/S 2.29
P/FCF 29.5
P/OCF 20.08
P/B 8.32
P/tB N/A
EV/EBITDA 17.04
EPS(TTM)1.95
EY2.1%
EPS(NY)3.08
Fwd EY3.32%
FCF(TTM)3.14
FCFY3.39%
OCF(TTM)4.62
OCFY4.98%
SpS40.55
BVpS11.14
TBVpS-4.98
PEG (NY)0.99
PEG (5Y)N/A
Graham Number22.11
Profitability
Industry RankSector Rank
ROA -0.91%
ROE -4.42%
ROCE 9.79%
ROIC 7.73%
ROICexc 9.85%
ROICexgc 20.39%
OM 9.59%
PM (TTM) N/A
GM 74.33%
FCFM 7.75%
ROA(3y)0.13%
ROA(5y)4.98%
ROE(3y)-1.32%
ROE(5y)17.24%
ROIC(3y)7.43%
ROIC(5y)11.04%
ROICexc(3y)9.5%
ROICexc(5y)14.82%
ROICexgc(3y)22.57%
ROICexgc(5y)33.9%
ROCE(3y)9.4%
ROCE(5y)13.97%
ROICexgc growth 3Y-33.25%
ROICexgc growth 5Y-18.06%
ROICexc growth 3Y-32.16%
ROICexc growth 5Y-18.64%
OM growth 3Y-26.29%
OM growth 5Y-11.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.76%
GM growth 5Y-0.3%
F-Score5
Asset Turnover0.75
Health
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 6.44
Debt/EBITDA 3.3
Cap/Depr 65.72%
Cap/Sales 3.63%
Interest Coverage 4.11
Cash Conversion 75.33%
Profit Quality N/A
Current Ratio 1.36
Quick Ratio 1
Altman-Z 3.22
F-Score5
WACC7.85%
ROIC/WACC0.99
Cap/Depr(3y)208.69%
Cap/Depr(5y)173.4%
Cap/Sales(3y)10.24%
Cap/Sales(5y)8.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-17.72%
EPS 3Y-40.77%
EPS 5Y-18.22%
EPS Q2Q%43.55%
EPS Next Y48.01%
EPS Next 2Y43.32%
EPS Next 3Y36.97%
EPS Next 5Y28.85%
Revenue 1Y (TTM)-3.35%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%5.62%
Revenue Next Year4.56%
Revenue Next 2Y4.39%
Revenue Next 3Y4.48%
Revenue Next 5Y4.55%
EBIT growth 1Y-5.06%
EBIT growth 3Y-31.36%
EBIT growth 5Y-11.51%
EBIT Next Year112.37%
EBIT Next 3Y39.86%
EBIT Next 5Y26.64%
FCF growth 1Y176.82%
FCF growth 3Y-30.55%
FCF growth 5Y-16.56%
OCF growth 1Y-12.88%
OCF growth 3Y-25.21%
OCF growth 5Y-11.02%

ESTEE LAUDER COMPANIES-CL A / EL FAQ

What is the ChartMill fundamental rating of ESTEE LAUDER COMPANIES-CL A (EL) stock?

ChartMill assigns a fundamental rating of 4 / 10 to EL.


What is the valuation status for EL stock?

ChartMill assigns a valuation rating of 3 / 10 to ESTEE LAUDER COMPANIES-CL A (EL). This can be considered as Overvalued.


What is the profitability of EL stock?

ESTEE LAUDER COMPANIES-CL A (EL) has a profitability rating of 5 / 10.


What is the valuation of ESTEE LAUDER COMPANIES-CL A based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ESTEE LAUDER COMPANIES-CL A (EL) is 47.55 and the Price/Book (PB) ratio is 8.32.


Can you provide the dividend sustainability for EL stock?

The dividend rating of ESTEE LAUDER COMPANIES-CL A (EL) is 4 / 10 and the dividend payout ratio is -284.83%.