ESTEE LAUDER COMPANIES-CL A (EL)
US5184391044 - Common Stock
Overall EL gets a fundamental rating of 4 out of 10. We evaluated EL against 37 industry peers in the Personal Care Products industry. EL has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, EL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year EL was profitable.
EL had a positive operating cash flow in the past year.
In the past 5 years EL has always been profitable.
EL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.82%, EL is in line with its industry, outperforming 55.56% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.16%, EL is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
The Return On Invested Capital of EL (5.60%) is comparable to the rest of the industry.
EL had an Average Return On Invested Capital over the past 3 years of 13.18%. This is in line with the industry average of 13.81%.
The last Return On Invested Capital (5.60%) for EL is well below the 3 year average (13.18%), which needs to be investigated, but indicates that EL had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 11.16% | ||
| ROIC | 5.6% |
ROA(3y)9.6%
ROA(5y)9.24%
ROE(3y)36.05%
ROE(5y)33.25%
ROIC(3y)13.18%
ROIC(5y)15.1%
1.3 Margins
EL's Profit Margin of 4.17% is fine compared to the rest of the industry. EL outperforms 61.11% of its industry peers.
In the last couple of years the Profit Margin of EL has declined.
With a decent Operating Margin value of 8.31%, EL is doing good in the industry, outperforming 61.11% of the companies in the same industry.
EL's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 70.78%, EL is doing good in the industry, outperforming 72.22% of the companies in the same industry.
EL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.31% | ||
| PM (TTM) | 4.17% | ||
| GM | 70.78% |
OM growth 3Y-8.55%
OM growth 5Y-7.55%
PM growth 3Y9.67%
PM growth 5Y-4.86%
GM growth 3Y-1.7%
GM growth 5Y-2.06%
2. Health
2.1 Basic Checks
EL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
EL has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, EL has less shares outstanding
EL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.16 indicates that EL is not in any danger for bankruptcy at the moment.
The Altman-Z score of EL (3.16) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 1.26 is on the high side and indicates that EL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.26, EL is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.16 |
ROIC/WACC0.71
WACC7.92%
2.3 Liquidity
EL has a Current Ratio of 1.58. This is a normal value and indicates that EL is financially healthy and should not expect problems in meeting its short term obligations.
EL's Current ratio of 1.58 is on the low side compared to the rest of the industry. EL is outperformed by 63.89% of its industry peers.
A Quick Ratio of 1.15 indicates that EL should not have too much problems paying its short term obligations.
EL has a Quick ratio (1.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The earnings per share for EL have decreased strongly by -46.58% in the last year.
The Earnings Per Share has been decreasing by -5.22% on average over the past years.
EL shows a decrease in Revenue. In the last year, the revenue decreased by -3.20%.
The Revenue has been growing slightly by 3.10% on average over the past years.
EPS 1Y (TTM)-46.58%
EPS 3Y-5.59%
EPS 5Y-5.22%
EPS Q2Q%106.38%
Revenue 1Y (TTM)-3.2%
Revenue growth 3Y3.69%
Revenue growth 5Y3.1%
Sales Q2Q%4.93%
3.2 Future
EL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.79% yearly.
Based on estimates for the next years, EL will show a small growth in Revenue. The Revenue will grow by 4.93% on average per year.
EPS Next Y-33.25%
EPS Next 2Y11.54%
EPS Next 3Y18.38%
EPS Next 5Y15.79%
Revenue Next Year-1.34%
Revenue Next 2Y2.89%
Revenue Next 3Y4.06%
Revenue Next 5Y4.93%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 49.62, which means the current valuation is very expensive for EL.
The rest of the industry has a similar Price/Earnings ratio as EL.
EL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.41.
A Price/Forward Earnings ratio of 23.47 indicates a rather expensive valuation of EL.
Based on the Price/Forward Earnings ratio, EL is valued a bit cheaper than 61.11% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, EL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.62 | ||
| Fwd PE | 23.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.11 |
4.3 Compensation for Growth
The decent profitability rating of EL may justify a higher PE ratio.
A more expensive valuation may be justified as EL's earnings are expected to grow with 18.38% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.54%
EPS Next 3Y18.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.72%, EL has a reasonable but not impressive dividend return.
The stock price of EL dropped by -31.69% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
EL's Dividend Yield is rather good when compared to the industry average which is at 6.66. EL pays more dividend than 86.11% of the companies in the same industry.
EL's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
5.2 History
The dividend of EL is nicely growing with an annual growth rate of 11.74%!
EL has paid a dividend for at least 10 years, which is a reliable track record.
EL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)11.74%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
EL pays out 147.89% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP147.89%
EPS Next 2Y11.54%
EPS Next 3Y18.38%
ESTEE LAUDER COMPANIES-CL A
NYSE:EL (7/26/2024, 7:26:50 PM)
After market: 100.72 0 (0%)100.72
+0.82 (+0.82%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap36.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.62 | ||
| Fwd PE | 23.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 11.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.31% | ||
| PM (TTM) | 4.17% | ||
| GM | 70.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-46.58%
EPS 3Y-5.59%
EPS 5Y
EPS Q2Q%
EPS Next Y-33.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.2%
Revenue growth 3Y3.69%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y