ESTEE LAUDER COMPANIES-CL A (EL)

US5184391044 - Common Stock

145.04  +5.73 (+4.11%)

Premarket: 151.51 +6.47 (+4.46%)

Fundamental Rating

4

Taking everything into account, EL scores 4 out of 10 in our fundamental rating. EL was compared to 37 industry peers in the Personal Care Products industry. There are concerns on the financial health of EL while its profitability can be described as average. EL is valied quite expensively at the moment, while it does show a decent growth rate.



5

1. Profitability

1.1 Basic Checks

In the past year EL was profitable.
In the past year EL had a positive cash flow from operations.
EL had positive earnings in each of the past 5 years.
In the past 5 years EL always reported a positive cash flow from operatings.

1.2 Ratios

EL's Return On Assets of 2.01% is in line compared to the rest of the industry. EL outperforms 50.00% of its industry peers.
The Return On Equity of EL (8.18%) is better than 66.67% of its industry peers.
The Return On Invested Capital of EL (4.73%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for EL is in line with the industry average of 15.04%.
The 3 year average ROIC (13.18%) for EL is well above the current ROIC(4.73%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 2.01%
ROE 8.18%
ROIC 4.73%
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

The Profit Margin of EL (3.08%) is comparable to the rest of the industry.
EL's Profit Margin has declined in the last couple of years.
EL has a Operating Margin (6.87%) which is comparable to the rest of the industry.
EL's Operating Margin has declined in the last couple of years.
EL's Gross Margin of 70.08% is fine compared to the rest of the industry. EL outperforms 69.44% of its industry peers.
EL's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 6.87%
PM (TTM) 3.08%
GM 70.08%
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%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EL is creating some value.
EL has about the same amout of shares outstanding than it did 1 year ago.
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.

2.2 Solvency

An Altman-Z score of 3.53 indicates that EL is not in any danger for bankruptcy at the moment.
EL has a better Altman-Z score (3.53) than 69.44% of its industry peers.
A Debt/Equity ratio of 1.16 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 1.16, EL is doing worse than 77.78% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.16
Debt/FCF N/A
Altman-Z 3.53
ROIC/WACC0.58
WACC8.16%

2.3 Liquidity

A Current Ratio of 1.36 indicates that EL should not have too much problems paying its short term obligations.
The Current ratio of EL (1.36) is worse than 63.89% of its industry peers.
A Quick Ratio of 0.96 indicates that EL may have some problems paying its short term obligations.
EL has a Quick ratio (0.96) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 0.96

4

3. Growth

3.1 Past

EL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -70.75%.
EL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.22% yearly.
The Revenue has decreased by -7.23% in the past year.
The Revenue has been growing slightly by 3.10% on average over the past years.
EPS 1Y (TTM)-70.75%
EPS 3Y-5.59%
EPS 5Y-5.22%
EPS growth Q2Q-42.86%
Revenue 1Y (TTM)-7.23%
Revenue growth 3Y3.69%
Revenue growth 5Y3.1%
Revenue growth Q2Q-7.38%

3.2 Future

Based on estimates for the next years, EL will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.79% on average per year.
Based on estimates for the next years, EL will show a small growth in Revenue. The Revenue will grow by 5.61% on average per year.
EPS Next Y-33.01%
EPS Next 2Y12.93%
EPS Next 3Y19.66%
EPS Next 5Y16.79%
Revenue Next Year0.12%
Revenue Next 2Y4.16%
Revenue Next 3Y5.29%
Revenue Next 5Y5.61%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

1

4. Valuation

4.1 Price/Earnings Ratio

EL is valuated quite expensively with a Price/Earnings ratio of 94.80.
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 26.42.
The Price/Forward Earnings ratio is 32.96, which means the current valuation is very expensive for EL.
Based on the Price/Forward Earnings ratio, EL is valued a bit cheaper than 61.11% of the companies in the same industry.
EL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 94.8
Fwd PE 32.96

4.2 Price Multiples

EL's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 30.61

4.3 Compensation for Growth

EL's earnings are expected to grow with 19.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.93%
EPS Next 3Y19.66%

5

5. Dividend

5.1 Amount

EL has a Yearly Dividend Yield of 1.81%.
EL's Dividend Yield is a higher than the industry average which is at 4.90.
EL's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 1.81%

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

203.00% of the earnings are spent on dividend by EL. This is not a sustainable payout ratio.
The dividend of EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP203%
EPS Next 2Y12.93%
EPS Next 3Y19.66%

ESTEE LAUDER COMPANIES-CL A

NYSE:EL (3/27/2024, 8:10:14 PM)

Premarket: 151.51 +6.47 (+4.46%)

145.04

+5.73 (+4.11%)

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 Cap51.99B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.81%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Revenue beat(2)
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Revenue beat(8)
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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 RankSector Rank
PE 94.8
Fwd PE 32.96
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 RankSector Rank
ROA 2.01%
ROE 8.18%
ROCE
ROIC
ROICexc
ROICexgc
OM 6.87%
PM (TTM) 3.08%
GM 70.08%
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 Turnover0.65
Health
Industry RankSector Rank
Debt/Equity 1.16
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.36
Quick Ratio 0.96
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)
Growth
EPS 1Y (TTM)-70.75%
EPS 3Y-5.59%
EPS 5Y
EPS growth Q2Q
EPS Next Y-33.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.23%
Revenue growth 3Y3.69%
Revenue growth 5Y
Revenue growth 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