ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
NYSE:EL - US5184391044 - Common Stock
91.55 USD
-1.06 (-1.14%)
EL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 35 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. EL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
EL had positive earnings in the past year.
EL had a positive operating cash flow in the past year.
EL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years EL had a positive operating cash flow.
1.2 Ratios
EL has a Return On Assets of -5.70%. This is in the lower half of the industry: EL underperforms 74.29% of its industry peers.
With a Return On Equity value of -29.31%, EL is not doing good in the industry: 68.57% of the companies in the same industry are doing better.
EL has a Return On Invested Capital of 6.21%. This is in the better half of the industry: EL outperforms 62.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EL is significantly below the industry average of 12.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.7% | ||
| ROE | -29.31% | ||
| ROIC | 6.21% |
ROA(3y)0.13%
ROA(5y)4.98%
ROE(3y)-1.32%
ROE(5y)17.24%
ROIC(3y)7.43%
ROIC(5y)11.04%
1.3 Margins
The Operating Margin of EL (7.94%) is better than 62.86% of its industry peers.
EL's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 73.96%, EL belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
EL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.94% | ||
| PM (TTM) | N/A | ||
| GM | 73.96% |
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%
2. Health
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.
The number of shares outstanding for EL has been increased compared to 1 year ago.
The number of shares outstanding for EL has been reduced compared to 5 years ago.
Compared to 1 year ago, EL has a worse debt to assets ratio.
2.2 Solvency
EL has an Altman-Z score of 3.08. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
EL has a Altman-Z score (3.08) which is comparable to the rest of the industry.
EL has a debt to FCF ratio of 10.92. This is a negative value and a sign of low solvency as EL would need 10.92 years to pay back of all of its debts.
The Debt to FCF ratio of EL (10.92) is comparable to the rest of the industry.
EL has a Debt/Equity ratio of 1.89. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.89, EL is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | 10.92 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.78
WACC7.94%
2.3 Liquidity
A Current Ratio of 1.30 indicates that EL should not have too much problems paying its short term obligations.
EL's Current ratio of 1.30 is on the low side compared to the rest of the industry. EL is outperformed by 62.86% of its industry peers.
EL has a Quick Ratio of 1.30. This is a bad value and indicates that EL is not financially healthy enough and could expect problems in meeting its short term obligations.
EL's Quick ratio of 0.92 is in line compared to the rest of the industry. EL outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for EL have decreased strongly by -42.31% 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 -8.24% in the past year.
Measured over the past years, EL shows a small growth in Revenue. The Revenue has been growing by 0.04% on average per year.
EPS 1Y (TTM)-42.31%
EPS 3Y-40.77%
EPS 5Y-18.22%
EPS Q2Q%-85.94%
Revenue 1Y (TTM)-8.24%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%-11.96%
3.2 Future
The Earnings Per Share is expected to grow by 28.94% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.33% on average over the next years.
EPS Next Y48.59%
EPS Next 2Y42.44%
EPS Next 3Y37.52%
EPS Next 5Y28.94%
Revenue Next Year3.27%
Revenue Next 2Y3.72%
Revenue Next 3Y4.19%
Revenue Next 5Y3.33%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 61.03, the valuation of EL can be described as expensive.
EL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.14, EL is valued quite expensively.
Based on the Price/Forward Earnings ratio of 41.08, the valuation of EL can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as EL.
The average S&P500 Price/Forward Earnings ratio is at 22.80. EL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.03 | ||
| Fwd PE | 41.08 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.16 | ||
| EV/EBITDA | 19.18 |
4.3 Compensation for Growth
EL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EL's earnings are expected to grow with 37.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)N/A
EPS Next 2Y42.44%
EPS Next 3Y37.52%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.56%.
EL's Dividend Yield is a higher than the industry average which is at 5.55.
EL's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
The dividend of EL is nicely growing with an annual growth rate of 9.59%!
EL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.59%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
EL has negative earnings and hence a negative payout ratio. The dividend may be in danger.
EL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-54.55%
EPS Next 2Y42.44%
EPS Next 3Y37.52%
NYSE:EL (8/28/2025, 3:06:37 PM)
91.55
-1.06 (-1.14%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners94.25%
Inst Owner Change2.12%
Ins Owners0.13%
Ins Owner Change0%
Market Cap32.94B
Analysts68.33
Price Target86.58 (-5.43%)
Short Float %5.6%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend2.64
Dividend Growth(5Y)9.59%
DP-54.55%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)49.72%
Min EPS beat(2)0.44%
Max EPS beat(2)99.01%
EPS beat(4)4
Avg EPS beat(4)57.77%
Min EPS beat(4)0.44%
Max EPS beat(4)99.01%
EPS beat(8)8
Avg EPS beat(8)83.43%
EPS beat(12)11
Avg EPS beat(12)80.65%
EPS beat(16)15
Avg EPS beat(16)63.88%
Revenue beat(2)0
Avg Revenue beat(2)-2.31%
Min Revenue beat(2)-2.6%
Max Revenue beat(2)-2.01%
Revenue beat(4)0
Avg Revenue beat(4)-2.46%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)-2.01%
Revenue beat(8)0
Avg Revenue beat(8)-2.21%
Revenue beat(12)1
Avg Revenue beat(12)-1.91%
Revenue beat(16)3
Avg Revenue beat(16)-1.8%
PT rev (1m)10.86%
PT rev (3m)27.15%
EPS NQ rev (1m)-2.23%
EPS NQ rev (3m)-26.97%
EPS NY rev (1m)-2.47%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)1.44%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.03 | ||
| Fwd PE | 41.08 | ||
| P/S | 2.3 | ||
| P/FCF | 49.16 | ||
| P/OCF | 25.89 | ||
| P/B | 8.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.18 |
EPS(TTM)1.5
EY1.64%
EPS(NY)2.23
Fwd EY2.43%
FCF(TTM)1.86
FCFY2.03%
OCF(TTM)3.54
OCFY3.86%
SpS39.81
BVpS10.74
TBVpS-5.64
PEG (NY)1.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.7% | ||
| ROE | -29.31% | ||
| ROCE | 7.86% | ||
| ROIC | 6.21% | ||
| ROICexc | 7.79% | ||
| ROICexgc | 15.92% | ||
| OM | 7.94% | ||
| PM (TTM) | N/A | ||
| GM | 73.96% | ||
| FCFM | 4.68% |
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%
ROICexcg growth 3Y-33.25%
ROICexcg 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-Score4
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | 10.92 | ||
| Debt/EBITDA | 3.72 | ||
| Cap/Depr | 72.62% | ||
| Cap/Sales | 4.2% | ||
| Interest Coverage | 3.22 | ||
| Cash Conversion | 64.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 3.08 |
F-Score4
WACC7.94%
ROIC/WACC0.78
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)-42.31%
EPS 3Y-40.77%
EPS 5Y-18.22%
EPS Q2Q%-85.94%
EPS Next Y48.59%
EPS Next 2Y42.44%
EPS Next 3Y37.52%
EPS Next 5Y28.94%
Revenue 1Y (TTM)-8.24%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%-11.96%
Revenue Next Year3.27%
Revenue Next 2Y3.72%
Revenue Next 3Y4.19%
Revenue Next 5Y3.33%
EBIT growth 1Y-27.35%
EBIT growth 3Y-31.36%
EBIT growth 5Y-11.51%
EBIT Next Year99.91%
EBIT Next 3Y38.62%
EBIT Next 5Y28.44%
FCF growth 1Y-53.5%
FCF growth 3Y-30.55%
FCF growth 5Y-16.56%
OCF growth 1Y-46.1%
OCF growth 3Y-25.21%
OCF growth 5Y-11.02%