ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EL - US5184391044 - Common Stock
105.27 USD
-3.28 (-3.02%)
105.27 USD
0 (0%)
EL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 36 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. EL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EL was profitable.
EL had a positive operating cash flow in the past year.
EL had positive earnings in 4 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 -4.81% is on the low side compared to the rest of the industry. EL is outperformed by 63.89% of its industry peers.
Looking at the Return On Equity, with a value of -23.91%, EL is doing worse than 66.67% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.99%, EL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
EL had an Average Return On Invested Capital over the past 3 years of 7.43%. This is below the industry average of 11.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.81% | ||
| ROE | -23.91% | ||
| ROIC | 6.99% |
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
EL has a Operating Margin of 8.72%. This is in the better half of the industry: EL outperforms 69.44% of its industry peers.
In the last couple of years the Operating Margin of EL has declined.
The Gross Margin of EL (74.18%) is better than 80.56% of its industry peers.
EL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.72% | ||
| PM (TTM) | N/A | ||
| GM | 74.18% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EL is destroying value.
EL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EL has less shares outstanding
The debt/assets ratio for EL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.38 indicates that EL is not in any danger for bankruptcy at the moment.
EL has a better Altman-Z score (3.38) than 61.11% of its industry peers.
EL has a debt to FCF ratio of 7.01. This is a slightly negative value and a sign of low solvency as EL would need 7.01 years to pay back of all of its debts.
EL has a better Debt to FCF ratio (7.01) than 63.89% of its industry peers.
A Debt/Equity ratio of 1.88 is on the high side and indicates that EL has dependencies on debt financing.
EL has a worse Debt to Equity ratio (1.88) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | 3.38 |
ROIC/WACC0.88
WACC7.97%
2.3 Liquidity
EL has a Current Ratio of 1.32. This is a normal value and indicates that EL is financially healthy and should not expect problems in meeting its short term obligations.
EL has a worse Current ratio (1.32) than 63.89% of its industry peers.
A Quick Ratio of 0.92 indicates that EL may have some problems paying its short term obligations.
EL has a worse Quick ratio (0.92) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
EL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.12%.
The earnings per share for EL have been decreasing by -18.22% on average. This is quite bad
The Revenue has decreased by -6.53% in the past year.
The Revenue has been growing slightly by 0.04% on average over the past years.
EPS 1Y (TTM)-36.12%
EPS 3Y-40.77%
EPS 5Y-18.22%
EPS Q2Q%128.57%
Revenue 1Y (TTM)-6.53%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%3.57%
3.2 Future
The Earnings Per Share is expected to grow by 28.75% on average over the next years. This is a very strong growth
EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.86% yearly.
EPS Next Y47.67%
EPS Next 2Y42.89%
EPS Next 3Y36.7%
EPS Next 5Y28.75%
Revenue Next Year4.3%
Revenue Next 2Y4.18%
Revenue Next 3Y4.41%
Revenue Next 5Y3.86%
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.
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 62.66, which means the current valuation is very expensive for EL.
EL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.92. EL is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 34.37, the valuation of EL can be described as expensive.
EL's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of EL to the average of the S&P500 Index (23.57), we can say EL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.66 | ||
| Fwd PE | 34.37 |
4.2 Price Multiples
EL's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.3 | ||
| EV/EBITDA | 20.68 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as EL's earnings are expected to grow with 36.70% in the coming years.
PEG (NY)1.31
PEG (5Y)N/A
EPS Next 2Y42.89%
EPS Next 3Y36.7%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.34%.
Compared to an average industry Dividend Yield of 2.09, EL pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 1.94, EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
The dividend of EL has a limited annual growth rate of 4.31%.
EL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.31%
Div Incr Years0
Div Non Decr Years0
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-54.3%
EPS Next 2Y42.89%
EPS Next 3Y36.7%
105.27
-3.28 (-3.02%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners91.48%
Inst Owner Change0.02%
Ins Owners0.12%
Ins Owner Change-16.48%
Market Cap37.94B
Revenue(TTM)14.44B
Net Income(TTM)-930.00M
Analysts71.11
Price Target104.59 (-0.65%)
Short Float %3.81%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend1.72
Dividend Growth(5Y)4.31%
DP-54.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.2%
Min EPS beat(2)0.44%
Max EPS beat(2)75.96%
EPS beat(4)4
Avg EPS beat(4)65.82%
Min EPS beat(4)0.44%
Max EPS beat(4)99.01%
EPS beat(8)8
Avg EPS beat(8)73.78%
EPS beat(12)11
Avg EPS beat(12)86.84%
EPS beat(16)15
Avg EPS beat(16)68.13%
Revenue beat(2)0
Avg Revenue beat(2)-1.33%
Min Revenue beat(2)-2.6%
Max Revenue beat(2)-0.06%
Revenue beat(4)0
Avg Revenue beat(4)-1.67%
Min Revenue beat(4)-2.6%
Max Revenue beat(4)-0.06%
Revenue beat(8)0
Avg Revenue beat(8)-1.81%
Revenue beat(12)1
Avg Revenue beat(12)-1.68%
Revenue beat(16)2
Avg Revenue beat(16)-1.82%
PT rev (1m)2.34%
PT rev (3m)15.26%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)3.03%
EPS NY rev (1m)0.15%
EPS NY rev (3m)4.23%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.66 | ||
| Fwd PE | 34.37 | ||
| P/S | 2.63 | ||
| P/FCF | 36.3 | ||
| P/OCF | 23.68 | ||
| P/B | 9.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.68 |
EPS(TTM)1.68
EY1.6%
EPS(NY)3.06
Fwd EY2.91%
FCF(TTM)2.9
FCFY2.75%
OCF(TTM)4.45
OCFY4.22%
SpS40.08
BVpS10.79
TBVpS-5.37
PEG (NY)1.31
PEG (5Y)N/A
Graham Number20.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.81% | ||
| ROE | -23.91% | ||
| ROCE | 8.84% | ||
| ROIC | 6.99% | ||
| ROICexc | 8.28% | ||
| ROICexgc | 16.05% | ||
| OM | 8.72% | ||
| PM (TTM) | N/A | ||
| GM | 74.18% | ||
| FCFM | 7.24% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 7.01 | ||
| Debt/EBITDA | 3.52 | ||
| Cap/Depr | 67.84% | ||
| Cap/Sales | 3.86% | ||
| Interest Coverage | 3.58 | ||
| Cash Conversion | 76.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 3.38 |
F-Score5
WACC7.97%
ROIC/WACC0.88
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)-36.12%
EPS 3Y-40.77%
EPS 5Y-18.22%
EPS Q2Q%128.57%
EPS Next Y47.67%
EPS Next 2Y42.89%
EPS Next 3Y36.7%
EPS Next 5Y28.75%
Revenue 1Y (TTM)-6.53%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%3.57%
Revenue Next Year4.3%
Revenue Next 2Y4.18%
Revenue Next 3Y4.41%
Revenue Next 5Y3.86%
EBIT growth 1Y-21.3%
EBIT growth 3Y-31.36%
EBIT growth 5Y-11.51%
EBIT Next Year107.02%
EBIT Next 3Y38.61%
EBIT Next 5Y27.48%
FCF growth 1Y171.62%
FCF growth 3Y-30.55%
FCF growth 5Y-16.56%
OCF growth 1Y-18.8%
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 4 / 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 62.66 and the Price/Book (PB) ratio is 9.75.
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 -54.3%.