ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
NYSE:EL - New York Stock Exchange, Inc. - US5184391044 - Common Stock - Currency: USD
Overall EL gets a fundamental rating of 4 out of 10. We evaluated EL against 35 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 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.
In the past year EL had a positive cash flow from operations.
Each year in the past 5 years EL has been profitable.
Each year in the past 5 years EL had a positive operating cash flow.
1.2 Ratios
EL has a Return On Assets of -4.38%. This is in the lower half of the industry: EL underperforms 65.71% of its industry peers.
EL has a Return On Equity of -20.05%. This is in the lower half of the industry: EL underperforms 60.00% of its industry peers.
With a Return On Invested Capital value of 5.60%, EL perfoms like the industry average, outperforming 54.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EL is significantly below the industry average of 16.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.38% | ||
| ROE | -20.05% | ||
| ROIC | 5.6% |
ROA(3y)5.84%
ROA(5y)6.89%
ROE(3y)22.7%
ROE(5y)26.57%
ROIC(3y)9.14%
ROIC(5y)9.86%
1.3 Margins
EL's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 9.03%, EL is doing good in the industry, outperforming 62.86% of the companies in the same industry.
In the last couple of years the Operating Margin of EL has declined.
EL has a better Gross Margin (73.85%) than 82.86% of its industry peers.
In the last couple of years the Gross Margin of EL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.03% | ||
| PM (TTM) | N/A | ||
| GM | 73.85% |
OM growth 3Y-18.75%
OM growth 5Y-10.71%
PM growth 3Y-47.93%
PM growth 5Y-26.95%
GM growth 3Y-2.09%
GM growth 5Y-1.48%
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.
The number of shares outstanding for EL has been increased compared to 1 year ago.
EL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.85 indicates that EL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of EL (2.85) is comparable to the rest of the industry.
EL has a debt to FCF ratio of 7.70. This is a slightly negative value and a sign of low solvency as EL would need 7.70 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.70, EL is in line with its industry, outperforming 57.14% of the companies in the same industry.
A Debt/Equity ratio of 1.68 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 1.68, EL is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 7.7 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.74
WACC7.55%
2.3 Liquidity
A Current Ratio of 1.41 indicates that EL should not have too much problems paying its short term obligations.
EL has a Current ratio (1.41) which is in line with its industry peers.
A Quick Ratio of 1.02 indicates that EL should not have too much problems paying its short term obligations.
EL's Quick ratio of 1.02 is in line compared to the rest of the industry. EL outperforms 48.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
EL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.99%.
The earnings per share for EL have been decreasing by -13.41% on average. This is quite bad
Looking at the last year, EL shows a decrease in Revenue. The Revenue has decreased by -3.76% in the last year.
Measured over the past years, EL shows a small growth in Revenue. The Revenue has been growing by 0.98% on average per year.
EPS 1Y (TTM)0.99%
EPS 3Y-26.13%
EPS 5Y-13.41%
EPS Q2Q%-32.99%
Revenue 1Y (TTM)-3.76%
Revenue growth 3Y-1.26%
Revenue growth 5Y0.98%
Sales Q2Q%-9.9%
3.2 Future
The Earnings Per Share is expected to grow by 12.95% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.45% on average over the next years.
EPS Next Y-41.91%
EPS Next 2Y-7.21%
EPS Next 3Y4.05%
EPS Next 5Y12.95%
Revenue Next Year-8.23%
Revenue Next 2Y-3.35%
Revenue Next 3Y-0.86%
Revenue Next 5Y2.45%
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.
4. Valuation
4.1 Price/Earnings Ratio
EL is valuated quite expensively with a Price/Earnings ratio of 31.07.
EL's Price/Earnings is on the same level as the industry average.
EL is valuated rather expensively when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 28.45, the valuation of EL can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EL is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, EL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.07 | ||
| Fwd PE | 28.45 |
4.2 Price Multiples
EL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, EL is valued a bit cheaper than 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.17 | ||
| EV/EBITDA | 12.86 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.21%
EPS Next 3Y4.05%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 2.20%.
Compared to an average industry Dividend Yield of 5.69, EL pays a bit more dividend than its industry peers.
EL's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
On average, the dividend of EL grows each year by 9.59%, which is quite nice.
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)9.59%
Div Incr Years3
Div Non Decr Years3
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-83.7%
EPS Next 2Y-7.21%
EPS Next 3Y4.05%
63.69
-0.73 (-1.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners95.03%
Inst Owner Change0.34%
Ins Owners0.13%
Ins Owner Change0.05%
Market Cap22.91B
Analysts65.79
Price Target68.09 (6.91%)
Short Float %3.84%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend2.64
Dividend Growth(5Y)9.59%
DP-83.7%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)93.44%
Min EPS beat(2)87.87%
Max EPS beat(2)99.01%
EPS beat(4)4
Avg EPS beat(4)91.1%
Min EPS beat(4)43.76%
Max EPS beat(4)133.75%
EPS beat(8)8
Avg EPS beat(8)120.03%
EPS beat(12)11
Avg EPS beat(12)82.71%
EPS beat(16)15
Avg EPS beat(16)66.99%
Revenue beat(2)0
Avg Revenue beat(2)-2.01%
Min Revenue beat(2)-2.01%
Max Revenue beat(2)-2.01%
Revenue beat(4)0
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)-1.43%
Revenue beat(8)1
Avg Revenue beat(8)-1.71%
Revenue beat(12)2
Avg Revenue beat(12)-1.65%
Revenue beat(16)4
Avg Revenue beat(16)-1.52%
PT rev (1m)-10.59%
PT rev (3m)-17.28%
EPS NQ rev (1m)-69.19%
EPS NQ rev (3m)-70.13%
EPS NY rev (1m)4.87%
EPS NY rev (3m)5.27%
Revenue NQ rev (1m)-5.43%
Revenue NQ rev (3m)-5.43%
Revenue NY rev (1m)-1.4%
Revenue NY rev (3m)-2.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.07 | ||
| Fwd PE | 28.45 | ||
| P/S | 1.55 | ||
| P/FCF | 24.17 | ||
| P/OCF | 14.69 | ||
| P/B | 5.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.86 |
EPS(TTM)2.05
EY3.22%
EPS(NY)2.24
Fwd EY3.51%
FCF(TTM)2.64
FCFY4.14%
OCF(TTM)4.34
OCFY6.81%
SpS41.1
BVpS12.08
TBVpS-5.18
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.38% | ||
| ROE | -20.05% | ||
| ROCE | 8.95% | ||
| ROIC | 5.6% | ||
| ROICexc | 6.8% | ||
| ROICexgc | 13.75% | ||
| OM | 9.03% | ||
| PM (TTM) | N/A | ||
| GM | 73.85% | ||
| FCFM | 6.41% |
ROA(3y)5.84%
ROA(5y)6.89%
ROE(3y)22.7%
ROE(5y)26.57%
ROIC(3y)9.14%
ROIC(5y)9.86%
ROICexc(3y)12.1%
ROICexc(5y)13.99%
ROICexgc(3y)27.91%
ROICexgc(5y)31.23%
ROCE(3y)14.59%
ROCE(5y)15.74%
ROICexcg growth 3Y-21.07%
ROICexcg growth 5Y-22.32%
ROICexc growth 3Y-21.66%
ROICexc growth 5Y-23.4%
OM growth 3Y-18.75%
OM growth 5Y-10.71%
PM growth 3Y-47.93%
PM growth 5Y-26.95%
GM growth 3Y-2.09%
GM growth 5Y-1.48%
F-Score5
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 7.7 | ||
| Debt/EBITDA | 3.37 | ||
| Cap/Depr | 73.73% | ||
| Cap/Sales | 4.14% | ||
| Interest Coverage | 3.73 | ||
| Cash Conversion | 72.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.85 |
F-Score5
WACC7.55%
ROIC/WACC0.74
Cap/Depr(3y)232.17%
Cap/Depr(5y)179.27%
Cap/Sales(3y)10.8%
Cap/Sales(5y)8.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.99%
EPS 3Y-26.13%
EPS 5Y-13.41%
EPS Q2Q%-32.99%
EPS Next Y-41.91%
EPS Next 2Y-7.21%
EPS Next 3Y4.05%
EPS Next 5Y12.95%
Revenue 1Y (TTM)-3.76%
Revenue growth 3Y-1.26%
Revenue growth 5Y0.98%
Sales Q2Q%-9.9%
Revenue Next Year-8.23%
Revenue Next 2Y-3.35%
Revenue Next 3Y-0.86%
Revenue Next 5Y2.45%
EBIT growth 1Y4.54%
EBIT growth 3Y-19.77%
EBIT growth 5Y-9.83%
EBIT Next Year28.58%
EBIT Next 3Y21.14%
EBIT Next 5Y16.56%
FCF growth 1Y-9.37%
FCF growth 3Y-21.63%
FCF growth 5Y-4.06%
OCF growth 1Y-25.29%
OCF growth 3Y-13.38%
OCF growth 5Y-1.28%