ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
USA - NYSE:EL - US5184391044 - Common Stock
92.88 USD
-0.37 (-0.4%)
90.75 USD
-2.13 (-2.29%)
EL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 34 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. While showing a medium growth rate, EL is valued expensive at the moment.
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.
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 -4.81%, EL is doing worse than 70.59% of the companies in the same industry.
EL has a Return On Equity of -23.91%. This is in the lower half of the industry: EL underperforms 67.65% of its industry peers.
EL has a better Return On Invested Capital (6.99%) than 61.76% of its industry peers.
EL had an Average Return On Invested Capital over the past 3 years of 7.43%. This is significantly below the industry average of 12.80%.
| 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 61.76% of its industry peers.
In the last couple of years the Operating Margin of EL has declined.
EL has a Gross Margin of 74.18%. This is amongst the best in the industry. EL outperforms 82.35% 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
Compared to 1 year ago, EL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.20 indicates that EL is not in any danger for bankruptcy at the moment.
EL has a Altman-Z score (3.20) which is in line with its industry peers.
The Debt to FCF ratio of EL is 7.01, which is on the high side as it means it would take EL, 7.01 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.01, EL is doing good in the industry, outperforming 64.71% of the companies in the same industry.
A Debt/Equity ratio of 1.88 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 1.88, EL is doing worse than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | 3.2 |
ROIC/WACC0.89
WACC7.84%
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.
Looking at the Current ratio, with a value of 1.32, EL is doing worse than 67.65% of the companies in the same industry.
EL has a Quick Ratio of 1.32. 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 has a worse Quick ratio (0.92) than 64.71% 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%.
EL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.22% yearly.
EL shows a decrease in Revenue. In the last year, the revenue decreased by -6.53%.
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)-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
Based on estimates for the next years, EL will show a very strong growth in Earnings Per Share. The EPS will grow by 28.75% on average per year.
The Revenue is expected to grow by 3.86% on average over the next years.
EPS Next Y46.73%
EPS Next 2Y42.33%
EPS Next 3Y35.62%
EPS Next 5Y28.75%
Revenue Next Year3.87%
Revenue Next 2Y4.03%
Revenue Next 3Y4.21%
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.
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 55.29.
Compared to the rest of the industry, the Price/Earnings ratio of EL is on the same level as its industry peers.
EL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.03.
Based on the Price/Forward Earnings ratio of 30.56, the valuation of EL can be described as expensive.
EL's Price/Forward Earnings ratio is in line with the industry average.
EL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.29 | ||
| Fwd PE | 30.56 |
4.2 Price Multiples
EL's Enterprise Value to EBITDA ratio is in line with the industry average.
EL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.03 | ||
| EV/EBITDA | 18.54 |
4.3 Compensation for Growth
EL's 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 35.62% in the coming years.
PEG (NY)1.18
PEG (5Y)N/A
EPS Next 2Y42.33%
EPS Next 3Y35.62%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.51%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.96, EL pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
The dividend of EL has a limited annual growth rate of 4.31%.
EL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.31%
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-54.3%
EPS Next 2Y42.33%
EPS Next 3Y35.62%
92.88
-0.37 (-0.4%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners95.71%
Inst Owner Change-1.91%
Ins Owners0.13%
Ins Owner Change0.02%
Market Cap33.47B
Revenue(TTM)14.44B
Net Income(TTM)-930000000
Analysts70.56
Price Target96.63 (4.04%)
Short Float %4.13%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
Yearly Dividend1.72
Dividend Growth(5Y)4.31%
DP-54.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)6.49%
PT rev (3m)23.73%
EPS NQ rev (1m)5.94%
EPS NQ rev (3m)-25.44%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-6.85%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.29 | ||
| Fwd PE | 30.56 | ||
| P/S | 2.32 | ||
| P/FCF | 32.03 | ||
| P/OCF | 20.89 | ||
| P/B | 8.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.54 |
EPS(TTM)1.68
EY1.81%
EPS(NY)3.04
Fwd EY3.27%
FCF(TTM)2.9
FCFY3.12%
OCF(TTM)4.45
OCFY4.79%
SpS40.08
BVpS10.79
TBVpS-5.37
PEG (NY)1.18
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 | 3.2 |
F-Score5
WACC7.84%
ROIC/WACC0.89
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 Y46.73%
EPS Next 2Y42.33%
EPS Next 3Y35.62%
EPS Next 5Y28.75%
Revenue 1Y (TTM)-6.53%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%3.57%
Revenue Next Year3.87%
Revenue Next 2Y4.03%
Revenue Next 3Y4.21%
Revenue Next 5Y3.86%
EBIT growth 1Y-21.3%
EBIT growth 3Y-31.36%
EBIT growth 5Y-11.51%
EBIT Next Year102.81%
EBIT Next 3Y38.28%
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.
Can you provide the valuation status for ESTEE LAUDER COMPANIES-CL A?
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.
Can you provide the financial health for EL stock?
The financial health rating of ESTEE LAUDER COMPANIES-CL A (EL) is 3 / 10.
What is the earnings growth outlook for ESTEE LAUDER COMPANIES-CL A?
The Earnings per Share (EPS) of ESTEE LAUDER COMPANIES-CL A (EL) is expected to grow by 46.73% in the next year.