ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EL - US5184391044 - Common Stock
91.94 USD
-1.45 (-1.55%)
91.94 USD
0 (0%)
Overall EL gets a fundamental rating of 4 out of 10. We evaluated EL against 35 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 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.
Each year in the past 5 years EL had a positive operating cash flow.
1.2 Ratios
EL has a Return On Assets of -4.81%. This is in the lower half of the industry: EL underperforms 68.57% of its industry peers.
The Return On Equity of EL (-23.91%) is worse than 68.57% of its industry peers.
EL has a Return On Invested Capital of 6.99%. This is in the better half of the industry: EL outperforms 65.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EL is significantly below the industry average of 12.46%.
| 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
Looking at the Operating Margin, with a value of 8.72%, EL is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
EL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 74.18%, EL belongs to the top 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EL is destroying value.
The number of shares outstanding for EL has been increased compared to 1 year ago.
Compared to 5 years ago, EL has less shares outstanding
EL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.21 indicates that EL is not in any danger for bankruptcy at the moment.
EL has a better Altman-Z score (3.21) than 65.71% 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.
With a Debt to FCF ratio value of 7.01, EL perfoms like the industry average, outperforming 60.00% 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.
EL has a Debt to Equity ratio of 1.88. This is amonst the worse of the industry: EL underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | 3.21 |
ROIC/WACC0.9
WACC7.76%
2.3 Liquidity
A Current Ratio of 1.32 indicates that EL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.32, EL is not doing good in the industry: 65.71% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.92, EL is not doing good in the industry: 65.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for EL have decreased strongly by -36.12% in the last year.
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
EL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.75% yearly.
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
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
EL is valuated quite expensively with a Price/Earnings ratio of 54.73.
EL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.98, EL is valued quite expensively.
EL is valuated quite expensively with a Price/Forward Earnings ratio of 30.26.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EL is on the same level as its industry peers.
EL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.73 | ||
| Fwd PE | 30.26 |
4.2 Price Multiples
EL's Enterprise Value to EBITDA is on the same level as the industry average.
EL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.7 | ||
| EV/EBITDA | 18.62 |
4.3 Compensation for Growth
The 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 35.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.17
PEG (5Y)N/A
EPS Next 2Y42.33%
EPS Next 3Y35.62%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.62%. Purely for dividend investing, there may be better candidates out there.
EL's Dividend Yield is a higher than the industry average which is at 7.49.
EL's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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.
The dividend of EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-54.3%
EPS Next 2Y42.33%
EPS Next 3Y35.62%
91.94
-1.45 (-1.55%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners95.71%
Inst Owner Change0.22%
Ins Owners0.13%
Ins Owner Change-16.36%
Market Cap33.13B
Revenue(TTM)14.44B
Net Income(TTM)-930.00M
Analysts70.56
Price Target102.2 (11.16%)
Short Float %3.05%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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)11.48%
PT rev (3m)18.04%
EPS NQ rev (1m)2.48%
EPS NQ rev (3m)-1.45%
EPS NY rev (1m)3.39%
EPS NY rev (3m)-3.69%
Revenue NQ rev (1m)2.1%
Revenue NQ rev (3m)4.31%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.73 | ||
| Fwd PE | 30.26 | ||
| P/S | 2.29 | ||
| P/FCF | 31.7 | ||
| P/OCF | 20.68 | ||
| P/B | 8.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.62 |
EPS(TTM)1.68
EY1.83%
EPS(NY)3.04
Fwd EY3.31%
FCF(TTM)2.9
FCFY3.15%
OCF(TTM)4.45
OCFY4.84%
SpS40.08
BVpS10.79
TBVpS-5.37
PEG (NY)1.17
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 | 3.21 |
F-Score5
WACC7.76%
ROIC/WACC0.9
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.