ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:EL • US5184391044

115.28 USD
+0.07 (+0.06%)
At close: Jan 30, 2026
115.39 USD
+0.11 (+0.1%)
After Hours: 1/30/2026, 8:04:00 PM
Fundamental Rating

3

EL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 37 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.


Dividend Valuation Growth Profitability Health

4

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.
EL Yearly Net Income VS EBIT VS OCF VS FCFEL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B 3B

1.2 Ratios

  • The Return On Assets of EL (-4.81%) is worse than 62.16% of its industry peers.
  • The Return On Equity of EL (-23.91%) is worse than 64.86% 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 67.57% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for EL is below the industry average of 11.85%.
Industry RankSector 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%
EL Yearly ROA, ROE, ROICEL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

1.3 Margins

  • EL has a better Operating Margin (8.72%) than 70.27% of its industry peers.
  • 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 81.08% of the companies in the same industry.
  • EL's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
EL Yearly Profit, Operating, Gross MarginsEL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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3

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EL is destroying value.
  • Compared to 1 year ago, EL has more shares outstanding
  • Compared to 5 years ago, EL has less shares outstanding
  • The debt/assets ratio for EL is higher compared to a year ago.
EL Yearly Shares OutstandingEL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
EL Yearly Total Debt VS Total AssetsEL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • EL has an Altman-Z score of 3.52. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of EL (3.52) is better than 67.57% of 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.
  • EL's Debt to FCF ratio of 7.01 is fine compared to the rest of the industry. EL outperforms 64.86% of its industry peers.
  • EL has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
  • EL has a Debt to Equity ratio of 1.88. This is in the lower half of the industry: EL underperforms 72.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.88
Debt/FCF 7.01
Altman-Z 3.52
ROIC/WACC0.86
WACC8.1%
EL Yearly LT Debt VS Equity VS FCFEL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 1.32 indicates that EL should not have too much problems paying its short term obligations.
  • EL has a Current ratio of 1.32. This is in the lower half of the industry: EL underperforms 64.86% of its industry peers.
  • A Quick Ratio of 0.92 indicates that EL may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.92, EL is not doing good in the industry: 62.16% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 0.92
EL Yearly Current Assets VS Current LiabilitesEL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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4

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%.
  • Measured over the past years, EL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.22% on average per year.
  • 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 28.74% yearly.
  • EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y47.51%
EPS Next 2Y43.12%
EPS Next 3Y36.88%
EPS Next 5Y28.74%
Revenue Next Year4.25%
Revenue Next 2Y4.13%
Revenue Next 3Y4.3%
Revenue Next 5Y4.05%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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.
EL Yearly Revenue VS EstimatesEL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
EL Yearly EPS VS EstimatesEL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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2

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 68.62 indicates a quite expensive valuation of EL.
  • Compared to the rest of the industry, the Price/Earnings ratio of EL is on the same level as its industry peers.
  • When comparing the Price/Earnings ratio of EL to the average of the S&P500 Index (28.32), we can say EL is valued expensively.
  • EL is valuated quite expensively with a Price/Forward Earnings ratio of 37.52.
  • EL's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of EL to the average of the S&P500 Index (25.57), we can say EL is valued slightly more expensively.
Industry RankSector Rank
PE 68.62
Fwd PE 37.52
EL Price Earnings VS Forward Price EarningsEL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 RankSector Rank
P/FCF 39.75
EV/EBITDA 22.42
EL Per share dataEL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

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 36.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.44
PEG (5Y)N/A
EPS Next 2Y43.12%
EPS Next 3Y36.88%

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4

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.22%, EL has a reasonable but not impressive dividend return.
  • EL's Dividend Yield is a higher than the industry average which is at 1.87.
  • Compared to the average S&P500 Dividend Yield of 1.83, EL is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.22%

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
EL Yearly Dividends per shareEL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

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 2Y43.12%
EPS Next 3Y36.88%
EL Yearly Income VS Free CF VS DividendEL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B

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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 3 / 10 to EL.


What is the valuation status for EL stock?

ChartMill assigns a valuation rating of 2 / 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 68.62 and the Price/Book (PB) ratio is 10.68.


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%.