L'OREAL (LOR.DE) Stock Fundamental Analysis
FRA:LOR - FR0000120321 - Common Stock
397.95 EUR
-4.3 (-1.07%)
We assign a fundamental rating of 6 out of 10 to LOR. LOR was compared to 13 industry peers in the Personal Care Products industry. LOR gets an excellent profitability rating and is at the same time showing great financial health properties. LOR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LOR was profitable.
In the past year LOR had a positive cash flow from operations.
LOR had positive earnings in each of the past 5 years.
In the past 5 years LOR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.37%, LOR belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.34%, LOR is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
LOR's Return On Invested Capital of 15.97% is amongst the best of the industry. LOR outperforms 84.62% of its industry peers.
LOR had an Average Return On Invested Capital over the past 3 years of 16.33%. This is above the industry average of 12.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.37% | ||
| ROE | 19.34% | ||
| ROIC | 15.97% |
ROA(3y)11.83%
ROA(5y)10.87%
ROE(3y)20.54%
ROE(5y)18.68%
ROIC(3y)16.33%
ROIC(5y)15.46%
1.3 Margins
Looking at the Profit Margin, with a value of 14.74%, LOR belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
LOR's Profit Margin has improved in the last couple of years.
LOR has a better Operating Margin (19.98%) than 84.62% of its industry peers.
In the last couple of years the Operating Margin of LOR has remained more or less at the same level.
Looking at the Gross Margin, with a value of 74.18%, LOR belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
LOR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.98% | ||
| PM (TTM) | 14.74% | ||
| GM | 74.18% |
OM growth 3Y1.46%
OM growth 5Y1.47%
PM growth 3Y1.16%
PM growth 5Y3.26%
GM growth 3Y0.14%
GM growth 5Y0.32%
2. Health
2.1 Basic Checks
LOR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, LOR has about the same amount of shares outstanding.
The number of shares outstanding for LOR has been reduced compared to 5 years ago.
LOR has a better debt/assets ratio than last year.
2.2 Solvency
LOR has an Altman-Z score of 7.42. This indicates that LOR is financially healthy and has little risk of bankruptcy at the moment.
LOR has a Altman-Z score of 7.42. This is amongst the best in the industry. LOR outperforms 84.62% of its industry peers.
LOR has a debt to FCF ratio of 1.28. This is a very positive value and a sign of high solvency as it would only need 1.28 years to pay back of all of its debts.
LOR has a Debt to FCF ratio of 1.28. This is amongst the best in the industry. LOR outperforms 84.62% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that LOR is not too dependend on debt financing.
LOR has a Debt to Equity ratio of 0.20. This is amongst the best in the industry. LOR outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 7.42 |
ROIC/WACC2.07
WACC7.71%
2.3 Liquidity
LOR has a Current Ratio of 1.13. This is a normal value and indicates that LOR is financially healthy and should not expect problems in meeting its short term obligations.
LOR has a worse Current ratio (1.13) than 61.54% of its industry peers.
LOR has a Quick Ratio of 1.13. This is a bad value and indicates that LOR is not financially healthy enough and could expect problems in meeting its short term obligations.
LOR's Quick ratio of 0.81 is in line compared to the rest of the industry. LOR outperforms 46.15% of its industry peers.
LOR does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
LOR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.41%.
The Earnings Per Share has been growing by 10.34% on average over the past years. This is quite good.
Looking at the last year, LOR shows a small growth in Revenue. The Revenue has grown by 2.60% in the last year.
LOR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.80% yearly.
EPS 1Y (TTM)3.41%
EPS 3Y12.8%
EPS 5Y10.34%
EPS Q2Q%1.29%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%1.59%
3.2 Future
LOR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.27% yearly.
The Revenue is expected to grow by 5.26% on average over the next years.
EPS Next Y4.39%
EPS Next 2Y5.99%
EPS Next 3Y6.5%
EPS Next 5Y8.27%
Revenue Next Year2.4%
Revenue Next 2Y3.58%
Revenue Next 3Y4.11%
Revenue Next 5Y5.26%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 31.21, the valuation of LOR can be described as expensive.
Based on the Price/Earnings ratio, LOR is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.08. LOR is around the same levels.
The Price/Forward Earnings ratio is 27.98, which means the current valuation is very expensive for LOR.
Based on the Price/Forward Earnings ratio, LOR is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
LOR is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.21 | ||
| Fwd PE | 27.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LOR indicates a rather expensive valuation: LOR more expensive than 84.62% of the companies listed in the same industry.
LOR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.94 | ||
| EV/EBITDA | 20.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LOR does not grow enough to justify the current Price/Earnings ratio.
LOR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.1
PEG (5Y)3.02
EPS Next 2Y5.99%
EPS Next 3Y6.5%
5. Dividend
5.1 Amount
LOR has a Yearly Dividend Yield of 1.75%.
Compared to an average industry Dividend Yield of 2.48, LOR has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.34, LOR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
The dividend of LOR is nicely growing with an annual growth rate of 11.22%!
Dividend Growth(5Y)11.22%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
56.41% of the earnings are spent on dividend by LOR. This is a bit on the high side, but may be sustainable.
The dividend of LOR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.41%
EPS Next 2Y5.99%
EPS Next 3Y6.5%
FRA:LOR (8/29/2025, 7:00:00 PM)
397.95
-4.3 (-1.07%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners15.17%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap212.19B
Analysts69.44
Price Target396.05 (-0.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend6.76
Dividend Growth(5Y)11.22%
DP56.41%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.25%
PT rev (3m)1.3%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.51%
EPS NY rev (3m)-1.51%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.21 | ||
| Fwd PE | 27.98 | ||
| P/S | 4.88 | ||
| P/FCF | 31.94 | ||
| P/OCF | 25.61 | ||
| P/B | 6.4 | ||
| P/tB | 14 | ||
| EV/EBITDA | 20.76 |
EPS(TTM)12.75
EY3.2%
EPS(NY)14.22
Fwd EY3.57%
FCF(TTM)12.46
FCFY3.13%
OCF(TTM)15.54
OCFY3.91%
SpS81.56
BVpS62.14
TBVpS28.43
PEG (NY)7.1
PEG (5Y)3.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.37% | ||
| ROE | 19.34% | ||
| ROCE | 20.83% | ||
| ROIC | 15.97% | ||
| ROICexc | 17.68% | ||
| ROICexgc | 33.8% | ||
| OM | 19.98% | ||
| PM (TTM) | 14.74% | ||
| GM | 74.18% | ||
| FCFM | 15.28% |
ROA(3y)11.83%
ROA(5y)10.87%
ROE(3y)20.54%
ROE(5y)18.68%
ROIC(3y)16.33%
ROIC(5y)15.46%
ROICexc(3y)18.08%
ROICexc(5y)17.43%
ROICexgc(3y)36.23%
ROICexgc(5y)35.94%
ROCE(3y)21.48%
ROCE(5y)20.77%
ROICexcg growth 3Y-5.54%
ROICexcg growth 5Y4.43%
ROICexc growth 3Y-0.55%
ROICexc growth 5Y3.35%
OM growth 3Y1.46%
OM growth 5Y1.47%
PM growth 3Y1.16%
PM growth 5Y3.26%
GM growth 3Y0.14%
GM growth 5Y0.32%
F-Score7
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.28 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 88.49% | ||
| Cap/Sales | 3.78% | ||
| Interest Coverage | 22.74 | ||
| Cash Conversion | 78.59% | ||
| Profit Quality | 103.68% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 7.42 |
F-Score7
WACC7.71%
ROIC/WACC2.07
Cap/Depr(3y)87.58%
Cap/Depr(5y)74.21%
Cap/Sales(3y)3.63%
Cap/Sales(5y)3.54%
Profit Quality(3y)96.35%
Profit Quality(5y)113.17%
High Growth Momentum
Growth
EPS 1Y (TTM)3.41%
EPS 3Y12.8%
EPS 5Y10.34%
EPS Q2Q%1.29%
EPS Next Y4.39%
EPS Next 2Y5.99%
EPS Next 3Y6.5%
EPS Next 5Y8.27%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%1.59%
Revenue Next Year2.4%
Revenue Next 2Y3.58%
Revenue Next 3Y4.11%
Revenue Next 5Y5.26%
EBIT growth 1Y8.09%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year23.71%
EBIT Next 3Y11.82%
EBIT Next 5Y10.46%
FCF growth 1Y8.64%
FCF growth 3Y5.53%
FCF growth 5Y5.72%
OCF growth 1Y8.96%
OCF growth 3Y7.19%
OCF growth 5Y5.76%