L'OREAL (LOR.DE) Stock Fundamental Analysis
FRA:LOR - Deutsche Boerse Ag - FR0000120321 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to LOR. LOR was compared to 12 industry peers in the Personal Care Products industry. While LOR has a great profitability rating, there are some minor concerns on its financial health. LOR is quite expensive at the moment. 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.
Each year in the past 5 years LOR has been profitable.
LOR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LOR's Return On Assets of 11.37% is fine compared to the rest of the industry. LOR outperforms 75.00% of its industry peers.
The Return On Equity of LOR (19.34%) is better than 66.67% of its industry peers.
The Return On Invested Capital of LOR (15.97%) is better than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LOR is above the industry average of 12.78%.
| 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
LOR has a better Profit Margin (14.74%) than 83.33% of its industry peers.
LOR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.98%, LOR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
LOR's Operating Margin has been stable in the last couple of years.
LOR has a better Gross Margin (74.18%) than 83.33% of its industry peers.
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.
LOR has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, LOR has less shares outstanding
LOR has a better debt/assets ratio than last year.
2.2 Solvency
LOR has an Altman-Z score of 6.94. This indicates that LOR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LOR (6.94) is better than 83.33% 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's Debt to FCF ratio of 1.28 is fine compared to the rest of the industry. LOR outperforms 75.00% of its industry peers.
LOR has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.20, LOR is in line with its industry, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 6.94 |
ROIC/WACC2.06
WACC7.75%
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.
With a Current ratio value of 1.13, LOR perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
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 has a Quick ratio of 0.81. This is comparable to the rest of the industry: LOR outperforms 50.00% of its industry peers.
| 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 4.80%.
LOR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.34% yearly.
Looking at the last year, LOR shows a small growth in Revenue. The Revenue has grown by 5.60% in the last year.
Measured over the past years, LOR shows a small growth in Revenue. The Revenue has been growing by 7.80% on average per year.
EPS 1Y (TTM)4.8%
EPS 3Y12.8%
EPS 5Y10.34%
EPS Q2Q%6.17%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%3.68%
3.2 Future
The Earnings Per Share is expected to grow by 8.01% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.49% on average over the next years.
EPS Next Y5.99%
EPS Next 2Y7.24%
EPS Next 3Y7.29%
EPS Next 5Y8.01%
Revenue Next Year2.76%
Revenue Next 2Y3.84%
Revenue Next 3Y4.32%
Revenue Next 5Y5.49%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 28.95, which means the current valuation is very expensive for LOR.
75.00% of the companies in the same industry are cheaper than LOR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.19. LOR is around the same levels.
A Price/Forward Earnings ratio of 27.31 indicates a quite expensive valuation of LOR.
83.33% of the companies in the same industry are cheaper than LOR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.13. LOR is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.95 | ||
| Fwd PE | 27.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LOR is valued more expensive than 91.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LOR indicates a slightly more expensive valuation: LOR is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.47 | ||
| EV/EBITDA | 18.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of LOR may justify a higher PE ratio.
PEG (NY)4.83
PEG (5Y)2.8
EPS Next 2Y7.24%
EPS Next 3Y7.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.82%, LOR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.52, LOR has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.40, LOR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
On average, the dividend of LOR grows each year by 11.22%, which is quite nice.
Dividend Growth(5Y)11.22%
Div Incr Years3
Div Non Decr Years3
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 2Y7.24%
EPS Next 3Y7.29%
FRA:LOR (5/28/2025, 7:00:00 PM)
366.5
-6.85 (-1.83%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners14.38%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner ChangeN/A
Market Cap195.83B
Analysts71.67
Price Target390.98 (6.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend6.76
Dividend Growth(5Y)11.22%
DP56.41%
Div Incr Years3
Div Non Decr Years3
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)-0.67%
PT rev (3m)-1.2%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.13%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.95 | ||
| Fwd PE | 27.31 | ||
| P/S | 4.5 | ||
| P/FCF | 29.47 | ||
| P/OCF | 23.63 | ||
| P/B | 5.91 | ||
| P/tB | 12.92 | ||
| EV/EBITDA | 18.99 |
EPS(TTM)12.66
EY3.45%
EPS(NY)13.42
Fwd EY3.66%
FCF(TTM)12.44
FCFY3.39%
OCF(TTM)15.51
OCFY4.23%
SpS81.39
BVpS62.01
TBVpS28.37
PEG (NY)4.83
PEG (5Y)2.8
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 | 6.94 |
F-Score7
WACC7.75%
ROIC/WACC2.06
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)4.8%
EPS 3Y12.8%
EPS 5Y10.34%
EPS Q2Q%6.17%
EPS Next Y5.99%
EPS Next 2Y7.24%
EPS Next 3Y7.29%
EPS Next 5Y8.01%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%3.68%
Revenue Next Year2.76%
Revenue Next 2Y3.84%
Revenue Next 3Y4.32%
Revenue Next 5Y5.49%
EBIT growth 1Y8.09%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year23.71%
EBIT Next 3Y11.82%
EBIT Next 5Y10.42%
FCF growth 1Y8.64%
FCF growth 3Y5.53%
FCF growth 5Y5.72%
OCF growth 1Y8.96%
OCF growth 3Y7.19%
OCF growth 5Y5.76%