L'OREAL (LOR.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:LOR - FR0000120321 - Common Stock
373.25 EUR
+3.25 (+0.88%)
We assign a fundamental rating of 6 out of 10 to LOR. LOR was compared to 14 industry peers in the Personal Care Products industry. LOR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, LOR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
LOR had positive earnings in the past year.
In the past year LOR had a positive cash flow from operations.
Each year in the past 5 years LOR has been profitable.
Each year in the past 5 years LOR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.21%, LOR belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Equity of LOR (19.63%) is better than 78.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.45%, LOR belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
LOR had an Average Return On Invested Capital over the past 3 years of 16.33%. This is above the industry average of 11.79%.
The 3 year average ROIC (16.33%) for LOR is below the current ROIC(17.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.21% | ||
| ROE | 19.63% | ||
| ROIC | 17.45% |
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
With an excellent Profit Margin value of 13.96%, LOR belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
LOR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.41%, LOR belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
LOR's Operating Margin has been stable in the last couple of years.
The Gross Margin of LOR (74.11%) is better than 78.57% of its industry peers.
LOR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.41% | ||
| PM (TTM) | 13.96% | ||
| GM | 74.11% |
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.
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 7.04. This indicates that LOR is financially healthy and has little risk of bankruptcy at the moment.
LOR has a better Altman-Z score (7.04) than 85.71% of its industry peers.
The Debt to FCF ratio of LOR is 1.19, which is an excellent value as it means it would take LOR, only 1.19 years of fcf income to pay off all of its debts.
LOR has a better Debt to FCF ratio (1.19) than 92.86% 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 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 7.04 |
ROIC/WACC2.21
WACC7.89%
2.3 Liquidity
LOR has a Current Ratio of 1.19. This is a normal value and indicates that LOR is financially healthy and should not expect problems in meeting its short term obligations.
LOR's Current ratio of 1.19 is in line compared to the rest of the industry. LOR outperforms 42.86% of its industry peers.
A Quick Ratio of 0.90 indicates that LOR may have some problems paying its short term obligations.
The Quick ratio of LOR (0.90) is comparable to the rest of the industry.
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 | 1.19 | ||
| Quick Ratio | 0.9 |
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%.
Measured over the past years, LOR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.34% on average per year.
LOR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.60%.
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 8.18% yearly.
Based on estimates for the next years, LOR will show a small growth in Revenue. The Revenue will grow by 5.04% on average per year.
EPS Next Y4.17%
EPS Next 2Y5.28%
EPS Next 3Y6.01%
EPS Next 5Y8.18%
Revenue Next Year2.04%
Revenue Next 2Y3.12%
Revenue Next 3Y3.86%
Revenue Next 5Y5.04%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.27, LOR can be considered very expensive at the moment.
LOR's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.55, LOR is valued at the same level.
A Price/Forward Earnings ratio of 26.60 indicates a quite expensive valuation of LOR.
Based on the Price/Forward Earnings ratio, LOR is valued a bit more expensive than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, LOR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.27 | ||
| Fwd PE | 26.6 |
4.2 Price Multiples
71.43% of the companies in the same industry are cheaper than LOR, based on the Enterprise Value to EBITDA ratio.
LOR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.93 | ||
| EV/EBITDA | 18.93 |
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.
The excellent profitability rating of LOR may justify a higher PE ratio.
PEG (NY)7.03
PEG (5Y)2.83
EPS Next 2Y5.28%
EPS Next 3Y6.01%
5. Dividend
5.1 Amount
LOR has a Yearly Dividend Yield of 1.88%.
LOR's Dividend Yield is comparable with the industry average which is at 2.16.
Compared to an average S&P500 Dividend Yield of 1.87, LOR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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
62.89% of the earnings are spent on dividend by LOR. This is not a sustainable payout ratio.
The dividend of LOR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.89%
EPS Next 2Y5.28%
EPS Next 3Y6.01%
FRA:LOR (12/15/2025, 7:00:00 PM)
373.25
+3.25 (+0.88%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners16.05%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap199.23B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68.57
Price Target396.69 (6.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Yearly Dividend6.76
Dividend Growth(5Y)11.22%
DP62.89%
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)0.7%
PT rev (3m)0.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.27 | ||
| Fwd PE | 26.6 | ||
| P/S | 4.54 | ||
| P/FCF | 26.93 | ||
| P/OCF | 22.08 | ||
| P/B | 6.39 | ||
| P/tB | 14.58 | ||
| EV/EBITDA | 18.93 |
EPS(TTM)12.75
EY3.42%
EPS(NY)14.03
Fwd EY3.76%
FCF(TTM)13.86
FCFY3.71%
OCF(TTM)16.91
OCFY4.53%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)7.03
PEG (5Y)2.83
Graham Number129.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.21% | ||
| ROE | 19.63% | ||
| ROCE | 22.82% | ||
| ROIC | 17.45% | ||
| ROICexc | 17.45% | ||
| ROICexgc | 31.44% | ||
| OM | 20.41% | ||
| PM (TTM) | 13.96% | ||
| GM | 74.11% | ||
| FCFM | 16.88% |
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%
ROICexgc growth 3Y-5.54%
ROICexgc 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-Score5
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 83.63% | ||
| Cap/Sales | 3.71% | ||
| Interest Coverage | 23.79 | ||
| Cash Conversion | 82.87% | ||
| Profit Quality | 120.87% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 7.04 |
F-Score5
WACC7.89%
ROIC/WACC2.21
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 Y4.17%
EPS Next 2Y5.28%
EPS Next 3Y6.01%
EPS Next 5Y8.18%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%1.59%
Revenue Next Year2.04%
Revenue Next 2Y3.12%
Revenue Next 3Y3.86%
Revenue Next 5Y5.04%
EBIT growth 1Y8.41%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year23.32%
EBIT Next 3Y11.27%
EBIT Next 5Y10.06%
FCF growth 1Y29.9%
FCF growth 3Y5.53%
FCF growth 5Y5.72%
OCF growth 1Y26.67%
OCF growth 3Y7.19%
OCF growth 5Y5.76%
L'OREAL / LOR.DE FAQ
Can you provide the ChartMill fundamental rating for L'OREAL?
ChartMill assigns a fundamental rating of 6 / 10 to LOR.DE.
What is the valuation status of L'OREAL (LOR.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to L'OREAL (LOR.DE). This can be considered as Overvalued.
Can you provide the profitability details for L'OREAL?
L'OREAL (LOR.DE) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for LOR stock?
The Price/Earnings (PE) ratio for L'OREAL (LOR.DE) is 29.27 and the Price/Book (PB) ratio is 6.39.
Can you provide the expected EPS growth for LOR stock?
The Earnings per Share (EPS) of L'OREAL (LOR.DE) is expected to grow by 4.17% in the next year.