L'OREAL (LOR.DE) Stock Fundamental Analysis
Europe - FRA:LOR - FR0000120321 - Common Stock
351.45 EUR
-3.4 (-0.96%)
LOR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 15 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
LOR had positive earnings in the past year.
In the past year LOR had a positive cash flow from operations.
LOR had positive earnings in each of the past 5 years.
Each year in the past 5 years LOR had a positive operating cash flow.
1.2 Ratios
LOR has a better Return On Assets (11.21%) than 80.00% of its industry peers.
With a decent Return On Equity value of 19.63%, LOR is doing good in the industry, outperforming 73.33% of the companies in the same industry.
LOR's Return On Invested Capital of 17.45% is amongst the best of the industry. LOR outperforms 86.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LOR is above the industry average of 12.25%.
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
LOR's Profit Margin of 13.96% is amongst the best of the industry. LOR outperforms 86.67% of its industry peers.
LOR's Profit Margin has improved in the last couple of years.
LOR has a better Operating Margin (20.41%) than 80.00% of its industry peers.
LOR's Operating Margin has been stable in the last couple of years.
LOR has a better Gross Margin (74.11%) than 80.00% of its industry peers.
In the last couple of years the Gross Margin of LOR has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LOR is creating value.
Compared to 1 year ago, LOR has about the same amount of shares outstanding.
LOR has less shares outstanding than it did 5 years ago.
LOR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.78 indicates that LOR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.78, LOR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.19, LOR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
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 in the better half of the industry: LOR outperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 6.78 |
ROIC/WACC2.2
WACC7.94%
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.
The Current ratio of LOR (1.19) is comparable to the rest of the industry.
LOR has a Quick Ratio of 1.19. 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 (0.90) which is comparable to the rest of the industry.
The current and quick ratio evaluation for LOR is rather negative, while it does have 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.
The Revenue has been growing slightly by 2.60% in the past 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
The Earnings Per Share is expected to grow by 8.18% on average over the next years. This is quite good.
Based on estimates for the next years, LOR will show a small growth in Revenue. The Revenue will grow by 5.17% on average per year.
EPS Next Y4.17%
EPS Next 2Y5.19%
EPS Next 3Y6.07%
EPS Next 5Y8.18%
Revenue Next Year2.02%
Revenue Next 2Y3.11%
Revenue Next 3Y3.9%
Revenue Next 5Y5.17%
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
With a Price/Earnings ratio of 27.56, LOR can be considered very expensive at the moment.
Based on the Price/Earnings ratio, LOR is valued more expensive than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.51, LOR is valued at the same level.
A Price/Forward Earnings ratio of 25.09 indicates a quite expensive valuation of LOR.
Based on the Price/Forward Earnings ratio, LOR is valued expensively inside the industry as 86.67% of the companies are valued cheaper.
LOR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.56 | ||
| Fwd PE | 25.09 |
4.2 Price Multiples
86.67% of the companies in the same industry are cheaper than LOR, based on the Enterprise Value to EBITDA ratio.
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 60.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.35 | ||
| EV/EBITDA | 18.02 |
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)6.61
PEG (5Y)2.67
EPS Next 2Y5.19%
EPS Next 3Y6.07%
5. Dividend
5.1 Amount
LOR has a Yearly Dividend Yield of 1.95%.
Compared to an average industry Dividend Yield of 2.72, LOR has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.44, LOR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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 Years4
Div Non Decr Years4
5.3 Sustainability
LOR pays out 62.89% of its income as dividend. 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 2Y5.19%
EPS Next 3Y6.07%
FRA:LOR (11/18/2025, 7:00:00 PM)
351.45
-3.4 (-0.96%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners15.96%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap187.59B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68
Price Target393.73 (12.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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)-0.71%
PT rev (3m)-0.57%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.42%
EPS NY rev (3m)-1.72%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.56 | ||
| Fwd PE | 25.09 | ||
| P/S | 4.28 | ||
| P/FCF | 25.35 | ||
| P/OCF | 20.79 | ||
| P/B | 6.02 | ||
| P/tB | 13.73 | ||
| EV/EBITDA | 18.02 |
EPS(TTM)12.75
EY3.63%
EPS(NY)14.01
Fwd EY3.99%
FCF(TTM)13.86
FCFY3.94%
OCF(TTM)16.91
OCFY4.81%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)6.61
PEG (5Y)2.67
Graham Number129.45
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 | 6.78 |
F-Score5
WACC7.94%
ROIC/WACC2.2
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 2Y5.19%
EPS Next 3Y6.07%
EPS Next 5Y8.18%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%1.59%
Revenue Next Year2.02%
Revenue Next 2Y3.11%
Revenue Next 3Y3.9%
Revenue Next 5Y5.17%
EBIT growth 1Y8.41%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year22.99%
EBIT Next 3Y11.46%
EBIT Next 5Y10.05%
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 27.56 and the Price/Book (PB) ratio is 6.02.
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.