L'OREAL (LOR.DE) Stock Fundamental Analysis
FRA:LOR - Deutsche Boerse Ag - FR0000120321 - Common Stock - Currency: EUR
Taking everything into account, LOR scores 5 out of 10 in our fundamental rating. LOR was compared to 12 industry peers in the Personal Care Products industry. While LOR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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.
LOR had a positive operating cash flow in the past year.
LOR had positive earnings in each of the past 5 years.
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.
LOR has a better Return On Equity (19.34%) than 66.67% of its industry peers.
With a decent Return On Invested Capital value of 15.97%, LOR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
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's Profit Margin of 14.74% is amongst the best of the industry. LOR outperforms 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.
In the last couple of years the Operating Margin of LOR has remained more or less at the same level.
LOR has a Gross Margin of 74.18%. This is amongst the best in the industry. LOR outperforms 83.33% 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 | 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.
Compared to 5 years ago, LOR has less shares outstanding
The debt/assets ratio for LOR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.94 indicates that LOR is not in any danger for bankruptcy at the moment.
LOR has a Altman-Z score of 6.94. This is amongst the best in the industry. LOR outperforms 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.
With a decent Debt to FCF ratio value of 1.28, LOR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
LOR has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
LOR has a Debt to Equity ratio (0.20) which is comparable to the rest of the 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
A Current Ratio of 1.13 indicates that LOR should not have too much problems paying its short term obligations.
The Current ratio of LOR (1.13) is comparable to the rest of the industry.
A Quick Ratio of 0.81 indicates that LOR may have some problems paying its short term obligations.
LOR has a Quick ratio (0.81) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.80% over the past year.
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 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
Based on estimates for the next years, LOR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.01% on average per year.
LOR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.49% yearly.
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.
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
The Price/Earnings ratio is 28.95, which means the current valuation is very expensive for LOR.
LOR's Price/Earnings ratio is a bit more expensive when compared to the industry. LOR is more expensive than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.19. LOR is around the same levels.
With a Price/Forward Earnings ratio of 27.31, LOR can be considered very expensive at the moment.
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.
LOR's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. LOR is more expensive than 66.67% of the companies 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 LOR does not grow enough to justify the current Price/Earnings ratio.
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
LOR has a Yearly Dividend Yield of 1.82%. Purely for dividend investing, there may be better candidates out there.
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.
LOR's earnings are growing slower than its dividend. 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%