L'OREAL (LOR.DE) Stock Fundamental Analysis
FRA:LOR - Deutsche Boerse Ag - FR0000120321 - Common Stock - Currency: EUR
LOR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 12 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. 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.
LOR had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 11.37%, LOR belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Return On Equity of LOR (19.34%) is better than 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.97%, LOR belongs to the top of the industry, outperforming 83.33% 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 12.82%.
| 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 91.67% 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 belongs to the top of the industry, outperforming 83.33% 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 better Gross Margin (74.18%) than 91.67% 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.
The number of shares outstanding for LOR remains at a similar level compared to 1 year ago.
LOR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LOR has been reduced compared to a year ago.
2.2 Solvency
LOR has an Altman-Z score of 7.22. This indicates that LOR is financially healthy and has little risk of bankruptcy at the moment.
LOR's Altman-Z score of 7.22 is fine compared to the rest of the industry. LOR outperforms 75.00% 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.
Looking at the Debt to FCF ratio, with a value of 1.28, LOR belongs to the top of the industry, outperforming 83.33% 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 better Debt to Equity ratio (0.20) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 7.22 |
ROIC/WACC2.03
WACC7.88%
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 Current ratio (1.13) which is in line with its industry peers.
A Quick Ratio of 0.81 indicates that LOR may have some problems paying its short term obligations.
With a Quick ratio value of 0.81, LOR perfoms like the industry average, outperforming 58.33% of the companies in the same 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 | 1.13 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.80% over the past year.
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.
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 Year3.49%
Revenue Next 2Y4.32%
Revenue Next 3Y4.58%
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
Based on the Price/Earnings ratio of 30.55, the valuation of LOR can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of LOR indicates a slightly more expensive valuation: LOR is more expensive than 75.00% of the companies listed in the same industry.
LOR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.75, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 28.82, which means the current valuation is very expensive for LOR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LOR indicates a slightly more expensive valuation: LOR is more expensive than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.49. LOR is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.55 | ||
| Fwd PE | 28.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LOR is valued more expensive than 83.33% 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 | 31.1 | ||
| EV/EBITDA | 20.02 |
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.
LOR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.1
PEG (5Y)2.95
EPS Next 2Y7.24%
EPS Next 3Y7.29%
5. Dividend
5.1 Amount
LOR has a Yearly Dividend Yield of 1.84%. Purely for dividend investing, there may be better candidates out there.
LOR's Dividend Yield is comparable with the industry average which is at 2.64.
LOR's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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 (4/30/2025, 7:00:00 PM)
386.75
-1.4 (-0.36%)
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 Cap206.64B
Analysts71.67
Price Target388.85 (0.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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)-1.74%
PT rev (3m)-5.56%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.59%
EPS NY rev (3m)-2.14%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.19%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.55 | ||
| Fwd PE | 28.82 | ||
| P/S | 4.75 | ||
| P/FCF | 31.1 | ||
| P/OCF | 24.94 | ||
| P/B | 6.24 | ||
| P/tB | 13.63 | ||
| EV/EBITDA | 20.02 |
EPS(TTM)12.66
EY3.27%
EPS(NY)13.42
Fwd EY3.47%
FCF(TTM)12.44
FCFY3.22%
OCF(TTM)15.51
OCFY4.01%
SpS81.39
BVpS62.01
TBVpS28.37
PEG (NY)5.1
PEG (5Y)2.95
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 | 7.22 |
F-Score7
WACC7.88%
ROIC/WACC2.03
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 Year3.49%
Revenue Next 2Y4.32%
Revenue Next 3Y4.58%
Revenue Next 5Y5.49%
EBIT growth 1Y8.09%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year26.61%
EBIT Next 3Y12.81%
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%