L'OREAL (LOR.DE) Stock Fundamental Analysis
FRA:LOR - Deutsche Boerse Ag - FR0000120321 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to LOR. LOR was compared to 12 industry peers in the Personal Care Products industry. LOR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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 has a Return On Assets of 11.37%. This is amongst the best in the industry. LOR outperforms 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 19.34%, LOR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
LOR has a better Return On Invested Capital (15.97%) than 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Profit Margin, with a value of 14.74%, LOR belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Profit Margin of LOR has grown nicely.
LOR's Operating Margin of 19.98% is amongst the best of the industry. LOR outperforms 83.33% of its industry peers.
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 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LOR is creating value.
LOR has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for LOR has been reduced compared to 5 years ago.
The debt/assets ratio for LOR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.04 indicates that LOR is not in any danger for bankruptcy at the moment.
LOR has a better Altman-Z score (7.04) than 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.
LOR's Debt to FCF ratio of 1.28 is amongst the best of the industry. LOR outperforms 83.33% 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.
With a decent Debt to Equity ratio value of 0.20, LOR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 7.04 |
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 50.00% 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.
With a Quick ratio value of 0.81, LOR perfoms like the industry average, outperforming 58.33% of the companies in the same 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 | 1.13 | ||
| 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%.
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.
The Revenue has been growing slightly by 7.80% on average over the past years.
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
LOR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.01% yearly.
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
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
Based on the Price/Earnings ratio of 29.54, 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 66.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LOR to the average of the S&P500 Index (25.91), we can say LOR is valued inline with the index average.
A Price/Forward Earnings ratio of 27.87 indicates a quite expensive valuation of LOR.
Based on the Price/Forward Earnings ratio, LOR is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.77, LOR is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.54 | ||
| Fwd PE | 27.87 |
4.2 Price Multiples
LOR's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. LOR is more expensive than 83.33% 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 | 30.07 | ||
| EV/EBITDA | 19.37 |
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)4.93
PEG (5Y)2.86
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.
LOR's Dividend Yield is comparable with the industry average which is at 2.52.
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
LOR pays out 56.41% of its income as dividend. 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 (5/26/2025, 7:00:00 PM)
373.95
+0.5 (+0.13%)
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 Cap199.81B
Analysts71.67
Price Target390.98 (4.55%)
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 | 29.54 | ||
| Fwd PE | 27.87 | ||
| P/S | 4.59 | ||
| P/FCF | 30.07 | ||
| P/OCF | 24.11 | ||
| P/B | 6.03 | ||
| P/tB | 13.18 | ||
| EV/EBITDA | 19.37 |
EPS(TTM)12.66
EY3.39%
EPS(NY)13.42
Fwd EY3.59%
FCF(TTM)12.44
FCFY3.33%
OCF(TTM)15.51
OCFY4.15%
SpS81.39
BVpS62.01
TBVpS28.37
PEG (NY)4.93
PEG (5Y)2.86
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 | 7.04 |
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%