L'OREAL (LOR.DE) Stock Fundamental Analysis
Europe - FRA:LOR - FR0000120321 - Common Stock
390.5 EUR
+4.2 (+1.09%)
Taking everything into account, LOR scores 6 out of 10 in our fundamental rating. LOR was compared to 14 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LOR was profitable.
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
With a decent Return On Assets value of 11.21%, LOR is doing good in the industry, outperforming 78.57% of the companies in the same industry.
The Return On Equity of LOR (19.63%) is better than 71.43% 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 85.71% 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 12.12%.
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 85.71% of its industry peers.
In the last couple of years the Profit Margin of LOR has grown nicely.
Looking at the Operating Margin, with a value of 20.41%, LOR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
LOR's Operating Margin has been stable in the last couple of years.
LOR's Gross Margin of 74.11% is amongst the best of the industry. LOR outperforms 85.71% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LOR is creating value.
The number of shares outstanding for LOR remains at a similar level compared to 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
LOR has an Altman-Z score of 7.25. This indicates that LOR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.25, LOR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
LOR has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
LOR has a Debt to FCF ratio of 1.19. This is amongst the best in the industry. LOR outperforms 85.71% 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.
LOR has a Debt to Equity ratio of 0.20. This is in the better half of the industry: LOR outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 7.25 |
ROIC/WACC2.21
WACC7.88%
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 worse than 64.29% of its industry peers.
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.
With a Quick ratio value of 0.90, LOR perfoms like the industry average, outperforming 50.00% 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 | 1.19 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.41% over the past year.
The Earnings Per Share has been growing by 10.34% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.60% in the past 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)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
Based on estimates for the next years, LOR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.26% on average per year.
The Revenue is expected to grow by 5.17% on average over the next years.
EPS Next Y3.73%
EPS Next 2Y5.59%
EPS Next 3Y6.33%
EPS Next 5Y8.26%
Revenue Next Year2.08%
Revenue Next 2Y3.19%
Revenue Next 3Y3.94%
Revenue Next 5Y5.17%
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
The Price/Earnings ratio is 30.63, which means the current valuation is very expensive for LOR.
71.43% of the companies in the same industry are cheaper than LOR, based on the Price/Earnings ratio.
LOR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 27.66, LOR can be considered very expensive at the moment.
LOR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. LOR is more expensive than 78.57% of the companies in the same industry.
LOR is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.63 | ||
| Fwd PE | 27.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LOR is valued more expensive than 85.71% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as LOR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.14 | ||
| EV/EBITDA | 19.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LOR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)8.21
PEG (5Y)2.96
EPS Next 2Y5.59%
EPS Next 3Y6.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.86%, LOR has a reasonable but not impressive dividend return.
LOR's Dividend Yield is comparable with the industry average which is at 2.94.
Compared to the average S&P500 Dividend Yield of 2.38, LOR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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.
LOR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.89%
EPS Next 2Y5.59%
EPS Next 3Y6.33%
FRA:LOR (10/17/2025, 7:00:00 PM)
390.5
+4.2 (+1.09%)
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 Cap208.21B
Analysts68.57
Price Target396.53 (1.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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)0.12%
PT rev (3m)1.56%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.63%
EPS NY rev (3m)-2.13%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.63 | ||
| Fwd PE | 27.66 | ||
| P/S | 4.75 | ||
| P/FCF | 28.14 | ||
| P/OCF | 23.07 | ||
| P/B | 6.68 | ||
| P/tB | 15.24 | ||
| EV/EBITDA | 19.71 |
EPS(TTM)12.75
EY3.27%
EPS(NY)14.12
Fwd EY3.61%
FCF(TTM)13.88
FCFY3.55%
OCF(TTM)16.93
OCFY4.33%
SpS82.22
BVpS58.47
TBVpS25.63
PEG (NY)8.21
PEG (5Y)2.96
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%
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-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 | 7.25 |
F-Score5
WACC7.88%
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 Y3.73%
EPS Next 2Y5.59%
EPS Next 3Y6.33%
EPS Next 5Y8.26%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%1.59%
Revenue Next Year2.08%
Revenue Next 2Y3.19%
Revenue Next 3Y3.94%
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 5Y10.13%
FCF growth 1Y29.9%
FCF growth 3Y5.53%
FCF growth 5Y5.72%
OCF growth 1Y26.67%
OCF growth 3Y7.19%
OCF growth 5Y5.76%