L'OREAL (LOR.DE) Stock Fundamental Analysis
Europe - FRA:LOR - FR0000120321 - Common Stock
354.3 EUR
+0.7 (+0.2%)
We assign a fundamental rating of 6 out of 10 to LOR. 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.
LOR had a positive operating cash flow in the past year.
Each year in the past 5 years LOR has been profitable.
Each year in the past 5 years LOR had a positive operating cash flow.
1.2 Ratios
LOR's Return On Assets of 11.21% is amongst the best of the industry. LOR outperforms 85.71% of its industry peers.
LOR has a Return On Equity of 19.63%. This is in the better half of the industry: LOR outperforms 78.57% of its industry peers.
With an excellent Return On Invested Capital value of 17.45%, LOR belongs to the best of the industry, outperforming 92.86% 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 12.16%.
The last Return On Invested Capital (17.45%) for LOR is above the 3 year average (16.33%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 13.96%, LOR belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Profit Margin of LOR has grown nicely.
LOR has a better Operating Margin (20.41%) than 85.71% 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 better Gross Margin (74.11%) than 85.71% of its industry peers.
LOR's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for LOR has been reduced compared to 5 years ago.
Compared to 1 year ago, LOR has an improved debt to assets ratio.
2.2 Solvency
LOR has an Altman-Z score of 6.82. This indicates that LOR is financially healthy and has little risk of bankruptcy at the moment.
LOR has a better Altman-Z score (6.82) than 78.57% of its industry peers.
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.
LOR has a Debt to FCF ratio of 1.19. This is amongst the best in the industry. LOR outperforms 92.86% 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's Debt to Equity ratio of 0.20 is amongst the best of the industry. LOR outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 6.82 |
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.
LOR has a Current ratio of 1.19. This is comparable to the rest of the industry: LOR outperforms 42.86% 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.
LOR has a Quick ratio of 0.90. This is comparable to the rest of the industry: LOR outperforms 57.14% of its industry peers.
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.
LOR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.34% yearly.
LOR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.60%.
The Revenue has been growing slightly by 7.80% on average over the past years.
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
LOR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.18% yearly.
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.
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
Based on the Price/Earnings ratio of 27.79, the valuation of LOR can be described as expensive.
Based on the Price/Earnings ratio, LOR is valued a bit more expensive than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.28, LOR is valued at the same level.
With a Price/Forward Earnings ratio of 25.29, 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 71.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LOR to the average of the S&P500 Index (33.61), we can say LOR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.79 | ||
| Fwd PE | 25.29 |
4.2 Price Multiples
85.71% of the companies in the same industry are cheaper than LOR, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as LOR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.56 | ||
| EV/EBITDA | 18.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of LOR may justify a higher PE ratio.
PEG (NY)6.67
PEG (5Y)2.69
EPS Next 2Y5.19%
EPS Next 3Y6.07%
5. Dividend
5.1 Amount
LOR has a Yearly Dividend Yield of 1.98%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.84, LOR has a dividend in line with its industry peers.
LOR's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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
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 2Y5.19%
EPS Next 3Y6.07%
FRA:LOR (11/7/2025, 7:00:00 PM)
354.3
+0.7 (+0.2%)
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 Cap189.11B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68
Price Target393.95 (11.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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)-0.65%
PT rev (3m)0.71%
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 | 27.79 | ||
| Fwd PE | 25.29 | ||
| P/S | 4.31 | ||
| P/FCF | 25.56 | ||
| P/OCF | 20.95 | ||
| P/B | 6.07 | ||
| P/tB | 13.84 | ||
| EV/EBITDA | 18.16 |
EPS(TTM)12.75
EY3.6%
EPS(NY)14.01
Fwd EY3.95%
FCF(TTM)13.86
FCFY3.91%
OCF(TTM)16.91
OCFY4.77%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)6.67
PEG (5Y)2.69
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 | 6.82 |
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 9 / 10.
Can you provide the PE and PB ratios for LOR stock?
The Price/Earnings (PE) ratio for L'OREAL (LOR.DE) is 27.79 and the Price/Book (PB) ratio is 6.07.
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.