L'OREAL (LOR.DE) Stock Fundamental Analysis
FRA:LOR - Deutsche Boerse Ag - FR0000120321 - Common Stock - Currency: EUR
Overall LOR gets a fundamental rating of 5 out of 10. We evaluated LOR against 13 industry peers in the Personal Care Products industry. While LOR has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, LOR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
LOR had positive earnings in the past year.
In the past year LOR had a positive cash flow from operations.
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 11.37% is fine compared to the rest of the industry. LOR outperforms 76.92% of its industry peers.
LOR has a better Return On Equity (19.34%) than 69.23% of its industry peers.
LOR's Return On Invested Capital of 15.97% is fine compared to the rest of the industry. LOR outperforms 76.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LOR is above the industry average of 11.95%.
| 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 84.62% of the companies in the same industry.
In the last couple of years the Profit Margin of LOR has grown nicely.
LOR has a Operating Margin of 19.98%. This is in the better half of the industry: LOR outperforms 76.92% of its industry peers.
LOR's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 74.18%, LOR belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LOR is creating value.
Compared to 1 year ago, LOR has about the same amount of shares outstanding.
LOR has less shares outstanding than it did 5 years ago.
LOR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.89 indicates that LOR is not in any danger for bankruptcy at the moment.
LOR has a Altman-Z score of 6.89. This is in the better half of the industry: LOR outperforms 76.92% 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 is in the better half of the industry, outperforming 76.92% 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's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. LOR outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 6.89 |
ROIC/WACC2.08
WACC7.69%
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's Current ratio of 1.13 is on the low side compared to the rest of the industry. LOR is outperformed by 69.23% of its industry peers.
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.
LOR's Quick ratio of 0.81 is on the low side compared to the rest of the industry. LOR is outperformed by 61.54% of its industry peers.
| 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%.
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 5.60%.
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 8.73% on average per year.
Based on estimates for the next years, LOR will show a small growth in Revenue. The Revenue will grow by 5.84% on average per year.
EPS Next Y5.99%
EPS Next 2Y7.24%
EPS Next 3Y7.29%
EPS Next 5Y8.73%
Revenue Next Year2.76%
Revenue Next 2Y3.84%
Revenue Next 3Y4.32%
Revenue Next 5Y5.84%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
LOR is valuated quite expensively with a Price/Earnings ratio of 28.64.
Based on the Price/Earnings ratio, LOR is valued a bit more expensive than 69.23% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.54. LOR is around the same levels.
With a Price/Forward Earnings ratio of 27.02, LOR can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, LOR is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 36.44. LOR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.64 | ||
| Fwd PE | 27.02 |
4.2 Price Multiples
92.31% of the companies in the same industry are cheaper than LOR, based on the Enterprise Value to EBITDA ratio.
69.23% of the companies in the same industry are cheaper than LOR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.16 | ||
| EV/EBITDA | 18.79 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.78
PEG (5Y)2.77
EPS Next 2Y7.24%
EPS Next 3Y7.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.92%, LOR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.60, LOR has a dividend in line with its industry peers.
LOR's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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
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 (7/18/2025, 7:00:00 PM)
362.55
-1.7 (-0.47%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners15.17%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap193.72B
Analysts69.14
Price Target391.17 (7.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend6.76
Dividend Growth(5Y)11.22%
DP56.41%
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)0.19%
PT rev (3m)-0.63%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.64 | ||
| Fwd PE | 27.02 | ||
| P/S | 4.45 | ||
| P/FCF | 29.16 | ||
| P/OCF | 23.38 | ||
| P/B | 5.85 | ||
| P/tB | 12.78 | ||
| EV/EBITDA | 18.79 |
EPS(TTM)12.66
EY3.49%
EPS(NY)13.42
Fwd EY3.7%
FCF(TTM)12.44
FCFY3.43%
OCF(TTM)15.51
OCFY4.28%
SpS81.39
BVpS62.01
TBVpS28.37
PEG (NY)4.78
PEG (5Y)2.77
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 | 6.89 |
F-Score7
WACC7.69%
ROIC/WACC2.08
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 5Y8.73%
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 5Y5.84%
EBIT growth 1Y8.09%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year23.71%
EBIT Next 3Y11.82%
EBIT Next 5Y11.86%
FCF growth 1Y8.64%
FCF growth 3Y5.53%
FCF growth 5Y5.72%
OCF growth 1Y8.96%
OCF growth 3Y7.19%
OCF growth 5Y5.76%