L'OREAL SA (LORL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:LORL -
23.86 CAD
+22.41 (+1545.52%)
Overall LORL gets a fundamental rating of 7 out of 10. We evaluated LORL against 3 industry peers in the Personal Care Products industry. LORL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LORL is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make LORL a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year LORL was profitable.
In the past year LORL had a positive cash flow from operations.
In the past 5 years LORL has always been profitable.
LORL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LORL's Return On Assets of 11.21% is amongst the best of the industry. LORL outperforms 100.00% of its industry peers.
The Return On Equity of LORL (19.63%) is better than 100.00% of its industry peers.
The Return On Invested Capital of LORL (17.45%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LORL is significantly above the industry average of 8.25%.
The 3 year average ROIC (16.33%) for LORL 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
LORL has a Profit Margin of 13.96%. This is amongst the best in the industry. LORL outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of LORL has grown nicely.
With an excellent Operating Margin value of 20.41%, LORL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
LORL's Operating Margin has been stable in the last couple of years.
The Gross Margin of LORL (74.11%) is better than 100.00% of its industry peers.
LORL'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 LORL is creating value.
Compared to 1 year ago, LORL has about the same amount of shares outstanding.
The number of shares outstanding for LORL has been reduced compared to 5 years ago.
LORL has a better debt/assets ratio than last year.
2.2 Solvency
LORL has an Altman-Z score of 2.18. This is not the best score and indicates that LORL is in the grey zone with still only limited risk for bankruptcy at the moment.
LORL's Altman-Z score of 2.18 is on the low side compared to the rest of the industry. LORL is outperformed by 66.67% of its industry peers.
LORL 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.
LORL has a Debt to FCF ratio of 1.19. This is amongst the best in the industry. LORL outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that LORL is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.20, LORL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 2.18 |
ROIC/WACC2.81
WACC6.2%
2.3 Liquidity
A Current Ratio of 1.19 indicates that LORL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.19, LORL is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
LORL has a Quick Ratio of 1.19. This is a bad value and indicates that LORL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of LORL (0.90) is worse than 66.67% of its industry peers.
LORL 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
LORL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.41%.
Measured over the past years, LORL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.34% on average per year.
LORL 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
The Earnings Per Share is expected to grow by 8.18% on average over the next years. This is quite good.
LORL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.04% yearly.
EPS Next Y4.17%
EPS Next 2Y5.28%
EPS Next 3Y6.01%
EPS Next 5Y8.18%
Revenue Next Year2.04%
Revenue Next 2Y3.12%
Revenue Next 3Y3.86%
Revenue Next 5Y5.04%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 1.16, which indicates a rather cheap valuation of LORL.
100.00% of the companies in the same industry are more expensive than LORL, based on the Price/Earnings ratio.
LORL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.50.
With a Price/Forward Earnings ratio of 1.05, the valuation of LORL can be described as very cheap.
LORL's Price/Forward Earnings ratio is rather cheap when compared to the industry. LORL is cheaper than 100.00% of the companies in the same industry.
LORL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.93.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.16 | ||
| Fwd PE | 1.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LORL is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LORL is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.07 | ||
| EV/EBITDA | 1.52 |
4.3 Compensation for Growth
LORL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LORL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.28
PEG (5Y)0.11
EPS Next 2Y5.28%
EPS Next 3Y6.01%
5. Dividend
5.1 Amount
LORL has a Yearly Dividend Yield of 1.86%.
LORL's Dividend Yield is a higher than the industry average which is at 0.93.
Compared to an average S&P500 Dividend Yield of 1.87, LORL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
On average, the dividend of LORL grows each year by 11.22%, which is quite nice.
LORL is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)11.22%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
LORL pays out 62.89% of its income as dividend. This is not a sustainable payout ratio.
The dividend of LORL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.89%
EPS Next 2Y5.28%
EPS Next 3Y6.01%
TSX:LORL (12/9/2025, 7:00:00 PM)
23.86
+22.41 (+1545.52%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners16.05%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap12.74B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68.57
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend10.93
Dividend Growth(5Y)11.22%
DP62.89%
Div Incr YearsN/A
Div Non Decr YearsN/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.16 | ||
| Fwd PE | 1.05 | ||
| P/S | 0.18 | ||
| P/FCF | 1.07 | ||
| P/OCF | 0.87 | ||
| P/B | 0.25 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 1.52 |
EPS(TTM)20.6
EY86.34%
EPS(NY)22.67
Fwd EY95.01%
FCF(TTM)22.39
FCFY93.85%
OCF(TTM)27.31
OCFY114.48%
SpS132.68
BVpS94.36
TBVpS41.35
PEG (NY)0.28
PEG (5Y)0.11
Graham Number209.13
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 | 2.18 |
F-Score5
WACC6.2%
ROIC/WACC2.81
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 2Y5.28%
EPS Next 3Y6.01%
EPS Next 5Y8.18%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%1.59%
Revenue Next Year2.04%
Revenue Next 2Y3.12%
Revenue Next 3Y3.86%
Revenue Next 5Y5.04%
EBIT growth 1Y8.41%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year23.32%
EBIT Next 3Y11.27%
EBIT Next 5Y10.06%
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 SA / LORL.CA FAQ
What is the ChartMill fundamental rating of L'OREAL SA (LORL.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to LORL.CA.
Can you provide the valuation status for L'OREAL SA?
ChartMill assigns a valuation rating of 9 / 10 to L'OREAL SA (LORL.CA). This can be considered as Undervalued.
Can you provide the profitability details for L'OREAL SA?
L'OREAL SA (LORL.CA) has a profitability rating of 9 / 10.
What are the PE and PB ratios of L'OREAL SA (LORL.CA) stock?
The Price/Earnings (PE) ratio for L'OREAL SA (LORL.CA) is 1.16 and the Price/Book (PB) ratio is 0.25.
How sustainable is the dividend of L'OREAL SA (LORL.CA) stock?
The dividend rating of L'OREAL SA (LORL.CA) is 3 / 10 and the dividend payout ratio is 62.89%.