Logo image of OR.PA

L'OREAL (OR.PA) Stock Fundamental Analysis

Europe - EPA:OR - FR0000120321 - Common Stock

371.35 EUR
-26.65 (-6.7%)
Last: 10/22/2025, 7:00:00 PM
Fundamental Rating

6

OR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 13 industry peers in the Personal Care Products industry. Both the health and profitability get an excellent rating, making OR a very profitable company, without any liquidiy or solvency issues. OR is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

OR had positive earnings in the past year.
OR had a positive operating cash flow in the past year.
In the past 5 years OR has always been profitable.
In the past 5 years OR always reported a positive cash flow from operatings.
OR.PA Yearly Net Income VS EBIT VS OCF VS FCFOR.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

1.2 Ratios

Looking at the Return On Assets, with a value of 11.21%, OR belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
OR has a Return On Equity of 19.63%. This is in the better half of the industry: OR outperforms 76.92% of its industry peers.
With an excellent Return On Invested Capital value of 17.45%, OR belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OR is above the industry average of 12.37%.
The last Return On Invested Capital (17.45%) for OR is above the 3 year average (16.33%), which is a sign of increasing profitability.
Industry RankSector 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%
OR.PA Yearly ROA, ROE, ROICOR.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

OR's Profit Margin of 13.96% is amongst the best of the industry. OR outperforms 92.31% of its industry peers.
In the last couple of years the Profit Margin of OR has grown nicely.
The Operating Margin of OR (20.41%) is better than 84.62% of its industry peers.
OR's Operating Margin has been stable in the last couple of years.
OR has a better Gross Margin (74.11%) than 92.31% of its industry peers.
In the last couple of years the Gross Margin of OR has remained more or less at the same level.
Industry RankSector 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%
OR.PA Yearly Profit, Operating, Gross MarginsOR.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

8

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so OR is creating value.
Compared to 1 year ago, OR has about the same amount of shares outstanding.
OR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for OR has been reduced compared to a year ago.
OR.PA Yearly Shares OutstandingOR.PA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
OR.PA Yearly Total Debt VS Total AssetsOR.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.2 Solvency

OR has an Altman-Z score of 7.42. This indicates that OR is financially healthy and has little risk of bankruptcy at the moment.
OR has a better Altman-Z score (7.42) than 84.62% of its industry peers.
The Debt to FCF ratio of OR is 1.19, which is an excellent value as it means it would take OR, only 1.19 years of fcf income to pay off all of its debts.
OR has a better Debt to FCF ratio (1.19) than 92.31% of its industry peers.
OR has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.20, OR belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 1.19
Altman-Z 7.42
ROIC/WACC2.19
WACC7.95%
OR.PA Yearly LT Debt VS Equity VS FCFOR.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.3 Liquidity

OR has a Current Ratio of 1.19. This is a normal value and indicates that OR is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.19, OR is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
OR has a Quick Ratio of 1.19. This is a bad value and indicates that OR is not financially healthy enough and could expect problems in meeting its short term obligations.
OR has a Quick ratio (0.90) which is in line with its industry peers.
OR 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 RankSector Rank
Current Ratio 1.19
Quick Ratio 0.9
OR.PA Yearly Current Assets VS Current LiabilitesOR.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 3.41% over the past year.
OR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.34% yearly.
Looking at the last year, OR shows a small growth in Revenue. The Revenue has grown by 2.60% in the last year.
OR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.80% yearly.
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 8.26% on average over the next years. This is quite good.
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

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.
OR.PA Yearly Revenue VS EstimatesOR.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B
OR.PA Yearly EPS VS EstimatesOR.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15 20

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 29.13, OR can be considered very expensive at the moment.
61.54% of the companies in the same industry are cheaper than OR, based on the Price/Earnings ratio.
OR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.57, which is the current average of the S&P500 Index.
OR is valuated quite expensively with a Price/Forward Earnings ratio of 26.31.
OR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. OR is more expensive than 69.23% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.09. OR is around the same levels.
Industry RankSector Rank
PE 29.13
Fwd PE 26.31
OR.PA Price Earnings VS Forward Price EarningsOR.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OR indicates a rather expensive valuation: OR more expensive than 84.62% of the companies listed in the same industry.
OR's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 26.79
EV/EBITDA 20.3
OR.PA Per share dataOR.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
OR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.8
PEG (5Y)2.82
EPS Next 2Y5.59%
EPS Next 3Y6.33%

3

5. Dividend

5.1 Amount

OR has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
OR's Dividend Yield is comparable with the industry average which is at 2.56.
Compared to the average S&P500 Dividend Yield of 2.32, OR is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.81%

5.2 History

The dividend of OR is nicely growing with an annual growth rate of 11.22%!
Dividend Growth(5Y)11.22%
Div Incr Years4
Div Non Decr Years4
OR.PA Yearly Dividends per shareOR.PA Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 2 4 6 8

5.3 Sustainability

OR pays out 62.89% of its income as dividend. This is not a sustainable payout ratio.
The dividend of OR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.89%
EPS Next 2Y5.59%
EPS Next 3Y6.33%
OR.PA Yearly Income VS Free CF VS DividendOR.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
OR.PA Dividend Payout.OR.PA Dividend Payout, showing the Payout Ratio.OR.PA Dividend Payout.PayoutRetained Earnings

L'OREAL

EPA:OR (10/22/2025, 7:00:00 PM)

371.35

-26.65 (-6.7%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)07-29 2025-07-29/amc
Earnings (Next)10-21 2025-10-21
Inst Owners15.96%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap198.21B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68.57
Price Target396.36 (6.73%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.81%
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)0.09%
PT rev (3m)1.3%
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 RankSector Rank
PE 29.13
Fwd PE 26.31
P/S 4.52
P/FCF 26.79
P/OCF 21.96
P/B 6.36
P/tB 14.51
EV/EBITDA 20.3
EPS(TTM)12.75
EY3.43%
EPS(NY)14.12
Fwd EY3.8%
FCF(TTM)13.86
FCFY3.73%
OCF(TTM)16.91
OCFY4.55%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)7.8
PEG (5Y)2.82
Graham Number129.45
Profitability
Industry RankSector 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 RankSector 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 7.42
F-Score5
WACC7.95%
ROIC/WACC2.19
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%