L'OREAL (OR.PA) Stock Fundamental Analysis
EPA:OR - FR0000120321 - Common Stock
397.9 EUR
-4.45 (-1.11%)
Overall OR gets a fundamental rating of 6 out of 10. We evaluated OR against 13 industry peers in the Personal Care Products industry. OR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. OR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year OR was profitable.
In the past year OR had a positive cash flow from operations.
Each year in the past 5 years OR has been profitable.
Each year in the past 5 years OR had a positive operating cash flow.
1.2 Ratios
OR has a Return On Assets of 11.37%. This is amongst the best in the industry. OR outperforms 84.62% of its industry peers.
OR has a better Return On Equity (19.34%) than 76.92% of its industry peers.
With an excellent Return On Invested Capital value of 15.97%, OR belongs to the best of the industry, outperforming 84.62% 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 12.46%.
| 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
OR's Profit Margin of 14.74% 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.
OR's Operating Margin of 19.98% is amongst the best of the industry. OR outperforms 84.62% of its industry peers.
In the last couple of years the Operating Margin of OR has remained more or less at the same level.
OR has a Gross Margin of 74.18%. This is amongst the best in the industry. OR outperforms 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 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), OR is creating value.
The number of shares outstanding for OR remains at a similar level compared to 1 year ago.
Compared to 5 years ago, OR has less shares outstanding
Compared to 1 year ago, OR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.36 indicates that OR is not in any danger for bankruptcy at the moment.
OR has a Altman-Z score of 7.36. This is amongst the best in the industry. OR outperforms 84.62% of its industry peers.
OR 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.
The Debt to FCF ratio of OR (1.28) is better than 84.62% 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.
OR has a better Debt to Equity ratio (0.20) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 7.36 |
ROIC/WACC2.07
WACC7.71%
2.3 Liquidity
OR has a Current Ratio of 1.13. This is a normal value and indicates that OR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.13, OR is doing worse than 61.54% of the companies in the same industry.
A Quick Ratio of 0.81 indicates that OR may have some problems paying its short term obligations.
OR's Quick ratio of 0.81 is in line compared to the rest of the industry. OR outperforms 46.15% of its industry peers.
The current and quick ratio evaluation for OR is rather negative, while it does have 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 | 1.13 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
OR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.41%.
Measured over the past years, OR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.34% on average per year.
Looking at the last year, OR shows a small growth in Revenue. The Revenue has grown by 2.60% in the last year.
Measured over the past years, OR 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
OR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.27% yearly.
Based on estimates for the next years, OR will show a small growth in Revenue. The Revenue will grow by 5.26% on average per year.
EPS Next Y4.39%
EPS Next 2Y5.99%
EPS Next 3Y6.5%
EPS Next 5Y8.27%
Revenue Next Year2.4%
Revenue Next 2Y3.58%
Revenue Next 3Y4.11%
Revenue Next 5Y5.26%
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 31.21, which means the current valuation is very expensive for OR.
Compared to the rest of the industry, the Price/Earnings ratio of OR indicates a slightly more expensive valuation: OR is more expensive than 61.54% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.13. OR is around the same levels.
A Price/Forward Earnings ratio of 27.98 indicates a quite expensive valuation of OR.
Based on the Price/Forward Earnings ratio, OR is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
OR's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.21 | ||
| Fwd PE | 27.98 |
4.2 Price Multiples
OR's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. OR is more expensive than 84.62% of the companies in the same industry.
OR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.93 | ||
| EV/EBITDA | 20.54 |
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 OR may justify a higher PE ratio.
PEG (NY)7.1
PEG (5Y)3.02
EPS Next 2Y5.99%
EPS Next 3Y6.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.74%, OR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.43, OR has a dividend in line with its industry peers.
OR's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
On average, the dividend of OR 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
56.41% of the earnings are spent on dividend by OR. This is a bit on the high side, but may be sustainable.
OR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.41%
EPS Next 2Y5.99%
EPS Next 3Y6.5%
EPA:OR (8/29/2025, 7:00:00 PM)
397.9
-4.45 (-1.11%)
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 Cap212.16B
Analysts69.44
Price Target396 (-0.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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)1.21%
PT rev (3m)1.43%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.51%
EPS NY rev (3m)-1.51%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.21 | ||
| Fwd PE | 27.98 | ||
| P/S | 4.88 | ||
| P/FCF | 31.93 | ||
| P/OCF | 25.6 | ||
| P/B | 6.4 | ||
| P/tB | 14 | ||
| EV/EBITDA | 20.54 |
EPS(TTM)12.75
EY3.2%
EPS(NY)14.22
Fwd EY3.57%
FCF(TTM)12.46
FCFY3.13%
OCF(TTM)15.54
OCFY3.91%
SpS81.56
BVpS62.14
TBVpS28.43
PEG (NY)7.1
PEG (5Y)3.02
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 | 7.36 |
F-Score7
WACC7.71%
ROIC/WACC2.07
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 Y4.39%
EPS Next 2Y5.99%
EPS Next 3Y6.5%
EPS Next 5Y8.27%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%1.59%
Revenue Next Year2.4%
Revenue Next 2Y3.58%
Revenue Next 3Y4.11%
Revenue Next 5Y5.26%
EBIT growth 1Y8.09%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year23.71%
EBIT Next 3Y11.82%
EBIT Next 5Y10.46%
FCF growth 1Y8.64%
FCF growth 3Y5.53%
FCF growth 5Y5.72%
OCF growth 1Y8.96%
OCF growth 3Y7.19%
OCF growth 5Y5.76%