L'OREAL (OR.PA) Stock Fundamental Analysis
EPA:OR - Euronext Paris - Matif - FR0000120321 - Common Stock - Currency: EUR
Overall OR gets a fundamental rating of 6 out of 10. We evaluated OR against 12 industry peers in the Personal Care Products industry. OR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. OR is quite expensive at the moment. It does show a decent growth rate.
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.
OR had positive earnings in each of the past 5 years.
In the past 5 years OR always reported a positive cash flow from operatings.
1.2 Ratios
OR has a better Return On Assets (11.37%) than 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 19.34%, OR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
OR has a better Return On Invested Capital (15.97%) than 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OR is above the industry average of 11.81%.
| 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 has a better Profit Margin (14.74%) than 91.67% of its industry peers.
OR's Profit Margin has improved in the last couple of years.
The Operating Margin of OR (19.98%) is better than 83.33% 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's Gross Margin of 74.18% is amongst the best of the industry. OR outperforms 91.67% of its industry peers.
OR'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
OR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
OR has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, OR has less shares outstanding
The debt/assets ratio for OR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.89 indicates that OR is not in any danger for bankruptcy at the moment.
OR has a Altman-Z score of 6.89. This is amongst the best in the industry. OR outperforms 83.33% 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 83.33% 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.
Looking at the Debt to Equity ratio, with a value of 0.20, OR belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 6.89 |
ROIC/WACC2.07
WACC7.71%
2.3 Liquidity
A Current Ratio of 1.13 indicates that OR should not have too much problems paying its short term obligations.
OR has a Current ratio (1.13) which is comparable to the rest of the 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 50.00% 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
The Earnings Per Share has been growing slightly by 4.80% over the past year.
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.
OR shows a small growth in Revenue. In the last year, the Revenue has grown by 5.60%.
The Revenue has been growing slightly by 7.80% on average over the past years.
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, OR 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, OR 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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.64, which means the current valuation is very expensive for OR.
OR's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.50. OR is around the same levels.
With a Price/Forward Earnings ratio of 27.02, OR can be considered very expensive at the moment.
66.67% of the companies in the same industry are cheaper than OR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, OR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.64 | ||
| Fwd PE | 27.02 |
4.2 Price Multiples
83.33% of the companies in the same industry are cheaper than OR, based on the Enterprise Value to EBITDA ratio.
OR's Price/Free Cash Flow is on the same level as the industry average.
| 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.
The excellent profitability rating of OR 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
OR has a Yearly Dividend Yield of 1.92%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.35, OR has a dividend in line with its industry peers.
OR's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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
OR pays out 56.41% of its income as dividend. 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 2Y7.24%
EPS Next 3Y7.29%
EPA:OR (7/18/2025, 7:00:00 PM)
362.55
-1.5 (-0.41%)
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 Target391.27 (7.92%)
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)-0.64%
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
WACC7.71%
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)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%