L'OREAL (OR.PA) Stock Fundamental Analysis
Europe - EPA:OR - FR0000120321 - Common Stock
371.35 EUR
-26.65 (-6.7%)
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.
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.
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 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
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 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 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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 7.42 |
ROIC/WACC2.19
WACC7.95%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.9 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.13 | ||
| Fwd PE | 26.31 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.79 | ||
| EV/EBITDA | 20.3 |
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%
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 Rank | Sector 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
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%
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)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 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 | 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%