L'OREAL (OR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:OR - FR0000120321 - Common Stock
363.35 EUR
+0.8 (+0.22%)
Taking everything into account, OR scores 6 out of 10 in our fundamental rating. OR was compared to 15 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
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.
OR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.21%, OR belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
OR's Return On Equity of 19.63% is fine compared to the rest of the industry. OR outperforms 80.00% of its industry peers.
OR's Return On Invested Capital of 17.45% is amongst the best of the industry. OR outperforms 93.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OR is above the industry average of 11.99%.
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 has a Profit Margin of 13.96%. This is amongst the best in the industry. OR outperforms 93.33% of its industry peers.
In the last couple of years the Profit Margin of OR has grown nicely.
OR's Operating Margin of 20.41% is amongst the best of the industry. OR outperforms 86.67% of its industry peers.
OR's Operating Margin has been stable in the last couple of years.
The Gross Margin of OR (74.11%) is better than 80.00% 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.
The number of shares outstanding for OR remains at a similar level compared to 1 year ago.
The number of shares outstanding for OR has been reduced compared to 5 years ago.
OR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.94 indicates that OR is not in any danger for bankruptcy at the moment.
The Altman-Z score of OR (6.94) is better than 86.67% 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's Debt to FCF ratio of 1.19 is amongst the best of the industry. OR outperforms 86.67% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that OR is not too dependend on debt financing.
OR's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. OR outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 6.94 |
ROIC/WACC2.21
WACC7.88%
2.3 Liquidity
A Current Ratio of 1.19 indicates that OR should not have too much problems paying its short term obligations.
OR's Current ratio of 1.19 is in line compared to the rest of the industry. OR outperforms 46.67% of its industry peers.
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's Quick ratio of 0.90 is in line compared to the rest of the industry. OR outperforms 53.33% 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 | 1.19 | ||
| 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
OR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.18% yearly.
OR 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.
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 28.50, which means the current valuation is very expensive for OR.
OR's Price/Earnings ratio is a bit more expensive when compared to the industry. OR is more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.50. OR is around the same levels.
Based on the Price/Forward Earnings ratio of 25.89, the valuation of OR can be described as expensive.
Based on the Price/Forward Earnings ratio, OR is valued a bit more expensive than the industry average as 73.33% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of OR to the average of the S&P500 Index (23.93), we can say OR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 25.89 |
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 80.00% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as OR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.21 | ||
| EV/EBITDA | 18.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates OR does not grow enough to justify the current Price/Earnings ratio.
OR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.84
PEG (5Y)2.76
EPS Next 2Y5.28%
EPS Next 3Y6.01%
5. Dividend
5.1 Amount
OR has a Yearly Dividend Yield of 1.86%.
OR's Dividend Yield is comparable with the industry average which is at 2.15.
OR's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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
62.89% of the earnings are spent on dividend by OR. This is not a sustainable payout ratio.
OR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.89%
EPS Next 2Y5.28%
EPS Next 3Y6.01%
EPA:OR (12/24/2025, 11:15:19 AM)
363.35
+0.8 (+0.22%)
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 Cap193.95B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68.57
Price Target396.47 (9.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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)0.65%
PT rev (3m)0.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 25.89 | ||
| P/S | 4.42 | ||
| P/FCF | 26.21 | ||
| P/OCF | 21.49 | ||
| P/B | 6.22 | ||
| P/tB | 14.19 | ||
| EV/EBITDA | 18.57 |
EPS(TTM)12.75
EY3.51%
EPS(NY)14.03
Fwd EY3.86%
FCF(TTM)13.86
FCFY3.81%
OCF(TTM)16.91
OCFY4.65%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)6.84
PEG (5Y)2.76
Graham Number129.44
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 | 6.94 |
F-Score5
WACC7.88%
ROIC/WACC2.21
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 / OR.PA FAQ
What is the ChartMill fundamental rating of L'OREAL (OR.PA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to OR.PA.
Can you provide the valuation status for L'OREAL?
ChartMill assigns a valuation rating of 2 / 10 to L'OREAL (OR.PA). This can be considered as Overvalued.
How profitable is L'OREAL (OR.PA) stock?
L'OREAL (OR.PA) has a profitability rating of 8 / 10.
What are the PE and PB ratios of L'OREAL (OR.PA) stock?
The Price/Earnings (PE) ratio for L'OREAL (OR.PA) is 28.5 and the Price/Book (PB) ratio is 6.22.
Can you provide the dividend sustainability for OR stock?
The dividend rating of L'OREAL (OR.PA) is 3 / 10 and the dividend payout ratio is 62.89%.