L'OREAL (OR.PA) Stock Fundamental Analysis

Europe • Euronext Paris • EPA:OR • FR0000120321

393.35 EUR
-1.35 (-0.34%)
Last: Feb 6, 2026, 04:32 PM
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to OR. OR was compared to 14 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 valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • OR had positive earnings in the past year.
  • In the past year OR had a positive cash flow from operations.
  • Each year in the past 5 years OR has 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

1.2 Ratios

  • With an excellent Return On Assets value of 11.21%, OR belongs to the best of the industry, outperforming 85.71% 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 78.57% of its industry peers.
  • OR's Return On Invested Capital of 17.45% is amongst the best of the industry. OR outperforms 92.86% 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%.
  • 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 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 92.86% 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 85.71% 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 better Gross Margin (74.11%) than 85.71% 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

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.
  • OR has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, OR has an improved debt to assets ratio.
OR.PA Yearly Shares OutstandingOR.PA Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.2 Solvency

  • OR has an Altman-Z score of 7.38. This indicates that OR is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 7.38, OR belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
  • 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 92.86% of its industry peers.
  • A Debt/Equity ratio of 0.20 indicates that OR is not too dependend on debt financing.
  • OR has a better Debt to Equity ratio (0.20) than 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 1.19
Altman-Z 7.38
ROIC/WACC2.18
WACC8.01%
OR.PA Yearly LT Debt VS Equity VS FCFOR.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.3 Liquidity

  • A Current Ratio of 1.19 indicates that OR should not have too much problems paying its short term obligations.
  • OR has a Current ratio (1.19) which is comparable to the rest of the industry.
  • A Quick Ratio of 0.90 indicates that OR may have some problems paying its short term obligations.
  • OR's Quick ratio of 0.90 is in line compared to the rest of the industry. OR outperforms 50.00% of 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

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%.
  • The Earnings Per Share has been growing by 10.34% on average over the past years. This is quite good.
  • OR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.60%.
  • 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

  • Based on estimates for the next years, OR will show a small growth in Earnings Per Share. The EPS will grow by 7.87% on average per year.
  • The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y3.87%
EPS Next 2Y5.36%
EPS Next 3Y6.02%
EPS Next 5Y7.87%
Revenue Next Year2.05%
Revenue Next 2Y3.12%
Revenue Next 3Y3.86%
Revenue Next 5Y5%

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 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B
OR.PA Yearly EPS VS EstimatesOR.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20 25

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • OR is valuated quite expensively with a Price/Earnings ratio of 30.85.
  • OR's Price/Earnings ratio is a bit more expensive when compared to the industry. OR is more expensive than 64.29% of the companies in the same industry.
  • OR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.67.
  • A Price/Forward Earnings ratio of 27.99 indicates a quite expensive valuation of OR.
  • OR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. OR is more expensive than 71.43% of the companies in the same industry.
  • OR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 30.85
Fwd PE 27.99
OR.PA Price Earnings VS Forward Price EarningsOR.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, OR is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as OR.
Industry RankSector Rank
P/FCF 28.38
EV/EBITDA 19.7
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.
  • The excellent profitability rating of OR may justify a higher PE ratio.
PEG (NY)7.96
PEG (5Y)2.98
EPS Next 2Y5.36%
EPS Next 3Y6.02%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • OR has a Yearly Dividend Yield of 1.80%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.05, OR pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, OR has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.8%

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
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

  • 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 2Y5.36%
EPS Next 3Y6.02%
OR.PA Yearly Income VS Free CF VS DividendOR.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 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

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L'OREAL

EPA:OR (2/6/2026, 4:32:18 PM)

393.35

-1.35 (-0.34%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)10-21
Earnings (Next)02-12
Inst Owners15.95%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap209.96B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68.57
Price Target400.33 (1.77%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.8%
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)1%
PT rev (3m)1.63%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.08%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
Industry RankSector Rank
PE 30.85
Fwd PE 27.99
P/S 4.79
P/FCF 28.38
P/OCF 23.26
P/B 6.73
P/tB 15.37
EV/EBITDA 19.7
EPS(TTM)12.75
EY3.24%
EPS(NY)14.05
Fwd EY3.57%
FCF(TTM)13.86
FCFY3.52%
OCF(TTM)16.91
OCFY4.3%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)7.96
PEG (5Y)2.98
Graham Number129.45
Profitability
Industry RankSector Rank
ROA 11.21%
ROE 19.63%
ROCE 22.82%
ROIC 17.45%
ROICexc 19.88%
ROICexgc 40.35%
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 83.68%
Cap/Sales 3.71%
Interest Coverage 23.8
Cash Conversion 82.88%
Profit Quality 120.87%
Current Ratio 1.19
Quick Ratio 0.9
Altman-Z 7.38
F-Score5
WACC8.01%
ROIC/WACC2.18
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 Y3.87%
EPS Next 2Y5.36%
EPS Next 3Y6.02%
EPS Next 5Y7.87%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%1.59%
Revenue Next Year2.05%
Revenue Next 2Y3.12%
Revenue Next 3Y3.86%
Revenue Next 5Y5%
EBIT growth 1Y8.4%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year23.17%
EBIT Next 3Y11.26%
EBIT Next 5Y10.06%
FCF growth 1Y29.9%
FCF growth 3Y5.53%
FCF growth 5Y5.72%
OCF growth 1Y26.68%
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.


What is the valuation status of L'OREAL (OR.PA) stock?

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.


Can you provide the financial health for OR stock?

The financial health rating of L'OREAL (OR.PA) is 8 / 10.


What is the expected EPS growth for L'OREAL (OR.PA) stock?

The Earnings per Share (EPS) of L'OREAL (OR.PA) is expected to grow by 3.87% in the next year.