L'OREAL (OR.PA) Stock Fundamental Analysis
EPA:OR - Euronext Paris - Matif - FR0000120321 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to OR. OR was compared to 12 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. While showing a medium growth rate, OR is valued expensive at the moment.
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.
In the past 5 years OR always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 11.37%, OR belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
OR's Return On Equity of 19.34% is fine compared to the rest of the industry. OR outperforms 75.00% of its industry peers.
OR has a better Return On Invested Capital (15.97%) than 83.33% of its industry peers.
OR had an Average Return On Invested Capital over the past 3 years of 16.33%. This is above the industry average of 12.82%.
| 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 91.67% of its industry peers.
OR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.98%, OR belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
OR's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 74.18%, OR belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OR is creating value.
Compared to 1 year ago, OR has about the same amount of shares outstanding.
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 7.14 indicates that OR is not in any danger for bankruptcy at the moment.
OR's Altman-Z score of 7.14 is fine compared to the rest of the industry. OR outperforms 75.00% of its industry peers.
The Debt to FCF ratio of OR is 1.28, which is an excellent value as it means it would take OR, only 1.28 years of fcf income to pay off all of its debts.
OR has a Debt to FCF ratio of 1.28. This is amongst the best in the industry. OR outperforms 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.
OR's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. OR outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 7.14 |
ROIC/WACC2.03
WACC7.88%
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 of 1.13. This is comparable to the rest of the industry: OR outperforms 50.00% of its industry peers.
A Quick Ratio of 0.81 indicates that OR may have some problems paying its short term obligations.
With a Quick ratio value of 0.81, OR perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
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 4.80%.
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%.
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)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
The Earnings Per Share is expected to grow by 8.01% on average over the next years. This is quite good.
Based on estimates for the next years, OR will show a small growth in Revenue. The Revenue will grow by 5.49% on average per year.
EPS Next Y5.99%
EPS Next 2Y7.24%
EPS Next 3Y7.29%
EPS Next 5Y8.01%
Revenue Next Year3.49%
Revenue Next 2Y4.32%
Revenue Next 3Y4.58%
Revenue Next 5Y5.49%
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
With a Price/Earnings ratio of 29.57, OR can be considered very expensive at the moment.
OR's Price/Earnings ratio is rather expensive when compared to the industry. OR is more expensive than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.29, OR is valued a bit more expensive.
A Price/Forward Earnings ratio of 27.90 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 75.00% 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 20.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.57 | ||
| Fwd PE | 27.9 |
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 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.11 | ||
| EV/EBITDA | 19.73 |
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)4.94
PEG (5Y)2.86
EPS Next 2Y7.24%
EPS Next 3Y7.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.81%, OR has a reasonable but not impressive dividend return.
OR's Dividend Yield is comparable with the industry average which is at 2.63.
Compared to the average S&P500 Dividend Yield of 2.43, 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 Years3
Div Non Decr Years3
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.
The dividend of OR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.41%
EPS Next 2Y7.24%
EPS Next 3Y7.29%
EPA:OR (5/7/2025, 5:36:15 PM)
374.4
-6.7 (-1.76%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners14.38%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner ChangeN/A
Market Cap200.05B
Analysts71.67
Price Target389.01 (3.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend6.76
Dividend Growth(5Y)11.22%
DP56.41%
Div Incr Years3
Div Non Decr Years3
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)-1.71%
PT rev (3m)-3.73%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.59%
EPS NY rev (3m)-1.24%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.19%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.57 | ||
| Fwd PE | 27.9 | ||
| P/S | 4.6 | ||
| P/FCF | 30.11 | ||
| P/OCF | 24.14 | ||
| P/B | 6.04 | ||
| P/tB | 13.2 | ||
| EV/EBITDA | 19.73 |
EPS(TTM)12.66
EY3.38%
EPS(NY)13.42
Fwd EY3.58%
FCF(TTM)12.44
FCFY3.32%
OCF(TTM)15.51
OCFY4.14%
SpS81.39
BVpS62.01
TBVpS28.37
PEG (NY)4.94
PEG (5Y)2.86
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 | 7.14 |
F-Score7
WACC7.88%
ROIC/WACC2.03
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 5Y8.01%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%3.68%
Revenue Next Year3.49%
Revenue Next 2Y4.32%
Revenue Next 3Y4.58%
Revenue Next 5Y5.49%
EBIT growth 1Y8.09%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year26.61%
EBIT Next 3Y12.81%
EBIT Next 5Y10.42%
FCF growth 1Y8.64%
FCF growth 3Y5.53%
FCF growth 5Y5.72%
OCF growth 1Y8.96%
OCF growth 3Y7.19%
OCF growth 5Y5.76%