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L'OREAL (OR.PA) Stock Fundamental Analysis

Europe - EPA:OR - FR0000120321 - Common Stock

390.65 EUR
+4.3 (+1.11%)
Last: 10/17/2025, 7:00:00 PM
Fundamental Rating

6

OR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 14 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 valied quite expensively at the moment, while it does show a decent growth rate.


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.
Each year in the past 5 years OR had a positive operating cash flow.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

1.2 Ratios

Looking at the Return On Assets, with a value of 11.21%, OR belongs to the top 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.
Looking at the Return On Invested Capital, with a value of 17.45%, OR belongs to the top of the industry, outperforming 92.86% 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 12.12%.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

OR has a better Profit Margin (13.96%) than 92.86% of its industry peers.
OR's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.41%, OR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
OR's Operating Margin has been stable in the last couple of years.
OR has a Gross Margin of 74.11%. This is amongst the best in the industry. OR outperforms 92.86% of its industry peers.
OR's Gross Margin has been stable in the last couple of years.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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.
The number of shares outstanding for OR has been reduced compared to 5 years ago.
The debt/assets ratio for OR has been reduced compared to a year ago.
OR.PA Yearly Shares OutstandingOR.PA Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.2 Solvency

OR has an Altman-Z score of 7.26. This indicates that OR is financially healthy and has little risk of bankruptcy at the moment.
OR has a Altman-Z score of 7.26. This is amongst the best in the industry. OR outperforms 85.71% of its industry peers.
OR has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.19, OR belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that OR is not too dependend on debt financing.
The Debt to Equity ratio of OR (0.20) is better than 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 1.19
Altman-Z 7.26
ROIC/WACC2.21
WACC7.88%
OR.PA Yearly LT Debt VS Equity VS FCFOR.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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.
OR has a Current ratio of 1.19. This is comparable to the rest of the industry: OR outperforms 42.86% 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 57.14% 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 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 3.41% 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 2.60%.
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.
OR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.17% yearly.
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

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.
OR.PA Yearly Revenue VS EstimatesOR.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B
OR.PA Yearly EPS VS EstimatesOR.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15 20

2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 30.64, the valuation of OR can be described as expensive.
Based on the Price/Earnings ratio, OR is valued a bit 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 27.40.
Based on the Price/Forward Earnings ratio of 27.67, the valuation of OR can be described as expensive.
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.
The average S&P500 Price/Forward Earnings ratio is at 22.94. OR is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 30.64
Fwd PE 27.67
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 92.86% of the companies are valued cheaper.
OR's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 28.15
EV/EBITDA 19.71
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 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)8.21
PEG (5Y)2.96
EPS Next 2Y5.59%
EPS Next 3Y6.33%

3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.86%, OR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.94, OR has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, OR is paying slightly less dividend.
Industry RankSector 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
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 2Y5.59%
EPS Next 3Y6.33%
OR.PA Yearly Income VS Free CF VS DividendOR.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 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

L'OREAL

EPA:OR (10/17/2025, 7:00:00 PM)

390.65

+4.3 (+1.11%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)07-29 2025-07-29/amc
Earnings (Next)10-21 2025-10-21
Inst Owners15.96%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap208.29B
Analysts68.57
Price Target396.36 (1.46%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)0.09%
PT rev (3m)1.78%
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 RankSector Rank
PE 30.64
Fwd PE 27.67
P/S 4.75
P/FCF 28.15
P/OCF 23.08
P/B 6.68
P/tB 15.24
EV/EBITDA 19.71
EPS(TTM)12.75
EY3.26%
EPS(NY)14.12
Fwd EY3.61%
FCF(TTM)13.88
FCFY3.55%
OCF(TTM)16.93
OCFY4.33%
SpS82.22
BVpS58.47
TBVpS25.63
PEG (NY)8.21
PEG (5Y)2.96
Profitability
Industry RankSector 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%
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-Score5
Asset Turnover0.8
Health
Industry RankSector 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 7.26
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 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%