L'OREAL (OR.PA)
FR0000120321 - Common Stock
Taking everything into account, OR scores 6 out of 10 in our fundamental rating. OR was compared to 14 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 quite expensive at the moment. It does show a decent growth rate. These ratings could make OR a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year OR was profitable.
OR had a positive operating cash flow in the past year.
OR had positive earnings in each of the past 5 years.
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 11.93%, OR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
With a decent Return On Equity value of 21.27%, OR is doing good in the industry, outperforming 78.57% of the companies in the same industry.
The Return On Invested Capital of OR (16.57%) is better than 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OR is significantly above the industry average of 10.95%.
The last Return On Invested Capital (16.57%) for OR is above the 3 year average (16.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 21.27% | ||
| ROIC | 16.57% |
ROA(3y)11.6%
ROA(5y)10.31%
ROE(3y)20.59%
ROE(5y)17.36%
ROIC(3y)16.33%
ROIC(5y)14.69%
1.3 Margins
OR has a better Profit Margin (15.02%) than 92.86% of its industry peers.
In the last couple of years the Profit Margin of OR has remained more or less at the same level.
Looking at the Operating Margin, with a value of 19.52%, OR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Operating Margin of OR has remained more or less at the same level.
OR's Gross Margin of 73.86% is amongst the best of the industry. OR outperforms 92.86% of its industry peers.
OR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.52% | ||
| PM (TTM) | 15.02% | ||
| GM | 73.86% |
OM growth 3Y0.13%
OM growth 5Y0.44%
PM growth 3Y5.66%
PM growth 5Y0.76%
GM growth 3Y0.35%
GM growth 5Y0.29%
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.
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.
Compared to 1 year ago, OR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.84 indicates that OR is not in any danger for bankruptcy at the moment.
OR's Altman-Z score of 7.84 is amongst the best of the industry. OR outperforms 85.71% of its industry peers.
OR has a debt to FCF ratio of 1.42. This is a very positive value and a sign of high solvency as it would only need 1.42 years to pay back of all of its debts.
The Debt to FCF ratio of OR (1.42) is better than 92.86% of its industry peers.
OR has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
OR's Debt to Equity ratio of 0.21 is amongst the best of the industry. OR outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 7.84 |
ROIC/WACC2.25
WACC7.36%
2.3 Liquidity
OR has a Current Ratio of 1.10. 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 1.10, OR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 0.79 indicates that OR may have some problems paying its short term obligations.
With a Quick ratio value of 0.79, OR perfoms like the industry average, outperforming 57.14% 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 | 1.1 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
OR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.28%.
OR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.28% yearly.
Looking at the last year, OR shows a small growth in Revenue. The Revenue has grown by 7.64% in the last year.
Measured over the past years, OR shows a quite strong growth in Revenue. The Revenue has been growing by 8.86% on average per year.
EPS 1Y (TTM)7.28%
EPS 3Y18.28%
EPS 5Y11.28%
EPS growth Q2Q2.69%
Revenue 1Y (TTM)7.64%
Revenue growth 3Y13.73%
Revenue growth 5Y8.86%
Revenue growth Q2Q3.59%
3.2 Future
The Earnings Per Share is expected to grow by 11.20% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.29% on average over the next years.
EPS Next Y10.3%
EPS Next 2Y9.3%
EPS Next 3Y9.14%
EPS Next 5Y11.2%
Revenue Next Year5.92%
Revenue Next 2Y6.38%
Revenue Next 3Y6.41%
Revenue Next 5Y7.29%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 36.83, the valuation of OR can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of OR is on the same level as its industry peers.
When comparing the Price/Earnings ratio of OR to the average of the S&P500 Index (24.76), we can say OR is valued slightly more expensively.
The Price/Forward Earnings ratio is 33.39, which means the current valuation is very expensive for OR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OR indicates a slightly more expensive valuation: OR is more expensive than 64.29% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of OR to the average of the S&P500 Index (21.26), we can say OR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.83 | ||
| Fwd PE | 33.39 |
4.2 Price Multiples
OR's Enterprise Value to EBITDA 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's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.9 | ||
| EV/EBITDA | 23.68 |
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)3.58
PEG (5Y)3.27
EPS Next 2Y9.3%
EPS Next 3Y9.14%
5. Dividend
5.1 Amount
OR has a Yearly Dividend Yield of 1.58%.
Compared to an average industry Dividend Yield of 2.11, OR has a dividend in line with its industry peers.
OR's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
On average, the dividend of OR grows each year by 11.70%, which is quite nice.
Dividend Growth(5Y)11.7%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
OR pays out 55.39% of its income as dividend. This is a bit on the high side, but may be sustainable.
OR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP55.39%
EPS Next 2Y9.3%
EPS Next 3Y9.14%
L'OREAL
EPA:OR (4/19/2024, 7:00:00 PM)
444.95
+21.35 (+5.04%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap237.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.83 | ||
| Fwd PE | 33.39 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.58
PEG (5Y)3.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 21.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.52% | ||
| PM (TTM) | 15.02% | ||
| GM | 73.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)7.28%
EPS 3Y18.28%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.64%
Revenue growth 3Y13.73%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y