L'OREAL (OR.PA) Stock Fundamental Analysis
EPA:OR - Euronext Paris - Matif - FR0000120321 - Common Stock - Currency: EUR
Overall OR gets a fundamental rating of 6 out of 10. We evaluated OR against 12 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. 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.
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
The Return On Assets of OR (11.37%) is better than 83.33% of its industry peers.
The Return On Equity of OR (19.34%) is better than 75.00% of its industry peers.
The Return On Invested Capital of OR (15.97%) is better than 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OR is above the industry average of 12.78%.
| 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 has a better Profit Margin (14.74%) than 91.67% of its industry peers.
In the last couple of years the Profit Margin of OR has grown nicely.
OR's Operating Margin of 19.98% is amongst the best of the industry. OR outperforms 83.33% 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's Gross Margin of 74.18% is amongst the best of the industry. OR outperforms 91.67% of its industry peers.
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
OR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for OR remains at a similar level compared to 1 year ago.
OR has less shares outstanding than it did 5 years ago.
OR has a better debt/assets ratio than last year.
2.2 Solvency
OR has an Altman-Z score of 6.94. This indicates that OR is financially healthy and has little risk of bankruptcy at the moment.
OR has a better Altman-Z score (6.94) than 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.
With an excellent Debt to FCF ratio value of 1.28, OR belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that OR is not too dependend on debt financing.
OR has a Debt to Equity ratio of 0.20. This is in the better half 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 | 6.94 |
ROIC/WACC2.06
WACC7.75%
2.3 Liquidity
A Current Ratio of 1.13 indicates that OR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.13, OR is in line with its industry, outperforming 50.00% of the companies in the same industry.
OR has a Quick Ratio of 1.13. This is a bad value and indicates that OR is not financially healthy enough and could expect problems in meeting 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.
Looking at the last year, OR shows a small growth in Revenue. The Revenue has grown by 5.60% in the last year.
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.
The Revenue is expected to grow by 5.49% on average over the next years.
EPS Next Y5.99%
EPS Next 2Y7.24%
EPS Next 3Y7.29%
EPS Next 5Y8.01%
Revenue Next Year2.76%
Revenue Next 2Y3.84%
Revenue Next 3Y4.32%
Revenue Next 5Y5.49%
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.
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 28.92, OR can be considered very expensive at the moment.
Based on the Price/Earnings ratio, OR is valued a bit more expensive than 66.67% of the companies in the same industry.
OR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.20.
Based on the Price/Forward Earnings ratio of 27.28, 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 75.00% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.13. OR is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.92 | ||
| Fwd PE | 27.28 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as OR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.44 | ||
| EV/EBITDA | 18.99 |
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)4.83
PEG (5Y)2.8
EPS Next 2Y7.24%
EPS Next 3Y7.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.82%, OR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.52, 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 | 1.82% |
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 Years3
Div Non Decr Years3
5.3 Sustainability
OR pays out 56.41% of its income as dividend. 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 (5/29/2025, 7:00:00 PM)
366.1
-0.35 (-0.1%)
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 Cap195.61B
Analysts71.67
Price Target390.43 (6.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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)-0.86%
PT rev (3m)-1.39%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.13%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.92 | ||
| Fwd PE | 27.28 | ||
| P/S | 4.5 | ||
| P/FCF | 29.44 | ||
| P/OCF | 23.61 | ||
| P/B | 5.9 | ||
| P/tB | 12.91 | ||
| EV/EBITDA | 18.99 |
EPS(TTM)12.66
EY3.46%
EPS(NY)13.42
Fwd EY3.67%
FCF(TTM)12.44
FCFY3.4%
OCF(TTM)15.51
OCFY4.24%
SpS81.39
BVpS62.01
TBVpS28.37
PEG (NY)4.83
PEG (5Y)2.8
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 | 6.94 |
F-Score7
WACC7.75%
ROIC/WACC2.06
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 Year2.76%
Revenue Next 2Y3.84%
Revenue Next 3Y4.32%
Revenue Next 5Y5.49%
EBIT growth 1Y8.09%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year23.71%
EBIT Next 3Y11.82%
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%