ESTEE LAUDER COMPANIES-CL A (1ELX.MI) Stock Fundamental Analysis
BIT:1ELX - Euronext Milan - US5184391044 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to 1ELX. 1ELX was compared to 14 industry peers in the Personal Care Products industry. Both the profitability and financial health of 1ELX have multiple concerns. 1ELX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1ELX was profitable.
1ELX had a positive operating cash flow in the past year.
Each year in the past 5 years 1ELX has been profitable.
Each year in the past 5 years 1ELX had a positive operating cash flow.
1.2 Ratios
1ELX has a worse Return On Assets (-3.54%) than 92.86% of its industry peers.
1ELX has a worse Return On Equity (-16.79%) than 92.86% of its industry peers.
1ELX has a worse Return On Invested Capital (6.30%) than 64.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1ELX is below the industry average of 11.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.54% | ||
| ROE | -16.79% | ||
| ROIC | 6.3% |
ROA(3y)5.84%
ROA(5y)6.89%
ROE(3y)22.7%
ROE(5y)26.57%
ROIC(3y)9.14%
ROIC(5y)9.86%
1.3 Margins
In the last couple of years the Profit Margin of 1ELX has declined.
Looking at the Operating Margin, with a value of 9.76%, 1ELX is doing worse than 64.29% of the companies in the same industry.
1ELX's Operating Margin has declined in the last couple of years.
1ELX's Gross Margin of 73.09% is fine compared to the rest of the industry. 1ELX outperforms 78.57% of its industry peers.
1ELX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.76% | ||
| PM (TTM) | N/A | ||
| GM | 73.09% |
OM growth 3Y-18.75%
OM growth 5Y-10.71%
PM growth 3Y-47.93%
PM growth 5Y-26.95%
GM growth 3Y-2.09%
GM growth 5Y-1.48%
2. Health
2.1 Basic Checks
1ELX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 1ELX has been increased compared to 1 year ago.
1ELX has less shares outstanding than it did 5 years ago.
1ELX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.95 indicates that 1ELX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.95, 1ELX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
1ELX has a debt to FCF ratio of 6.36. This is a slightly negative value and a sign of low solvency as 1ELX would need 6.36 years to pay back of all of its debts.
1ELX has a worse Debt to FCF ratio (6.36) than 78.57% of its industry peers.
A Debt/Equity ratio of 1.75 is on the high side and indicates that 1ELX has dependencies on debt financing.
1ELX has a worse Debt to Equity ratio (1.75) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 6.36 | ||
| Altman-Z | 2.95 |
ROIC/WACC0.83
WACC7.55%
2.3 Liquidity
A Current Ratio of 1.37 indicates that 1ELX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.37, 1ELX is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
1ELX has a Quick Ratio of 1.37. This is a bad value and indicates that 1ELX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.97, 1ELX is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
1ELX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.90%, which is quite impressive.
The earnings per share for 1ELX have been decreasing by -13.41% on average. This is quite bad
The Revenue has decreased by -0.02% in the past year.
1ELX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.98% yearly.
EPS 1Y (TTM)54.9%
EPS 3Y-26.13%
EPS 5Y-13.41%
EPS Q2Q%-29.55%
Revenue 1Y (TTM)-0.02%
Revenue growth 3Y-1.26%
Revenue growth 5Y0.98%
Sales Q2Q%-6.43%
3.2 Future
1ELX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.26% yearly.
The Revenue is expected to grow by 3.84% on average over the next years.
EPS Next Y-44.82%
EPS Next 2Y-3.32%
EPS Next 3Y8.07%
EPS Next 5Y15.26%
Revenue Next Year-5.44%
Revenue Next 2Y-1.08%
Revenue Next 3Y0.92%
Revenue Next 5Y3.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.12, 1ELX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of 1ELX indicates a slightly more expensive valuation: 1ELX is more expensive than 71.43% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.53, 1ELX is valued at the same level.
1ELX is valuated quite expensively with a Price/Forward Earnings ratio of 28.33.
Based on the Price/Forward Earnings ratio, 1ELX is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
When comparing the Price/Forward Earnings ratio of 1ELX to the average of the S&P500 Index (22.65), we can say 1ELX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.12 | ||
| Fwd PE | 28.33 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1ELX.
1ELX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.63 | ||
| EV/EBITDA | 12.74 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.32%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
1ELX has a Yearly Dividend Yield of 2.01%.
Compared to an average industry Dividend Yield of 2.37, 1ELX has a dividend in line with its industry peers.
1ELX's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
The dividend of 1ELX is nicely growing with an annual growth rate of 9.59%!
Dividend Growth(5Y)9.59%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of 1ELX are negative and hence is the payout ratio. 1ELX will probably not be able to sustain this dividend level.
The dividend of 1ELX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-119.86%
EPS Next 2Y-3.32%
EPS Next 3Y8.07%
BIT:1ELX (2/17/2025, 7:00:00 PM)
65.8
+3 (+4.78%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners93.04%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap23.67B
Analysts66.67
Price Target78.41 (19.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend2.64
Dividend Growth(5Y)9.59%
DP-119.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)65.81%
Min EPS beat(2)43.76%
Max EPS beat(2)87.87%
EPS beat(4)4
Avg EPS beat(4)89.87%
Min EPS beat(4)43.76%
Max EPS beat(4)133.75%
EPS beat(8)7
Avg EPS beat(8)106.42%
EPS beat(12)11
Avg EPS beat(12)75.32%
EPS beat(16)15
Avg EPS beat(16)61.99%
Revenue beat(2)0
Avg Revenue beat(2)-2.62%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)-2.01%
Revenue beat(4)0
Avg Revenue beat(4)-2.22%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)-1.43%
Revenue beat(8)1
Avg Revenue beat(8)-1.67%
Revenue beat(12)2
Avg Revenue beat(12)-1.86%
Revenue beat(16)4
Avg Revenue beat(16)-1.7%
PT rev (1m)7.68%
PT rev (3m)-21.06%
EPS NQ rev (1m)-51.17%
EPS NQ rev (3m)-75.77%
EPS NY rev (1m)-11.37%
EPS NY rev (3m)-11.92%
Revenue NQ rev (1m)-5.76%
Revenue NQ rev (3m)-15.64%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.12 | ||
| Fwd PE | 28.33 | ||
| P/S | 1.63 | ||
| P/FCF | 21.63 | ||
| P/OCF | 13.69 | ||
| P/B | 5.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.74 |
EPS(TTM)2.26
EY3.43%
EPS(NY)2.32
Fwd EY3.53%
FCF(TTM)3.04
FCFY4.62%
OCF(TTM)4.81
OCFY7.31%
SpS40.31
BVpS11.07
TBVpS-5.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.54% | ||
| ROE | -16.79% | ||
| ROCE | 10.06% | ||
| ROIC | 6.3% | ||
| ROICexc | 7.64% | ||
| ROICexgc | 15.69% | ||
| OM | 9.76% | ||
| PM (TTM) | N/A | ||
| GM | 73.09% | ||
| FCFM | 7.54% |
ROA(3y)5.84%
ROA(5y)6.89%
ROE(3y)22.7%
ROE(5y)26.57%
ROIC(3y)9.14%
ROIC(5y)9.86%
ROICexc(3y)12.1%
ROICexc(5y)13.99%
ROICexgc(3y)27.91%
ROICexgc(5y)31.23%
ROCE(3y)14.59%
ROCE(5y)15.74%
ROICexcg growth 3Y-21.07%
ROICexcg growth 5Y-22.32%
ROICexc growth 3Y-21.66%
ROICexc growth 5Y-23.4%
OM growth 3Y-18.75%
OM growth 5Y-10.71%
PM growth 3Y-47.93%
PM growth 5Y-26.95%
GM growth 3Y-2.09%
GM growth 5Y-1.48%
F-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 6.36 | ||
| Debt/EBITDA | 3.15 | ||
| Cap/Depr | 79.93% | ||
| Cap/Sales | 4.38% | ||
| Interest Coverage | 4.23 | ||
| Cash Conversion | 78.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 2.95 |
F-Score6
WACC7.55%
ROIC/WACC0.83
Cap/Depr(3y)232.17%
Cap/Depr(5y)179.27%
Cap/Sales(3y)10.8%
Cap/Sales(5y)8.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)54.9%
EPS 3Y-26.13%
EPS 5Y-13.41%
EPS Q2Q%-29.55%
EPS Next Y-44.82%
EPS Next 2Y-3.32%
EPS Next 3Y8.07%
EPS Next 5Y15.26%
Revenue 1Y (TTM)-0.02%
Revenue growth 3Y-1.26%
Revenue growth 5Y0.98%
Sales Q2Q%-6.43%
Revenue Next Year-5.44%
Revenue Next 2Y-1.08%
Revenue Next 3Y0.92%
Revenue Next 5Y3.84%
EBIT growth 1Y41.99%
EBIT growth 3Y-19.77%
EBIT growth 5Y-9.83%
EBIT Next Year31.76%
EBIT Next 3Y23.39%
EBIT Next 5Y19.51%
FCF growth 1Y21.16%
FCF growth 3Y-21.63%
FCF growth 5Y-4.06%
OCF growth 1Y-6.94%
OCF growth 3Y-13.38%
OCF growth 5Y-1.28%