ESTEE LAUDER COMPANIES-CL A (1ELX.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1ELX • US5184391044
97 EUR
+4.8 (+5.21%)
Last: Jan 9, 2026, 07:00 PM
Taking everything into account, 1ELX scores 3 out of 10 in our fundamental rating. 1ELX was compared to 14 industry peers in the Personal Care Products industry. 1ELX has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
- Of the past 5 years 1ELX 4 years were 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 (-4.81%) than 85.71% of its industry peers.
- 1ELX's Return On Equity of -23.91% is on the low side compared to the rest of the industry. 1ELX is outperformed by 85.71% of its industry peers.
- 1ELX's Return On Invested Capital of 4.69% is on the low side compared to the rest of the industry. 1ELX is outperformed by 71.43% of its industry peers.
- 1ELX had an Average Return On Invested Capital over the past 3 years of 4.98%. This is significantly below the industry average of 11.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.81% | ||
| ROE | -23.91% | ||
| ROIC | 4.69% |
ROA(3y)0.13%
ROA(5y)4.98%
ROE(3y)-1.32%
ROE(5y)17.24%
ROIC(3y)4.98%
ROIC(5y)7.4%
1.3 Margins
- 1ELX has a Operating Margin (8.72%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of 1ELX has declined.
- Looking at the Gross Margin, with a value of 74.18%, 1ELX belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
- 1ELX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.72% | ||
| PM (TTM) | N/A | ||
| GM | 74.18% |
OM growth 3Y-26.29%
OM growth 5Y-11.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.76%
GM growth 5Y-0.3%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1ELX is destroying value.
- The number of shares outstanding for 1ELX has been increased compared to 1 year ago.
- Compared to 5 years ago, 1ELX has less shares outstanding
- 1ELX has a worse debt/assets ratio than last year.
2.2 Solvency
- 1ELX has an Altman-Z score of 3.48. This indicates that 1ELX is financially healthy and has little risk of bankruptcy at the moment.
- With a Altman-Z score value of 3.48, 1ELX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- The Debt to FCF ratio of 1ELX is 7.01, which is on the high side as it means it would take 1ELX, 7.01 years of fcf income to pay off all of its debts.
- 1ELX's Debt to FCF ratio of 7.01 is in line compared to the rest of the industry. 1ELX outperforms 42.86% of its industry peers.
- 1ELX has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.88, 1ELX is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | 3.48 |
ROIC/WACC0.61
WACC7.74%
2.3 Liquidity
- A Current Ratio of 1.32 indicates that 1ELX should not have too much problems paying its short term obligations.
- 1ELX's Current ratio of 1.32 is fine compared to the rest of the industry. 1ELX outperforms 64.29% of its industry peers.
- 1ELX has a Quick Ratio of 1.32. This is a bad value and indicates that 1ELX is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1ELX has a better Quick ratio (0.92) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
- 1ELX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.12%.
- The earnings per share for 1ELX have been decreasing by -18.22% on average. This is quite bad
- The Revenue has decreased by -6.53% in the past year.
- The Revenue has been growing slightly by 0.04% on average over the past years.
EPS 1Y (TTM)-36.12%
EPS 3Y-40.77%
EPS 5Y-18.22%
EPS Q2Q%128.57%
Revenue 1Y (TTM)-6.53%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%3.57%
3.2 Future
- 1ELX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.74% yearly.
- 1ELX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y47.67%
EPS Next 2Y42.89%
EPS Next 3Y36.7%
EPS Next 5Y28.74%
Revenue Next Year4.2%
Revenue Next 2Y4.1%
Revenue Next 3Y4.27%
Revenue Next 5Y4.05%
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 accelerating.
- 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 66.90, 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.
- 1ELX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.41.
- The Price/Forward Earnings ratio is 36.80, which means the current valuation is very expensive for 1ELX.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1ELX indicates a slightly more expensive valuation: 1ELX is more expensive than 78.57% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.64, 1ELX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.9 | ||
| Fwd PE | 36.8 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1ELX is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
- 64.29% of the companies in the same industry are cheaper than 1ELX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.86 | ||
| EV/EBITDA | 21.97 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- 1ELX's earnings are expected to grow with 36.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.4
PEG (5Y)N/A
EPS Next 2Y42.89%
EPS Next 3Y36.7%
5. Dividend
5.1 Amount
- 1ELX has a Yearly Dividend Yield of 1.21%.
- 1ELX's Dividend Yield is slightly below the industry average, which is at 2.05.
- 1ELX's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
- The dividend of 1ELX has a limited annual growth rate of 4.31%.
Dividend Growth(5Y)4.31%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1ELX has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- 1ELX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-54.3%
EPS Next 2Y42.89%
EPS Next 3Y36.7%
ESTEE LAUDER COMPANIES-CL A / 1ELX.MI FAQ
What is the ChartMill fundamental rating of ESTEE LAUDER COMPANIES-CL A (1ELX.MI) stock?
ChartMill assigns a fundamental rating of 3 / 10 to 1ELX.MI.
What is the valuation status for 1ELX stock?
ChartMill assigns a valuation rating of 1 / 10 to ESTEE LAUDER COMPANIES-CL A (1ELX.MI). This can be considered as Overvalued.
Can you provide the profitability details for ESTEE LAUDER COMPANIES-CL A?
ESTEE LAUDER COMPANIES-CL A (1ELX.MI) has a profitability rating of 3 / 10.
What is the valuation of ESTEE LAUDER COMPANIES-CL A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ESTEE LAUDER COMPANIES-CL A (1ELX.MI) is 66.9 and the Price/Book (PB) ratio is 10.44.
How sustainable is the dividend of ESTEE LAUDER COMPANIES-CL A (1ELX.MI) stock?
The dividend rating of ESTEE LAUDER COMPANIES-CL A (1ELX.MI) is 2 / 10 and the dividend payout ratio is -54.3%.