ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
NYSE:EL - New York Stock Exchange, Inc. - US5184391044 - Common Stock - Currency: USD
EL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 37 industry peers in the Personal Care Products industry. EL has a medium profitability rating, but doesn't score so well on its financial health evaluation. EL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
EL had positive earnings in the past year.
EL had a positive operating cash flow in the past year.
In the past 5 years EL has always been profitable.
Each year in the past 5 years EL had a positive operating cash flow.
1.2 Ratios
EL's Return On Assets of 0.95% is in line compared to the rest of the industry. EL outperforms 47.22% of its industry peers.
EL has a Return On Equity of 3.99%. This is in the better half of the industry: EL outperforms 61.11% of its industry peers.
EL has a Return On Invested Capital of 6.33%. This is in the better half of the industry: EL outperforms 61.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EL is below the industry average of 13.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 3.99% | ||
| ROIC | 6.33% |
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
The Profit Margin of EL (1.31%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of EL has declined.
EL's Operating Margin of 10.36% is fine compared to the rest of the industry. EL outperforms 69.44% of its industry peers.
In the last couple of years the Operating Margin of EL has declined.
EL has a Gross Margin of 72.29%. This is in the better half of the industry: EL outperforms 77.78% of its industry peers.
In the last couple of years the Gross Margin of EL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.36% | ||
| PM (TTM) | 1.31% | ||
| GM | 72.29% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EL is still creating some value.
Compared to 1 year ago, EL has more shares outstanding
Compared to 5 years ago, EL has less shares outstanding
Compared to 1 year ago, EL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.03 indicates that EL is not in any danger for bankruptcy at the moment.
EL has a Altman-Z score (3.03) which is in line with its industry peers.
EL has a debt to FCF ratio of 5.86. This is a neutral value as EL would need 5.86 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.86, EL perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
EL has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.44, EL is not doing good in the industry: 86.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 5.86 | ||
| Altman-Z | 3.03 |
ROIC/WACC0.81
WACC7.84%
2.3 Liquidity
A Current Ratio of 1.32 indicates that EL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.32, EL is not doing good in the industry: 63.89% of the companies in the same industry are doing better.
A Quick Ratio of 0.90 indicates that EL may have some problems paying its short term obligations.
The Quick ratio of EL (0.90) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.09% over the past year.
Measured over the past years, EL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.41% on average per year.
Looking at the last year, EL shows a decrease in Revenue. The Revenue has decreased by -0.44% in the last year.
Measured over the past years, EL shows a small growth in Revenue. The Revenue has been growing by 0.98% on average per year.
EPS 1Y (TTM)20.09%
EPS 3Y-26.13%
EPS 5Y-13.41%
EPS Q2Q%27.27%
Revenue 1Y (TTM)-0.44%
Revenue growth 3Y-1.26%
Revenue growth 5Y0.98%
Sales Q2Q%-4.46%
3.2 Future
The Earnings Per Share is expected to grow by 15.26% on average over the next years. This is quite good.
Based on estimates for the next years, EL will show a small growth in Revenue. The Revenue will grow by 3.84% on average per year.
EPS Next Y-37.74%
EPS Next 2Y3.28%
EPS Next 3Y12.95%
EPS Next 5Y15.26%
Revenue Next Year-5.01%
Revenue Next 2Y-0.71%
Revenue Next 3Y1.21%
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
A Price/Earnings ratio of 31.55 indicates a quite expensive valuation of EL.
EL's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of EL to the average of the S&P500 Index (28.42), we can say EL is valued inline with the index average.
EL is valuated quite expensively with a Price/Forward Earnings ratio of 29.91.
EL's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.39, EL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.55 | ||
| Fwd PE | 29.91 |
4.2 Price Multiples
EL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EL is cheaper than 63.89% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EL is valued a bit cheaper than 63.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.34 | ||
| EV/EBITDA | 14.59 |
4.3 Compensation for Growth
EL's earnings are expected to grow with 12.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.28%
EPS Next 3Y12.95%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.75%.
EL's Dividend Yield is a higher than the industry average which is at 4.93.
Compared to the average S&P500 Dividend Yield of 2.27, EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
On average, the dividend of EL grows each year by 9.59%, which is quite nice.
EL has been paying a dividend for at least 10 years, so it has a reliable track record.
EL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.59%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
468.47% of the earnings are spent on dividend by EL. This is not a sustainable payout ratio.
The dividend of EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP468.47%
EPS Next 2Y3.28%
EPS Next 3Y12.95%
ESTEE LAUDER COMPANIES-CL A
NYSE:EL (1/28/2025, 8:04:00 PM)
After market: 82.97 0 (0%)82.97
-0.59 (-0.71%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners93.04%
Inst Owner Change-0.5%
Ins Owners0.12%
Ins Owner Change8.63%
Market Cap29.78B
Analysts66.67
Price Target81.45 (-1.83%)
Short Float %3.7%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend2.64
Dividend Growth(5Y)9.59%
DP468.47%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)88.75%
Min EPS beat(2)43.76%
Max EPS beat(2)133.75%
EPS beat(4)4
Avg EPS beat(4)81.74%
Min EPS beat(4)43.76%
Max EPS beat(4)133.75%
EPS beat(8)7
Avg EPS beat(8)97.36%
EPS beat(12)11
Avg EPS beat(12)68.89%
EPS beat(16)15
Avg EPS beat(16)59.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.33%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)-1.43%
Revenue beat(4)0
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)-0.95%
Revenue beat(8)1
Avg Revenue beat(8)-1.68%
Revenue beat(12)2
Avg Revenue beat(12)-1.87%
Revenue beat(16)5
Avg Revenue beat(16)-1.26%
PT rev (1m)1.86%
PT rev (3m)-25.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-79.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-46.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.26%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-5.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.55 | ||
| Fwd PE | 29.91 | ||
| P/S | 1.93 | ||
| P/FCF | 22.34 | ||
| P/OCF | 14.2 | ||
| P/B | 5.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.59 |
EPS(TTM)2.63
EY3.17%
EPS(NY)2.77
Fwd EY3.34%
FCF(TTM)3.71
FCFY4.48%
OCF(TTM)5.84
OCFY7.04%
SpS43.04
BVpS14.16
TBVpS-6.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 3.99% | ||
| ROCE | 10.11% | ||
| ROIC | 6.33% | ||
| ROICexc | 7.44% | ||
| ROICexgc | 16.41% | ||
| OM | 10.36% | ||
| PM (TTM) | 1.31% | ||
| GM | 72.29% | ||
| FCFM | 8.63% |
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 Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 5.86 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 92.17% | ||
| Cap/Sales | 4.95% | ||
| Interest Coverage | 4.4 | ||
| Cash Conversion | 86.3% | ||
| Profit Quality | 656.65% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 3.03 |
F-Score6
WACC7.84%
ROIC/WACC0.81
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)20.09%
EPS 3Y-26.13%
EPS 5Y-13.41%
EPS Q2Q%27.27%
EPS Next Y-37.74%
EPS Next 2Y3.28%
EPS Next 3Y12.95%
EPS Next 5Y15.26%
Revenue 1Y (TTM)-0.44%
Revenue growth 3Y-1.26%
Revenue growth 5Y0.98%
Sales Q2Q%-4.46%
Revenue Next Year-5.01%
Revenue Next 2Y-0.71%
Revenue Next 3Y1.21%
Revenue Next 5Y3.84%
EBIT growth 1Y29.85%
EBIT growth 3Y-19.77%
EBIT growth 5Y-9.83%
EBIT Next Year32.63%
EBIT Next 3Y25.5%
EBIT Next 5Y19.51%
FCF growth 1Y-10.18%
FCF growth 3Y-21.63%
FCF growth 5Y-4.06%
OCF growth 1Y-15.1%
OCF growth 3Y-13.38%
OCF growth 5Y-1.28%