ESTEE LAUDER COMPANIES-CL A (EL) Fundamental Analysis & Valuation

NYSE:EL • US5184391044

Current stock price

87.88 USD
+3.59 (+4.26%)
At close:
87.2 USD
-0.68 (-0.77%)
Pre-Market:

This EL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. EL Profitability Analysis

1.1 Basic Checks

  • EL had positive earnings in the past year.
  • EL had a positive operating cash flow in the past year.
  • Of the past 5 years EL 4 years were profitable.
  • In the past 5 years EL always reported a positive cash flow from operatings.
EL Yearly Net Income VS EBIT VS OCF VS FCFEL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B 3B

1.2 Ratios

  • EL's Return On Assets of -0.91% is in line compared to the rest of the industry. EL outperforms 54.05% of its industry peers.
  • EL has a Return On Equity (-4.42%) which is in line with its industry peers.
  • EL's Return On Invested Capital of 7.73% is fine compared to the rest of the industry. EL outperforms 67.57% of its industry peers.
  • EL had an Average Return On Invested Capital over the past 3 years of 7.43%. This is below the industry average of 11.32%.
  • The 3 year average ROIC (7.43%) for EL is below the current ROIC(7.73%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -0.91%
ROE -4.42%
ROIC 7.73%
ROA(3y)0.13%
ROA(5y)4.98%
ROE(3y)-1.32%
ROE(5y)17.24%
ROIC(3y)7.43%
ROIC(5y)11.04%
EL Yearly ROA, ROE, ROICEL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

1.3 Margins

  • The Operating Margin of EL (9.59%) is better than 72.97% of its industry peers.
  • EL's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 74.33%, EL belongs to the top of the industry, outperforming 81.08% of the companies in the same industry.
  • In the last couple of years the Gross Margin of EL has remained more or less at the same level.
Industry RankSector Rank
OM 9.59%
PM (TTM) N/A
GM 74.33%
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%
EL Yearly Profit, Operating, Gross MarginsEL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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3

2. EL Health Analysis

2.1 Basic Checks

  • EL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • EL has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for EL has been reduced compared to 5 years ago.
  • The debt/assets ratio for EL is higher compared to a year ago.
EL Yearly Shares OutstandingEL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
EL Yearly Total Debt VS Total AssetsEL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • An Altman-Z score of 3.15 indicates that EL is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.15, EL is in the better half of the industry, outperforming 67.57% of the companies in the same industry.
  • The Debt to FCF ratio of EL is 6.44, which is on the high side as it means it would take EL, 6.44 years of fcf income to pay off all of its debts.
  • EL has a Debt to FCF ratio of 6.44. This is comparable to the rest of the industry: EL outperforms 59.46% of its industry peers.
  • A Debt/Equity ratio of 1.82 is on the high side and indicates that EL has dependencies on debt financing.
  • EL has a Debt to Equity ratio of 1.82. This is in the lower half of the industry: EL underperforms 72.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 6.44
Altman-Z 3.15
ROIC/WACC0.98
WACC7.92%
EL Yearly LT Debt VS Equity VS FCFEL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

2.3 Liquidity

  • EL has a Current Ratio of 1.36. This is a normal value and indicates that EL is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.36, EL is doing worse than 64.86% of the companies in the same industry.
  • EL has a Quick Ratio of 1.36. This is a bad value and indicates that EL is not financially healthy enough and could expect problems in meeting its short term obligations.
  • EL has a Quick ratio of 1.00. This is comparable to the rest of the industry: EL outperforms 40.54% of its industry peers.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1
EL Yearly Current Assets VS Current LiabilitesEL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. EL Growth Analysis

3.1 Past

  • The earnings per share for EL have decreased strongly by -17.72% in the last year.
  • EL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.22% yearly.
  • Looking at the last year, EL shows a decrease in Revenue. The Revenue has decreased by -3.35% in the last year.
  • EL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.04% yearly.
EPS 1Y (TTM)-17.72%
EPS 3Y-40.77%
EPS 5Y-18.22%
EPS Q2Q%43.55%
Revenue 1Y (TTM)-3.35%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%5.62%

3.2 Future

  • EL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.20% yearly.
  • EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.72% yearly.
EPS Next Y52.86%
EPS Next 2Y45.01%
EPS Next 3Y37.26%
EPS Next 5Y27.2%
Revenue Next Year4.56%
Revenue Next 2Y4.39%
Revenue Next 3Y4.48%
Revenue Next 5Y4.72%

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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
EL Yearly Revenue VS EstimatesEL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
EL Yearly EPS VS EstimatesEL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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3

4. EL Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 45.07, the valuation of EL can be described as expensive.
  • EL's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of EL to the average of the S&P500 Index (25.71), we can say EL is valued expensively.
  • A Price/Forward Earnings ratio of 27.86 indicates a quite expensive valuation of EL.
  • The rest of the industry has a similar Price/Forward Earnings ratio as EL.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, EL is valued at the same level.
Industry RankSector Rank
PE 45.07
Fwd PE 27.86
EL Price Earnings VS Forward Price EarningsEL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EL is on the same level as its industry peers.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as EL.
Industry RankSector Rank
P/FCF 27.96
EV/EBITDA 16.25
EL Per share dataEL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

  • EL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as EL's earnings are expected to grow with 37.26% in the coming years.
PEG (NY)0.85
PEG (5Y)N/A
EPS Next 2Y45.01%
EPS Next 3Y37.26%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. EL Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.66%, EL has a reasonable but not impressive dividend return.
  • EL's Dividend Yield is a higher than the industry average which is at 1.69.
  • EL's Dividend Yield is comparable with the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 1.66%

5.2 History

  • The dividend of EL has a limited annual growth rate of 4.31%.
  • EL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.31%
Div Incr Years0
Div Non Decr Years0
EL Yearly Dividends per shareEL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • EL has negative earnings and hence a negative payout ratio. The dividend may be in danger.
  • The dividend of EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-284.83%
EPS Next 2Y45.01%
EPS Next 3Y37.26%
EL Yearly Income VS Free CF VS DividendEL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B

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EL Fundamentals: All Metrics, Ratios and Statistics

ESTEE LAUDER COMPANIES-CL A

NYSE:EL (3/13/2026, 8:22:46 PM)

Premarket: 87.2 -0.68 (-0.77%)

87.88

+3.59 (+4.26%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)02-05
Earnings (Next)05-01
Inst Owners95.38%
Inst Owner Change7.22%
Ins Owners0.12%
Ins Owner Change-15.98%
Market Cap31.79B
Revenue(TTM)14.67B
Net Income(TTM)-178.00M
Analysts73.71
Price Target109.5 (24.6%)
Short Float %3.35%
Short Ratio2.09
Dividend
Industry RankSector Rank
Dividend Yield 1.66%
Yearly Dividend1.72
Dividend Growth(5Y)4.31%
DP-284.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-27
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)39.67%
Min EPS beat(2)3.39%
Max EPS beat(2)75.96%
EPS beat(4)4
Avg EPS beat(4)44.7%
Min EPS beat(4)0.44%
Max EPS beat(4)99.01%
EPS beat(8)8
Avg EPS beat(8)67.28%
EPS beat(12)11
Avg EPS beat(12)85.85%
EPS beat(16)15
Avg EPS beat(16)67.66%
Revenue beat(2)0
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-2.83%
Max Revenue beat(2)-0.06%
Revenue beat(4)0
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-2.83%
Max Revenue beat(4)-0.06%
Revenue beat(8)0
Avg Revenue beat(8)-2.05%
Revenue beat(12)1
Avg Revenue beat(12)-1.74%
Revenue beat(16)2
Avg Revenue beat(16)-1.86%
PT rev (1m)0.06%
PT rev (3m)6.83%
EPS NQ rev (1m)-0.9%
EPS NQ rev (3m)-11.65%
EPS NY rev (1m)3.28%
EPS NY rev (3m)3.67%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.3%
Valuation
Industry RankSector Rank
PE 45.07
Fwd PE 27.86
P/S 2.17
P/FCF 27.96
P/OCF 19.04
P/B 7.89
P/tB N/A
EV/EBITDA 16.25
EPS(TTM)1.95
EY2.22%
EPS(NY)3.15
Fwd EY3.59%
FCF(TTM)3.14
FCFY3.58%
OCF(TTM)4.62
OCFY5.25%
SpS40.55
BVpS11.14
TBVpS-4.98
PEG (NY)0.85
PEG (5Y)N/A
Graham Number22.11
Profitability
Industry RankSector Rank
ROA -0.91%
ROE -4.42%
ROCE 9.79%
ROIC 7.73%
ROICexc 9.85%
ROICexgc 20.39%
OM 9.59%
PM (TTM) N/A
GM 74.33%
FCFM 7.75%
ROA(3y)0.13%
ROA(5y)4.98%
ROE(3y)-1.32%
ROE(5y)17.24%
ROIC(3y)7.43%
ROIC(5y)11.04%
ROICexc(3y)9.5%
ROICexc(5y)14.82%
ROICexgc(3y)22.57%
ROICexgc(5y)33.9%
ROCE(3y)9.4%
ROCE(5y)13.97%
ROICexgc growth 3Y-33.25%
ROICexgc growth 5Y-18.06%
ROICexc growth 3Y-32.16%
ROICexc growth 5Y-18.64%
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%
F-Score5
Asset Turnover0.75
Health
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 6.44
Debt/EBITDA 3.3
Cap/Depr 65.72%
Cap/Sales 3.63%
Interest Coverage 4.11
Cash Conversion 75.33%
Profit Quality N/A
Current Ratio 1.36
Quick Ratio 1
Altman-Z 3.15
F-Score5
WACC7.92%
ROIC/WACC0.98
Cap/Depr(3y)208.69%
Cap/Depr(5y)173.4%
Cap/Sales(3y)10.24%
Cap/Sales(5y)8.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-17.72%
EPS 3Y-40.77%
EPS 5Y-18.22%
EPS Q2Q%43.55%
EPS Next Y52.86%
EPS Next 2Y45.01%
EPS Next 3Y37.26%
EPS Next 5Y27.2%
Revenue 1Y (TTM)-3.35%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%5.62%
Revenue Next Year4.56%
Revenue Next 2Y4.39%
Revenue Next 3Y4.48%
Revenue Next 5Y4.72%
EBIT growth 1Y-5.06%
EBIT growth 3Y-31.36%
EBIT growth 5Y-11.51%
EBIT Next Year112.37%
EBIT Next 3Y39.86%
EBIT Next 5Y25.98%
FCF growth 1Y176.82%
FCF growth 3Y-30.55%
FCF growth 5Y-16.56%
OCF growth 1Y-12.88%
OCF growth 3Y-25.21%
OCF growth 5Y-11.02%

ESTEE LAUDER COMPANIES-CL A / EL Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ESTEE LAUDER COMPANIES-CL A (EL) stock?

ChartMill assigns a fundamental rating of 4 / 10 to EL.


What is the valuation status for EL stock?

ChartMill assigns a valuation rating of 3 / 10 to ESTEE LAUDER COMPANIES-CL A (EL). This can be considered as Overvalued.


What is the profitability of EL stock?

ESTEE LAUDER COMPANIES-CL A (EL) has a profitability rating of 5 / 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 (EL) is 45.07 and the Price/Book (PB) ratio is 7.89.


Can you provide the dividend sustainability for EL stock?

The dividend rating of ESTEE LAUDER COMPANIES-CL A (EL) is 4 / 10 and the dividend payout ratio is -284.83%.