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

NYSE:EL • US5184391044

Current stock price

67.23 USD
-2.52 (-3.61%)
At close:
66.8923 USD
-0.34 (-0.5%)
After Hours:

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.
  • Each year in the past 5 years EL had a positive operating cash flow.
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 has a Return On Assets of -0.91%. This is comparable to the rest of the industry: EL outperforms 54.05% of its industry peers.
  • EL has a Return On Equity (-4.42%) which is comparable to the rest of the industry.
  • EL has a Return On Invested Capital of 7.73%. This is in the better half 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 11.42%.
  • The last Return On Invested Capital (7.73%) for EL is above the 3 year average (7.43%), which is a sign of increasing profitability.
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

  • EL has a better Operating Margin (9.59%) than 72.97% of its industry peers.
  • EL's Operating Margin has declined in the last couple of years.
  • EL has a better Gross Margin (74.33%) than 81.08% 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 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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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. EL Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EL is destroying value.
  • Compared to 1 year ago, EL has more shares outstanding
  • Compared to 5 years ago, EL has less shares outstanding
  • 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 2.90 indicates that EL is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a decent Altman-Z score value of 2.90, EL is doing good in the industry, outperforming 67.57% of the companies in the same industry.
  • EL has a debt to FCF ratio of 6.44. This is a slightly negative value and a sign of low solvency as EL would need 6.44 years to pay back of all of its debts.
  • With a Debt to FCF ratio value of 6.44, EL perfoms like the industry average, outperforming 59.46% of the companies in the same industry.
  • A Debt/Equity ratio of 1.82 is on the high side and indicates that EL has dependencies on debt financing.
  • With a Debt to Equity ratio value of 1.82, EL is not doing good in the industry: 72.97% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 6.44
Altman-Z 2.9
ROIC/WACC0.97
WACC7.94%
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.
  • EL's Current ratio of 1.36 is on the low side compared to the rest of the industry. EL is outperformed by 62.16% of its industry peers.
  • A Quick Ratio of 1.00 indicates that EL may have some problems paying its short term obligations.
  • The Quick ratio of EL (1.00) is comparable to the rest of the industry.
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.
  • The earnings per share for EL have been decreasing by -18.22% on average. This is quite bad
  • Looking at the last year, EL shows a decrease in Revenue. The Revenue has decreased by -3.35% in the last year.
  • Measured over the past years, EL shows a small growth in Revenue. The Revenue has been growing by 0.04% on average per year.
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

  • The Earnings Per Share is expected to grow by 27.20% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, EL will show a small growth in Revenue. The Revenue will grow by 4.72% on average per year.
EPS Next Y52.86%
EPS Next 2Y45.01%
EPS Next 3Y37.26%
EPS Next 5Y27.2%
Revenue Next Year4.58%
Revenue Next 2Y4.39%
Revenue Next 3Y4.49%
Revenue Next 5Y4.72%

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.
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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4

4. EL Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 34.48, the valuation of EL can be described as expensive.
  • The rest of the industry has a similar Price/Earnings ratio as EL.
  • The average S&P500 Price/Earnings ratio is at 24.88. EL is valued slightly more expensive when compared to this.
  • The Price/Forward Earnings ratio is 21.31, which indicates a rather expensive current valuation of EL.
  • EL's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of EL to the average of the S&P500 Index (22.19), we can say EL is valued inline with the index average.
Industry RankSector Rank
PE 34.48
Fwd PE 21.31
EL Price Earnings VS Forward Price EarningsEL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as EL.
  • Based on the Price/Free Cash Flow ratio, EL is valued a bit cheaper than the industry average as 62.16% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 21.39
EV/EBITDA 13.29
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)0.65
PEG (5Y)N/A
EPS Next 2Y45.01%
EPS Next 3Y37.26%

More info and screens

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

4

5. EL Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.64%, EL has a reasonable but not impressive dividend return.
  • In the last 3 months the price of EL has falen by -37.55%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • EL's Dividend Yield is a higher than the industry average which is at 1.74.
  • Compared to an average S&P500 Dividend Yield of 1.90, EL has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.64%

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.
  • EL's earnings are growing more than its dividend. This makes the dividend growth 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

More info and screens

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EL Fundamentals: All Metrics, Ratios and Statistics

ESTEE LAUDER COMPANIES-CL A

NYSE:EL (3/27/2026, 8:13:39 PM)

After market: 66.8923 -0.34 (-0.5%)

67.23

-2.52 (-3.61%)

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 Cap24.32B
Revenue(TTM)14.67B
Net Income(TTM)-178.00M
Analysts73.71
Price Target109.5 (62.87%)
Short Float %4.81%
Short Ratio2.8
Dividend
Industry RankSector Rank
Dividend Yield 1.64%
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)4.7%
EPS NQ rev (1m)-0.9%
EPS NQ rev (3m)-12.05%
EPS NY rev (1m)3.28%
EPS NY rev (3m)3.52%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.27%
Valuation
Industry RankSector Rank
PE 34.48
Fwd PE 21.31
P/S 1.66
P/FCF 21.39
P/OCF 14.56
P/B 6.03
P/tB N/A
EV/EBITDA 13.29
EPS(TTM)1.95
EY2.9%
EPS(NY)3.15
Fwd EY4.69%
FCF(TTM)3.14
FCFY4.68%
OCF(TTM)4.62
OCFY6.87%
SpS40.55
BVpS11.14
TBVpS-4.98
PEG (NY)0.65
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 2.9
F-Score5
WACC7.94%
ROIC/WACC0.97
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 Year4.58%
Revenue Next 2Y4.39%
Revenue Next 3Y4.49%
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 4 / 10 to ESTEE LAUDER COMPANIES-CL A (EL). This can be considered as Fairly Valued.


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 34.48 and the Price/Book (PB) ratio is 6.03.


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%.