ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
USA - NYSE:EL - US5184391044 - Common Stock
91.84 USD
-1.41 (-1.51%)
Taking everything into account, EL scores 4 out of 10 in our fundamental rating. EL was compared to 34 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EL was profitable.
In the past year EL had a positive cash flow from operations.
Of the past 5 years EL 4 years were profitable.
EL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -4.81%, EL is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -23.91%, EL is doing worse than 67.65% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.99%, EL is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
EL had an Average Return On Invested Capital over the past 3 years of 7.43%. This is significantly below the industry average of 12.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.81% | ||
| ROE | -23.91% | ||
| ROIC | 6.99% |
ROA(3y)0.13%
ROA(5y)4.98%
ROE(3y)-1.32%
ROE(5y)17.24%
ROIC(3y)7.43%
ROIC(5y)11.04%
1.3 Margins
The Operating Margin of EL (8.72%) is better than 61.76% of its industry peers.
EL's Operating Margin has declined in the last couple of years.
The Gross Margin of EL (74.18%) is better than 82.35% of its industry peers.
EL'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 EL is destroying value.
The number of shares outstanding for EL has been increased compared to 1 year ago.
Compared to 5 years ago, EL has less shares outstanding
EL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.21 indicates that EL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.21, EL is in line with its industry, outperforming 52.94% of the companies in the same industry.
The Debt to FCF ratio of EL is 7.01, which is on the high side as it means it would take EL, 7.01 years of fcf income to pay off all of its debts.
EL has a Debt to FCF ratio of 7.01. This is in the better half of the industry: EL outperforms 64.71% of its industry peers.
A Debt/Equity ratio of 1.88 is on the high side and indicates that EL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.88, EL is doing worse than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | 3.21 |
ROIC/WACC0.89
WACC7.82%
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: 67.65% of the companies in the same industry are doing better.
EL has a Quick Ratio of 1.32. 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 0.92. This is in the lower half of the industry: EL underperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
EL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.12%.
Measured over the past years, EL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.22% on average per year.
Looking at the last year, EL shows a decrease in Revenue. The Revenue has decreased by -6.53% 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)-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
EL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.05% yearly.
EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.99% yearly.
EPS Next Y46.73%
EPS Next 2Y42.33%
EPS Next 3Y37%
EPS Next 5Y27.05%
Revenue Next Year3.87%
Revenue Next 2Y4.03%
Revenue Next 3Y4.36%
Revenue Next 5Y2.99%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 54.67, the valuation of EL can be described as expensive.
EL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.51, EL is valued quite expensively.
EL is valuated quite expensively with a Price/Forward Earnings ratio of 30.22.
EL's Price/Forward Earnings is on the same level as the industry average.
EL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.53, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.67 | ||
| Fwd PE | 30.22 |
4.2 Price Multiples
EL's Enterprise Value to EBITDA ratio is in line with the industry average.
EL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.67 | ||
| EV/EBITDA | 18.6 |
4.3 Compensation for Growth
EL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as EL's earnings are expected to grow with 37.00% in the coming years.
PEG (NY)1.17
PEG (5Y)N/A
EPS Next 2Y42.33%
EPS Next 3Y37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.45%, EL has a reasonable but not impressive dividend return.
EL's Dividend Yield is a higher than the industry average which is at 5.96.
Compared to the average S&P500 Dividend Yield of 2.38, EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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
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-54.3%
EPS Next 2Y42.33%
EPS Next 3Y37%
NYSE:EL (11/4/2025, 10:10:10 AM)
91.84
-1.41 (-1.51%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners95.71%
Inst Owner Change-1.91%
Ins Owners0.13%
Ins Owner Change0.02%
Market Cap33.10B
Revenue(TTM)14.44B
Net Income(TTM)-930000000
Analysts70.56
Price Target96.63 (5.22%)
Short Float %4.13%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend1.72
Dividend Growth(5Y)4.31%
DP-54.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.2%
Min EPS beat(2)0.44%
Max EPS beat(2)75.96%
EPS beat(4)4
Avg EPS beat(4)65.82%
Min EPS beat(4)0.44%
Max EPS beat(4)99.01%
EPS beat(8)8
Avg EPS beat(8)73.78%
EPS beat(12)11
Avg EPS beat(12)86.84%
EPS beat(16)15
Avg EPS beat(16)68.13%
Revenue beat(2)0
Avg Revenue beat(2)-1.33%
Min Revenue beat(2)-2.6%
Max Revenue beat(2)-0.06%
Revenue beat(4)0
Avg Revenue beat(4)-1.67%
Min Revenue beat(4)-2.6%
Max Revenue beat(4)-0.06%
Revenue beat(8)0
Avg Revenue beat(8)-1.81%
Revenue beat(12)1
Avg Revenue beat(12)-1.68%
Revenue beat(16)2
Avg Revenue beat(16)-1.82%
PT rev (1m)6.49%
PT rev (3m)23.73%
EPS NQ rev (1m)5.94%
EPS NQ rev (3m)-25.44%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-6.85%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.67 | ||
| Fwd PE | 30.22 | ||
| P/S | 2.29 | ||
| P/FCF | 31.67 | ||
| P/OCF | 20.66 | ||
| P/B | 8.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.6 |
EPS(TTM)1.68
EY1.83%
EPS(NY)3.04
Fwd EY3.31%
FCF(TTM)2.9
FCFY3.16%
OCF(TTM)4.45
OCFY4.84%
SpS40.08
BVpS10.79
TBVpS-5.37
PEG (NY)1.17
PEG (5Y)N/A
Graham Number20.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.81% | ||
| ROE | -23.91% | ||
| ROCE | 8.84% | ||
| ROIC | 6.99% | ||
| ROICexc | 8.28% | ||
| ROICexgc | 16.05% | ||
| OM | 8.72% | ||
| PM (TTM) | N/A | ||
| GM | 74.18% | ||
| FCFM | 7.24% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 7.01 | ||
| Debt/EBITDA | 3.52 | ||
| Cap/Depr | 67.84% | ||
| Cap/Sales | 3.86% | ||
| Interest Coverage | 3.58 | ||
| Cash Conversion | 76.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 3.21 |
F-Score5
WACC7.82%
ROIC/WACC0.89
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)-36.12%
EPS 3Y-40.77%
EPS 5Y-18.22%
EPS Q2Q%128.57%
EPS Next Y46.73%
EPS Next 2Y42.33%
EPS Next 3Y37%
EPS Next 5Y27.05%
Revenue 1Y (TTM)-6.53%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%3.57%
Revenue Next Year3.87%
Revenue Next 2Y4.03%
Revenue Next 3Y4.36%
Revenue Next 5Y2.99%
EBIT growth 1Y-21.3%
EBIT growth 3Y-31.36%
EBIT growth 5Y-11.51%
EBIT Next Year102.81%
EBIT Next 3Y38.15%
EBIT Next 5Y28.47%
FCF growth 1Y171.62%
FCF growth 3Y-30.55%
FCF growth 5Y-16.56%
OCF growth 1Y-18.8%
OCF growth 3Y-25.21%
OCF growth 5Y-11.02%
ESTEE LAUDER COMPANIES-CL A / EL 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.
Can you provide the valuation status for ESTEE LAUDER COMPANIES-CL A?
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 4 / 10.
Can you provide the financial health for EL stock?
The financial health rating of ESTEE LAUDER COMPANIES-CL A (EL) is 3 / 10.
What is the earnings growth outlook for ESTEE LAUDER COMPANIES-CL A?
The Earnings per Share (EPS) of ESTEE LAUDER COMPANIES-CL A (EL) is expected to grow by 46.73% in the next year.