ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EL - US5184391044 - Common Stock
107.48 USD
-0.16 (-0.15%)
107.48 USD
0 (0%)
Taking everything into account, EL scores 4 out of 10 in our fundamental rating. EL was compared to 36 industry peers in the Personal Care Products industry. While EL is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past year EL had a positive cash flow from operations.
EL had positive earnings in 4 of the past 5 years.
EL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EL has a Return On Assets of -4.81%. This is in the lower half of the industry: EL underperforms 66.67% of its industry peers.
Looking at the Return On Equity, with a value of -23.91%, EL is doing worse than 69.44% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.99%, EL is doing good in the industry, outperforming 66.67% 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 below the industry average of 11.83%.
| 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
With a decent Operating Margin value of 8.72%, EL is doing good in the industry, outperforming 69.44% of the companies in the same industry.
In the last couple of years the Operating Margin of EL has declined.
EL's Gross Margin of 74.18% is fine compared to the rest 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 | 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
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.
Compared to 1 year ago, EL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.41 indicates that EL is not in any danger for bankruptcy at the moment.
EL has a Altman-Z score of 3.41. This is in the better half of the industry: EL outperforms 63.89% of its industry peers.
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's Debt to FCF ratio of 7.01 is fine compared to the rest of the industry. EL outperforms 63.89% 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 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | 3.41 |
ROIC/WACC0.88
WACC7.96%
2.3 Liquidity
A Current Ratio of 1.32 indicates that EL should not have too much problems paying its short term obligations.
EL's Current ratio of 1.32 is on the low side compared to the rest of the industry. EL is outperformed by 63.89% of its industry peers.
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.
With a Quick ratio value of 0.92, EL is not doing good in the industry: 63.89% of the companies in the same industry are doing better.
| 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%.
EL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.22% yearly.
EL shows a decrease in Revenue. In the last year, the revenue decreased by -6.53%.
EL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.04% yearly.
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 28.75% yearly.
Based on estimates for the next years, EL will show a small growth in Revenue. The Revenue will grow by 3.86% on average per year.
EPS Next Y47.67%
EPS Next 2Y42.89%
EPS Next 3Y36.7%
EPS Next 5Y28.75%
Revenue Next Year4.3%
Revenue Next 2Y4.18%
Revenue Next 3Y4.41%
Revenue Next 5Y3.86%
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.
4. Valuation
4.1 Price/Earnings Ratio
EL is valuated quite expensively with a Price/Earnings ratio of 63.98.
Compared to the rest of the industry, the Price/Earnings ratio of EL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of EL to the average of the S&P500 Index (26.59), we can say EL is valued expensively.
The Price/Forward Earnings ratio is 35.10, which means the current valuation is very expensive for EL.
EL's Price/Forward Earnings ratio is in line with the industry average.
EL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.98 | ||
| Fwd PE | 35.1 |
4.2 Price Multiples
EL's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as EL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.06 | ||
| EV/EBITDA | 21.06 |
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 36.70% in the coming years.
PEG (NY)1.34
PEG (5Y)N/A
EPS Next 2Y42.89%
EPS Next 3Y36.7%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.30%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.04, EL pays a bit more dividend than its industry peers.
EL's Dividend Yield is slightly below the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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 2Y42.89%
EPS Next 3Y36.7%
107.48
-0.16 (-0.15%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners91.7%
Inst Owner Change-0.07%
Ins Owners0.12%
Ins Owner Change-16.48%
Market Cap38.73B
Revenue(TTM)14.44B
Net Income(TTM)-930.00M
Analysts71.11
Price Target104.59 (-2.69%)
Short Float %3.81%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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)8.23%
PT rev (3m)15.26%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)2.96%
EPS NY rev (1m)0.64%
EPS NY rev (3m)4.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.98 | ||
| Fwd PE | 35.1 | ||
| P/S | 2.68 | ||
| P/FCF | 37.06 | ||
| P/OCF | 24.18 | ||
| P/B | 9.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.06 |
EPS(TTM)1.68
EY1.56%
EPS(NY)3.06
Fwd EY2.85%
FCF(TTM)2.9
FCFY2.7%
OCF(TTM)4.45
OCFY4.14%
SpS40.08
BVpS10.79
TBVpS-5.37
PEG (NY)1.34
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 | 3.41 |
F-Score5
WACC7.96%
ROIC/WACC0.88
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 Y47.67%
EPS Next 2Y42.89%
EPS Next 3Y36.7%
EPS Next 5Y28.75%
Revenue 1Y (TTM)-6.53%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%3.57%
Revenue Next Year4.3%
Revenue Next 2Y4.18%
Revenue Next 3Y4.41%
Revenue Next 5Y3.86%
EBIT growth 1Y-21.3%
EBIT growth 3Y-31.36%
EBIT growth 5Y-11.51%
EBIT Next Year106.84%
EBIT Next 3Y38.64%
EBIT Next 5Y27.48%
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 47.67% in the next year.