ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EL - US5184391044 - Common Stock
113.73 USD
+3.46 (+3.14%)
114.166 USD
+0.44 (+0.38%)
Overall EL gets a fundamental rating of 3 out of 10. We evaluated EL against 36 industry peers in the Personal Care Products industry. There are concerns on the financial health of EL while its profitability can be described as average. 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.
Each year in the past 5 years EL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EL (-4.81%) is worse than 63.89% of its industry peers.
The Return On Equity of EL (-23.91%) is worse than 66.67% of its industry peers.
EL's Return On Invested Capital of 6.99% is fine compared to the rest of the industry. EL outperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EL 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
EL's Operating Margin of 8.72% 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.
The Gross Margin of EL (74.18%) is better than 80.56% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EL 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
EL has an Altman-Z score of 3.50. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EL (3.50) is better than 61.11% of its industry peers.
EL has a debt to FCF ratio of 7.01. This is a slightly negative value and a sign of low solvency as EL would need 7.01 years to pay back of all of its debts.
EL has a better Debt to FCF ratio (7.01) than 63.89% of its industry peers.
EL has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
EL has a worse Debt to Equity ratio (1.88) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | 3.5 |
ROIC/WACC0.87
WACC8.02%
2.3 Liquidity
A Current Ratio of 1.32 indicates that EL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.32, EL is doing worse than 63.89% of the companies in the same industry.
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's Quick ratio of 0.92 is on the low side compared to the rest of the industry. EL is outperformed by 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for EL have decreased strongly by -36.12% in the last year.
The earnings per share for EL have been decreasing by -18.22% on average. This is quite bad
EL shows a decrease in Revenue. In the last year, the revenue decreased by -6.53%.
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
Based on estimates for the next years, EL will show a very strong growth in Earnings Per Share. The EPS will grow by 28.74% on average per year.
EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y47.67%
EPS Next 2Y42.89%
EPS Next 3Y36.7%
EPS Next 5Y28.74%
Revenue Next Year4.3%
Revenue Next 2Y4.18%
Revenue Next 3Y4.41%
Revenue Next 5Y4.05%
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
Based on the Price/Earnings ratio of 67.70, the valuation of EL can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as EL.
When comparing the Price/Earnings ratio of EL to the average of the S&P500 Index (27.19), we can say EL is valued expensively.
The Price/Forward Earnings ratio is 37.14, which means the current valuation is very expensive for EL.
The rest of the industry has a similar Price/Forward Earnings ratio as EL.
When comparing the Price/Forward Earnings ratio of EL to the average of the S&P500 Index (23.92), we can say EL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.7 | ||
| Fwd PE | 37.14 |
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.
EL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.22 | ||
| EV/EBITDA | 22.15 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EL's earnings are expected to grow with 36.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.42
PEG (5Y)N/A
EPS Next 2Y42.89%
EPS Next 3Y36.7%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.27%.
EL's Dividend Yield is a higher than the industry average which is at 2.04.
Compared to the average S&P500 Dividend Yield of 1.92, EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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
The earnings of EL are negative and hence is the payout ratio. EL will probably not be able to sustain this dividend level.
EL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-54.3%
EPS Next 2Y42.89%
EPS Next 3Y36.7%
113.73
+3.46 (+3.14%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners91.48%
Inst Owner Change0.14%
Ins Owners0.12%
Ins Owner Change-16.48%
Market Cap40.98B
Revenue(TTM)14.44B
Net Income(TTM)-930.00M
Analysts72
Price Target104.59 (-8.04%)
Short Float %3.81%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend1.72
Dividend Growth(5Y)4.31%
DP-54.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)2.04%
PT rev (3m)14.09%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)3.1%
EPS NY rev (1m)0.15%
EPS NY rev (3m)4.23%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)2.19%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.7 | ||
| Fwd PE | 37.14 | ||
| P/S | 2.84 | ||
| P/FCF | 39.22 | ||
| P/OCF | 25.58 | ||
| P/B | 10.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.15 |
EPS(TTM)1.68
EY1.48%
EPS(NY)3.06
Fwd EY2.69%
FCF(TTM)2.9
FCFY2.55%
OCF(TTM)4.45
OCFY3.91%
SpS40.08
BVpS10.79
TBVpS-5.37
PEG (NY)1.42
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 | 3.5 |
F-Score5
WACC8.02%
ROIC/WACC0.87
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 5Y28.74%
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 5Y4.05%
EBIT growth 1Y-21.3%
EBIT growth 3Y-31.36%
EBIT growth 5Y-11.51%
EBIT Next Year107.02%
EBIT Next 3Y38.61%
EBIT Next 5Y27.84%
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 3 / 10 to EL.
What is the valuation status for EL stock?
ChartMill assigns a valuation rating of 2 / 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.
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 67.7 and the Price/Book (PB) ratio is 10.54.
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 -54.3%.