ESTEE LAUDER COMPANIES-CL A (EL)
US5184391044 - Common Stock
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. While showing a medium growth rate, EL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year EL was profitable.
EL had a positive operating cash flow in the past year.
EL had positive earnings in each of the past 5 years.
In the past 5 years EL always reported a positive cash flow from operatings.
1.2 Ratios
EL's Return On Assets of 0.95% is in line compared to the rest of the industry. EL outperforms 48.57% of its industry peers.
Looking at the Return On Equity, with a value of 3.99%, EL is in line with its industry, outperforming 60.00% of the companies in the same industry.
EL has a Return On Invested Capital (6.33%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EL is below the industry average of 13.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 3.99% | ||
| ROIC | 6.33% |
ROA(3y)5.84%
ROA(5y)6.89%
ROE(3y)22.7%
ROE(5y)26.57%
ROIC(3y)9.14%
ROIC(5y)9.86%
1.3 Margins
Looking at the Profit Margin, with a value of 1.31%, EL is in line with its industry, outperforming 51.43% of the companies in the same industry.
EL's Profit Margin has declined in the last couple of years.
The Operating Margin of EL (10.36%) is better than 68.57% of its industry peers.
In the last couple of years the Operating Margin of EL has declined.
EL has a Gross Margin of 72.29%. This is in the better half of the industry: EL outperforms 77.14% 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 | 10.36% | ||
| PM (TTM) | 1.31% | ||
| GM | 72.29% |
OM growth 3Y-18.75%
OM growth 5Y-10.71%
PM growth 3Y-47.93%
PM growth 5Y-26.95%
GM growth 3Y-2.09%
GM growth 5Y-1.48%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EL is still creating some value.
Compared to 1 year ago, EL has more shares outstanding
The number of shares outstanding for EL has been reduced compared to 5 years ago.
EL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.92 indicates that EL is not a great score, but indicates only limited risk for bankruptcy at the moment.
EL has a Altman-Z score of 2.92. This is comparable to the rest of the industry: EL outperforms 54.29% of its industry peers.
The Debt to FCF ratio of EL is 5.86, which is a neutral value as it means it would take EL, 5.86 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.86, EL perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
EL has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.44, EL is not doing good in the industry: 88.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 5.86 | ||
| Altman-Z | 2.92 |
ROIC/WACC0.82
WACC7.72%
2.3 Liquidity
EL has a Current Ratio of 1.32. This is a normal value and indicates that EL is financially healthy and should not expect problems in meeting its short term obligations.
EL has a Current ratio of 1.32. This is in the lower half of the industry: EL underperforms 65.71% 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.
EL has a Quick ratio of 0.90. This is in the lower half of the industry: EL underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
EL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.09%, which is quite impressive.
Measured over the past years, EL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.41% on average per year.
The Revenue has decreased by -0.44% in the past year.
The Revenue has been growing slightly by 0.98% on average over the past years.
EPS 1Y (TTM)20.09%
EPS 3Y-26.13%
EPS 5Y-13.41%
EPS Q2Q%27.27%
Revenue 1Y (TTM)-0.44%
Revenue growth 3Y-1.26%
Revenue growth 5Y0.98%
Sales Q2Q%-4.46%
3.2 Future
EL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.26% yearly.
Based on estimates for the next years, EL will show a small growth in Revenue. The Revenue will grow by 3.84% on average per year.
EPS Next Y-37.74%
EPS Next 2Y3.28%
EPS Next 3Y12.95%
EPS Next 5Y15.26%
Revenue Next Year-4.76%
Revenue Next 2Y-0.47%
Revenue Next 3Y1.41%
Revenue Next 5Y3.84%
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 28.55, the valuation of EL can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of EL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.54. EL is around the same levels.
With a Price/Forward Earnings ratio of 27.07, EL can be considered very expensive at the moment.
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 (23.99), we can say EL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.55 | ||
| Fwd PE | 27.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EL indicates a somewhat cheap valuation: EL is cheaper than 68.57% of the companies listed in the same industry.
EL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EL is cheaper than 68.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.22 | ||
| EV/EBITDA | 13.33 |
4.3 Compensation for Growth
A more expensive valuation may be justified as EL's earnings are expected to grow with 12.95% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.28%
EPS Next 3Y12.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.87%, EL has a reasonable but not impressive dividend return.
The stock price of EL dropped by -24.82% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
EL's Dividend Yield is a higher than the industry average which is at 5.33.
Compared to the average S&P500 Dividend Yield of 2.36, EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
On average, the dividend of EL grows each year by 9.59%, which is quite nice.
EL has paid a dividend for at least 10 years, which is a reliable track record.
EL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.59%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
EL pays out 468.47% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP468.47%
EPS Next 2Y3.28%
EPS Next 3Y12.95%
ESTEE LAUDER COMPANIES-CL A
NYSE:EL (12/24/2024, 8:08:10 PM)
After market: 75 -0.08 (-0.11%)75.08
+0.33 (+0.44%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners93.04%
Inst Owner Change-2.68%
Ins Owners0.12%
Ins Owner Change8.63%
Market Cap26.95B
Analysts66.84
Price Target79.96 (6.5%)
Short Float %3.11%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Dividend Growth(5Y)9.59%
DP468.47%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)88.75%
Min EPS beat(2)43.76%
Max EPS beat(2)133.75%
EPS beat(4)4
Avg EPS beat(4)81.74%
Min EPS beat(4)43.76%
Max EPS beat(4)133.75%
EPS beat(8)7
Avg EPS beat(8)97.36%
EPS beat(12)11
Avg EPS beat(12)68.89%
EPS beat(16)15
Avg EPS beat(16)59.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.33%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)-1.43%
Revenue beat(4)0
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)-0.95%
Revenue beat(8)1
Avg Revenue beat(8)-1.68%
Revenue beat(12)2
Avg Revenue beat(12)-1.87%
Revenue beat(16)5
Avg Revenue beat(16)-1.26%
PT rev (1m)-25.26%
PT rev (3m)-32.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-79.56%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)-46.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.26%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-5.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.55 | ||
| Fwd PE | 27.07 | ||
| P/S | 1.74 | ||
| P/FCF | 20.22 | ||
| P/OCF | 12.85 | ||
| P/B | 5.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.33 |
EPS(TTM)2.63
EY3.5%
EPS(NY)2.77
Fwd EY3.69%
FCF(TTM)3.71
FCFY4.95%
OCF(TTM)5.84
OCFY7.78%
SpS43.04
BVpS14.16
TBVpS-6.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 3.99% | ||
| ROCE | 10.11% | ||
| ROIC | 6.33% | ||
| ROICexc | 7.44% | ||
| ROICexgc | 16.41% | ||
| OM | 10.36% | ||
| PM (TTM) | 1.31% | ||
| GM | 72.29% | ||
| FCFM | 8.63% |
ROA(3y)5.84%
ROA(5y)6.89%
ROE(3y)22.7%
ROE(5y)26.57%
ROIC(3y)9.14%
ROIC(5y)9.86%
ROICexc(3y)12.1%
ROICexc(5y)13.99%
ROICexgc(3y)27.91%
ROICexgc(5y)31.23%
ROCE(3y)14.59%
ROCE(5y)15.74%
ROICexcg growth 3Y-21.07%
ROICexcg growth 5Y-22.32%
ROICexc growth 3Y-21.66%
ROICexc growth 5Y-23.4%
OM growth 3Y-18.75%
OM growth 5Y-10.71%
PM growth 3Y-47.93%
PM growth 5Y-26.95%
GM growth 3Y-2.09%
GM growth 5Y-1.48%
F-Score6
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 5.86 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 92.17% | ||
| Cap/Sales | 4.95% | ||
| Interest Coverage | 4.4 | ||
| Cash Conversion | 86.3% | ||
| Profit Quality | 656.65% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 2.92 |
F-Score6
WACC7.72%
ROIC/WACC0.82
Cap/Depr(3y)232.17%
Cap/Depr(5y)179.27%
Cap/Sales(3y)10.8%
Cap/Sales(5y)8.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.09%
EPS 3Y-26.13%
EPS 5Y-13.41%
EPS Q2Q%27.27%
EPS Next Y-37.74%
EPS Next 2Y3.28%
EPS Next 3Y12.95%
EPS Next 5Y15.26%
Revenue 1Y (TTM)-0.44%
Revenue growth 3Y-1.26%
Revenue growth 5Y0.98%
Sales Q2Q%-4.46%
Revenue Next Year-4.76%
Revenue Next 2Y-0.47%
Revenue Next 3Y1.41%
Revenue Next 5Y3.84%
EBIT growth 1Y29.85%
EBIT growth 3Y-19.77%
EBIT growth 5Y-9.83%
EBIT Next Year34.08%
EBIT Next 3Y25.92%
EBIT Next 5Y19.51%
FCF growth 1Y-10.18%
FCF growth 3Y-21.63%
FCF growth 5Y-4.06%
OCF growth 1Y-15.1%
OCF growth 3Y-13.38%
OCF growth 5Y-1.28%