ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
NYSE:EL - New York Stock Exchange, Inc. - US5184391044 - Common Stock - Currency: USD
EL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 35 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. While showing a medium growth rate, EL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
EL had positive earnings in the past year.
EL had a positive operating cash flow in the past year.
EL had positive earnings in each 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 (-4.38%) is worse than 68.57% of its industry peers.
Looking at the Return On Equity, with a value of -20.05%, EL is doing worse than 65.71% of the companies in the same industry.
EL has a Return On Invested Capital (5.60%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EL is significantly below the industry average of 15.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.38% | ||
| ROE | -20.05% | ||
| ROIC | 5.6% |
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
In the last couple of years the Profit Margin of EL has declined.
EL has a Operating Margin of 9.03%. This is in the better half of the industry: EL outperforms 62.86% of its industry peers.
In the last couple of years the Operating Margin of EL has declined.
Looking at the Gross Margin, with a value of 73.85%, EL is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
EL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.03% | ||
| PM (TTM) | N/A | ||
| GM | 73.85% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EL is creating some value.
The number of shares outstanding for EL has been increased compared to 1 year ago.
EL has less shares outstanding than it did 5 years ago.
EL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.24 indicates that EL is not in any danger for bankruptcy at the moment.
The Altman-Z score of EL (3.24) is comparable to the rest of the industry.
EL has a debt to FCF ratio of 7.70. This is a slightly negative value and a sign of low solvency as EL would need 7.70 years to pay back of all of its debts.
The Debt to FCF ratio of EL (7.70) is comparable to the rest of the industry.
EL has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of EL (1.68) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 7.7 | ||
| Altman-Z | 3.24 |
ROIC/WACC0.72
WACC7.79%
2.3 Liquidity
EL has a Current Ratio of 1.41. 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 worse Current ratio (1.41) than 60.00% of its industry peers.
EL has a Quick Ratio of 1.02. This is a normal value and indicates that EL is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of EL (1.02) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.99% over the past year.
EL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.41% yearly.
Looking at the last year, EL shows a decrease in Revenue. The Revenue has decreased by -3.76% in the last year.
The Revenue has been growing slightly by 0.98% on average over the past years.
EPS 1Y (TTM)0.99%
EPS 3Y-26.13%
EPS 5Y-13.41%
EPS Q2Q%-32.99%
Revenue 1Y (TTM)-3.76%
Revenue growth 3Y-1.26%
Revenue growth 5Y0.98%
Sales Q2Q%-9.9%
3.2 Future
Based on estimates for the next years, EL will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.92% on average per year.
Based on estimates for the next years, EL will show a small growth in Revenue. The Revenue will grow by 2.11% on average per year.
EPS Next Y-41.86%
EPS Next 2Y-6.38%
EPS Next 3Y4.53%
EPS Next 5Y12.92%
Revenue Next Year-8.19%
Revenue Next 2Y-3.31%
Revenue Next 3Y-0.89%
Revenue Next 5Y2.11%
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.
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 44.43, the valuation of EL can be described as expensive.
EL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, EL is valued quite expensively.
With a Price/Forward Earnings ratio of 39.97, EL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as EL.
EL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.43 | ||
| Fwd PE | 39.97 |
4.2 Price Multiples
EL's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as EL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.56 | ||
| EV/EBITDA | 17.46 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.38%
EPS Next 3Y4.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.58%, EL has a reasonable but not impressive dividend return.
EL's Dividend Yield is a higher than the industry average which is at 5.67.
Compared to the average S&P500 Dividend Yield of 2.37, EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
The dividend of EL is nicely growing with an annual growth rate of 9.59%!
EL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)9.59%
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-83.7%
EPS Next 2Y-6.38%
EPS Next 3Y4.53%
91.08
-1.02 (-1.11%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners94.12%
Inst Owner Change0%
Ins Owners0.13%
Ins Owner Change0.05%
Market Cap32.77B
Analysts67.22
Price Target68.52 (-24.77%)
Short Float %4.3%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly Dividend2.64
Dividend Growth(5Y)9.59%
DP-83.7%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)93.44%
Min EPS beat(2)87.87%
Max EPS beat(2)99.01%
EPS beat(4)4
Avg EPS beat(4)91.1%
Min EPS beat(4)43.76%
Max EPS beat(4)133.75%
EPS beat(8)8
Avg EPS beat(8)120.03%
EPS beat(12)11
Avg EPS beat(12)82.71%
EPS beat(16)15
Avg EPS beat(16)66.99%
Revenue beat(2)0
Avg Revenue beat(2)-2.01%
Min Revenue beat(2)-2.01%
Max Revenue beat(2)-2.01%
Revenue beat(4)0
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)-1.43%
Revenue beat(8)1
Avg Revenue beat(8)-1.71%
Revenue beat(12)2
Avg Revenue beat(12)-1.65%
Revenue beat(16)4
Avg Revenue beat(16)-1.52%
PT rev (1m)0.63%
PT rev (3m)-10.03%
EPS NQ rev (1m)-13.78%
EPS NQ rev (3m)-74.17%
EPS NY rev (1m)0.1%
EPS NY rev (3m)5.08%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-5.38%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.43 | ||
| Fwd PE | 39.97 | ||
| P/S | 2.22 | ||
| P/FCF | 34.56 | ||
| P/OCF | 21 | ||
| P/B | 7.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.46 |
EPS(TTM)2.05
EY2.25%
EPS(NY)2.28
Fwd EY2.5%
FCF(TTM)2.64
FCFY2.89%
OCF(TTM)4.34
OCFY4.76%
SpS41.1
BVpS12.08
TBVpS-5.18
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.38% | ||
| ROE | -20.05% | ||
| ROCE | 8.95% | ||
| ROIC | 5.6% | ||
| ROICexc | 6.8% | ||
| ROICexgc | 13.75% | ||
| OM | 9.03% | ||
| PM (TTM) | N/A | ||
| GM | 73.85% | ||
| FCFM | 6.41% |
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-Score5
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 7.7 | ||
| Debt/EBITDA | 3.37 | ||
| Cap/Depr | 73.73% | ||
| Cap/Sales | 4.14% | ||
| Interest Coverage | 3.73 | ||
| Cash Conversion | 72.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 3.24 |
F-Score5
WACC7.79%
ROIC/WACC0.72
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)0.99%
EPS 3Y-26.13%
EPS 5Y-13.41%
EPS Q2Q%-32.99%
EPS Next Y-41.86%
EPS Next 2Y-6.38%
EPS Next 3Y4.53%
EPS Next 5Y12.92%
Revenue 1Y (TTM)-3.76%
Revenue growth 3Y-1.26%
Revenue growth 5Y0.98%
Sales Q2Q%-9.9%
Revenue Next Year-8.19%
Revenue Next 2Y-3.31%
Revenue Next 3Y-0.89%
Revenue Next 5Y2.11%
EBIT growth 1Y4.54%
EBIT growth 3Y-19.77%
EBIT growth 5Y-9.83%
EBIT Next Year30.7%
EBIT Next 3Y19.8%
EBIT Next 5Y16.56%
FCF growth 1Y-9.37%
FCF growth 3Y-21.63%
FCF growth 5Y-4.06%
OCF growth 1Y-25.29%
OCF growth 3Y-13.38%
OCF growth 5Y-1.28%