ESTEE LAUDER COMPANIES-CL A (EL) Fundamental Analysis & Valuation

NYSE:EL • US5184391044

Current stock price

67.98 USD
+0.75 (+1.12%)
At close:
67.83 USD
-0.15 (-0.22%)
After Hours:

This EL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. EL Profitability Analysis

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 4 of the past 5 years.
  • EL had a positive operating cash flow in each of the past 5 years.
EL Yearly Net Income VS EBIT VS OCF VS FCFEL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B 3B

1.2 Ratios

  • Looking at the Return On Assets, with a value of -0.91%, EL is in line with its industry, outperforming 54.05% of the companies in the same industry.
  • The Return On Equity of EL (-4.42%) is comparable to the rest of the industry.
  • EL has a better Return On Invested Capital (7.73%) than 67.57% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for EL is below the industry average of 11.42%.
  • The last Return On Invested Capital (7.73%) for EL is above the 3 year average (7.43%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -0.91%
ROE -4.42%
ROIC 7.73%
ROA(3y)0.13%
ROA(5y)4.98%
ROE(3y)-1.32%
ROE(5y)17.24%
ROIC(3y)7.43%
ROIC(5y)11.04%
EL Yearly ROA, ROE, ROICEL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

1.3 Margins

  • With a decent Operating Margin value of 9.59%, EL is doing good in the industry, outperforming 72.97% of the companies in the same industry.
  • In the last couple of years the Operating Margin of EL has declined.
  • With an excellent Gross Margin value of 74.33%, EL belongs to the best of the industry, outperforming 81.08% of the companies in the same industry.
  • In the last couple of years the Gross Margin of EL has remained more or less at the same level.
Industry RankSector Rank
OM 9.59%
PM (TTM) N/A
GM 74.33%
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%
EL Yearly Profit, Operating, Gross MarginsEL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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3

2. EL Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EL is destroying 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.
  • Compared to 1 year ago, EL has a worse debt to assets ratio.
EL Yearly Shares OutstandingEL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
EL Yearly Total Debt VS Total AssetsEL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • EL has an Altman-Z score of 2.86. This is not the best score and indicates that EL is in the grey zone with still only limited risk for bankruptcy at the moment.
  • The Altman-Z score of EL (2.86) is better than 67.57% of its industry peers.
  • EL has a debt to FCF ratio of 6.44. This is a slightly negative value and a sign of low solvency as EL would need 6.44 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 6.44, EL is in line with its industry, outperforming 59.46% of the companies in the same industry.
  • A Debt/Equity ratio of 1.82 is on the high side and indicates that EL has dependencies on debt financing.
  • EL has a Debt to Equity ratio of 1.82. This is in the lower half of the industry: EL underperforms 72.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 6.44
Altman-Z 2.86
ROIC/WACC0.98
WACC7.86%
EL Yearly LT Debt VS Equity VS FCFEL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

2.3 Liquidity

  • EL has a Current Ratio of 1.36. This is a normal value and indicates that EL is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.36, EL is not doing good in the industry: 62.16% of the companies in the same industry are doing better.
  • EL has a Quick Ratio of 1.36. 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 1.00 is in line compared to the rest of the industry. EL outperforms 43.24% of its industry peers.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1
EL Yearly Current Assets VS Current LiabilitesEL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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4

3. EL Growth Analysis

3.1 Past

  • EL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.72%.
  • EL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.22% yearly.
  • Looking at the last year, EL shows a decrease in Revenue. The Revenue has decreased by -3.35% in the last year.
  • EL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.04% yearly.
EPS 1Y (TTM)-17.72%
EPS 3Y-40.77%
EPS 5Y-18.22%
EPS Q2Q%43.55%
Revenue 1Y (TTM)-3.35%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%5.62%

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 27.20% on average per year.
  • The Revenue is expected to grow by 4.72% on average over the next years.
EPS Next Y52.86%
EPS Next 2Y45.01%
EPS Next 3Y37.26%
EPS Next 5Y27.2%
Revenue Next Year4.58%
Revenue Next 2Y4.39%
Revenue Next 3Y4.49%
Revenue Next 5Y4.72%

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.
EL Yearly Revenue VS EstimatesEL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
EL Yearly EPS VS EstimatesEL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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4

4. EL Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 34.86 indicates a quite expensive valuation of EL.
  • EL's Price/Earnings is on the same level as the industry average.
  • EL is valuated rather expensively when we compare the Price/Earnings ratio to 24.75, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 21.55 indicates a rather expensive valuation of EL.
  • EL's Price/Forward Earnings is on the same level as the industry average.
  • EL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 34.86
Fwd PE 21.55
EL Price Earnings VS Forward Price EarningsEL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 62.16% of the companies in the same industry are more expensive than EL, based on the Enterprise Value to EBITDA ratio.
  • EL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EL is cheaper than 62.16% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.63
EV/EBITDA 12.88
EL Per share dataEL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • EL's earnings are expected to grow with 37.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.66
PEG (5Y)N/A
EPS Next 2Y45.01%
EPS Next 3Y37.26%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. EL Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.01%, EL has a reasonable but not impressive dividend return.
  • The stock price of EL dropped by -36.32% 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 1.76.
  • Compared to an average S&P500 Dividend Yield of 1.89, EL has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.01%

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
EL Yearly Dividends per shareEL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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-284.83%
EPS Next 2Y45.01%
EPS Next 3Y37.26%
EL Yearly Income VS Free CF VS DividendEL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B

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EL Fundamentals: All Metrics, Ratios and Statistics

ESTEE LAUDER COMPANIES-CL A

NYSE:EL (3/30/2026, 7:58:38 PM)

After market: 67.83 -0.15 (-0.22%)

67.98

+0.75 (+1.12%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)02-05
Earnings (Next)05-01
Inst Owners95.38%
Inst Owner Change7.22%
Ins Owners0.12%
Ins Owner Change-15.98%
Market Cap24.59B
Revenue(TTM)14.67B
Net Income(TTM)-178.00M
Analysts73.71
Price Target108.61 (59.77%)
Short Float %4.81%
Short Ratio2.8
Dividend
Industry RankSector Rank
Dividend Yield 2.01%
Yearly Dividend1.72
Dividend Growth(5Y)4.31%
DP-284.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-27
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)39.67%
Min EPS beat(2)3.39%
Max EPS beat(2)75.96%
EPS beat(4)4
Avg EPS beat(4)44.7%
Min EPS beat(4)0.44%
Max EPS beat(4)99.01%
EPS beat(8)8
Avg EPS beat(8)67.28%
EPS beat(12)11
Avg EPS beat(12)85.85%
EPS beat(16)15
Avg EPS beat(16)67.66%
Revenue beat(2)0
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-2.83%
Max Revenue beat(2)-0.06%
Revenue beat(4)0
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-2.83%
Max Revenue beat(4)-0.06%
Revenue beat(8)0
Avg Revenue beat(8)-2.05%
Revenue beat(12)1
Avg Revenue beat(12)-1.74%
Revenue beat(16)2
Avg Revenue beat(16)-1.86%
PT rev (1m)0.06%
PT rev (3m)4.7%
EPS NQ rev (1m)-0.9%
EPS NQ rev (3m)-12.05%
EPS NY rev (1m)3.28%
EPS NY rev (3m)3.52%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.27%
Valuation
Industry RankSector Rank
PE 34.86
Fwd PE 21.55
P/S 1.68
P/FCF 21.63
P/OCF 14.72
P/B 6.1
P/tB N/A
EV/EBITDA 12.88
EPS(TTM)1.95
EY2.87%
EPS(NY)3.15
Fwd EY4.64%
FCF(TTM)3.14
FCFY4.62%
OCF(TTM)4.62
OCFY6.79%
SpS40.55
BVpS11.14
TBVpS-4.98
PEG (NY)0.66
PEG (5Y)N/A
Graham Number22.11
Profitability
Industry RankSector Rank
ROA -0.91%
ROE -4.42%
ROCE 9.79%
ROIC 7.73%
ROICexc 9.85%
ROICexgc 20.39%
OM 9.59%
PM (TTM) N/A
GM 74.33%
FCFM 7.75%
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 RankSector Rank
Debt/Equity 1.82
Debt/FCF 6.44
Debt/EBITDA 3.3
Cap/Depr 65.72%
Cap/Sales 3.63%
Interest Coverage 4.11
Cash Conversion 75.33%
Profit Quality N/A
Current Ratio 1.36
Quick Ratio 1
Altman-Z 2.86
F-Score5
WACC7.86%
ROIC/WACC0.98
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)-17.72%
EPS 3Y-40.77%
EPS 5Y-18.22%
EPS Q2Q%43.55%
EPS Next Y52.86%
EPS Next 2Y45.01%
EPS Next 3Y37.26%
EPS Next 5Y27.2%
Revenue 1Y (TTM)-3.35%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%5.62%
Revenue Next Year4.58%
Revenue Next 2Y4.39%
Revenue Next 3Y4.49%
Revenue Next 5Y4.72%
EBIT growth 1Y-5.06%
EBIT growth 3Y-31.36%
EBIT growth 5Y-11.51%
EBIT Next Year112.37%
EBIT Next 3Y39.86%
EBIT Next 5Y25.98%
FCF growth 1Y176.82%
FCF growth 3Y-30.55%
FCF growth 5Y-16.56%
OCF growth 1Y-12.88%
OCF growth 3Y-25.21%
OCF growth 5Y-11.02%

ESTEE LAUDER COMPANIES-CL A / EL Fundamental Analysis 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.


What is the valuation status for EL stock?

ChartMill assigns a valuation rating of 4 / 10 to ESTEE LAUDER COMPANIES-CL A (EL). This can be considered as Fairly Valued.


What is the profitability of EL stock?

ESTEE LAUDER COMPANIES-CL A (EL) has a profitability rating of 5 / 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 34.86 and the Price/Book (PB) ratio is 6.1.


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 -284.83%.