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. EL has a medium profitability rating, but doesn't score so well on its financial health evaluation. EL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EL was profitable.
In the past year EL had a positive cash flow from operations.
Each year in the past 5 years EL has been profitable.
EL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EL has a Return On Assets (0.95%) which is comparable to the rest of the industry.
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's Return On Invested Capital of 6.33% is in line compared to the rest of the industry. EL outperforms 60.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EL is below the industry average of 13.26%.
| 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.
In the last couple of years the Profit Margin of EL has declined.
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's Gross Margin of 72.29% is fine compared to the rest 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EL is creating some 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.
The debt/assets ratio for EL is higher compared to a year ago.
2.2 Solvency
EL has an Altman-Z score of 2.81. 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.
EL has a Altman-Z score (2.81) which is comparable to the rest of the industry.
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.
EL has a Debt to FCF ratio (5.86) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.44 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 1.44, EL is doing worse than 88.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 5.86 | ||
| Altman-Z | 2.81 |
ROIC/WACC0.84
WACC7.51%
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.
With a Current ratio value of 1.32, EL is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
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 (0.90) which is in line with 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.
EL shows a decrease in Revenue. In the last year, the revenue decreased by -0.44%.
EL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.98% yearly.
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
The Earnings Per Share is expected to grow by 27.72% on average over the next years. This is a very strong growth
Based on estimates for the next years, EL will show a small growth in Revenue. The Revenue will grow by 7.71% on average per year.
EPS Next Y-37.36%
EPS Next 2Y2.72%
EPS Next 3Y12.96%
EPS Next 5Y27.72%
Revenue Next Year-4.83%
Revenue Next 2Y-0.58%
Revenue Next 3Y1.31%
Revenue Next 5Y7.71%
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
EL is valuated quite expensively with a Price/Earnings ratio of 25.41.
Compared to the rest of the industry, the Price/Earnings ratio of EL is on the same level as its industry peers.
EL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
EL is valuated rather expensively with a Price/Forward Earnings ratio of 24.36.
Based on the Price/Forward Earnings ratio, EL is valued a bit cheaper than the industry average as 62.86% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.82. EL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.41 | ||
| Fwd PE | 24.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EL is valued a bit cheaper than the industry average as 74.29% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EL is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18 | ||
| EV/EBITDA | 12.12 |
4.3 Compensation for Growth
EL's earnings are expected to grow with 12.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.72%
EPS Next 3Y12.96%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 2.16%.
In the last 3 months the price of EL has falen by -28.67%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.93, EL pays a bit more dividend than its industry peers.
EL's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
On average, the dividend of EL grows each year by 9.59%, which is quite nice.
EL has been paying a dividend for at least 10 years, so it has 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.
EL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP468.47%
EPS Next 2Y2.72%
EPS Next 3Y12.96%
ESTEE LAUDER COMPANIES-CL A
NYSE:EL (11/21/2024, 8:24:27 PM)
Premarket: 66.9 +0.06 (+0.09%)66.84
+1.51 (+2.31%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap23.99B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.41 | ||
| Fwd PE | 24.36 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 3.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.36% | ||
| PM (TTM) | 1.31% | ||
| GM | 72.29% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)20.09%
EPS 3Y-26.13%
EPS 5Y
EPS Q2Q%
EPS Next Y-37.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.44%
Revenue growth 3Y-1.26%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y