ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:EL • US5184391044

115.28 USD
+0.07 (+0.06%)
At close: Jan 30, 2026
115.39 USD
+0.11 (+0.1%)
After Hours: 1/30/2026, 8:04:00 PM
Fundamental Rating

3

EL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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.


Dividend Valuation Growth Profitability Health

4

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.
  • Of the past 5 years EL 4 years were profitable.
  • 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

  • EL has a Return On Assets of -4.81%. This is in the lower half of the industry: EL underperforms 63.89% of its industry peers.
  • EL has a Return On Equity of -23.91%. This is in the lower half of the industry: EL underperforms 66.67% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 6.99%, EL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for EL is below the industry average of 11.85%.
Industry RankSector 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%
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

  • EL's Operating Margin of 8.72% is fine compared to the rest of the industry. EL outperforms 69.44% of its industry peers.
  • EL's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 74.18%, EL belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
  • EL's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
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. Health

2.1 Basic Checks

  • EL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, EL has more shares outstanding
  • Compared to 5 years ago, EL has less shares outstanding
  • The debt/assets ratio for EL is higher compared to a year ago.
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 3.52. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
  • EL has a Altman-Z score of 3.52. This is in the better half of the industry: EL outperforms 66.67% 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 Debt to FCF ratio of 7.01. This is in the better half of the industry: EL outperforms 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 Debt to Equity ratio of 1.88. This is in the lower half of the industry: EL underperforms 72.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.88
Debt/FCF 7.01
Altman-Z 3.52
ROIC/WACC0.86
WACC8.1%
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

  • 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.
  • With a Quick ratio value of 0.92, EL is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 0.92
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. Growth

3.1 Past

  • EL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.12%.
  • The earnings per share for EL have been decreasing by -18.22% on average. This is quite bad
  • The Revenue has decreased by -6.53% in the past year.
  • The Revenue has been growing slightly by 0.04% on average over the past years.
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

  • EL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.74% yearly.
  • EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y47.51%
EPS Next 2Y43.12%
EPS Next 3Y36.88%
EPS Next 5Y28.74%
Revenue Next Year4.25%
Revenue Next 2Y4.13%
Revenue Next 3Y4.3%
Revenue Next 5Y4.05%

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.
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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2

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 68.62, EL can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Earnings ratio as EL.
  • EL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.30.
  • EL is valuated quite expensively with a Price/Forward Earnings ratio of 37.52.
  • EL's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, EL is valued a bit more expensive.
Industry RankSector Rank
PE 68.62
Fwd PE 37.52
EL Price Earnings VS Forward Price EarningsEL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • EL's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of EL is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 39.75
EV/EBITDA 22.4
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • A more expensive valuation may be justified as EL's earnings are expected to grow with 36.88% in the coming years.
PEG (NY)1.44
PEG (5Y)N/A
EPS Next 2Y43.12%
EPS Next 3Y36.88%

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4

5. Dividend

5.1 Amount

  • EL has a Yearly Dividend Yield of 1.17%.
  • Compared to an average industry Dividend Yield of 1.94, EL pays a bit more dividend than its industry peers.
  • EL's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
Industry RankSector Rank
Dividend Yield 1.17%

5.2 History

  • The dividend of EL has a limited annual growth rate of 4.31%.
  • EL has paid a dividend for at least 10 years, which is 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 0.5 1 1.5 2 2.5

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.
  • The dividend of EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-54.3%
EPS Next 2Y43.12%
EPS Next 3Y36.88%
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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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 68.62 and the Price/Book (PB) ratio is 10.68.


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%.