ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EL - US5184391044 - Common Stock
106.7 USD
-0.95 (-0.88%)
106.7 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to EL. EL was compared to 36 industry peers in the Personal Care Products industry. There are concerns on the financial health of EL while its profitability can be described as average. 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.
In the past year EL had a positive cash flow from operations.
EL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years EL had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -4.81%, EL is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
EL's Return On Equity of -23.91% is on the low side compared to the rest of the industry. EL is outperformed by 69.44% 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 11.83%.
| Industry Rank | Sector 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%
1.3 Margins
The Operating Margin of EL (8.72%) is better than 69.44% of its industry peers.
In the last couple of years the Operating Margin of EL has declined.
The Gross Margin of EL (74.18%) is better than 77.78% 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 | 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EL is destroying value.
EL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EL has less shares outstanding
Compared to 1 year ago, EL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.40 indicates that EL is not in any danger for bankruptcy at the moment.
The Altman-Z score of EL (3.40) is better than 66.67% of its industry peers.
The Debt to FCF ratio of EL is 7.01, which is on the high side as it means it would take EL, 7.01 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EL (7.01) is better than 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 worse Debt to Equity ratio (1.88) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | 3.4 |
ROIC/WACC0.88
WACC7.95%
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's Current ratio of 1.32 is on the low side compared to the rest of the industry. EL is outperformed by 63.89% of its industry peers.
A Quick Ratio of 0.92 indicates that EL may have some problems paying its short term obligations.
The Quick ratio of EL (0.92) is worse than 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for EL have decreased strongly by -36.12% in the last year.
EL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.22% yearly.
The Revenue has decreased by -6.53% in the past 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)-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
The Earnings Per Share is expected to grow by 28.75% on average over the next years. This is a very strong growth
EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.86% yearly.
EPS Next Y47.67%
EPS Next 2Y42.89%
EPS Next 3Y36.7%
EPS Next 5Y28.75%
Revenue Next Year4.3%
Revenue Next 2Y4.18%
Revenue Next 3Y4.41%
Revenue Next 5Y3.86%
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.
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 63.51, 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 26.84. EL is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 34.84, the valuation of EL can be described as expensive.
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 (23.40), we can say EL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.51 | ||
| Fwd PE | 34.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EL is on the same level as its industry peers.
EL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.79 | ||
| EV/EBITDA | 20.93 |
4.3 Compensation for Growth
EL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EL's earnings are expected to grow with 36.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.33
PEG (5Y)N/A
EPS Next 2Y42.89%
EPS Next 3Y36.7%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.30%.
Compared to an average industry Dividend Yield of 2.06, EL pays a bit more dividend than its industry peers.
EL's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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
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-54.3%
EPS Next 2Y42.89%
EPS Next 3Y36.7%
106.7
-0.95 (-0.88%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners91.7%
Inst Owner Change-0.07%
Ins Owners0.12%
Ins Owner Change-16.48%
Market Cap38.45B
Revenue(TTM)14.44B
Net Income(TTM)-930.00M
Analysts71.11
Price Target104.59 (-1.98%)
Short Float %3.81%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend1.72
Dividend Growth(5Y)4.31%
DP-54.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.2%
Min EPS beat(2)0.44%
Max EPS beat(2)75.96%
EPS beat(4)4
Avg EPS beat(4)65.82%
Min EPS beat(4)0.44%
Max EPS beat(4)99.01%
EPS beat(8)8
Avg EPS beat(8)73.78%
EPS beat(12)11
Avg EPS beat(12)86.84%
EPS beat(16)15
Avg EPS beat(16)68.13%
Revenue beat(2)0
Avg Revenue beat(2)-1.33%
Min Revenue beat(2)-2.6%
Max Revenue beat(2)-0.06%
Revenue beat(4)0
Avg Revenue beat(4)-1.67%
Min Revenue beat(4)-2.6%
Max Revenue beat(4)-0.06%
Revenue beat(8)0
Avg Revenue beat(8)-1.81%
Revenue beat(12)1
Avg Revenue beat(12)-1.68%
Revenue beat(16)2
Avg Revenue beat(16)-1.82%
PT rev (1m)2.34%
PT rev (3m)15.26%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)3.03%
EPS NY rev (1m)0.64%
EPS NY rev (3m)4.23%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.51 | ||
| Fwd PE | 34.84 | ||
| P/S | 2.66 | ||
| P/FCF | 36.79 | ||
| P/OCF | 24 | ||
| P/B | 9.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.93 |
EPS(TTM)1.68
EY1.57%
EPS(NY)3.06
Fwd EY2.87%
FCF(TTM)2.9
FCFY2.72%
OCF(TTM)4.45
OCFY4.17%
SpS40.08
BVpS10.79
TBVpS-5.37
PEG (NY)1.33
PEG (5Y)N/A
Graham Number20.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.81% | ||
| ROE | -23.91% | ||
| ROCE | 8.84% | ||
| ROIC | 6.99% | ||
| ROICexc | 8.28% | ||
| ROICexgc | 16.05% | ||
| OM | 8.72% | ||
| PM (TTM) | N/A | ||
| GM | 74.18% | ||
| FCFM | 7.24% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 7.01 | ||
| Debt/EBITDA | 3.52 | ||
| Cap/Depr | 67.84% | ||
| Cap/Sales | 3.86% | ||
| Interest Coverage | 3.58 | ||
| Cash Conversion | 76.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 3.4 |
F-Score5
WACC7.95%
ROIC/WACC0.88
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)-36.12%
EPS 3Y-40.77%
EPS 5Y-18.22%
EPS Q2Q%128.57%
EPS Next Y47.67%
EPS Next 2Y42.89%
EPS Next 3Y36.7%
EPS Next 5Y28.75%
Revenue 1Y (TTM)-6.53%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%3.57%
Revenue Next Year4.3%
Revenue Next 2Y4.18%
Revenue Next 3Y4.41%
Revenue Next 5Y3.86%
EBIT growth 1Y-21.3%
EBIT growth 3Y-31.36%
EBIT growth 5Y-11.51%
EBIT Next Year107.02%
EBIT Next 3Y38.61%
EBIT Next 5Y27.48%
FCF growth 1Y171.62%
FCF growth 3Y-30.55%
FCF growth 5Y-16.56%
OCF growth 1Y-18.8%
OCF growth 3Y-25.21%
OCF growth 5Y-11.02%
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 4 / 10 to EL.
Can you provide the valuation status for ESTEE LAUDER COMPANIES-CL A?
ChartMill assigns a valuation rating of 3 / 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.
Can you provide the financial health for EL stock?
The financial health rating of ESTEE LAUDER COMPANIES-CL A (EL) is 3 / 10.
What is the earnings growth outlook for ESTEE LAUDER COMPANIES-CL A?
The Earnings per Share (EPS) of ESTEE LAUDER COMPANIES-CL A (EL) is expected to grow by 47.67% in the next year.