ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EL - US5184391044 - Common Stock
115.65 USD
-1.26 (-1.08%)
115.074 USD
-0.58 (-0.5%)
Overall EL gets a fundamental rating of 3 out of 10. We evaluated EL against 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.
- EL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- EL's Return On Assets of -4.81% is on the low side compared to the rest of the industry. EL is outperformed by 63.89% of its industry peers.
- The Return On Equity of EL (-23.91%) is worse than 66.67% of its industry peers.
- EL has a Return On Invested Capital of 6.99%. This is in the better half of the industry: EL outperforms 66.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- With a decent Operating Margin value of 8.72%, EL is doing good in the industry, outperforming 69.44% 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 74.18%, EL belongs to the best of the industry, outperforming 80.56% 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 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EL is destroying value.
- Compared to 1 year ago, EL has more shares outstanding
- EL has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, EL has a worse debt to assets ratio.
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.
- The Altman-Z score of EL (3.52) is better than 63.89% 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.
- EL's Debt to FCF ratio of 7.01 is fine compared to the rest of the industry. EL outperforms 63.89% of its industry peers.
- A Debt/Equity ratio of 1.88 is on the high side and indicates that EL has dependencies on debt financing.
- EL has a worse Debt to Equity ratio (1.88) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | 3.52 |
ROIC/WACC0.87
WACC8.01%
2.3 Liquidity
- A Current Ratio of 1.32 indicates that EL should not have too much problems paying its short term obligations.
- EL has a worse Current ratio (1.32) than 63.89% of its industry peers.
- 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 of 0.92. This is in the lower half of the industry: EL underperforms 61.11% 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.
- The earnings per share for EL have been decreasing by -18.22% on average. This is quite bad
- Looking at the last year, EL shows a decrease in Revenue. The Revenue has decreased by -6.53% in the last 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
- Based on estimates for the next years, EL will show a very strong growth in Earnings Per Share. The EPS will grow by 28.74% on average per year.
- The Revenue is expected to grow by 4.05% on average over the next years.
EPS Next Y47.67%
EPS Next 2Y42.89%
EPS Next 3Y36.7%
EPS Next 5Y28.74%
Revenue Next Year4.3%
Revenue Next 2Y4.18%
Revenue Next 3Y4.41%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 68.84, EL can be considered very expensive at the moment.
- EL's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.54, EL is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 37.76, the valuation of EL can be described as expensive.
- EL's Price/Forward Earnings ratio is in line with the industry average.
- EL is valuated expensively when we compare the Price/Forward Earnings ratio to 24.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.84 | ||
| Fwd PE | 37.76 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as EL.
- EL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.88 | ||
| EV/EBITDA | 22.48 |
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 36.70% in the coming years.
PEG (NY)1.44
PEG (5Y)N/A
EPS Next 2Y42.89%
EPS Next 3Y36.7%
5. Dividend
5.1 Amount
- EL has a Yearly Dividend Yield of 1.27%.
- Compared to an average industry Dividend Yield of 2.04, EL pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.92, EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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
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%
115.65
-1.26 (-1.08%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-05 2026-02-05/bmo
Inst Owners91.48%
Inst Owner Change0.14%
Ins Owners0.12%
Ins Owner Change-16.48%
Market Cap41.68B
Revenue(TTM)14.44B
Net Income(TTM)-930.00M
Analysts72
Price Target104.59 (-9.56%)
Short Float %3.81%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend1.72
Dividend Growth(5Y)4.31%
DP-54.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)2.04%
PT rev (3m)14.09%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)3.1%
EPS NY rev (1m)0.15%
EPS NY rev (3m)4.23%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)2.19%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.84 | ||
| Fwd PE | 37.76 | ||
| P/S | 2.89 | ||
| P/FCF | 39.88 | ||
| P/OCF | 26.01 | ||
| P/B | 10.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.48 |
EPS(TTM)1.68
EY1.45%
EPS(NY)3.06
Fwd EY2.65%
FCF(TTM)2.9
FCFY2.51%
OCF(TTM)4.45
OCFY3.84%
SpS40.08
BVpS10.79
TBVpS-5.37
PEG (NY)1.44
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 | 3.52 |
F-Score5
WACC8.01%
ROIC/WACC0.87
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 5Y28.74%
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 5Y4.05%
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 5Y27.84%
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 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 68.84 and the Price/Book (PB) ratio is 10.71.
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%.