ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EL - US5184391044 - Common Stock
102.605 USD
+0.58 (+0.56%)
Overall EL gets a fundamental rating of 4 out of 10. We evaluated EL against 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. While showing a medium growth rate, EL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
EL had positive earnings in the past year.
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: 63.89% of the companies in the same industry are doing better.
The Return On Equity of EL (-23.91%) is worse than 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.
EL had an Average Return On Invested Capital over the past 3 years of 7.43%. This is significantly below the industry average of 12.46%.
| 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
EL has a better Operating Margin (8.72%) than 69.44% of its industry peers.
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 83.33% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EL is destroying value.
Compared to 1 year ago, EL has more shares outstanding
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 3.33 indicates that EL is not in any danger for bankruptcy at the moment.
The Altman-Z score of EL (3.33) is better than 61.11% 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 has a Debt to FCF ratio of 7.01. This is in the better half of the industry: EL outperforms 61.11% 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.
The Debt to Equity ratio of EL (1.88) is worse than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | 3.33 |
ROIC/WACC0.89
WACC7.87%
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.
The Current ratio of EL (1.32) is worse 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.
Looking at the Quick ratio, with a value of 0.92, EL is doing worse than 63.89% of the companies in the same industry.
| 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.
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
EL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.75% yearly.
The Revenue is expected to grow by 3.86% on average over the next years.
EPS Next Y46.73%
EPS Next 2Y42.33%
EPS Next 3Y35.62%
EPS Next 5Y28.75%
Revenue Next Year3.87%
Revenue Next 2Y4.03%
Revenue Next 3Y4.21%
Revenue Next 5Y3.86%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 61.07 indicates a quite expensive valuation of EL.
Compared to the rest of the industry, the Price/Earnings ratio of EL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of EL to the average of the S&P500 Index (26.37), we can say EL is valued expensively.
A Price/Forward Earnings ratio of 33.76 indicates a quite expensive valuation of EL.
The rest of the industry has a similar Price/Forward Earnings ratio as EL.
EL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.07 | ||
| Fwd PE | 33.76 |
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 | 35.38 | ||
| EV/EBITDA | 20.12 |
4.3 Compensation for Growth
EL's 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 35.62% in the coming years.
PEG (NY)1.31
PEG (5Y)N/A
EPS Next 2Y42.33%
EPS Next 3Y35.62%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.49%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.12, EL pays a bit more dividend than its industry peers.
EL's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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
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 2Y42.33%
EPS Next 3Y35.62%
NYSE:EL (12/4/2025, 12:34:07 PM)
102.605
+0.58 (+0.56%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners95.71%
Inst Owner Change0.22%
Ins Owners0.13%
Ins Owner Change-16.36%
Market Cap36.97B
Revenue(TTM)14.44B
Net Income(TTM)-930.00M
Analysts70.56
Price Target102.2 (-0.39%)
Short Float %3.76%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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)11.48%
PT rev (3m)18.04%
EPS NQ rev (1m)2.13%
EPS NQ rev (3m)-1.29%
EPS NY rev (1m)3.39%
EPS NY rev (3m)-1.25%
Revenue NQ rev (1m)2.15%
Revenue NQ rev (3m)3.39%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.07 | ||
| Fwd PE | 33.76 | ||
| P/S | 2.56 | ||
| P/FCF | 35.38 | ||
| P/OCF | 23.08 | ||
| P/B | 9.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.12 |
EPS(TTM)1.68
EY1.64%
EPS(NY)3.04
Fwd EY2.96%
FCF(TTM)2.9
FCFY2.83%
OCF(TTM)4.45
OCFY4.33%
SpS40.08
BVpS10.79
TBVpS-5.37
PEG (NY)1.31
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 | 3.33 |
F-Score5
WACC7.87%
ROIC/WACC0.89
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 Y46.73%
EPS Next 2Y42.33%
EPS Next 3Y35.62%
EPS Next 5Y28.75%
Revenue 1Y (TTM)-6.53%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%3.57%
Revenue Next Year3.87%
Revenue Next 2Y4.03%
Revenue Next 3Y4.21%
Revenue Next 5Y3.86%
EBIT growth 1Y-21.3%
EBIT growth 3Y-31.36%
EBIT growth 5Y-11.51%
EBIT Next Year102.81%
EBIT Next 3Y38.28%
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 46.73% in the next year.