ESTEE LAUDER COMPANIES-CL A (EL) Fundamental Analysis & Valuation

NYSE:EL • US5184391044

Current stock price

77.1 USD
-0.22 (-0.28%)
At close:
76.69 USD
-0.41 (-0.53%)
After Hours:

This EL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. EL Profitability Analysis

1.1 Basic Checks

  • EL had positive earnings in the past year.
  • EL had a positive operating cash flow in the past year.
  • 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.
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

  • With a Return On Assets value of -0.91%, EL perfoms like the industry average, outperforming 54.05% of the companies in the same industry.
  • EL has a Return On Equity (-4.42%) which is in line with its industry peers.
  • EL has a better Return On Invested Capital (7.73%) than 70.27% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for EL is below the industry average of 10.52%.
  • The 3 year average ROIC (7.43%) for EL is below the current ROIC(7.73%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -0.91%
ROE -4.42%
ROIC 7.73%
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

  • The Operating Margin of EL (9.59%) is better than 75.68% of its industry peers.
  • In the last couple of years the Operating Margin of EL has declined.
  • EL's Gross Margin of 74.33% is amongst the best of the industry. EL outperforms 83.78% 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 RankSector Rank
OM 9.59%
PM (TTM) N/A
GM 74.33%
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. EL Health Analysis

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
  • 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 3.00. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of EL (3.00) is better than 67.57% of its industry peers.
  • EL has a debt to FCF ratio of 6.44. This is a slightly negative value and a sign of low solvency as EL would need 6.44 years to pay back of all of its debts.
  • With a Debt to FCF ratio value of 6.44, EL perfoms like the industry average, outperforming 59.46% of the companies in the same industry.
  • EL has a Debt/Equity ratio of 1.82. This is a high value indicating a heavy dependency on external financing.
  • EL's Debt to Equity ratio of 1.82 is on the low side compared to the rest of the industry. EL is outperformed by 72.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 6.44
Altman-Z 3
ROIC/WACC0.98
WACC7.86%
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 1.36 indicates that EL should not have too much problems paying its short term obligations.
  • EL has a Current ratio (1.36) which is in line with its industry peers.
  • EL has a Quick Ratio of 1.36. 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 1.00, EL is in line with its industry, outperforming 48.65% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. EL Growth Analysis

3.1 Past

  • The earnings per share for EL have decreased strongly by -17.72% 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.
  • EL shows a decrease in Revenue. In the last year, the revenue decreased by -3.35%.
  • EL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.04% yearly.
EPS 1Y (TTM)-17.72%
EPS 3Y-40.77%
EPS 5Y-18.22%
EPS Q2Q%43.55%
Revenue 1Y (TTM)-3.35%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%5.62%

3.2 Future

  • EL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.52% yearly.
  • The Revenue is expected to grow by 3.90% on average over the next years.
EPS Next Y52.76%
EPS Next 2Y44.89%
EPS Next 3Y37.12%
EPS Next 5Y28.52%
Revenue Next Year4.42%
Revenue Next 2Y4.25%
Revenue Next 3Y4.36%
Revenue Next 5Y3.9%

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.
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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4

4. EL Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 39.54, 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.
  • Compared to an average S&P500 Price/Earnings ratio of 26.91, EL is valued a bit more expensive.
  • A Price/Forward Earnings ratio of 24.48 indicates a rather expensive valuation of EL.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of EL is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 21.99. EL is around the same levels.
Industry RankSector Rank
PE 39.54
Fwd PE 24.48
EL Price Earnings VS Forward Price EarningsEL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, EL is valued a bit cheaper than 62.16% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of EL indicates a somewhat cheap valuation: EL is cheaper than 62.16% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 24.53
EV/EBITDA 14.53
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as EL's earnings are expected to grow with 37.12% in the coming years.
PEG (NY)0.75
PEG (5Y)N/A
EPS Next 2Y44.89%
EPS Next 3Y37.12%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. EL Dividend Analysis

5.1 Amount

  • EL has a Yearly Dividend Yield of 1.83%.
  • In the last 3 months the price of EL has falen by -33.12%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • EL's Dividend Yield is a higher than the industry average which is at 1.71.
  • EL's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.83%

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 2026 0.5 1 1.5 2 2.5

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-284.83%
EPS Next 2Y44.89%
EPS Next 3Y37.12%
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

More info and screens

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EL Fundamentals: All Metrics, Ratios and Statistics

ESTEE LAUDER COMPANIES-CL A

NYSE:EL (4/28/2026, 8:27:00 PM)

After market: 76.69 -0.41 (-0.53%)

77.1

-0.22 (-0.28%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)02-05
Earnings (Next)05-01
Inst Owners95.84%
Inst Owner Change0%
Ins Owners0.13%
Ins Owner Change-15.98%
Market Cap27.89B
Revenue(TTM)14.67B
Net Income(TTM)-178.00M
Analysts73.53
Price Target101.59 (31.76%)
Short Float %3.35%
Short Ratio1.78
Dividend
Industry RankSector Rank
Dividend Yield 1.83%
Yearly Dividend1.72
Dividend Growth(5Y)4.31%
DP-284.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-27
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)39.67%
Min EPS beat(2)3.39%
Max EPS beat(2)75.96%
EPS beat(4)4
Avg EPS beat(4)44.7%
Min EPS beat(4)0.44%
Max EPS beat(4)99.01%
EPS beat(8)8
Avg EPS beat(8)67.28%
EPS beat(12)11
Avg EPS beat(12)85.85%
EPS beat(16)15
Avg EPS beat(16)67.66%
Revenue beat(2)0
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-2.83%
Max Revenue beat(2)-0.06%
Revenue beat(4)0
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-2.83%
Max Revenue beat(4)-0.06%
Revenue beat(8)0
Avg Revenue beat(8)-2.05%
Revenue beat(12)1
Avg Revenue beat(12)-1.74%
Revenue beat(16)2
Avg Revenue beat(16)-1.86%
PT rev (1m)-7.23%
PT rev (3m)-5.29%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)-12.57%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)3.56%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)0.16%
Valuation
Industry RankSector Rank
PE 39.54
Fwd PE 24.48
P/S 1.9
P/FCF 24.53
P/OCF 16.7
P/B 6.92
P/tB N/A
EV/EBITDA 14.53
EPS(TTM)1.95
EY2.53%
EPS(NY)3.15
Fwd EY4.08%
FCF(TTM)3.14
FCFY4.08%
OCF(TTM)4.62
OCFY5.99%
SpS40.55
BVpS11.14
TBVpS-4.98
PEG (NY)0.75
PEG (5Y)N/A
Graham Number22.1117 (-71.32%)
Profitability
Industry RankSector Rank
ROA -0.91%
ROE -4.42%
ROCE 9.79%
ROIC 7.73%
ROICexc 9.85%
ROICexgc 20.39%
OM 9.59%
PM (TTM) N/A
GM 74.33%
FCFM 7.75%
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 RankSector Rank
Debt/Equity 1.82
Debt/FCF 6.44
Debt/EBITDA 3.3
Cap/Depr 65.72%
Cap/Sales 3.63%
Interest Coverage 4.11
Cash Conversion 75.33%
Profit Quality N/A
Current Ratio 1.36
Quick Ratio 1
Altman-Z 3
F-Score5
WACC7.86%
ROIC/WACC0.98
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)-17.72%
EPS 3Y-40.77%
EPS 5Y-18.22%
EPS Q2Q%43.55%
EPS Next Y52.76%
EPS Next 2Y44.89%
EPS Next 3Y37.12%
EPS Next 5Y28.52%
Revenue 1Y (TTM)-3.35%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%5.62%
Revenue Next Year4.42%
Revenue Next 2Y4.25%
Revenue Next 3Y4.36%
Revenue Next 5Y3.9%
EBIT growth 1Y-5.06%
EBIT growth 3Y-31.36%
EBIT growth 5Y-11.51%
EBIT Next Year109.83%
EBIT Next 3Y39.73%
EBIT Next 5Y27.44%
FCF growth 1Y176.82%
FCF growth 3Y-30.55%
FCF growth 5Y-16.56%
OCF growth 1Y-12.88%
OCF growth 3Y-25.21%
OCF growth 5Y-11.02%

ESTEE LAUDER COMPANIES-CL A / EL Fundamental Analysis 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.


What is the valuation status for EL stock?

ChartMill assigns a valuation rating of 4 / 10 to ESTEE LAUDER COMPANIES-CL A (EL). This can be considered as Fairly Valued.


How profitable is ESTEE LAUDER COMPANIES-CL A (EL) stock?

ESTEE LAUDER COMPANIES-CL A (EL) has a profitability rating of 5 / 10.


What is the financial health of ESTEE LAUDER COMPANIES-CL A (EL) stock?

The financial health rating of ESTEE LAUDER COMPANIES-CL A (EL) is 3 / 10.


How sustainable is the dividend of ESTEE LAUDER COMPANIES-CL A (EL) stock?

The dividend rating of ESTEE LAUDER COMPANIES-CL A (EL) is 4 / 10 and the dividend payout ratio is -284.83%.