ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EL - US5184391044 - Common Stock
113.73 USD
+3.46 (+3.14%)
114.166 USD
+0.44 (+0.38%)
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. EL is valied quite expensively at the moment, while it does show a decent growth rate.
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.
EL had positive earnings in 4 of the past 5 years.
In the past 5 years EL always reported a positive cash flow from operatings.
1.2 Ratios
EL has a worse Return On Assets (-4.81%) than 63.89% of its industry peers.
EL has a worse Return On Equity (-23.91%) than 66.67% of its industry peers.
EL's Return On Invested Capital of 6.99% is fine compared to the rest 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
EL's Operating Margin of 8.72% is fine compared to the rest of the industry. EL outperforms 69.44% of its industry peers.
In the last couple of years the Operating Margin of EL has declined.
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 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
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
EL has less shares outstanding than it did 5 years ago.
EL has a worse debt/assets ratio than last year.
2.2 Solvency
EL has an Altman-Z score of 3.45. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.45, EL is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
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 better Debt to FCF ratio (7.01) than 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 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | 3.45 |
ROIC/WACC0.87
WACC8.02%
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.
EL has a worse Quick ratio (0.92) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.92 |
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.
Measured over the past years, EL shows a small growth in Revenue. The Revenue has been growing by 0.04% on average per year.
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
Based on estimates for the next years, EL will show a small growth in Revenue. The Revenue will grow by 3.86% on average per year.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 67.70 indicates a quite expensive valuation of EL.
EL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.19, EL is valued quite expensively.
With a Price/Forward Earnings ratio of 37.14, EL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EL is on the same level as its industry peers.
EL is valuated expensively when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.7 | ||
| Fwd PE | 37.14 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as EL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.22 | ||
| EV/EBITDA | 21.55 |
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)1.42
PEG (5Y)N/A
EPS Next 2Y42.89%
EPS Next 3Y36.7%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.34%.
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 1.90, EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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.
EL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-54.3%
EPS Next 2Y42.89%
EPS Next 3Y36.7%
113.73
+3.46 (+3.14%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners91.48%
Inst Owner Change0.02%
Ins Owners0.12%
Ins Owner Change-16.48%
Market Cap40.98B
Revenue(TTM)14.44B
Net Income(TTM)-930.00M
Analysts71.11
Price Target104.59 (-8.04%)
Short Float %3.81%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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)2.34%
PT rev (3m)15.26%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)3.03%
EPS NY rev (1m)0.15%
EPS NY rev (3m)4.23%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.7 | ||
| Fwd PE | 37.14 | ||
| P/S | 2.84 | ||
| P/FCF | 39.22 | ||
| P/OCF | 25.58 | ||
| P/B | 10.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.55 |
EPS(TTM)1.68
EY1.48%
EPS(NY)3.06
Fwd EY2.69%
FCF(TTM)2.9
FCFY2.55%
OCF(TTM)4.45
OCFY3.91%
SpS40.08
BVpS10.79
TBVpS-5.37
PEG (NY)1.42
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 | 3.45 |
F-Score5
WACC8.02%
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 5Y28.75%
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 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 67.7 and the Price/Book (PB) ratio is 10.54.
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%.