ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
NYSE:EL - New York Stock Exchange, Inc. - US5184391044 - Common Stock - Currency: USD
EL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 35 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. EL is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years EL has been profitable.
In the past 5 years EL always reported a positive cash flow from operatings.
1.2 Ratios
EL's Return On Assets of -3.54% is on the low side compared to the rest of the industry. EL is outperformed by 62.86% of its industry peers.
EL has a worse Return On Equity (-16.79%) than 60.00% of its industry peers.
The Return On Invested Capital of EL (6.30%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for EL is significantly below the industry average of 15.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.54% | ||
| ROE | -16.79% | ||
| ROIC | 6.3% |
ROA(3y)5.84%
ROA(5y)6.89%
ROE(3y)22.7%
ROE(5y)26.57%
ROIC(3y)9.14%
ROIC(5y)9.86%
1.3 Margins
In the last couple of years the Profit Margin of EL has declined.
EL has a Operating Margin of 9.76%. This is in the better half of the industry: EL outperforms 65.71% of its industry peers.
In the last couple of years the Operating Margin of EL has declined.
EL has a Gross Margin of 73.09%. This is in the better half of the industry: EL outperforms 80.00% of its industry peers.
EL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.76% | ||
| PM (TTM) | N/A | ||
| GM | 73.09% |
OM growth 3Y-18.75%
OM growth 5Y-10.71%
PM growth 3Y-47.93%
PM growth 5Y-26.95%
GM growth 3Y-2.09%
GM growth 5Y-1.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EL is creating some value.
The number of shares outstanding for EL has been increased compared to 1 year ago.
The number of shares outstanding for EL has been reduced compared to 5 years ago.
The debt/assets ratio for EL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.76 indicates that EL is not a great score, but indicates only limited risk for bankruptcy at the moment.
EL has a Altman-Z score (2.76) which is comparable to the rest of the industry.
EL has a debt to FCF ratio of 6.36. This is a slightly negative value and a sign of low solvency as EL would need 6.36 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.36, EL is doing good in the industry, outperforming 62.86% of the companies in the same industry.
A Debt/Equity ratio of 1.75 is on the high side and indicates that EL has dependencies on debt financing.
EL's Debt to Equity ratio of 1.75 is on the low side compared to the rest of the industry. EL is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 6.36 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.87
WACC7.21%
2.3 Liquidity
A Current Ratio of 1.37 indicates that EL should not have too much problems paying its short term obligations.
EL has a Current ratio (1.37) which is in line with its industry peers.
A Quick Ratio of 0.97 indicates that EL may have some problems paying its short term obligations.
EL's Quick ratio of 0.97 is in line compared to the rest of the industry. EL outperforms 45.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.90% over the past year.
EL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.41% yearly.
The Revenue has decreased by -0.02% in the past year.
The Revenue has been growing slightly by 0.98% on average over the past years.
EPS 1Y (TTM)54.9%
EPS 3Y-26.13%
EPS 5Y-13.41%
EPS Q2Q%-29.55%
Revenue 1Y (TTM)-0.02%
Revenue growth 3Y-1.26%
Revenue growth 5Y0.98%
Sales Q2Q%-6.43%
3.2 Future
Based on estimates for the next years, EL will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.95% on average per year.
EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.45% yearly.
EPS Next Y-44.67%
EPS Next 2Y-2.68%
EPS Next 3Y8.07%
EPS Next 5Y12.95%
Revenue Next Year-6.92%
Revenue Next 2Y-2.43%
Revenue Next 3Y-0.21%
Revenue Next 5Y2.45%
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
The Price/Earnings ratio is 22.98, which indicates a rather expensive current valuation of EL.
EL's Price/Earnings ratio is in line with the industry average.
EL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.12 indicates a rather expensive valuation of EL.
EL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of EL to the average of the S&P500 Index (21.08), we can say EL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 22.12 |
4.2 Price Multiples
62.86% of the companies in the same industry are more expensive than EL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EL is valued a bit cheaper than 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.11 | ||
| EV/EBITDA | 10.5 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.68%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.63%, EL has a reasonable but not impressive dividend return.
The stock price of EL dropped by -30.04% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
EL's Dividend Yield is a higher than the industry average which is at 5.81.
EL's Dividend Yield is comparable with the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
5.2 History
On average, the dividend of EL grows each year by 9.59%, which is quite nice.
EL has paid a dividend for at least 10 years, which is a reliable track record.
EL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.59%
Div Incr Years3
Div Non Decr Years3
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-119.86%
EPS Next 2Y-2.68%
EPS Next 3Y8.07%
54.47
+1.81 (+3.44%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners95.03%
Inst Owner Change-0.04%
Ins Owners0.13%
Ins Owner Change2.66%
Market Cap19.59B
Analysts65.64
Price Target76.15 (39.8%)
Short Float %4.04%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
Yearly Dividend2.64
Dividend Growth(5Y)9.59%
DP-119.86%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)65.81%
Min EPS beat(2)43.76%
Max EPS beat(2)87.87%
EPS beat(4)4
Avg EPS beat(4)89.87%
Min EPS beat(4)43.76%
Max EPS beat(4)133.75%
EPS beat(8)7
Avg EPS beat(8)106.42%
EPS beat(12)11
Avg EPS beat(12)75.32%
EPS beat(16)15
Avg EPS beat(16)61.99%
Revenue beat(2)0
Avg Revenue beat(2)-2.62%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)-2.01%
Revenue beat(4)0
Avg Revenue beat(4)-2.22%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)-1.43%
Revenue beat(8)1
Avg Revenue beat(8)-1.67%
Revenue beat(12)2
Avg Revenue beat(12)-1.86%
Revenue beat(16)4
Avg Revenue beat(16)-1.7%
PT rev (1m)-0.26%
PT rev (3m)-6.51%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)-50.96%
EPS NY rev (1m)0.27%
EPS NY rev (3m)-11.13%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-5.74%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 22.12 | ||
| P/S | 1.29 | ||
| P/FCF | 17.11 | ||
| P/OCF | 10.83 | ||
| P/B | 4.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.5 |
EPS(TTM)2.37
EY4.35%
EPS(NY)2.46
Fwd EY4.52%
FCF(TTM)3.18
FCFY5.84%
OCF(TTM)5.03
OCFY9.24%
SpS42.19
BVpS11.59
TBVpS-5.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.54% | ||
| ROE | -16.79% | ||
| ROCE | 10.06% | ||
| ROIC | 6.3% | ||
| ROICexc | 7.64% | ||
| ROICexgc | 15.69% | ||
| OM | 9.76% | ||
| PM (TTM) | N/A | ||
| GM | 73.09% | ||
| FCFM | 7.54% |
ROA(3y)5.84%
ROA(5y)6.89%
ROE(3y)22.7%
ROE(5y)26.57%
ROIC(3y)9.14%
ROIC(5y)9.86%
ROICexc(3y)12.1%
ROICexc(5y)13.99%
ROICexgc(3y)27.91%
ROICexgc(5y)31.23%
ROCE(3y)14.59%
ROCE(5y)15.74%
ROICexcg growth 3Y-21.07%
ROICexcg growth 5Y-22.32%
ROICexc growth 3Y-21.66%
ROICexc growth 5Y-23.4%
OM growth 3Y-18.75%
OM growth 5Y-10.71%
PM growth 3Y-47.93%
PM growth 5Y-26.95%
GM growth 3Y-2.09%
GM growth 5Y-1.48%
F-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 6.36 | ||
| Debt/EBITDA | 3.15 | ||
| Cap/Depr | 79.93% | ||
| Cap/Sales | 4.38% | ||
| Interest Coverage | 4.23 | ||
| Cash Conversion | 78.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 2.76 |
F-Score6
WACC7.21%
ROIC/WACC0.87
Cap/Depr(3y)232.17%
Cap/Depr(5y)179.27%
Cap/Sales(3y)10.8%
Cap/Sales(5y)8.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)54.9%
EPS 3Y-26.13%
EPS 5Y-13.41%
EPS Q2Q%-29.55%
EPS Next Y-44.67%
EPS Next 2Y-2.68%
EPS Next 3Y8.07%
EPS Next 5Y12.95%
Revenue 1Y (TTM)-0.02%
Revenue growth 3Y-1.26%
Revenue growth 5Y0.98%
Sales Q2Q%-6.43%
Revenue Next Year-6.92%
Revenue Next 2Y-2.43%
Revenue Next 3Y-0.21%
Revenue Next 5Y2.45%
EBIT growth 1Y41.99%
EBIT growth 3Y-19.77%
EBIT growth 5Y-9.83%
EBIT Next Year28.58%
EBIT Next 3Y21.14%
EBIT Next 5Y16.56%
FCF growth 1Y21.16%
FCF growth 3Y-21.63%
FCF growth 5Y-4.06%
OCF growth 1Y-6.94%
OCF growth 3Y-13.38%
OCF growth 5Y-1.28%