ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis

NYSE:EL • US5184391044

114.23 USD
+2.49 (+2.23%)
At close: Feb 20, 2026
114.24 USD
+0.01 (+0.01%)
After Hours: 2/20/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Taking everything into account, EL scores 4 out of 10 in our fundamental rating. EL was compared to 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.


Dividend Valuation Growth Profitability Health

5

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.
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

  • The Return On Assets of EL (-0.91%) is comparable to the rest of the industry.
  • With a Return On Equity value of -4.42%, EL perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 7.73%, EL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for EL is below the industry average of 11.55%.
  • 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

  • EL's Operating Margin of 9.59% is fine compared to the rest of the industry. EL outperforms 72.22% 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 74.33%, 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 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

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
  • Compared to 5 years ago, EL has less shares outstanding
  • Compared to 1 year ago, EL has a worse debt to assets ratio.
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

  • An Altman-Z score of 3.48 indicates that EL is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.48, EL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • The Debt to FCF ratio of EL is 6.44, which is on the high side as it means it would take EL, 6.44 years of fcf income to pay off all of its debts.
  • EL's Debt to FCF ratio of 6.44 is fine compared to the rest of the industry. EL outperforms 61.11% of its industry peers.
  • EL has a Debt/Equity ratio of 1.82. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.82, EL is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 6.44
Altman-Z 3.48
ROIC/WACC0.97
WACC7.94%
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

  • EL has a Current Ratio of 1.36. This is a normal value and indicates that EL is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.36, EL is doing worse than 63.89% of the companies in the same industry.
  • A Quick Ratio of 1.00 indicates that EL may have some problems paying its short term obligations.
  • EL's Quick ratio of 1.00 is on the low side compared to the rest of the industry. EL is outperformed by 61.11% of its industry peers.
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. Growth

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%.
  • 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)-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

  • Based on estimates for the next years, EL will show a very strong growth in Earnings Per Share. The EPS will grow by 28.85% on average per year.
  • Based on estimates for the next years, EL will show a small growth in Revenue. The Revenue will grow by 4.55% on average per year.
EPS Next Y48.01%
EPS Next 2Y43.32%
EPS Next 3Y36.97%
EPS Next 5Y28.85%
Revenue Next Year4.29%
Revenue Next 2Y4.14%
Revenue Next 3Y4.3%
Revenue Next 5Y4.55%

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.
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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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 58.58, which means the current valuation is very expensive for EL.
  • The rest of the industry has a similar Price/Earnings ratio as EL.
  • EL is valuated expensively when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
  • EL is valuated quite expensively with a Price/Forward Earnings ratio of 37.07.
  • The rest of the industry has a similar Price/Forward Earnings ratio as EL.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, EL is valued a bit more expensive.
Industry RankSector Rank
PE 58.58
Fwd PE 37.07
EL Price Earnings VS Forward Price EarningsEL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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.
  • EL's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 36.34
EV/EBITDA 20.14
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

  • EL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • EL's earnings are expected to grow with 36.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)N/A
EPS Next 2Y43.32%
EPS Next 3Y36.97%

More info and screens

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

4

5. Dividend

5.1 Amount

  • EL has a Yearly Dividend Yield of 1.29%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.61, EL pays a bit more dividend than its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.81, EL is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.29%

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 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 2Y43.32%
EPS Next 3Y36.97%
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

Find the best dividend stocksShow peers with best dividend

ESTEE LAUDER COMPANIES-CL A

NYSE:EL (2/20/2026, 8:04:00 PM)

After market: 114.24 +0.01 (+0.01%)

114.23

+2.49 (+2.23%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)02-05
Earnings (Next)05-01
Inst Owners91.48%
Inst Owner Change7.11%
Ins Owners0.12%
Ins Owner Change-16.48%
Market Cap41.32B
Revenue(TTM)14.67B
Net Income(TTM)-178.00M
Analysts73.14
Price Target109.43 (-4.2%)
Short Float %3.49%
Short Ratio2.18
Dividend
Industry RankSector Rank
Dividend Yield 1.29%
Yearly Dividend1.72
Dividend Growth(5Y)4.31%
DP-284.83%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)4.63%
PT rev (3m)13.25%
EPS NQ rev (1m)-11.56%
EPS NQ rev (3m)-10.84%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)-0.63%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.4%
Valuation
Industry RankSector Rank
PE 58.58
Fwd PE 37.07
P/S 2.82
P/FCF 36.34
P/OCF 24.74
P/B 10.25
P/tB N/A
EV/EBITDA 20.14
EPS(TTM)1.95
EY1.71%
EPS(NY)3.08
Fwd EY2.7%
FCF(TTM)3.14
FCFY2.75%
OCF(TTM)4.62
OCFY4.04%
SpS40.55
BVpS11.14
TBVpS-4.98
PEG (NY)1.22
PEG (5Y)N/A
Graham Number22.11
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 3.48
F-Score5
WACC7.94%
ROIC/WACC0.97
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 Y48.01%
EPS Next 2Y43.32%
EPS Next 3Y36.97%
EPS Next 5Y28.85%
Revenue 1Y (TTM)-3.35%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%5.62%
Revenue Next Year4.29%
Revenue Next 2Y4.14%
Revenue Next 3Y4.3%
Revenue Next 5Y4.55%
EBIT growth 1Y-5.06%
EBIT growth 3Y-31.36%
EBIT growth 5Y-11.51%
EBIT Next Year108.86%
EBIT Next 3Y38.7%
EBIT Next 5Y26.64%
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 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 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 5 / 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 58.58 and the Price/Book (PB) ratio is 10.25.


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 -284.83%.