ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EL - US5184391044 - Common Stock
105.27 USD
-3.28 (-3.02%)
105.21 USD
-0.06 (-0.06%)
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. 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
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.
EL has a worse Return On Equity (-23.91%) than 66.67% of its industry peers.
EL has a better Return On Invested Capital (6.99%) than 66.67% of its industry peers.
EL had an Average Return On Invested Capital over the past 3 years of 7.43%. This 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 has a better Operating Margin (8.72%) than 69.44% of its industry peers.
EL's Operating Margin has declined in the last couple of years.
EL has a better Gross Margin (74.18%) than 80.56% 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 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EL is destroying value.
The number of shares outstanding for EL has been increased compared to 1 year ago.
EL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.42 indicates that EL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.42, EL is doing good in the industry, outperforming 63.89% of the companies in the same industry.
EL has a debt to FCF ratio of 7.01. This is a slightly negative value and a sign of low solvency as EL would need 7.01 years to pay back of all of its debts.
The Debt to FCF ratio of EL (7.01) is better than 63.89% of its industry peers.
EL has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.88, EL is doing worse than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | 3.42 |
ROIC/WACC0.88
WACC7.97%
2.3 Liquidity
A Current Ratio of 1.32 indicates that EL should not have too much problems paying 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 61.11% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 0.04% on average over the past years.
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
Based on estimates for the next years, EL will show a very strong growth in Earnings Per Share. The EPS will grow by 28.75% on average per year.
EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.86% yearly.
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.
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 62.66 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.
EL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.92.
With a Price/Forward Earnings ratio of 34.37, EL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as EL.
EL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.66 | ||
| Fwd PE | 34.37 |
4.2 Price Multiples
EL's Enterprise Value to EBITDA ratio is in line with the industry average.
EL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.3 | ||
| EV/EBITDA | 21.25 |
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 36.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.31
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%. Purely for dividend investing, there may be better candidates out there.
EL's Dividend Yield is a higher than the industry average which is at 2.09.
Compared to the average S&P500 Dividend Yield of 1.94, 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 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
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%
105.27
-3.28 (-3.02%)
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 Cap37.94B
Revenue(TTM)14.44B
Net Income(TTM)-930.00M
Analysts71.11
Price Target104.59 (-0.65%)
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 | 62.66 | ||
| Fwd PE | 34.37 | ||
| P/S | 2.63 | ||
| P/FCF | 36.3 | ||
| P/OCF | 23.68 | ||
| P/B | 9.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.25 |
EPS(TTM)1.68
EY1.6%
EPS(NY)3.06
Fwd EY2.91%
FCF(TTM)2.9
FCFY2.75%
OCF(TTM)4.45
OCFY4.22%
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 | 3.42 |
F-Score5
WACC7.97%
ROIC/WACC0.88
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 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 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 62.66 and the Price/Book (PB) ratio is 9.75.
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%.