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

NYSE:EL • US5184391044

Current stock price

79.3 USD
+2.59 (+3.38%)
At close:
79.18 USD
-0.12 (-0.15%)
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

  • In the past year EL was profitable.
  • In the past year EL had a positive cash flow from operations.
  • Of the past 5 years EL 4 years were profitable.
  • 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

  • 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 Return On Invested Capital of 7.73%. This is in the better half of the industry: EL outperforms 70.27% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for EL is below the industry average of 10.52%.
  • The last Return On Invested Capital (7.73%) for EL is above the 3 year average (7.43%), which is a sign of increasing profitability.
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

  • Looking at the Operating Margin, with a value of 9.59%, EL is in the better half of the industry, outperforming 75.68% of the companies in the same industry.
  • EL's Operating Margin has declined in the last couple of years.
  • With an excellent Gross Margin value of 74.33%, EL belongs to the best of the industry, outperforming 83.78% 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

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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • EL has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, EL has less shares outstanding
  • EL has a worse debt/assets ratio than last year.
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 3.03. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of EL (3.03) is better than 67.57% of its industry peers.
  • 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.
  • 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.
  • A Debt/Equity ratio of 1.82 is on the high side and indicates that EL has dependencies on debt financing.
  • EL has a Debt to Equity ratio of 1.82. This is in the lower half of the industry: EL underperforms 72.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 6.44
Altman-Z 3.03
ROIC/WACC0.98
WACC7.92%
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.
  • Looking at the Current ratio, with a value of 1.36, EL is in line with its industry, outperforming 40.54% of the companies in the same industry.
  • 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.
  • EL has a Quick ratio (1.00) which is comparable to the rest of the 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 has been growing slightly by 7.80% over the past year.
  • The earnings per share for EL have been decreasing by -18.22% on average. This is quite bad
  • The Revenue has decreased by -8.24% in the past year.
  • The Revenue has been growing slightly by 0.04% on average over the past years.
EPS 1Y (TTM)7.8%
EPS 3Y-40.77%
EPS 5Y-18.22%
EPS Q2Q%40%
Revenue 1Y (TTM)-8.24%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%4.56%

3.2 Future

  • The Earnings Per Share is expected to grow by 28.52% 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 3.90% on average per year.
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

  • 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.
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

  • A Price/Earnings ratio of 35.88 indicates a quite expensive valuation of EL.
  • EL's Price/Earnings ratio is in line with the industry average.
  • EL is valuated rather expensively when we compare the Price/Earnings ratio to 26.64, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 25.18, EL can be considered very expensive at the moment.
  • EL's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.36, EL is valued at the same level.
Industry RankSector Rank
PE 35.88
Fwd PE 25.18
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.
  • EL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EL is cheaper than 62.16% of the companies in the same industry.
Industry RankSector Rank
P/FCF 25.23
EV/EBITDA 14.85
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.
  • EL's earnings are expected to grow with 37.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.68
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%. Purely for dividend investing, there may be better candidates out there.
  • In the last 3 months the price of EL has falen by -31.21%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 1.69, EL pays a bit more dividend than its industry peers.
  • EL's Dividend Yield is comparable with the S&P500 average which is at 1.80.
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 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
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

  • 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-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

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EL Fundamentals: All Metrics, Ratios and Statistics

ESTEE LAUDER COMPANIES-CL A

NYSE:EL (5/1/2026, 8:23:35 PM)

After market: 79.18 -0.12 (-0.15%)

79.3

+2.59 (+3.38%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Industry Strength3.11
Industry Growth33.54
Earnings (Last)05-01
Earnings (Next)N/A
Inst Owners95.84%
Inst Owner Change0.2%
Ins Owners0.13%
Ins Owner Change-17.49%
Market Cap28.69B
Revenue(TTM)14.32B
Net Income(TTM)-178.00M
Analysts73.53
Price Target96.3 (21.44%)
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)-11.33%
PT rev (3m)-10.21%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-12.27%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)3.56%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.16%
Valuation
Industry RankSector Rank
PE 35.88
Fwd PE 25.18
P/S 1.96
P/FCF 25.23
P/OCF 17.18
P/B 7.12
P/tB N/A
EV/EBITDA 14.85
EPS(TTM)2.21
EY2.79%
EPS(NY)3.15
Fwd EY3.97%
FCF(TTM)3.14
FCFY3.96%
OCF(TTM)4.62
OCFY5.82%
SpS40.55
BVpS11.14
TBVpS-4.98
PEG (NY)0.68
PEG (5Y)N/A
Graham Number23.5397 (-70.32%)
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 3.03
F-Score5
WACC7.92%
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)7.8%
EPS 3Y-40.77%
EPS 5Y-18.22%
EPS Q2Q%40%
EPS Next Y52.76%
EPS Next 2Y44.89%
EPS Next 3Y37.12%
EPS Next 5Y28.52%
Revenue 1Y (TTM)-8.24%
Revenue growth 3Y-6.88%
Revenue growth 5Y0.04%
Sales Q2Q%4.56%
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%.