ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EL - US5184391044 - Common Stock
104.72 USD
-1.12 (-1.06%)
104.72 USD
0 (0%)
Overall EL gets a fundamental rating of 4 out of 10. We evaluated EL against 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.
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.
Of the past 5 years EL 4 years were profitable.
In the past 5 years EL always reported a positive cash flow from operatings.
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 Return On Equity of -23.91%. This is in the lower half of the industry: EL underperforms 66.67% of its industry peers.
EL has a Return On Invested Capital of 6.99%. This is in the better half of the industry: EL outperforms 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'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.
EL has a Gross Margin of 74.18%. This is amongst the best in the industry. EL outperforms 80.56% of its industry peers.
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
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.
2.2 Solvency
An Altman-Z score of 3.37 indicates that EL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.37, 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 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.
With a decent Debt to FCF ratio value of 7.01, EL is doing good in the industry, outperforming 63.89% of the companies in the same industry.
EL has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.88, EL is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | 3.37 |
ROIC/WACC0.88
WACC7.97%
2.3 Liquidity
EL has a Current Ratio of 1.32. This is a normal value and indicates that EL is financially healthy and should not expect problems in meeting its short term obligations.
EL has a worse Current ratio (1.32) than 61.11% 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
EL shows a decrease in Revenue. In the last year, the revenue decreased by -6.53%.
EL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.04% yearly.
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.
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
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
A Price/Earnings ratio of 62.33 indicates a quite expensive valuation of EL.
EL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.51. EL is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 34.19, which means the current valuation is very expensive for EL.
EL's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.13. EL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.33 | ||
| Fwd PE | 34.19 |
4.2 Price Multiples
EL's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.11 | ||
| EV/EBITDA | 20.59 |
4.3 Compensation for Growth
The 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 1.30%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.06, EL pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.00, EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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.
The dividend of EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-54.3%
EPS Next 2Y42.89%
EPS Next 3Y36.7%
104.72
-1.12 (-1.06%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners91.7%
Inst Owner Change-0.07%
Ins Owners0.12%
Ins Owner Change-16.48%
Market Cap37.74B
Revenue(TTM)14.44B
Net Income(TTM)-930.00M
Analysts71.11
Price Target104.59 (-0.12%)
Short Float %3.81%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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)0.64%
EPS NY rev (3m)4.23%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.33 | ||
| Fwd PE | 34.19 | ||
| P/S | 2.61 | ||
| P/FCF | 36.11 | ||
| P/OCF | 23.56 | ||
| P/B | 9.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.59 |
EPS(TTM)1.68
EY1.6%
EPS(NY)3.06
Fwd EY2.92%
FCF(TTM)2.9
FCFY2.77%
OCF(TTM)4.45
OCFY4.25%
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 | 3.37 |
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 62.33 and the Price/Book (PB) ratio is 9.7.
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%.