ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EL - US5184391044 - Common Stock
115.05 USD
-0.6 (-0.52%)
114.93 USD
-0.12 (-0.1%)
Overall EL gets a fundamental rating of 3 out of 10. We evaluated EL against 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
- In the past year EL was profitable.
- EL had a positive operating cash flow in the past year.
- Of the past 5 years EL 4 years were profitable.
- Each year in the past 5 years EL had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of EL (-4.81%) is worse than 63.89% of its industry peers.
- The Return On Equity of EL (-23.91%) is worse than 66.67% of its industry peers.
- With a decent Return On Invested Capital value of 6.99%, EL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- 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.
- The Gross Margin of EL (74.18%) is better than 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
- EL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, EL has more shares outstanding
- The number of shares outstanding for EL has been reduced compared to 5 years ago.
- EL has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.52 indicates that EL is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.52, EL is doing good in the industry, outperforming 63.89% 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.
- The Debt to Equity ratio of EL (1.88) is worse than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 7.01 | ||
| Altman-Z | 3.52 |
ROIC/WACC0.86
WACC8.08%
2.3 Liquidity
- A Current Ratio of 1.32 indicates that EL should not have too much problems paying its short term obligations.
- EL has a Current ratio of 1.32. This is in the lower half of the industry: EL underperforms 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
- The earnings per share for EL have decreased strongly by -36.12% 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.
- Looking at the last year, EL shows a decrease in Revenue. The Revenue has decreased by -6.53% in the last 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 28.74% on average per year.
- The Revenue is expected to grow by 4.05% on average over the next years.
EPS Next Y47.67%
EPS Next 2Y42.89%
EPS Next 3Y36.7%
EPS Next 5Y28.74%
Revenue Next Year4.3%
Revenue Next 2Y4.18%
Revenue Next 3Y4.41%
Revenue Next 5Y4.05%
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
- With a Price/Earnings ratio of 68.48, EL can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as EL.
- EL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.47.
- A Price/Forward Earnings ratio of 37.57 indicates a quite expensive valuation of EL.
- EL's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, EL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.48 | ||
| Fwd PE | 37.57 |
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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as EL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.67 | ||
| EV/EBITDA | 22.48 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as EL's earnings are expected to grow with 36.70% in the coming years.
PEG (NY)1.44
PEG (5Y)N/A
EPS Next 2Y42.89%
EPS Next 3Y36.7%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.27%, EL has a reasonable but not impressive dividend return.
- EL's Dividend Yield is a higher than the industry average which is at 2.04.
- EL's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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
- 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-54.3%
EPS Next 2Y42.89%
EPS Next 3Y36.7%
115.05
-0.6 (-0.52%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-05 2026-02-05/bmo
Inst Owners91.48%
Inst Owner Change0.14%
Ins Owners0.12%
Ins Owner Change-16.48%
Market Cap41.46B
Revenue(TTM)14.44B
Net Income(TTM)-930.00M
Analysts72
Price Target104.59 (-9.09%)
Short Float %3.81%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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)2.04%
PT rev (3m)14.09%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)3.1%
EPS NY rev (1m)0.15%
EPS NY rev (3m)4.23%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)2.19%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.48 | ||
| Fwd PE | 37.57 | ||
| P/S | 2.87 | ||
| P/FCF | 39.67 | ||
| P/OCF | 25.88 | ||
| P/B | 10.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.48 |
EPS(TTM)1.68
EY1.46%
EPS(NY)3.06
Fwd EY2.66%
FCF(TTM)2.9
FCFY2.52%
OCF(TTM)4.45
OCFY3.86%
SpS40.08
BVpS10.79
TBVpS-5.37
PEG (NY)1.44
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 | 3.52 |
F-Score5
WACC8.08%
ROIC/WACC0.86
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 5Y28.74%
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 5Y4.05%
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 5Y27.84%
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 3 / 10 to EL.
What is the valuation status for EL stock?
ChartMill assigns a valuation rating of 2 / 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 68.48 and the Price/Book (PB) ratio is 10.66.
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%.