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

NYSE:EL • US5184391044

115.29 USD
+2.27 (+2.01%)
At close: Feb 24, 2026
115.76 USD
+0.47 (+0.41%)
After Hours: 2/24/2026, 8:23:23 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Overall EL gets a fundamental rating of 4 out of 10. We evaluated EL against 36 industry peers in the Personal Care Products industry. While EL is still in line with the averages on profitability rating, there are concerns on its financial health. EL is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

5

1. Profitability

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

  • Looking at the Return On Assets, with a value of -0.91%, EL is in line with its industry, outperforming 47.22% of the companies in the same industry.
  • With a Return On Equity value of -4.42%, EL perfoms like the industry average, outperforming 52.78% 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 69.44% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for EL is below the industry average of 10.65%.
  • 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 75.00% 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 80.56% of the companies in the same industry.
  • In the last couple of years the Gross Margin of EL has remained more or less at the same level.
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. 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.
  • EL has more shares outstanding than it did 1 year ago.
  • EL has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for EL is higher compared to a year ago.
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 3.50. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.50, EL is doing good in the industry, outperforming 69.44% 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.
  • Looking at the Debt to FCF ratio, with a value of 6.44, EL is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
  • EL has a Debt/Equity ratio of 1.82. This is a high value indicating a heavy dependency on external financing.
  • EL's Debt to Equity ratio of 1.82 is on the low side compared to the rest of the industry. EL is outperformed by 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 6.44
Altman-Z 3.5
ROIC/WACC0.98
WACC7.91%
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.
  • With a Current ratio value of 1.36, EL is not doing good in the industry: 63.89% of the companies in the same industry are doing better.
  • 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 in line compared to the rest of the industry. EL outperforms 41.67% 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.
  • The Revenue has decreased by -3.35% in the past year.
  • The Revenue has been growing slightly by 0.04% on average over the past years.
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.
  • EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.55% yearly.
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.
  • 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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3

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 59.12 indicates a quite expensive valuation of EL.
  • EL's Price/Earnings is on the same level as the industry average.
  • EL is valuated expensively when we compare the Price/Earnings ratio to 26.98, which is the current average of the S&P500 Index.
  • EL is valuated quite expensively with a Price/Forward Earnings ratio of 37.42.
  • EL's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of EL to the average of the S&P500 Index (28.01), we can say EL is valued slightly more expensively.
Industry RankSector Rank
PE 59.12
Fwd PE 37.42
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as EL.
  • 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 RankSector Rank
P/FCF 36.68
EV/EBITDA 20.35
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 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)1.23
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%.
  • EL's Dividend Yield is a higher than the industry average which is at 1.61.
  • EL's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
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

  • 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 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

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ESTEE LAUDER COMPANIES-CL A

NYSE:EL (2/24/2026, 8:23:23 PM)

After market: 115.76 +0.47 (+0.41%)

115.29

+2.27 (+2.01%)

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 Cap41.70B
Revenue(TTM)14.67B
Net Income(TTM)-178.00M
Analysts73.14
Price Target109.43 (-5.08%)
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)2.03%
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)0.04%
Revenue NY rev (3m)0.4%
Valuation
Industry RankSector Rank
PE 59.12
Fwd PE 37.42
P/S 2.84
P/FCF 36.68
P/OCF 24.97
P/B 10.35
P/tB N/A
EV/EBITDA 20.35
EPS(TTM)1.95
EY1.69%
EPS(NY)3.08
Fwd EY2.67%
FCF(TTM)3.14
FCFY2.73%
OCF(TTM)4.62
OCFY4%
SpS40.55
BVpS11.14
TBVpS-4.98
PEG (NY)1.23
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 3.5
F-Score5
WACC7.91%
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)-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 59.12 and the Price/Book (PB) ratio is 10.35.


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%.