ESTEE LAUDER COMPANIES-CL A (EL) Stock Fundamental Analysis
NYSE:EL - New York Stock Exchange, Inc. - US5184391044 - Common Stock - Currency: USD
EL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 37 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. 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.
In the past year EL had a positive cash flow from operations.
Each year in the past 5 years EL has been profitable.
In the past 5 years EL always reported a positive cash flow from operatings.
1.2 Ratios
EL has a Return On Assets (-3.54%) which is comparable to the rest of the industry.
The Return On Equity of EL (-16.79%) is worse than 61.11% of its industry peers.
With a decent Return On Invested Capital value of 6.30%, EL is doing good in the industry, outperforming 61.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EL is below the industry average of 13.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.54% | ||
| ROE | -16.79% | ||
| ROIC | 6.3% |
ROA(3y)5.84%
ROA(5y)6.89%
ROE(3y)22.7%
ROE(5y)26.57%
ROIC(3y)9.14%
ROIC(5y)9.86%
1.3 Margins
EL's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 9.76%, EL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
EL's Operating Margin has declined in the last couple of years.
EL's Gross Margin of 73.09% is amongst the best of 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 | 9.76% | ||
| PM (TTM) | N/A | ||
| GM | 73.09% |
OM growth 3Y-18.75%
OM growth 5Y-10.71%
PM growth 3Y-47.93%
PM growth 5Y-26.95%
GM growth 3Y-2.09%
GM growth 5Y-1.48%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EL is still creating some value.
EL has more shares outstanding than it did 1 year ago.
EL has less shares outstanding than it did 5 years ago.
EL has a worse debt/assets ratio than last year.
2.2 Solvency
EL has an Altman-Z score of 3.01. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
EL has a Altman-Z score (3.01) which is in line with its industry peers.
The Debt to FCF ratio of EL is 6.36, which is on the high side as it means it would take EL, 6.36 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.36, EL perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
EL has a Debt/Equity ratio of 1.75. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.75, EL is doing worse than 86.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 6.36 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.84
WACC7.5%
2.3 Liquidity
EL has a Current Ratio of 1.37. This is a normal value and indicates that EL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.37, EL is doing worse than 63.89% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that EL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.97, EL is in line with its industry, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.90% over the past year.
EL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.41% yearly.
The Revenue has decreased by -0.02% in the past year.
EL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.98% yearly.
EPS 1Y (TTM)54.9%
EPS 3Y-26.13%
EPS 5Y-13.41%
EPS Q2Q%-29.55%
Revenue 1Y (TTM)-0.02%
Revenue growth 3Y-1.26%
Revenue growth 5Y0.98%
Sales Q2Q%-6.43%
3.2 Future
The Earnings Per Share is expected to grow by 15.26% on average over the next years. This is quite good.
Based on estimates for the next years, EL will show a small growth in Revenue. The Revenue will grow by 3.84% on average per year.
EPS Next Y-44.82%
EPS Next 2Y-2.84%
EPS Next 3Y8.07%
EPS Next 5Y15.26%
Revenue Next Year-6.99%
Revenue Next 2Y-2.49%
Revenue Next 3Y-0.25%
Revenue Next 5Y3.84%
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 30.34 indicates a quite expensive valuation of EL.
The rest of the industry has a similar Price/Earnings ratio as EL.
EL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.43, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.30, the valuation of EL can be described as expensive.
EL's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.67. EL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.34 | ||
| Fwd PE | 29.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EL indicates a somewhat cheap valuation: EL is cheaper than 63.89% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as EL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.59 | ||
| EV/EBITDA | 13.38 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.84%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.96%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.10, EL pays a bit more dividend than its industry peers.
EL's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
On average, the dividend of EL grows each year by 9.59%, which is quite nice.
EL has been paying a dividend for at least 10 years, so it has a reliable track record.
EL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.59%
Div Incr Years3
Div Non Decr Years3
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-119.86%
EPS Next 2Y-2.84%
EPS Next 3Y8.07%
71.91
-1.06 (-1.45%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners95.03%
Inst Owner Change7.77%
Ins Owners0.13%
Ins Owner Change8.64%
Market Cap25.87B
Analysts66.67
Price Target76.35 (6.17%)
Short Float %3.3%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend2.64
Dividend Growth(5Y)9.59%
DP-119.86%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)65.81%
Min EPS beat(2)43.76%
Max EPS beat(2)87.87%
EPS beat(4)4
Avg EPS beat(4)89.87%
Min EPS beat(4)43.76%
Max EPS beat(4)133.75%
EPS beat(8)7
Avg EPS beat(8)106.42%
EPS beat(12)11
Avg EPS beat(12)75.32%
EPS beat(16)15
Avg EPS beat(16)61.99%
Revenue beat(2)0
Avg Revenue beat(2)-2.62%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)-2.01%
Revenue beat(4)0
Avg Revenue beat(4)-2.22%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)-1.43%
Revenue beat(8)1
Avg Revenue beat(8)-1.67%
Revenue beat(12)2
Avg Revenue beat(12)-1.86%
Revenue beat(16)4
Avg Revenue beat(16)-1.7%
PT rev (1m)-6.26%
PT rev (3m)-28.64%
EPS NQ rev (1m)-51.17%
EPS NQ rev (3m)-75.77%
EPS NY rev (1m)-11.37%
EPS NY rev (3m)-11.92%
Revenue NQ rev (1m)-5.76%
Revenue NQ rev (3m)-15.64%
Revenue NY rev (1m)-2.08%
Revenue NY rev (3m)-2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.34 | ||
| Fwd PE | 29.3 | ||
| P/S | 1.7 | ||
| P/FCF | 22.59 | ||
| P/OCF | 14.29 | ||
| P/B | 6.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.38 |
EPS(TTM)2.37
EY3.3%
EPS(NY)2.45
Fwd EY3.41%
FCF(TTM)3.18
FCFY4.43%
OCF(TTM)5.03
OCFY7%
SpS42.19
BVpS11.59
TBVpS-5.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.54% | ||
| ROE | -16.79% | ||
| ROCE | 10.06% | ||
| ROIC | 6.3% | ||
| ROICexc | 7.64% | ||
| ROICexgc | 15.69% | ||
| OM | 9.76% | ||
| PM (TTM) | N/A | ||
| GM | 73.09% | ||
| FCFM | 7.54% |
ROA(3y)5.84%
ROA(5y)6.89%
ROE(3y)22.7%
ROE(5y)26.57%
ROIC(3y)9.14%
ROIC(5y)9.86%
ROICexc(3y)12.1%
ROICexc(5y)13.99%
ROICexgc(3y)27.91%
ROICexgc(5y)31.23%
ROCE(3y)14.59%
ROCE(5y)15.74%
ROICexcg growth 3Y-21.07%
ROICexcg growth 5Y-22.32%
ROICexc growth 3Y-21.66%
ROICexc growth 5Y-23.4%
OM growth 3Y-18.75%
OM growth 5Y-10.71%
PM growth 3Y-47.93%
PM growth 5Y-26.95%
GM growth 3Y-2.09%
GM growth 5Y-1.48%
F-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 6.36 | ||
| Debt/EBITDA | 3.15 | ||
| Cap/Depr | 79.93% | ||
| Cap/Sales | 4.38% | ||
| Interest Coverage | 4.23 | ||
| Cash Conversion | 78.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 3.01 |
F-Score6
WACC7.5%
ROIC/WACC0.84
Cap/Depr(3y)232.17%
Cap/Depr(5y)179.27%
Cap/Sales(3y)10.8%
Cap/Sales(5y)8.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)54.9%
EPS 3Y-26.13%
EPS 5Y-13.41%
EPS Q2Q%-29.55%
EPS Next Y-44.82%
EPS Next 2Y-2.84%
EPS Next 3Y8.07%
EPS Next 5Y15.26%
Revenue 1Y (TTM)-0.02%
Revenue growth 3Y-1.26%
Revenue growth 5Y0.98%
Sales Q2Q%-6.43%
Revenue Next Year-6.99%
Revenue Next 2Y-2.49%
Revenue Next 3Y-0.25%
Revenue Next 5Y3.84%
EBIT growth 1Y41.99%
EBIT growth 3Y-19.77%
EBIT growth 5Y-9.83%
EBIT Next Year31.76%
EBIT Next 3Y23.39%
EBIT Next 5Y19.51%
FCF growth 1Y21.16%
FCF growth 3Y-21.63%
FCF growth 5Y-4.06%
OCF growth 1Y-6.94%
OCF growth 3Y-13.38%
OCF growth 5Y-1.28%