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

NYSE:EL • US5184391044

106.42 USD
+1.03 (+0.98%)
At close: Feb 12, 2026
106.7 USD
+0.28 (+0.26%)
After Hours: 2/12/2026, 7:00:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to EL. EL was compared to 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. 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

  • 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.
  • EL had a positive operating cash flow in each of the past 5 years.
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

  • EL's Return On Assets of -0.91% is in line compared to the rest of the industry. EL outperforms 41.67% of its industry peers.
  • EL has a Return On Equity of -4.42%. This is comparable to the rest of the industry: EL outperforms 50.00% of its industry peers.
  • EL's Return On Invested Capital of 7.73% is fine compared to the rest 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 11.63%.
  • 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

  • EL has a better Operating Margin (9.59%) than 72.22% of its industry peers.
  • In the last couple of years the Operating Margin of EL has declined.
  • EL has a Gross Margin of 74.33%. This is amongst the best in the industry. EL outperforms 80.56% of its industry peers.
  • 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.
  • Compared to 5 years ago, EL has less shares outstanding
  • 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 3.39. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
  • EL has a better Altman-Z score (3.39) than 63.89% of its industry peers.
  • EL has a debt to FCF ratio of 6.44. This is a slightly negative value and a sign of low solvency as EL would need 6.44 years to pay back of all of its debts.
  • EL has a better Debt to FCF ratio (6.44) than 63.89% of its industry peers.
  • EL has a Debt/Equity ratio of 1.82. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 1.82, EL is doing worse than 72.22% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 6.44
Altman-Z 3.39
ROIC/WACC0.97
WACC7.98%
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.
  • EL has a worse Current ratio (1.36) than 63.89% of its industry peers.
  • A Quick Ratio of 1.00 indicates that EL may have some problems paying its short term obligations.
  • EL has a Quick ratio of 1.00. This is comparable 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.
  • Measured over the past years, EL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.22% on average per year.
  • Looking at the last year, EL shows a decrease in Revenue. The Revenue has decreased by -3.35% in the last 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.
  • The Revenue is expected to grow by 4.55% on average over the next years.
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 54.57, EL can be considered very expensive at the moment.
  • EL's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 27.67. EL is valued rather expensively when compared to this.
  • A Price/Forward Earnings ratio of 34.54 indicates a quite expensive valuation of EL.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of EL is on the same level as its industry peers.
  • EL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 27.69, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 54.57
Fwd PE 34.54
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

  • EL's Enterprise Value to EBITDA is on the same level as the industry average.
  • EL's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 33.86
EV/EBITDA 19.11
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

  • EL's 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 36.97% in the coming years.
PEG (NY)1.14
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 1.33%.
  • Compared to an average industry Dividend Yield of 1.60, EL pays a bit more dividend than its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.80, EL is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.33%

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 0.5 1 1.5 2 2.5

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-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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Find the best dividend stocksShow peers with best dividend

ESTEE LAUDER COMPANIES-CL A

NYSE:EL (2/12/2026, 7:00:00 PM)

After market: 106.7 +0.28 (+0.26%)

106.42

+1.03 (+0.98%)

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 Change0.61%
Ins Owners0.12%
Ins Owner Change-16.48%
Market Cap38.50B
Revenue(TTM)14.67B
Net Income(TTM)-178.00M
Analysts73.14
Price Target109.43 (2.83%)
Short Float %4.02%
Short Ratio2.85
Dividend
Industry RankSector Rank
Dividend Yield 1.33%
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)4.63%
PT rev (3m)13.25%
EPS NQ rev (1m)0.62%
EPS NQ rev (3m)3.67%
EPS NY rev (1m)0.23%
EPS NY rev (3m)4.29%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)2.43%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.12%
Valuation
Industry RankSector Rank
PE 54.57
Fwd PE 34.54
P/S 2.62
P/FCF 33.86
P/OCF 23.05
P/B 9.55
P/tB N/A
EV/EBITDA 19.11
EPS(TTM)1.95
EY1.83%
EPS(NY)3.08
Fwd EY2.9%
FCF(TTM)3.14
FCFY2.95%
OCF(TTM)4.62
OCFY4.34%
SpS40.55
BVpS11.14
TBVpS-4.98
PEG (NY)1.14
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 3.39
F-Score5
WACC7.98%
ROIC/WACC0.97
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 54.57 and the Price/Book (PB) ratio is 9.55.


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%.