L'OREAL (LOR.DE) Stock Fundamental Analysis
FRA:LOR - Deutsche Boerse Ag - FR0000120321 - Common Stock - Currency: EUR
Taking everything into account, LOR scores 5 out of 10 in our fundamental rating. LOR was compared to 14 industry peers in the Personal Care Products industry. LOR has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, LOR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year LOR was profitable.
In the past year LOR had a positive cash flow from operations.
In the past 5 years LOR has always been profitable.
Each year in the past 5 years LOR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.23%, LOR belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
The Return On Equity of LOR (21.87%) is better than 69.23% of its industry peers.
LOR's Return On Invested Capital of 16.33% is amongst the best of the industry. LOR outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.23% | ||
| ROE | 21.87% | ||
| ROIC | 16.33% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
LOR's Profit Margin of 15.17% is amongst the best of the industry. LOR outperforms 92.31% of its industry peers.
LOR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.31%, LOR is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
In the last couple of years the Operating Margin of LOR has remained more or less at the same level.
Looking at the Gross Margin, with a value of 74.15%, LOR belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
LOR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.31% | ||
| PM (TTM) | 15.17% | ||
| GM | 74.15% |
OM growth 3Y-0.27%
OM growth 5Y0.43%
PM growth 3Y1.16%
PM growth 5Y3.26%
GM growth 3Y0.14%
GM growth 5Y0.32%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LOR is creating value.
There is no outstanding debt for LOR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 6.80 indicates that LOR is not in any danger for bankruptcy at the moment.
The Altman-Z score of LOR (6.80) is better than 84.62% of its industry peers.
LOR has a debt to FCF ratio of 1.53. This is a very positive value and a sign of high solvency as it would only need 1.53 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.53, LOR is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that LOR is not too dependend on debt financing.
The Debt to Equity ratio of LOR (0.25) is better than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 6.8 |
ROIC/WACC2.08
WACC7.87%
2.3 Liquidity
LOR has a Current Ratio of 1.01. This is a normal value and indicates that LOR is financially healthy and should not expect problems in meeting its short term obligations.
LOR's Current ratio of 1.01 is on the low side compared to the rest of the industry. LOR is outperformed by 61.54% of its industry peers.
A Quick Ratio of 0.73 indicates that LOR may have some problems paying its short term obligations.
LOR has a Quick ratio of 0.73. This is comparable to the rest of the industry: LOR outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.91% over the past year.
The Earnings Per Share has been growing by 12.40% on average over the past years. This is quite good.
Looking at the last year, LOR shows a small growth in Revenue. The Revenue has grown by 5.60% in the last year.
LOR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.80% yearly.
EPS 1Y (TTM)3.91%
EPS 3Y13.33%
EPS 5Y12.4%
EPS Q2Q%-2.2%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%3.68%
3.2 Future
The Earnings Per Share is expected to grow by 11.87% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.77% on average over the next years. This is quite good.
EPS Next Y9.17%
EPS Next 2Y8.81%
EPS Next 3Y8.65%
EPS Next 5Y11.87%
Revenue Next Year5.81%
Revenue Next 2Y5.64%
Revenue Next 3Y5.68%
Revenue Next 5Y8.77%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LOR is valuated quite expensively with a Price/Earnings ratio of 30.09.
76.92% of the companies in the same industry are cheaper than LOR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.35, LOR is valued at the same level.
The Price/Forward Earnings ratio is 26.23, which means the current valuation is very expensive for LOR.
LOR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. LOR is more expensive than 69.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LOR to the average of the S&P500 Index (22.10), we can say LOR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.09 | ||
| Fwd PE | 26.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LOR is valued more expensive than 84.62% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LOR indicates a slightly more expensive valuation: LOR is more expensive than 76.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.99 | ||
| EV/EBITDA | 20 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LOR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.28
PEG (5Y)2.43
EPS Next 2Y8.81%
EPS Next 3Y8.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.91%, LOR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.32, LOR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, LOR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
The dividend of LOR is nicely growing with an annual growth rate of 11.70%!
Dividend Growth(5Y)11.7%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
56.06% of the earnings are spent on dividend by LOR. This is a bit on the high side, but may be sustainable.
LOR's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP56.06%
EPS Next 2Y8.81%
EPS Next 3Y8.65%
FRA:LOR (3/7/2025, 7:00:00 PM)
359.6
-6 (-1.64%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners14.38%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner ChangeN/A
Market Cap192.14B
Analysts70.81
Price Target395.74 (10.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend6.4
Dividend Growth(5Y)11.7%
DP56.06%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.05%
PT rev (3m)-5.01%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.9%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.09 | ||
| Fwd PE | 26.23 | ||
| P/S | 4.5 | ||
| P/FCF | 31.99 | ||
| P/OCF | 25.44 | ||
| P/B | 6.49 | ||
| P/tB | 16.08 | ||
| EV/EBITDA | 20 |
EPS(TTM)11.95
EY3.32%
EPS(NY)13.71
Fwd EY3.81%
FCF(TTM)11.24
FCFY3.13%
OCF(TTM)14.13
OCFY3.93%
SpS79.97
BVpS55.45
TBVpS22.37
PEG (NY)3.28
PEG (5Y)2.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.23% | ||
| ROE | 21.87% | ||
| ROCE | 22.51% | ||
| ROIC | 16.33% | ||
| ROICexc | 17.57% | ||
| ROICexgc | 34.47% | ||
| OM | 19.31% | ||
| PM (TTM) | 15.17% | ||
| GM | 74.15% | ||
| FCFM | 14.05% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-0.27%
OM growth 5Y0.43%
PM growth 3Y1.16%
PM growth 5Y3.26%
GM growth 3Y0.14%
GM growth 5Y0.32%
F-Score8
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.53 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 98.24% | ||
| Cap/Sales | 3.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.85% | ||
| Profit Quality | 92.67% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 6.8 |
F-Score8
WACC7.87%
ROIC/WACC2.08
Cap/Depr(3y)87.58%
Cap/Depr(5y)74.21%
Cap/Sales(3y)3.63%
Cap/Sales(5y)3.54%
Profit Quality(3y)96.35%
Profit Quality(5y)113.17%
High Growth Momentum
Growth
EPS 1Y (TTM)3.91%
EPS 3Y13.33%
EPS 5Y12.4%
EPS Q2Q%-2.2%
EPS Next Y9.17%
EPS Next 2Y8.81%
EPS Next 3Y8.65%
EPS Next 5Y11.87%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%3.68%
Revenue Next Year5.81%
Revenue Next 2Y5.64%
Revenue Next 3Y5.68%
Revenue Next 5Y8.77%
EBIT growth 1Y2.3%
EBIT growth 3Y10.13%
EBIT growth 5Y8.26%
EBIT Next Year26.58%
EBIT Next 3Y12.76%
EBIT Next 5Y14.37%
FCF growth 1Y5.44%
FCF growth 3Y5.53%
FCF growth 5Y5.72%
OCF growth 1Y5.99%
OCF growth 3Y7.19%
OCF growth 5Y5.76%