L'OREAL (OR.PA) Stock Fundamental Analysis

EPA:OR • FR0000120321

373.85 EUR
-17.8 (-4.54%)
Last: Feb 13, 2026, 02:12 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

6

Overall OR gets a fundamental rating of 6 out of 10. We evaluated OR against 15 industry peers in the Personal Care Products industry. OR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. OR does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year OR was profitable.
  • OR had a positive operating cash flow in the past year.
  • OR had positive earnings in each of the past 5 years.
  • OR had a positive operating cash flow in each of the past 5 years.
OR.PA Yearly Net Income VS EBIT VS OCF VS FCFOR.PA 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 2B 4B 6B 8B

1.2 Ratios

  • With an excellent Return On Assets value of 11.21%, OR belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
  • With a decent Return On Equity value of 19.63%, OR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
  • The Return On Invested Capital of OR (17.45%) is better than 93.33% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for OR is above the industry average of 11.60%.
  • The last Return On Invested Capital (17.45%) for OR is above the 3 year average (16.33%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 11.21%
ROE 19.63%
ROIC 17.45%
ROA(3y)11.83%
ROA(5y)10.87%
ROE(3y)20.54%
ROE(5y)18.68%
ROIC(3y)16.33%
ROIC(5y)15.46%
OR.PA Yearly ROA, ROE, ROICOR.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

  • OR has a better Profit Margin (13.96%) than 93.33% of its industry peers.
  • OR's Profit Margin has improved in the last couple of years.
  • OR has a Operating Margin of 20.41%. This is amongst the best in the industry. OR outperforms 86.67% of its industry peers.
  • In the last couple of years the Operating Margin of OR has remained more or less at the same level.
  • With a decent Gross Margin value of 74.11%, OR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
  • In the last couple of years the Gross Margin of OR has remained more or less at the same level.
Industry RankSector Rank
OM 20.41%
PM (TTM) 13.96%
GM 74.11%
OM growth 3Y1.46%
OM growth 5Y1.47%
PM growth 3Y1.16%
PM growth 5Y3.26%
GM growth 3Y0.14%
GM growth 5Y0.32%
OR.PA Yearly Profit, Operating, Gross MarginsOR.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OR is creating value.
  • Compared to 1 year ago, OR has about the same amount of shares outstanding.
  • Compared to 5 years ago, OR has less shares outstanding
  • The debt/assets ratio for OR has been reduced compared to a year ago.
OR.PA Yearly Shares OutstandingOR.PA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
OR.PA Yearly Total Debt VS Total AssetsOR.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.2 Solvency

  • An Altman-Z score of 7.33 indicates that OR is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 7.33, OR belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
  • OR has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
  • OR has a Debt to FCF ratio of 1.19. This is amongst the best in the industry. OR outperforms 86.67% of its industry peers.
  • OR has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
  • OR's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. OR outperforms 80.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 1.19
Altman-Z 7.33
ROIC/WACC2.18
WACC8.01%
OR.PA Yearly LT Debt VS Equity VS FCFOR.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.3 Liquidity

  • A Current Ratio of 1.19 indicates that OR should not have too much problems paying its short term obligations.
  • OR has a worse Current ratio (1.19) than 60.00% of its industry peers.
  • A Quick Ratio of 0.90 indicates that OR may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.90, OR is in line with its industry, outperforming 46.67% of the companies in the same industry.
  • The current and quick ratio evaluation for OR is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.19
Quick Ratio 0.9
OR.PA Yearly Current Assets VS Current LiabilitesOR.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 3.41% over the past year.
  • Measured over the past years, OR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.34% on average per year.
  • OR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.60%.
  • OR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.80% yearly.
EPS 1Y (TTM)3.41%
EPS 3Y12.8%
EPS 5Y10.34%
EPS Q2Q%1.29%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%1.59%

3.2 Future

  • Based on estimates for the next years, OR will show a small growth in Earnings Per Share. The EPS will grow by 7.87% on average per year.
  • The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y3.87%
EPS Next 2Y5.36%
EPS Next 3Y6.02%
EPS Next 5Y7.87%
Revenue Next Year2.05%
Revenue Next 2Y3.12%
Revenue Next 3Y3.86%
Revenue Next 5Y5%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
OR.PA Yearly Revenue VS EstimatesOR.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B
OR.PA Yearly EPS VS EstimatesOR.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20 25

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 29.32, which means the current valuation is very expensive for OR.
  • Based on the Price/Earnings ratio, OR is valued a bit more expensive than 60.00% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.67. OR is around the same levels.
  • OR is valuated quite expensively with a Price/Forward Earnings ratio of 26.60.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of OR indicates a slightly more expensive valuation: OR is more expensive than 66.67% of the companies listed in the same industry.
  • OR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.69.
Industry RankSector Rank
PE 29.32
Fwd PE 26.6
OR.PA Price Earnings VS Forward Price EarningsOR.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, OR is valued a bit more expensive than 73.33% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of OR is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 26.97
EV/EBITDA 19.55
OR.PA Per share dataOR.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates OR does not grow enough to justify the current Price/Earnings ratio.
  • OR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.57
PEG (5Y)2.84
EPS Next 2Y5.36%
EPS Next 3Y6.02%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • OR has a Yearly Dividend Yield of 1.77%.
  • Compared to an average industry Dividend Yield of 2.02, OR has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.80, OR has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.77%

5.2 History

  • On average, the dividend of OR grows each year by 11.22%, which is quite nice.
Dividend Growth(5Y)11.22%
Div Incr Years4
Div Non Decr Years4
OR.PA Yearly Dividends per shareOR.PA Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 2 4 6 8

5.3 Sustainability

  • OR pays out 62.89% of its income as dividend. This is not a sustainable payout ratio.
  • OR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.89%
EPS Next 2Y5.36%
EPS Next 3Y6.02%
OR.PA Yearly Income VS Free CF VS DividendOR.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
OR.PA Dividend Payout.OR.PA Dividend Payout, showing the Payout Ratio.OR.PA Dividend Payout.PayoutRetained Earnings

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L'OREAL

EPA:OR (2/13/2026, 2:12:11 PM)

373.85

-17.8 (-4.54%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)10-21
Earnings (Next)02-12
Inst Owners15.95%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap199.55B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68.57
Price Target403.32 (7.88%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.77%
Yearly Dividend6.76
Dividend Growth(5Y)11.22%
DP62.89%
Div Incr Years4
Div Non Decr Years4
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)1.75%
PT rev (3m)2.39%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
Industry RankSector Rank
PE 29.32
Fwd PE 26.6
P/S 4.55
P/FCF 26.97
P/OCF 22.11
P/B 6.4
P/tB 14.6
EV/EBITDA 19.55
EPS(TTM)12.75
EY3.41%
EPS(NY)14.05
Fwd EY3.76%
FCF(TTM)13.86
FCFY3.71%
OCF(TTM)16.91
OCFY4.52%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)7.57
PEG (5Y)2.84
Graham Number129.45
Profitability
Industry RankSector Rank
ROA 11.21%
ROE 19.63%
ROCE 22.82%
ROIC 17.45%
ROICexc 19.88%
ROICexgc 40.35%
OM 20.41%
PM (TTM) 13.96%
GM 74.11%
FCFM 16.88%
ROA(3y)11.83%
ROA(5y)10.87%
ROE(3y)20.54%
ROE(5y)18.68%
ROIC(3y)16.33%
ROIC(5y)15.46%
ROICexc(3y)18.08%
ROICexc(5y)17.43%
ROICexgc(3y)36.23%
ROICexgc(5y)35.94%
ROCE(3y)21.48%
ROCE(5y)20.77%
ROICexgc growth 3Y-5.54%
ROICexgc growth 5Y4.43%
ROICexc growth 3Y-0.55%
ROICexc growth 5Y3.35%
OM growth 3Y1.46%
OM growth 5Y1.47%
PM growth 3Y1.16%
PM growth 5Y3.26%
GM growth 3Y0.14%
GM growth 5Y0.32%
F-Score5
Asset Turnover0.8
Health
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 1.19
Debt/EBITDA 0.58
Cap/Depr 83.68%
Cap/Sales 3.71%
Interest Coverage 23.8
Cash Conversion 82.88%
Profit Quality 120.87%
Current Ratio 1.19
Quick Ratio 0.9
Altman-Z 7.33
F-Score5
WACC8.01%
ROIC/WACC2.18
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)3.41%
EPS 3Y12.8%
EPS 5Y10.34%
EPS Q2Q%1.29%
EPS Next Y3.87%
EPS Next 2Y5.36%
EPS Next 3Y6.02%
EPS Next 5Y7.87%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%1.59%
Revenue Next Year2.05%
Revenue Next 2Y3.12%
Revenue Next 3Y3.86%
Revenue Next 5Y5%
EBIT growth 1Y8.4%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year23.17%
EBIT Next 3Y11.26%
EBIT Next 5Y10.06%
FCF growth 1Y29.9%
FCF growth 3Y5.53%
FCF growth 5Y5.72%
OCF growth 1Y26.68%
OCF growth 3Y7.19%
OCF growth 5Y5.76%

L'OREAL / OR.PA FAQ

What is the ChartMill fundamental rating of L'OREAL (OR.PA) stock?

ChartMill assigns a fundamental rating of 5 / 10 to OR.PA.


What is the valuation status of L'OREAL (OR.PA) stock?

ChartMill assigns a valuation rating of 2 / 10 to L'OREAL (OR.PA). This can be considered as Overvalued.


How profitable is L'OREAL (OR.PA) stock?

L'OREAL (OR.PA) has a profitability rating of 8 / 10.


Can you provide the financial health for OR stock?

The financial health rating of L'OREAL (OR.PA) is 7 / 10.


What is the expected EPS growth for L'OREAL (OR.PA) stock?

The Earnings per Share (EPS) of L'OREAL (OR.PA) is expected to grow by 3.87% in the next year.