L'OREAL (OR.PA) Stock Fundamental Analysis
EPA:OR - Euronext Paris - Matif - FR0000120321 - Common Stock - Currency: EUR
OR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 13 industry peers in the Personal Care Products industry. While OR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. OR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
OR had positive earnings in the past year.
In the past year OR had a positive cash flow from operations.
OR had positive earnings in each of the past 5 years.
In the past 5 years OR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of OR (11.37%) is better than 76.92% of its industry peers.
With a decent Return On Equity value of 19.34%, OR is doing good in the industry, outperforming 69.23% of the companies in the same industry.
With a decent Return On Invested Capital value of 15.97%, OR is doing good in the industry, outperforming 76.92% of the companies in the same industry.
OR had an Average Return On Invested Capital over the past 3 years of 16.33%. This is above the industry average of 11.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.37% | ||
| ROE | 19.34% | ||
| ROIC | 15.97% |
ROA(3y)11.83%
ROA(5y)10.87%
ROE(3y)20.54%
ROE(5y)18.68%
ROIC(3y)16.33%
ROIC(5y)15.46%
1.3 Margins
OR has a Profit Margin of 14.74%. This is amongst the best in the industry. OR outperforms 84.62% of its industry peers.
OR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.98%, OR is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
OR's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 74.18%, OR belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
OR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.98% | ||
| PM (TTM) | 14.74% | ||
| GM | 74.18% |
OM growth 3Y1.46%
OM growth 5Y1.47%
PM growth 3Y1.16%
PM growth 5Y3.26%
GM growth 3Y0.14%
GM growth 5Y0.32%
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.
The number of shares outstanding for OR has been reduced compared to 5 years ago.
OR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.04 indicates that OR is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.04, OR belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
OR has a debt to FCF ratio of 1.28. This is a very positive value and a sign of high solvency as it would only need 1.28 years to pay back of all of its debts.
OR's Debt to FCF ratio of 1.28 is fine compared to the rest of the industry. OR outperforms 76.92% 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.
Looking at the Debt to Equity ratio, with a value of 0.20, OR is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 7.04 |
ROIC/WACC2.07
WACC7.72%
2.3 Liquidity
A Current Ratio of 1.13 indicates that OR should not have too much problems paying its short term obligations.
OR has a Current ratio of 1.13. This is in the lower half of the industry: OR underperforms 69.23% of its industry peers.
OR has a Quick Ratio of 1.13. This is a bad value and indicates that OR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.81, OR is doing worse than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
OR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.80%.
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.
Looking at the last year, OR shows a small growth in Revenue. The Revenue has grown by 5.60% in the last year.
OR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.80% yearly.
EPS 1Y (TTM)4.8%
EPS 3Y12.8%
EPS 5Y10.34%
EPS Q2Q%6.17%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%3.68%
3.2 Future
OR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.73% yearly.
Based on estimates for the next years, OR will show a small growth in Revenue. The Revenue will grow by 5.84% on average per year.
EPS Next Y5.99%
EPS Next 2Y7.24%
EPS Next 3Y7.29%
EPS Next 5Y8.73%
Revenue Next Year2.76%
Revenue Next 2Y3.84%
Revenue Next 3Y4.32%
Revenue Next 5Y5.84%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.53, the valuation of OR can be described as expensive.
69.23% of the companies in the same industry are cheaper than OR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. OR is around the same levels.
The Price/Forward Earnings ratio is 27.86, which means the current valuation is very expensive for OR.
Based on the Price/Forward Earnings ratio, OR is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, OR is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.53 | ||
| Fwd PE | 27.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OR is valued more expensive than 92.31% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OR indicates a slightly more expensive valuation: OR is more expensive than 69.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.06 | ||
| EV/EBITDA | 19.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
OR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.93
PEG (5Y)2.86
EPS Next 2Y7.24%
EPS Next 3Y7.29%
5. Dividend
5.1 Amount
OR has a Yearly Dividend Yield of 1.83%. Purely for dividend investing, there may be better candidates out there.
OR's Dividend Yield is comparable with the industry average which is at 2.55.
Compared to the average S&P500 Dividend Yield of 2.35, OR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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
5.3 Sustainability
OR pays out 56.41% of its income as dividend. This is a bit on the high side, but may be sustainable.
OR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.41%
EPS Next 2Y7.24%
EPS Next 3Y7.29%
EPA:OR (7/11/2025, 7:00:00 PM)
373.85
-8.4 (-2.2%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners15.17%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap199.76B
Analysts69.14
Price Target389.44 (4.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend6.76
Dividend Growth(5Y)11.22%
DP56.41%
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)-0.28%
PT rev (3m)-1.11%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.53 | ||
| Fwd PE | 27.86 | ||
| P/S | 4.59 | ||
| P/FCF | 30.06 | ||
| P/OCF | 24.11 | ||
| P/B | 6.03 | ||
| P/tB | 13.18 | ||
| EV/EBITDA | 19.36 |
EPS(TTM)12.66
EY3.39%
EPS(NY)13.42
Fwd EY3.59%
FCF(TTM)12.44
FCFY3.33%
OCF(TTM)15.51
OCFY4.15%
SpS81.39
BVpS62.01
TBVpS28.37
PEG (NY)4.93
PEG (5Y)2.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.37% | ||
| ROE | 19.34% | ||
| ROCE | 20.83% | ||
| ROIC | 15.97% | ||
| ROICexc | 17.68% | ||
| ROICexgc | 33.8% | ||
| OM | 19.98% | ||
| PM (TTM) | 14.74% | ||
| GM | 74.18% | ||
| FCFM | 15.28% |
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%
ROICexcg growth 3Y-5.54%
ROICexcg 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-Score7
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.28 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 88.49% | ||
| Cap/Sales | 3.78% | ||
| Interest Coverage | 22.74 | ||
| Cash Conversion | 78.59% | ||
| Profit Quality | 103.68% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 7.04 |
F-Score7
WACC7.72%
ROIC/WACC2.07
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)4.8%
EPS 3Y12.8%
EPS 5Y10.34%
EPS Q2Q%6.17%
EPS Next Y5.99%
EPS Next 2Y7.24%
EPS Next 3Y7.29%
EPS Next 5Y8.73%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%3.68%
Revenue Next Year2.76%
Revenue Next 2Y3.84%
Revenue Next 3Y4.32%
Revenue Next 5Y5.84%
EBIT growth 1Y8.09%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year23.71%
EBIT Next 3Y11.82%
EBIT Next 5Y11.86%
FCF growth 1Y8.64%
FCF growth 3Y5.53%
FCF growth 5Y5.72%
OCF growth 1Y8.96%
OCF growth 3Y7.19%
OCF growth 5Y5.76%