L'OREAL (OR.PA) Fundamental Analysis & Valuation

EPA:OR • FR0000120321

Current stock price

355.575 EUR
-3.32 (-0.93%)
Last:

This OR.PA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. OR.PA Profitability Analysis

1.1 Basic Checks

  • In the past year OR was profitable.
  • In the past year OR had a positive cash flow from operations.
  • Each year in the past 5 years OR has been profitable.
  • In the past 5 years OR always reported a positive cash flow from operatings.
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 2025 2B 4B 6B 8B

1.2 Ratios

  • OR has a better Return On Assets (9.91%) than 64.29% of its industry peers.
  • OR has a Return On Equity of 17.53%. This is in the better half of the industry: OR outperforms 71.43% of its industry peers.
  • OR's Return On Invested Capital of 14.18% is fine compared to the rest of the industry. OR outperforms 64.29% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for OR is above the industry average of 11.43%.
Industry RankSector Rank
ROA 9.91%
ROE 17.53%
ROIC 14.18%
ROA(3y)11.07%
ROA(5y)11.22%
ROE(3y)19.38%
ROE(5y)19.73%
ROIC(3y)15.03%
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 2025 5 10 15 20

1.3 Margins

  • The Profit Margin of OR (13.91%) is better than 78.57% of its industry peers.
  • In the last couple of years the Profit Margin of OR has grown nicely.
  • Looking at the Operating Margin, with a value of 20.19%, OR belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
  • OR's Operating Margin has improved in the last couple of years.
  • With a decent Gross Margin value of 74.32%, OR is doing good in the industry, outperforming 78.57% of the companies in the same industry.
  • OR's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 20.19%
PM (TTM) 13.91%
GM 74.32%
OM growth 3Y0.87%
OM growth 5Y1.7%
PM growth 3Y-2.3%
PM growth 5Y1.79%
GM growth 3Y0.9%
GM growth 5Y0.33%
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 2025 20 40 60

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7

2. OR.PA Health Analysis

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
  • Compared to 1 year ago, OR has a worse debt to assets ratio.
OR.PA Yearly Shares OutstandingOR.PA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 20B 40B 60B

2.2 Solvency

  • An Altman-Z score of 6.15 indicates that OR is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 6.15, OR is doing good in the industry, outperforming 78.57% of the companies in the same industry.
  • The Debt to FCF ratio of OR is 1.66, which is an excellent value as it means it would take OR, only 1.66 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 1.66, OR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
  • A Debt/Equity ratio of 0.27 indicates that OR is not too dependend on debt financing.
  • With a decent Debt to Equity ratio value of 0.27, OR is doing good in the industry, outperforming 71.43% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 1.66
Altman-Z 6.15
ROIC/WACC1.83
WACC7.77%
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 2025 10B 20B 30B

2.3 Liquidity

  • A Current Ratio of 1.44 indicates that OR should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.44, OR is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
  • OR has a Quick Ratio of 1.15. This is a normal value and indicates that OR is financially healthy and should not expect problems in meeting its short term obligations.
  • OR has a better Quick ratio (1.15) than 71.43% of its industry peers.
Industry RankSector Rank
Current Ratio 1.44
Quick Ratio 1.15
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 2025 5B 10B 15B 20B

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5

3. OR.PA Growth Analysis

3.1 Past

  • OR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.39%.
  • Measured over the past years, OR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.73% on average per year.
  • The Revenue has been growing slightly by 1.30% in the past year.
  • The Revenue has been growing by 9.49% on average over the past years. This is quite good.
EPS 1Y (TTM)0.39%
EPS 3Y4.12%
EPS 5Y11.73%
EPS Q2Q%-0.7%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y4.81%
Revenue growth 5Y9.49%
Sales Q2Q%1%

3.2 Future

  • Based on estimates for the next years, OR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.97% on average per year.
  • OR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.58% yearly.
EPS Next Y9.97%
EPS Next 2Y9.04%
EPS Next 3Y8.9%
EPS Next 5Y9.97%
Revenue Next Year4.14%
Revenue Next 2Y4.82%
Revenue Next 3Y5.06%
Revenue Next 5Y5.58%

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.
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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2

4. OR.PA Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 27.98, OR can be considered very expensive at the moment.
  • OR's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 26.86. OR is around the same levels.
  • The Price/Forward Earnings ratio is 25.44, which means the current valuation is very expensive for OR.
  • 71.43% of the companies in the same industry are cheaper than OR, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of OR to the average of the S&P500 Index (37.39), we can say OR is valued slightly cheaper.
Industry RankSector Rank
PE 27.98
Fwd PE 25.44
OR.PA Price Earnings VS Forward Price EarningsOR.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, OR is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
  • 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 71.43% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 26.5
EV/EBITDA 18.07
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 an expensive valuation of the company.
  • The decent profitability rating of OR may justify a higher PE ratio.
PEG (NY)2.8
PEG (5Y)2.39
EPS Next 2Y9.04%
EPS Next 3Y8.9%

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

3

5. OR.PA Dividend Analysis

5.1 Amount

  • OR has a Yearly Dividend Yield of 1.99%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.45, OR has a dividend in line with its industry peers.
  • OR's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.99%

5.2 History

  • On average, the dividend of OR grows each year by 13.36%, which is quite nice.
Dividend Growth(5Y)13.36%
Div Incr Years5
Div Non Decr Years5
OR.PA Yearly Dividends per shareOR.PA Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8

5.3 Sustainability

  • OR pays out 63.93% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of OR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP63.93%
EPS Next 2Y9.04%
EPS Next 3Y8.9%
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 2025 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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OR.PA Fundamentals: All Metrics, Ratios and Statistics

L'OREAL

EPA:OR (4/13/2026, 2:57:14 PM)

355.575

-3.32 (-0.93%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)02-12
Earnings (Next)04-22
Inst Owners15.5%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap189.80B
Revenue(TTM)44.05B
Net Income(TTM)6.13B
Analysts75.56
Price Target412.31 (15.96%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.99%
Yearly Dividend7.33
Dividend Growth(5Y)13.36%
DP63.93%
Div Incr Years5
Div Non Decr Years5
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)0.67%
PT rev (3m)4.02%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.33%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.06%
Valuation
Industry RankSector Rank
PE 27.98
Fwd PE 25.44
P/S 4.31
P/FCF 26.5
P/OCF 21.92
P/B 5.43
P/tB 12.32
EV/EBITDA 18.07
EPS(TTM)12.71
EY3.57%
EPS(NY)13.98
Fwd EY3.93%
FCF(TTM)13.42
FCFY3.77%
OCF(TTM)16.22
OCFY4.56%
SpS82.53
BVpS65.48
TBVpS28.87
PEG (NY)2.8
PEG (5Y)2.39
Graham Number136.84
Profitability
Industry RankSector Rank
ROA 9.91%
ROE 17.53%
ROCE 19.15%
ROIC 14.18%
ROICexc 18%
ROICexgc 38.57%
OM 20.19%
PM (TTM) 13.91%
GM 74.32%
FCFM 16.26%
ROA(3y)11.07%
ROA(5y)11.22%
ROE(3y)19.38%
ROE(5y)19.73%
ROIC(3y)15.03%
ROIC(5y)15.46%
ROICexc(3y)17.54%
ROICexc(5y)17.57%
ROICexgc(3y)36.26%
ROICexgc(5y)36.52%
ROCE(3y)20.28%
ROCE(5y)21.4%
ROICexgc growth 3Y3.47%
ROICexgc growth 5Y5.39%
ROICexc growth 3Y0.4%
ROICexc growth 5Y4.64%
OM growth 3Y0.87%
OM growth 5Y1.7%
PM growth 3Y-2.3%
PM growth 5Y1.79%
GM growth 3Y0.9%
GM growth 5Y0.33%
F-Score6
Asset Turnover0.71
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 1.66
Debt/EBITDA 0.89
Cap/Depr 82.28%
Cap/Sales 3.39%
Interest Coverage 24.83
Cash Conversion 80.8%
Profit Quality 116.88%
Current Ratio 1.44
Quick Ratio 1.15
Altman-Z 6.15
F-Score6
WACC7.77%
ROIC/WACC1.83
Cap/Depr(3y)85.86%
Cap/Depr(5y)81.08%
Cap/Sales(3y)3.59%
Cap/Sales(5y)3.53%
Profit Quality(3y)106.49%
Profit Quality(5y)105.78%
High Growth Momentum
Growth
EPS 1Y (TTM)0.39%
EPS 3Y4.12%
EPS 5Y11.73%
EPS Q2Q%-0.7%
EPS Next Y9.97%
EPS Next 2Y9.04%
EPS Next 3Y8.9%
EPS Next 5Y9.97%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y4.81%
Revenue growth 5Y9.49%
Sales Q2Q%1%
Revenue Next Year4.14%
Revenue Next 2Y4.82%
Revenue Next 3Y5.06%
Revenue Next 5Y5.58%
EBIT growth 1Y2.4%
EBIT growth 3Y5.72%
EBIT growth 5Y11.35%
EBIT Next Year25.26%
EBIT Next 3Y12.38%
EBIT Next 5Y10.71%
FCF growth 1Y7.79%
FCF growth 3Y13.22%
FCF growth 5Y5.49%
OCF growth 1Y4.48%
OCF growth 3Y11.3%
OCF growth 5Y6.05%

L'OREAL / OR.PA Fundamental Analysis FAQ

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

ChartMill assigns a fundamental rating of 6 / 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.


Can you provide the profitability details for L'OREAL?

L'OREAL (OR.PA) has a profitability rating of 7 / 10.


What is the valuation of L'OREAL based on its PE and PB ratios?

The Price/Earnings (PE) ratio for L'OREAL (OR.PA) is 27.98 and the Price/Book (PB) ratio is 5.43.


What is the earnings growth outlook for L'OREAL?

The Earnings per Share (EPS) of L'OREAL (OR.PA) is expected to grow by 9.97% in the next year.