L'OREAL (OR.PA) Stock Fundamental Analysis
Europe - EPA:OR - FR0000120321 - Common Stock
357.15 EUR
-1.95 (-0.54%)
Taking everything into account, OR scores 6 out of 10 in our fundamental rating. OR was compared to 14 industry peers in the Personal Care Products industry. OR gets an excellent profitability rating and is at the same time showing great financial health properties. OR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
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.
OR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 11.21%, OR is doing good in the industry, outperforming 78.57% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.63%, OR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
The Return On Invested Capital of OR (17.45%) is better than 85.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OR is above the industry average of 12.16%.
The 3 year average ROIC (16.33%) for OR is below the current ROIC(17.45%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 13.96%, OR belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of OR has grown nicely.
OR has a better Operating Margin (20.41%) than 78.57% of its industry peers.
OR's Operating Margin has been stable in the last couple of years.
OR's Gross Margin of 74.11% is fine compared to the rest of the industry. OR outperforms 78.57% of its industry peers.
OR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
OR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for OR remains at a similar level compared to 1 year ago.
OR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for OR has been reduced compared to a year ago.
2.2 Solvency
OR has an Altman-Z score of 6.89. This indicates that OR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 6.89, 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 1.19, which is an excellent value as it means it would take OR, only 1.19 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.19, OR belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that OR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.20, OR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 6.89 |
ROIC/WACC2.19
WACC7.95%
2.3 Liquidity
OR has a Current Ratio of 1.19. This is a normal value and indicates that OR is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.19, OR is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
OR has a Quick Ratio of 1.19. 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 0.90, OR is in line with its industry, outperforming 50.00% of the companies in the same industry.
OR does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.41% over the past year.
OR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.34% yearly.
OR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.60%.
The Revenue has been growing slightly by 7.80% on average over the past years.
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 quite strong growth in Earnings Per Share. The EPS will grow by 8.18% on average per year.
Based on estimates for the next years, OR will show a small growth in Revenue. The Revenue will grow by 5.17% on average per year.
EPS Next Y4.17%
EPS Next 2Y5.19%
EPS Next 3Y6.07%
EPS Next 5Y8.18%
Revenue Next Year2.02%
Revenue Next 2Y3.11%
Revenue Next 3Y3.9%
Revenue Next 5Y5.17%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 28.01, the valuation of OR can be described as expensive.
Based on the Price/Earnings ratio, OR is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of OR to the average of the S&P500 Index (25.91), we can say OR is valued inline with the index average.
OR is valuated quite expensively with a Price/Forward Earnings ratio of 25.50.
OR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. OR is more expensive than 78.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of OR to the average of the S&P500 Index (34.57), we can say OR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.01 | ||
| Fwd PE | 25.5 |
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.
OR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.77 | ||
| EV/EBITDA | 18.4 |
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.
The excellent profitability rating of OR may justify a higher PE ratio.
PEG (NY)6.72
PEG (5Y)2.71
EPS Next 2Y5.19%
EPS Next 3Y6.07%
5. Dividend
5.1 Amount
OR has a Yearly Dividend Yield of 1.98%.
OR's Dividend Yield is comparable with the industry average which is at 2.84.
OR's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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 62.89% 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.
DP62.89%
EPS Next 2Y5.19%
EPS Next 3Y6.07%
EPA:OR (11/14/2025, 12:11:16 PM)
357.15
-1.95 (-0.54%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners15.96%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap190.63B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68
Price Target393.9 (10.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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)-0.62%
PT rev (3m)-0.49%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.42%
EPS NY rev (3m)-1.72%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.01 | ||
| Fwd PE | 25.5 | ||
| P/S | 4.35 | ||
| P/FCF | 25.77 | ||
| P/OCF | 21.12 | ||
| P/B | 6.11 | ||
| P/tB | 13.95 | ||
| EV/EBITDA | 18.4 |
EPS(TTM)12.75
EY3.57%
EPS(NY)14.01
Fwd EY3.92%
FCF(TTM)13.86
FCFY3.88%
OCF(TTM)16.91
OCFY4.73%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)6.72
PEG (5Y)2.71
Graham Number129.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.21% | ||
| ROE | 19.63% | ||
| ROCE | 22.82% | ||
| ROIC | 17.45% | ||
| ROICexc | 17.45% | ||
| ROICexgc | 31.44% | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 83.63% | ||
| Cap/Sales | 3.71% | ||
| Interest Coverage | 23.79 | ||
| Cash Conversion | 82.87% | ||
| Profit Quality | 120.87% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 6.89 |
F-Score5
WACC7.95%
ROIC/WACC2.19
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 Y4.17%
EPS Next 2Y5.19%
EPS Next 3Y6.07%
EPS Next 5Y8.18%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%1.59%
Revenue Next Year2.02%
Revenue Next 2Y3.11%
Revenue Next 3Y3.9%
Revenue Next 5Y5.17%
EBIT growth 1Y8.41%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year22.99%
EBIT Next 3Y11.46%
EBIT Next 5Y10.05%
FCF growth 1Y29.9%
FCF growth 3Y5.53%
FCF growth 5Y5.72%
OCF growth 1Y26.67%
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 6 / 10 to OR.PA.
Can you provide the valuation status for L'OREAL?
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.
What are the PE and PB ratios of L'OREAL (OR.PA) stock?
The Price/Earnings (PE) ratio for L'OREAL (OR.PA) is 28.01 and the Price/Book (PB) ratio is 6.11.
Can you provide the dividend sustainability for OR stock?
The dividend rating of L'OREAL (OR.PA) is 3 / 10 and the dividend payout ratio is 62.89%.