L'OREAL (OR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:OR - FR0000120321 - Common Stock
356 EUR
-12.7 (-3.44%)
We assign a fundamental rating of 6 out of 10 to OR. OR was compared to 13 industry peers in the Personal Care Products industry. OR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. OR is valied quite expensively at the moment, while 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.
Each year in the past 5 years OR had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 11.21%, OR is doing good in the industry, outperforming 76.92% of the companies in the same industry.
OR has a Return On Equity of 19.63%. This is in the better half of the industry: OR outperforms 69.23% of its industry peers.
OR has a better Return On Invested Capital (17.45%) than 84.62% of its industry peers.
OR had an Average Return On Invested Capital over the past 3 years of 16.33%. This is above the industry average of 12.34%.
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 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 84.62% 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 76.92% of its industry peers.
OR's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 74.11%, OR is doing good in the industry, outperforming 76.92% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OR is creating value.
The number of shares outstanding for OR remains at a similar level compared to 1 year ago.
The number of shares outstanding for OR has been reduced compared to 5 years ago.
The debt/assets ratio for OR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.02 indicates that OR is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.02, OR belongs to the best of the industry, outperforming 92.31% 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.
OR has a better Debt to FCF ratio (1.19) than 84.62% 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 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 7.02 |
ROIC/WACC2.21
WACC7.88%
2.3 Liquidity
A Current Ratio of 1.19 indicates that OR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.19, OR is doing worse than 61.54% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that OR may have some problems paying its short term obligations.
With a Quick ratio value of 0.90, OR perfoms like the industry average, outperforming 46.15% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
OR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.41%.
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 2.60% 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)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
OR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.18% yearly.
OR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.04% yearly.
EPS Next Y3.96%
EPS Next 2Y5.25%
EPS Next 3Y5.98%
EPS Next 5Y8.18%
Revenue Next Year2.05%
Revenue Next 2Y3.12%
Revenue Next 3Y3.86%
Revenue Next 5Y5.04%
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
The Price/Earnings ratio is 27.92, which means the current valuation is very expensive for OR.
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 26.92. OR is around the same levels.
OR is valuated quite expensively with a Price/Forward Earnings ratio of 25.38.
Based on the Price/Forward Earnings ratio, OR is valued a bit more expensive than 76.92% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.57. OR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.92 | ||
| Fwd PE | 25.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OR is valued expensively inside the industry as 84.62% of the companies are valued cheaper.
The rest of the industry has a similar Price/Free Cash Flow ratio as OR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.68 | ||
| EV/EBITDA | 18.87 |
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)7.05
PEG (5Y)2.7
EPS Next 2Y5.25%
EPS Next 3Y5.98%
5. Dividend
5.1 Amount
No dividends for OR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EPA:OR (1/7/2026, 7:00:00 PM)
356
-12.7 (-3.44%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners15.95%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap190.03B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68.57
Price Target396.38 (11.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0.76%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.2%
EPS NY rev (3m)0.22%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.92 | ||
| Fwd PE | 25.38 | ||
| P/S | 4.33 | ||
| P/FCF | 25.68 | ||
| P/OCF | 21.06 | ||
| P/B | 6.1 | ||
| P/tB | 13.91 | ||
| EV/EBITDA | 18.87 |
EPS(TTM)12.75
EY3.58%
EPS(NY)14.02
Fwd EY3.94%
FCF(TTM)13.86
FCFY3.89%
OCF(TTM)16.91
OCFY4.75%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)7.05
PEG (5Y)2.7
Graham Number129.44
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 | 7.02 |
F-Score5
WACC7.88%
ROIC/WACC2.21
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 Y3.96%
EPS Next 2Y5.25%
EPS Next 3Y5.98%
EPS Next 5Y8.18%
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 5Y5.04%
EBIT growth 1Y8.41%
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 1Y26.67%
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.
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 8 / 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 3.96% in the next year.