L'OREAL (OR.PA) Stock Fundamental Analysis
EPA:OR - Euronext Paris - Matif - FR0000120321 - Common Stock - Currency: EUR
OR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 12 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
In the past year OR was profitable.
OR had a positive operating cash flow in the past year.
Each year in the past 5 years OR has been profitable.
Each year in the past 5 years OR had a positive operating cash flow.
1.2 Ratios
OR has a Return On Assets of 12.23%. This is amongst the best in the industry. OR outperforms 83.33% of its industry peers.
With a decent Return On Equity value of 21.87%, OR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Return On Invested Capital of OR (16.22%) is better than 83.33% 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 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.23% | ||
| ROE | 21.87% | ||
| ROIC | 16.22% |
ROA(3y)11.6%
ROA(5y)10.31%
ROE(3y)20.59%
ROE(5y)17.36%
ROIC(3y)16.33%
ROIC(5y)14.69%
1.3 Margins
Looking at the Profit Margin, with a value of 15.17%, OR belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Profit Margin of OR has remained more or less at the same level.
OR has a better Operating Margin (19.31%) than 75.00% of its industry peers.
OR's Operating Margin has been stable in the last couple of years.
OR has a Gross Margin of 74.15%. This is amongst the best in the industry. OR outperforms 83.33% of its industry peers.
OR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.31% | ||
| PM (TTM) | 15.17% | ||
| GM | 74.15% |
OM growth 3Y0.13%
OM growth 5Y0.44%
PM growth 3Y5.66%
PM growth 5Y0.76%
GM growth 3Y0.35%
GM growth 5Y0.29%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OR is creating value.
OR has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, OR has less shares outstanding
The debt/assets ratio for OR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.72 indicates that OR is not in any danger for bankruptcy at the moment.
OR's Altman-Z score of 6.72 is amongst the best of the industry. OR outperforms 83.33% of its industry peers.
OR has a debt to FCF ratio of 1.53. This is a very positive value and a sign of high solvency as it would only need 1.53 years to pay back of all of its debts.
OR's Debt to FCF ratio of 1.53 is fine compared to the rest of the industry. OR outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that OR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.25, OR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 6.72 |
ROIC/WACC2.16
WACC7.51%
2.3 Liquidity
OR has a Current Ratio of 1.01. 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 1.01, OR perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
OR has a Quick Ratio of 1.01. 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 0.73, OR is in line with its industry, outperforming 58.33% 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 | 1.01 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
OR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.27%.
Measured over the past years, OR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.28% on average per year.
The Revenue has been growing slightly by 5.59% in the past year.
Measured over the past years, OR shows a quite strong growth in Revenue. The Revenue has been growing by 8.86% on average per year.
EPS 1Y (TTM)3.27%
EPS 3Y18.28%
EPS 5Y11.28%
EPS Q2Q%3.71%
Revenue 1Y (TTM)5.59%
Revenue growth 3Y13.73%
Revenue growth 5Y8.86%
Sales Q2Q%7.52%
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 8.21% yearly.
Based on estimates for the next years, OR will show a small growth in Revenue. The Revenue will grow by 6.21% on average per year.
EPS Next Y3.71%
EPS Next 2Y6.06%
EPS Next 3Y7.2%
EPS Next 5Y8.21%
Revenue Next Year4.31%
Revenue Next 2Y4.86%
Revenue Next 3Y5.25%
Revenue Next 5Y6.21%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 28.44, OR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/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 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.81, OR can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, OR is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of OR to the average of the S&P500 Index (92.74), we can say OR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.44 | ||
| Fwd PE | 25.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OR is valued more expensive than 83.33% 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 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.2 | ||
| EV/EBITDA | 19.68 |
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 excellent profitability rating of OR may justify a higher PE ratio.
PEG (NY)7.66
PEG (5Y)2.52
EPS Next 2Y6.06%
EPS Next 3Y7.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.82%, OR has a reasonable but not impressive dividend return.
OR's Dividend Yield is a higher than the industry average which is at 2.13.
OR's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
On average, the dividend of OR grows each year by 11.70%, which is quite nice.
Dividend Growth(5Y)11.7%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
56.06% of the earnings are spent on dividend by OR. 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.
DP56.06%
EPS Next 2Y6.06%
EPS Next 3Y7.2%
L'OREAL
EPA:OR (2/4/2025, 7:00:00 PM)
350.65
-3.2 (-0.9%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners15.57%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner ChangeN/A
Market Cap187.36B
Analysts72.43
Price Target404.08 (15.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend6.4
Dividend Growth(5Y)11.7%
DP56.06%
Div Incr Years3
Div Non Decr Years3
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)-1.72%
PT rev (3m)-8.49%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.81%
EPS NY rev (3m)-0.81%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.44 | ||
| Fwd PE | 25.81 | ||
| P/S | 4.38 | ||
| P/FCF | 31.2 | ||
| P/OCF | 24.81 | ||
| P/B | 6.32 | ||
| P/tB | 15.68 | ||
| EV/EBITDA | 19.68 |
EPS(TTM)12.33
EY3.52%
EPS(NY)13.59
Fwd EY3.87%
FCF(TTM)11.24
FCFY3.21%
OCF(TTM)14.13
OCFY4.03%
SpS79.97
BVpS55.45
TBVpS22.37
PEG (NY)7.66
PEG (5Y)2.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.23% | ||
| ROE | 21.87% | ||
| ROCE | 22.51% | ||
| ROIC | 16.22% | ||
| ROICexc | 17.45% | ||
| ROICexgc | 34.23% | ||
| OM | 19.31% | ||
| PM (TTM) | 15.17% | ||
| GM | 74.15% | ||
| FCFM | 14.05% |
ROA(3y)11.6%
ROA(5y)10.31%
ROE(3y)20.59%
ROE(5y)17.36%
ROIC(3y)16.33%
ROIC(5y)14.69%
ROICexc(3y)18.05%
ROICexc(5y)16.77%
ROICexgc(3y)38.07%
ROICexgc(5y)34.38%
ROCE(3y)22.32%
ROCE(5y)19.97%
ROICexcg growth 3Y7.81%
ROICexcg growth 5Y5.47%
ROICexc growth 3Y6.65%
ROICexc growth 5Y4.01%
OM growth 3Y0.13%
OM growth 5Y0.44%
PM growth 3Y5.66%
PM growth 5Y0.76%
GM growth 3Y0.35%
GM growth 5Y0.29%
F-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.53 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 98.24% | ||
| Cap/Sales | 3.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.85% | ||
| Profit Quality | 92.67% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 6.72 |
F-Score7
WACC7.51%
ROIC/WACC2.16
Cap/Depr(3y)78.21%
Cap/Depr(5y)69.08%
Cap/Sales(3y)3.49%
Cap/Sales(5y)3.61%
Profit Quality(3y)102.78%
Profit Quality(5y)119.27%
High Growth Momentum
Growth
EPS 1Y (TTM)3.27%
EPS 3Y18.28%
EPS 5Y11.28%
EPS Q2Q%3.71%
EPS Next Y3.71%
EPS Next 2Y6.06%
EPS Next 3Y7.2%
EPS Next 5Y8.21%
Revenue 1Y (TTM)5.59%
Revenue growth 3Y13.73%
Revenue growth 5Y8.86%
Sales Q2Q%7.52%
Revenue Next Year4.31%
Revenue Next 2Y4.86%
Revenue Next 3Y5.25%
Revenue Next 5Y6.21%
EBIT growth 1Y2.3%
EBIT growth 3Y13.88%
EBIT growth 5Y9.34%
EBIT Next Year25.86%
EBIT Next 3Y12.94%
EBIT Next 5Y10.32%
FCF growth 1Y23.76%
FCF growth 3Y3.72%
FCF growth 5Y9.55%
OCF growth 1Y24.96%
OCF growth 3Y5.62%
OCF growth 5Y7.52%