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

EPA:OR • FR0000120321

Current stock price

353.65 EUR
-5.6 (-1.56%)
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.
  • In the past 5 years OR has always 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

  • Looking at the Return On Assets, with a value of 11.21%, OR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
  • The Return On Equity of OR (19.63%) is better than 78.57% of its industry peers.
  • The Return On Invested Capital of OR (16.86%) is better than 92.86% of its industry peers.
Industry RankSector Rank
ROA 11.21%
ROE 19.63%
ROIC 16.86%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
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

  • Looking at the Profit Margin, with a value of 13.96%, OR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
  • OR's Profit Margin has improved in the last couple of years.
  • OR has a Operating Margin of 20.41%. This is amongst the best in the industry. OR outperforms 92.86% of its industry peers.
  • In the last couple of years the Operating Margin of OR has remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 74.11%, OR belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
  • OR's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 20.41%
PM (TTM) 13.96%
GM 74.11%
OM growth 3Y-1.18%
OM growth 5Y0.46%
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

  • OR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • OR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
OR.PA Yearly Shares OutstandingOR.PA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 10B 20B 30B 40B 50B

2.2 Solvency

  • OR has an Altman-Z score of 6.81. This indicates that OR is financially healthy and has little risk of bankruptcy at the moment.
  • OR has a better Altman-Z score (6.81) than 85.71% of its industry peers.
  • 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 85.71% of its industry peers.
  • A Debt/Equity ratio of 0.20 indicates that OR is not too dependend on debt financing.
  • OR has a better Debt to Equity ratio (0.20) than 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 1.19
Altman-Z 6.81
ROIC/WACC2.09
WACC8.07%
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

  • 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.
  • OR has a Current ratio (1.19) which is in line with its industry peers.
  • 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.
  • OR has a Quick ratio (0.90) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.19
Quick Ratio 0.9
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 5B 10B 15B

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5

3. OR.PA Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 0.39% over the past year.
  • The Earnings Per Share has been growing by 11.73% on average over the past years. This is quite good.
  • OR shows a small growth in Revenue. In the last year, the Revenue has grown by 1.30%.
  • 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 Y10.34%
EPS Next 2Y9.07%
EPS Next 3Y8.77%
EPS Next 5Y9.97%
Revenue Next Year4.11%
Revenue Next 2Y4.78%
Revenue Next 3Y5.02%
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

  • The Price/Earnings ratio is 27.82, which means the current valuation is very expensive for OR.
  • Based on the Price/Earnings ratio, OR is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
  • Compared to an average S&P500 Price/Earnings ratio of 25.70, OR is valued at the same level.
  • OR is valuated quite expensively with a Price/Forward Earnings ratio of 25.22.
  • 64.29% 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 (23.84), we can say OR is valued inline with the index average.
Industry RankSector Rank
PE 27.82
Fwd PE 25.22
OR.PA Price Earnings VS Forward Price EarningsOR.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • OR's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. OR is more expensive than 85.71% of the companies in the same industry.
  • OR's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 25.51
EV/EBITDA 17.69
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 OR does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of OR may justify a higher PE ratio.
PEG (NY)2.69
PEG (5Y)2.37
EPS Next 2Y9.07%
EPS Next 3Y8.77%

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3

5. OR.PA Dividend Analysis

5.1 Amount

  • OR has a Yearly Dividend Yield of 2.00%.
  • Compared to an average industry Dividend Yield of 2.12, OR has a dividend in line with its industry peers.
  • OR's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2%

5.2 History

  • The dividend of OR is nicely growing with an annual growth rate of 11.22%!
Dividend Growth(5Y)11.22%
Div Incr Years4
Div Non Decr Years4
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 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 2Y9.07%
EPS Next 3Y8.77%
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 (3/13/2026, 7:00:00 PM)

353.65

-5.6 (-1.56%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)02-12
Earnings (Next)04-22
Inst Owners15.69%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap188.77B
Revenue(TTM)44.05B
Net Income(TTM)6.12B
Analysts73.33
Price Target409.57 (15.81%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2%
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)1.55%
PT rev (3m)3.3%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.08%
Valuation
Industry RankSector Rank
PE 27.82
Fwd PE 25.22
P/S 4.31
P/FCF 25.51
P/OCF 20.92
P/B 6.05
P/tB 13.81
EV/EBITDA 17.69
EPS(TTM)12.71
EY3.59%
EPS(NY)14.02
Fwd EY3.97%
FCF(TTM)13.86
FCFY3.92%
OCF(TTM)16.91
OCFY4.78%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)2.69
PEG (5Y)2.37
Graham Number129.24
Profitability
Industry RankSector Rank
ROA 11.21%
ROE 19.63%
ROCE 22.82%
ROIC 16.86%
ROICexc 19.21%
ROICexgc 38.99%
OM 20.41%
PM (TTM) 13.96%
GM 74.11%
FCFM 16.88%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-1.18%
OM growth 5Y0.46%
PM growth 3Y-2.3%
PM growth 5Y1.79%
GM growth 3Y0.9%
GM growth 5Y0.33%
F-Score7
Asset Turnover0.8
Health
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 1.19
Debt/EBITDA 0.58
Cap/Depr 83.65%
Cap/Sales 3.71%
Interest Coverage 23.8
Cash Conversion 82.87%
Profit Quality 120.87%
Current Ratio 1.19
Quick Ratio 0.9
Altman-Z 6.81
F-Score7
WACC8.07%
ROIC/WACC2.09
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 Y10.34%
EPS Next 2Y9.07%
EPS Next 3Y8.77%
EPS Next 5Y9.97%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y4.81%
Revenue growth 5Y9.49%
Sales Q2Q%1%
Revenue Next Year4.11%
Revenue Next 2Y4.78%
Revenue Next 3Y5.02%
Revenue Next 5Y5.58%
EBIT growth 1Y8.41%
EBIT growth 3Y3.58%
EBIT growth 5Y9.99%
EBIT Next Year25.68%
EBIT Next 3Y12.32%
EBIT Next 5Y10.71%
FCF growth 1Y23.2%
FCF growth 3Y13.22%
FCF growth 5Y5.49%
OCF growth 1Y19.52%
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.


How profitable is L'OREAL (OR.PA) stock?

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


Can you provide the financial health for OR stock?

The financial health rating of L'OREAL (OR.PA) is 7 / 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 10.34% in the next year.