L'OREAL (OR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:OR - FR0000120321 - Common Stock
368.8 EUR
-0.45 (-0.12%)
Taking everything into account, OR scores 6 out of 10 in our fundamental rating. OR was compared to 15 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 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.
In the past year OR had a positive cash flow from operations.
OR had positive earnings in each of the past 5 years.
OR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.21%, OR belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
With a decent Return On Equity value of 19.63%, OR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 17.45%, OR belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OR is above the industry average of 11.60%.
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
OR's Profit Margin of 13.96% is amongst the best of the industry. OR outperforms 93.33% of its industry peers.
OR's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.41%, OR belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
In the last couple of years the Operating Margin of OR has remained more or less at the same level.
OR has a Gross Margin of 74.11%. This is in the better half of the industry: OR outperforms 80.00% of its industry peers.
In the last couple of years the Gross Margin of OR has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
Compared to 1 year ago, OR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.03 indicates that OR is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.03, OR belongs to the best of the industry, outperforming 86.67% 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.
With an excellent Debt to FCF ratio value of 1.19, OR belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that OR is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.20, OR belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 7.03 |
ROIC/WACC2.21
WACC7.89%
2.3 Liquidity
A Current Ratio of 1.19 indicates that OR should not have too much problems paying its short term obligations.
OR has a Current ratio (1.19) which is comparable to the rest of the industry.
A Quick Ratio of 0.90 indicates that OR may have some problems paying its short term obligations.
OR has a Quick ratio (0.90) which is in line with its industry peers.
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%.
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
The Earnings Per Share is expected to grow by 8.18% on average over the next years. This is quite good.
OR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.04% yearly.
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 5Y5.04%
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
Based on the Price/Earnings ratio of 28.93, the valuation of OR can be described as expensive.
OR's Price/Earnings ratio is a bit more expensive when compared to the industry. OR is more expensive than 60.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of OR to the average of the S&P500 Index (26.37), we can say OR is valued inline with the index average.
With a Price/Forward Earnings ratio of 26.33, 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 66.67% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.20, OR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.93 | ||
| Fwd PE | 26.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OR is valued expensively inside the industry as 80.00% 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 | 26.61 | ||
| EV/EBITDA | 18.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
OR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.94
PEG (5Y)2.8
EPS Next 2Y5.19%
EPS Next 3Y6.07%
5. Dividend
5.1 Amount
No dividends for OR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:OR (12/4/2025, 5:36:15 PM)
368.8
-0.45 (-0.12%)
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 Cap196.86B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68
Price Target393.39 (6.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-0.75%
PT rev (3m)-0.66%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.42%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.93 | ||
| Fwd PE | 26.33 | ||
| P/S | 4.49 | ||
| P/FCF | 26.61 | ||
| P/OCF | 21.81 | ||
| P/B | 6.31 | ||
| P/tB | 14.41 | ||
| EV/EBITDA | 18.9 |
EPS(TTM)12.75
EY3.46%
EPS(NY)14.01
Fwd EY3.8%
FCF(TTM)13.86
FCFY3.76%
OCF(TTM)16.91
OCFY4.58%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)6.94
PEG (5Y)2.8
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 | 7.03 |
F-Score5
WACC7.89%
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 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 5Y5.04%
EBIT growth 1Y8.41%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year22.99%
EBIT Next 3Y11.46%
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.
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 28.93 and the Price/Book (PB) ratio is 6.31.
Can you provide the dividend sustainability for OR stock?
The dividend rating of L'OREAL (OR.PA) is 0 / 10 and the dividend payout ratio is 62.89%.