L'OREAL (OR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:OR - FR0000120321 - Common Stock
384.35 EUR
+3.4 (+0.89%)
We assign a fundamental rating of 6 out of 10 to OR. OR was compared to 12 industry peers in the Personal Care Products industry. Both the health and profitability get an excellent rating, making OR a very profitable company, without any liquidiy or solvency issues. OR is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year OR was profitable.
- OR had a positive operating cash flow in the past year.
- 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 is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- OR has a better Return On Equity (19.63%) than 66.67% of its industry peers.
- With an excellent Return On Invested Capital value of 17.45%, OR belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- OR had an Average Return On Invested Capital over the past 3 years of 16.33%. This is above the industry average of 12.19%.
- 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
- OR's Profit Margin of 13.96% is amongst the best of the industry. OR outperforms 83.33% of its industry peers.
- In the last couple of years the Profit Margin of OR has grown nicely.
- The Operating Margin of OR (20.41%) is better than 75.00% 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 75.00% of the companies in the same industry.
- 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
- 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
- OR has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 7.19 indicates that OR is not in any danger for bankruptcy at the moment.
- OR has a Altman-Z score of 7.19. This is amongst the best in the industry. OR outperforms 91.67% of its industry peers.
- OR has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 1.19, OR belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- A Debt/Equity ratio of 0.20 indicates that OR is not too dependend on debt financing.
- OR has a Debt to Equity ratio of 0.20. This is in the better half of the industry: OR outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 7.19 |
ROIC/WACC2.18
WACC8.01%
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 comparable to the rest of the 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
- The Earnings Per Share has been growing slightly by 3.41% over the past year.
- 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.
- The Revenue has been growing slightly by 2.60% in the past year.
- Measured over the past years, OR shows a small growth in Revenue. The Revenue has been growing by 7.80% on average per year.
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 small growth in Earnings Per Share. The EPS will grow by 7.87% on average per year.
- OR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y3.96%
EPS Next 2Y5.25%
EPS Next 3Y5.98%
EPS Next 5Y7.87%
Revenue Next Year2.05%
Revenue Next 2Y3.12%
Revenue Next 3Y3.86%
Revenue Next 5Y5%
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 30.15, OR can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, OR is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
- The average S&P500 Price/Earnings ratio is at 26.94. OR is around the same levels.
- With a Price/Forward Earnings ratio of 27.41, 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, OR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.15 | ||
| Fwd PE | 27.41 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OR indicates a rather expensive valuation: OR more expensive than 83.33% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of OR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.73 | ||
| EV/EBITDA | 19.03 |
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)7.61
PEG (5Y)2.91
EPS Next 2Y5.25%
EPS Next 3Y5.98%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.81%, OR has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.05, OR pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, OR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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 2Y5.25%
EPS Next 3Y5.98%
EPA:OR (1/20/2026, 7:00:00 PM)
384.35
+3.4 (+0.89%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)10-21 2025-10-21
Earnings (Next)02-12 2026-02-12/amc
Inst Owners15.95%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap205.16B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68.57
Price Target400.33 (4.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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)0.97%
PT rev (3m)1%
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 | 30.15 | ||
| Fwd PE | 27.41 | ||
| P/S | 4.68 | ||
| P/FCF | 27.73 | ||
| P/OCF | 22.73 | ||
| P/B | 6.58 | ||
| P/tB | 15.01 | ||
| EV/EBITDA | 19.03 |
EPS(TTM)12.75
EY3.32%
EPS(NY)14.02
Fwd EY3.65%
FCF(TTM)13.86
FCFY3.61%
OCF(TTM)16.91
OCFY4.4%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)7.61
PEG (5Y)2.91
Graham Number129.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.21% | ||
| ROE | 19.63% | ||
| ROCE | 22.82% | ||
| ROIC | 17.45% | ||
| ROICexc | 19.88% | ||
| ROICexgc | 40.35% | ||
| 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 | 83.68% | ||
| Cap/Sales | 3.71% | ||
| Interest Coverage | 23.8 | ||
| Cash Conversion | 82.88% | ||
| Profit Quality | 120.87% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 7.19 |
F-Score5
WACC8.01%
ROIC/WACC2.18
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 5Y7.87%
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%
EBIT growth 1Y8.4%
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 1Y26.68%
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.