L'OREAL (OR.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:OR • FR0000120321
387 EUR
-1.1 (-0.28%)
Last: Jan 30, 2026, 07:00 PM
Overall OR gets a fundamental rating of 6 out of 10. We evaluated OR against 13 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 has a expensive valuation and it also scores bad on growth.
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.
- In the past 5 years OR always reported a positive cash flow from operatings.
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 76.92% of the companies in the same industry.
- OR has a better Return On Equity (19.63%) than 69.23% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 17.45%, OR belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for OR is above the industry average of 11.91%.
- 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 84.62% of its industry peers.
- OR's Profit Margin has improved in the last couple of years.
- OR's Operating Margin of 20.41% is fine compared to the rest of the industry. OR outperforms 76.92% of its industry peers.
- In the last couple of years the Operating Margin of OR has remained more or less at the same level.
- OR's Gross Margin of 74.11% is fine compared to the rest of the industry. OR outperforms 76.92% of its industry peers.
- 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
- 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 7.28 indicates that OR is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 7.28, OR belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 1.19, OR belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
- OR has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.20, OR is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 7.28 |
ROIC/WACC2.18
WACC8.01%
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 in line with its industry, outperforming 46.15% of the companies in the same industry.
- 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.
- The Quick ratio of OR (0.90) is comparable to the rest of the industry.
- OR does not score too well on the current and quick ratio evaluation. However, as it has 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.
- The Earnings Per Share has been growing by 10.34% 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 2.60%.
- 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.
- Based on estimates for the next years, OR will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
EPS Next Y3.87%
EPS Next 2Y5.36%
EPS Next 3Y6.02%
EPS Next 5Y7.87%
Revenue Next Year2.05%
Revenue Next 2Y3.12%
Revenue Next 3Y3.86%
Revenue Next 5Y5%
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 30.35, 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 69.23% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, OR is valued at the same level.
- OR is valuated quite expensively with a Price/Forward Earnings ratio of 27.54.
- Based on the Price/Forward Earnings ratio, OR is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
- OR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.35 | ||
| Fwd PE | 27.54 |
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.
- Based on the Price/Free Cash Flow ratio, OR is valued a bit more expensive than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.92 | ||
| EV/EBITDA | 19.38 |
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)7.83
PEG (5Y)2.94
EPS Next 2Y5.36%
EPS Next 3Y6.02%
5. Dividend
5.1 Amount
- OR has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.23, OR pays a bit more dividend than its industry peers.
- OR's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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
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 2Y5.36%
EPS Next 3Y6.02%
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 1 / 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 3.87% in the next year.