L'OREAL (OR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:OR - FR0000120321 - Common Stock
368.7 EUR
+5.4 (+1.49%)
OR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
OR had positive earnings in the past year.
In the past year OR had a positive cash flow from operations.
Each year in the past 5 years OR has been profitable.
OR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OR has a Return On Assets of 11.21%. This is amongst the best in the industry. OR outperforms 84.62% of its industry peers.
OR's Return On Equity of 19.63% is fine compared to the rest of the industry. OR outperforms 76.92% of its industry peers.
With an excellent Return On Invested Capital value of 17.45%, OR belongs to the best of the industry, outperforming 92.31% 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 12.34%.
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
The Profit Margin of OR (13.96%) is better than 92.31% of its industry peers.
OR's Profit Margin has improved in the last couple of years.
The Operating Margin of OR (20.41%) is better than 84.62% of its industry peers.
OR's Operating Margin has been stable in the last couple of years.
OR has a better Gross Margin (74.11%) than 84.62% 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
OR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for OR remains at a similar level compared to 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 6.95 indicates that OR is not in any danger for bankruptcy at the moment.
OR has a better Altman-Z score (6.95) than 84.62% 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 92.31% 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's Debt to Equity ratio of 0.20 is amongst the best of the industry. OR outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 6.95 |
ROIC/WACC2.21
WACC7.88%
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.
A Quick Ratio of 0.90 indicates that OR may have some problems paying its short term obligations.
The Quick ratio of OR (0.90) 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.
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
OR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.18% yearly.
OR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.04% yearly.
EPS Next Y3.96%
EPS Next 2Y5.25%
EPS Next 3Y5.98%
EPS Next 5Y8.18%
Revenue Next Year2.05%
Revenue Next 2Y3.12%
Revenue Next 3Y3.86%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.92, which means the current valuation is very expensive for OR.
Compared to the rest of the industry, the Price/Earnings ratio of OR indicates a slightly more expensive valuation: OR is more expensive than 61.54% of the companies listed in the same industry.
OR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.87.
The Price/Forward Earnings ratio is 26.29, which means the current valuation is very expensive for OR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OR indicates a slightly more expensive valuation: OR is more expensive than 69.23% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.46. OR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.92 | ||
| Fwd PE | 26.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OR is valued a bit more expensive than 76.92% of the companies in the same industry.
OR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.6 | ||
| EV/EBITDA | 18.6 |
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.
OR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.3
PEG (5Y)2.8
EPS Next 2Y5.25%
EPS Next 3Y5.98%
5. Dividend
5.1 Amount
No dividends for OR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EPA:OR (1/6/2026, 5:36:15 PM)
368.7
+5.4 (+1.49%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners15.95%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap196.80B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68.57
Price Target396.38 (7.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0.76%
PT rev (3m)0%
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 | 28.92 | ||
| Fwd PE | 26.29 | ||
| P/S | 4.49 | ||
| P/FCF | 26.6 | ||
| P/OCF | 21.81 | ||
| P/B | 6.31 | ||
| P/tB | 14.4 | ||
| EV/EBITDA | 18.6 |
EPS(TTM)12.75
EY3.46%
EPS(NY)14.02
Fwd EY3.8%
FCF(TTM)13.86
FCFY3.76%
OCF(TTM)16.91
OCFY4.59%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)7.3
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 | 6.95 |
F-Score5
WACC7.88%
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 Y3.96%
EPS Next 2Y5.25%
EPS Next 3Y5.98%
EPS Next 5Y8.18%
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 5Y5.04%
EBIT growth 1Y8.41%
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 1Y26.67%
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.
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.