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 14 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 has a expensive valuation and it also scores bad on growth.
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.
- Each year in the past 5 years OR has been profitable.
- In the past 5 years OR always reported a positive cash flow from operatings.
1.2 Ratios
- OR has a Return On Assets of 11.21%. This is amongst the best in the industry. OR outperforms 85.71% of its industry peers.
- With a decent Return On Equity value of 19.63%, OR is doing good in the industry, outperforming 78.57% of the companies in the same industry.
- OR's Return On Invested Capital of 17.45% is amongst the best of the industry. OR outperforms 92.86% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for OR is above the industry average of 11.45%.
- 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
- With an excellent Profit Margin value of 13.96%, OR belongs to the best of the industry, outperforming 92.86% 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 85.71% 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 has a Gross Margin of 74.11%. This is amongst the best in the industry. OR outperforms 85.71% 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.
- Compared to 1 year ago, OR has about the same amount of shares outstanding.
- OR has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, OR has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 7.27 indicates that OR is not in any danger for bankruptcy at the moment.
- OR has a Altman-Z score of 7.27. This is amongst the best in the industry. OR outperforms 85.71% 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.
- OR's Debt to FCF ratio of 1.19 is amongst the best of the industry. OR outperforms 92.86% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 7.27 |
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's Current ratio of 1.19 is in line compared to the rest of the industry. OR outperforms 50.00% of 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.
- Looking at the Quick ratio, with a value of 0.90, OR is in line with its industry, outperforming 57.14% of the companies in the same 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
- OR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.41%.
- The Earnings Per Share has been growing by 10.34% on average over the past years. This is quite good.
- 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
- The Earnings Per Share is expected to grow by 7.87% on average over the next years.
- The Revenue is expected to grow by 5.00% on average over the next years.
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
- 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 30.35, the valuation of OR can be described as expensive.
- 64.29% of the companies in the same industry are cheaper than OR, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.32. OR is around the same levels.
- A Price/Forward Earnings ratio of 27.54 indicates a quite expensive valuation of OR.
- Based on the Price/Forward Earnings ratio, OR is valued a bit more expensive than 71.43% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, OR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.35 | ||
| Fwd PE | 27.54 |
4.2 Price Multiples
- 71.43% of the companies in the same industry are cheaper than OR, based on the Enterprise Value to EBITDA ratio.
- OR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.92 | ||
| EV/EBITDA | 19.32 |
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 1.80%. Purely for dividend investing, there may be better candidates out there.
- OR's Dividend Yield is comparable with the industry average which is at 2.10.
- 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 | 1.8% |
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
- 62.89% of the earnings are spent on dividend by OR. This is not a sustainable payout ratio.
- OR's earnings are growing slower than its dividend. 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.