L'OREAL (OR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:OR - FR0000120321 - Common Stock
363.8 EUR
+1.25 (+0.34%)
Overall OR gets a fundamental rating of 6 out of 10. We evaluated OR against 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 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.
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 in the better half of the industry: OR outperforms 80.00% of its industry peers.
OR has a better Return On Equity (19.63%) than 73.33% of its industry peers.
The Return On Invested Capital of OR (17.45%) is better than 86.67% of its industry peers.
OR had an Average Return On Invested Capital over the past 3 years of 16.33%. This is above the industry average of 11.99%.
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
Looking at the Profit Margin, with a value of 13.96%, OR belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
OR's Profit Margin has improved in the last couple of years.
OR has a better Operating Margin (20.41%) than 80.00% 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 73.33% 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
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.
The number of shares outstanding for OR has been reduced compared to 5 years ago.
Compared to 1 year ago, OR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.95 indicates that OR is not in any danger for bankruptcy at the moment.
The Altman-Z score of OR (6.95) is better than 93.33% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.19, OR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that OR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.20, OR is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 6.95 |
ROIC/WACC2.21
WACC7.88%
2.3 Liquidity
A Current Ratio of 1.19 indicates that OR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.19, OR is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.90 indicates that OR may have some problems paying its short term obligations.
With a Quick ratio value of 0.90, OR perfoms like the industry average, outperforming 46.67% of the companies in the same 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
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.
OR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.80% yearly.
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 quite strong growth in Earnings Per Share. The EPS will grow by 8.18% on average per year.
Based on estimates for the next years, OR will show a small growth in Revenue. The Revenue will grow by 5.04% on average per year.
EPS Next Y4.17%
EPS Next 2Y5.28%
EPS Next 3Y6.01%
EPS Next 5Y8.18%
Revenue Next Year2.04%
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.
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 28.53, 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 73.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.57, OR is valued at the same level.
OR is valuated quite expensively with a Price/Forward Earnings ratio of 25.92.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OR indicates a rather expensive valuation: OR more expensive than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.04. OR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.53 | ||
| Fwd PE | 25.92 |
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 86.67% 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 | 26.25 | ||
| EV/EBITDA | 18.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of OR may justify a higher PE ratio.
PEG (NY)6.85
PEG (5Y)2.76
EPS Next 2Y5.28%
EPS Next 3Y6.01%
5. Dividend
5.1 Amount
OR has a Yearly Dividend Yield of 1.86%. Purely for dividend investing, there may be better candidates out there.
OR's Dividend Yield is comparable with the industry average which is at 2.15.
OR's Dividend Yield is comparable with the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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 2Y5.28%
EPS Next 3Y6.01%
EPA:OR (12/24/2025, 7:00:00 PM)
363.8
+1.25 (+0.34%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners16.05%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap194.19B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68.57
Price Target396.47 (8.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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)0.65%
PT rev (3m)0.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.53 | ||
| Fwd PE | 25.92 | ||
| P/S | 4.43 | ||
| P/FCF | 26.25 | ||
| P/OCF | 21.52 | ||
| P/B | 6.23 | ||
| P/tB | 14.21 | ||
| EV/EBITDA | 18.63 |
EPS(TTM)12.75
EY3.5%
EPS(NY)14.03
Fwd EY3.86%
FCF(TTM)13.86
FCFY3.81%
OCF(TTM)16.91
OCFY4.65%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)6.85
PEG (5Y)2.76
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 Y4.17%
EPS Next 2Y5.28%
EPS Next 3Y6.01%
EPS Next 5Y8.18%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%1.59%
Revenue Next Year2.04%
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 Year23.32%
EBIT Next 3Y11.27%
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 28.53 and the Price/Book (PB) ratio is 6.23.
Can you provide the dividend sustainability for OR stock?
The dividend rating of L'OREAL (OR.PA) is 3 / 10 and the dividend payout ratio is 62.89%.