L'OREAL (OR.PA) Fundamental Analysis & Valuation
EPA:OR • FR0000120321
Current stock price
344.9 EUR
-0.25 (-0.07%)
Last:
This OR.PA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. OR.PA Profitability Analysis
1.1 Basic Checks
- In the past year OR was profitable.
- OR had a positive operating cash flow in the past year.
- 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 (9.91%) which is in line with its industry peers.
- OR has a better Return On Equity (17.53%) than 64.29% of its industry peers.
- OR has a Return On Invested Capital (14.18%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for OR is above the industry average of 11.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.91% | ||
| ROE | 17.53% | ||
| ROIC | 14.18% |
ROA(3y)11.07%
ROA(5y)11.22%
ROE(3y)19.38%
ROE(5y)19.73%
ROIC(3y)15.03%
ROIC(5y)15.46%
1.3 Margins
- The Profit Margin of OR (13.91%) is better than 71.43% of its industry peers.
- OR's Profit Margin has improved in the last couple of years.
- The Operating Margin of OR (20.19%) is better than 85.71% of its industry peers.
- In the last couple of years the Operating Margin of OR has grown nicely.
- OR has a Gross Margin of 74.32%. This is in the better half of the industry: OR outperforms 71.43% 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 | 20.19% | ||
| PM (TTM) | 13.91% | ||
| GM | 74.32% |
OM growth 3Y0.87%
OM growth 5Y1.7%
PM growth 3Y-2.3%
PM growth 5Y1.79%
GM growth 3Y0.9%
GM growth 5Y0.33%
2. OR.PA Health Analysis
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
- OR has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.98 indicates that OR is not in any danger for bankruptcy at the moment.
- OR has a Altman-Z score of 5.98. This is amongst the best in the industry. OR outperforms 85.71% of its industry peers.
- OR has a debt to FCF ratio of 1.66. This is a very positive value and a sign of high solvency as it would only need 1.66 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 1.66, OR is doing good in the industry, outperforming 78.57% of the companies in the same industry.
- OR has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of OR (0.27) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 5.98 |
ROIC/WACC1.83
WACC7.75%
2.3 Liquidity
- A Current Ratio of 1.44 indicates that OR should not have too much problems paying its short term obligations.
- OR's Current ratio of 1.44 is in line compared to the rest of the industry. OR outperforms 57.14% of its industry peers.
- OR has a Quick Ratio of 1.15. 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 Quick ratio of 1.15 is fine compared to the rest of the industry. OR outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.15 |
3. OR.PA Growth Analysis
3.1 Past
- OR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.39%.
- OR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.73% yearly.
- Looking at the last year, OR shows a small growth in Revenue. The Revenue has grown by 1.30% in the last year.
- OR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.49% yearly.
EPS 1Y (TTM)0.39%
EPS 3Y4.12%
EPS 5Y11.73%
EPS Q2Q%-0.7%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y4.81%
Revenue growth 5Y9.49%
Sales Q2Q%1%
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 9.97% on average per year.
- The Revenue is expected to grow by 5.58% on average over the next years.
EPS Next Y9.97%
EPS Next 2Y9.04%
EPS Next 3Y8.9%
EPS Next 5Y9.97%
Revenue Next Year4.15%
Revenue Next 2Y4.83%
Revenue Next 3Y5.06%
Revenue Next 5Y5.58%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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. OR.PA Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 27.14, the valuation of OR can be described as expensive.
- OR's Price/Earnings is on the same level as the industry average.
- OR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.79.
- The Price/Forward Earnings ratio is 24.67, which indicates a rather expensive current valuation of OR.
- 78.57% of the companies in the same industry are cheaper than OR, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 38.88, OR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.14 | ||
| Fwd PE | 24.67 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, OR is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
- Based on the Price/Free Cash Flow ratio, OR is valued a bit more expensive than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.71 | ||
| EV/EBITDA | 17.38 |
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 decent profitability rating of OR may justify a higher PE ratio.
PEG (NY)2.72
PEG (5Y)2.31
EPS Next 2Y9.04%
EPS Next 3Y8.9%
5. OR.PA Dividend Analysis
5.1 Amount
- OR has a Yearly Dividend Yield of 2.06%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.44, OR pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, OR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
- On average, the dividend of OR grows each year by 13.36%, which is quite nice.
Dividend Growth(5Y)13.36%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 63.93% of the earnings are spent on dividend by OR. 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.
DP63.93%
EPS Next 2Y9.04%
EPS Next 3Y8.9%
OR.PA Fundamentals: All Metrics, Ratios and Statistics
EPA:OR (4/22/2026, 7:00:00 PM)
344.9
-0.25 (-0.07%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)04-22 2026-04-22
Inst Owners15.5%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap184.10B
Revenue(TTM)44.05B
Net Income(TTM)6.13B
Analysts75.56
Price Target411.29 (19.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
Yearly Dividend7.33
Dividend Growth(5Y)13.36%
DP63.93%
Div Incr Years5
Div Non Decr Years5
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)0.42%
PT rev (3m)2.74%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.33%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.14 | ||
| Fwd PE | 24.67 | ||
| P/S | 4.18 | ||
| P/FCF | 25.71 | ||
| P/OCF | 21.27 | ||
| P/B | 5.27 | ||
| P/tB | 11.95 | ||
| EV/EBITDA | 17.38 |
EPS(TTM)12.71
EY3.69%
EPS(NY)13.98
Fwd EY4.05%
FCF(TTM)13.42
FCFY3.89%
OCF(TTM)16.22
OCFY4.7%
SpS82.53
BVpS65.48
TBVpS28.87
PEG (NY)2.72
PEG (5Y)2.31
Graham Number136.844 (-60.32%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.91% | ||
| ROE | 17.53% | ||
| ROCE | 19.15% | ||
| ROIC | 14.18% | ||
| ROICexc | 18% | ||
| ROICexgc | 38.57% | ||
| OM | 20.19% | ||
| PM (TTM) | 13.91% | ||
| GM | 74.32% | ||
| FCFM | 16.26% |
ROA(3y)11.07%
ROA(5y)11.22%
ROE(3y)19.38%
ROE(5y)19.73%
ROIC(3y)15.03%
ROIC(5y)15.46%
ROICexc(3y)17.54%
ROICexc(5y)17.57%
ROICexgc(3y)36.26%
ROICexgc(5y)36.52%
ROCE(3y)20.28%
ROCE(5y)21.4%
ROICexgc growth 3Y3.47%
ROICexgc growth 5Y5.39%
ROICexc growth 3Y0.4%
ROICexc growth 5Y4.64%
OM growth 3Y0.87%
OM growth 5Y1.7%
PM growth 3Y-2.3%
PM growth 5Y1.79%
GM growth 3Y0.9%
GM growth 5Y0.33%
F-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.66 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 82.28% | ||
| Cap/Sales | 3.39% | ||
| Interest Coverage | 24.83 | ||
| Cash Conversion | 80.8% | ||
| Profit Quality | 116.88% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 5.98 |
F-Score6
WACC7.75%
ROIC/WACC1.83
Cap/Depr(3y)85.86%
Cap/Depr(5y)81.08%
Cap/Sales(3y)3.59%
Cap/Sales(5y)3.53%
Profit Quality(3y)106.49%
Profit Quality(5y)105.78%
High Growth Momentum
Growth
EPS 1Y (TTM)0.39%
EPS 3Y4.12%
EPS 5Y11.73%
EPS Q2Q%-0.7%
EPS Next Y9.97%
EPS Next 2Y9.04%
EPS Next 3Y8.9%
EPS Next 5Y9.97%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y4.81%
Revenue growth 5Y9.49%
Sales Q2Q%1%
Revenue Next Year4.15%
Revenue Next 2Y4.83%
Revenue Next 3Y5.06%
Revenue Next 5Y5.58%
EBIT growth 1Y2.4%
EBIT growth 3Y5.72%
EBIT growth 5Y11.35%
EBIT Next Year25.26%
EBIT Next 3Y12.38%
EBIT Next 5Y10.71%
FCF growth 1Y7.79%
FCF growth 3Y13.22%
FCF growth 5Y5.49%
OCF growth 1Y4.48%
OCF growth 3Y11.3%
OCF growth 5Y6.05%
L'OREAL / OR.PA Fundamental Analysis 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.
Can you provide the profitability details for L'OREAL?
L'OREAL (OR.PA) has a profitability rating of 7 / 10.
What is the valuation of L'OREAL based on its PE and PB ratios?
The Price/Earnings (PE) ratio for L'OREAL (OR.PA) is 27.14 and the Price/Book (PB) ratio is 5.27.
What is the earnings growth outlook for L'OREAL?
The Earnings per Share (EPS) of L'OREAL (OR.PA) is expected to grow by 9.97% in the next year.