L'OREAL (OR.PA) Stock Fundamental Analysis
Europe - EPA:OR - FR0000120321 - Common Stock
350.65 EUR
-1.1 (-0.31%)
We assign a fundamental rating of 6 out of 10 to OR. OR was compared to 15 industry peers in the Personal Care Products industry. OR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. OR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
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.
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 86.67% of its industry peers.
With a decent Return On Equity value of 19.63%, OR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.45%, OR belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
OR had an Average Return On Invested Capital over the past 3 years of 16.33%. This is above the industry average of 12.25%.
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
OR has a better Profit Margin (13.96%) than 93.33% of its industry peers.
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 86.67% of its industry peers.
In the last couple of years the Operating Margin of OR has remained more or less at the same level.
With an excellent Gross Margin value of 74.11%, OR belongs to the best of the industry, outperforming 86.67% 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.
Compared to 1 year ago, OR has about the same amount of shares outstanding.
The number of shares outstanding for OR has been reduced compared to 5 years ago.
The debt/assets ratio for OR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.79 indicates that OR is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.79, OR belongs to the best of the industry, outperforming 86.67% 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.
With an excellent Debt to FCF ratio value of 1.19, OR belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that OR is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.20, OR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 6.79 |
ROIC/WACC2.2
WACC7.94%
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 perfoms like the industry average, outperforming 53.33% 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.
Looking at the Quick ratio, with a value of 0.90, OR is in line with its industry, outperforming 60.00% 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%.
Measured over the past years, OR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.34% on average per year.
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
The Earnings Per Share is expected to grow by 8.18% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.17% on average over the next years.
EPS Next Y4.17%
EPS Next 2Y5.19%
EPS Next 3Y6.07%
EPS Next 5Y8.18%
Revenue Next Year2.02%
Revenue Next 2Y3.11%
Revenue Next 3Y3.9%
Revenue Next 5Y5.17%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.50, which means the current valuation is very expensive for OR.
73.33% of the companies in the same industry are cheaper than OR, based on the Price/Earnings ratio.
OR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.46.
With a Price/Forward Earnings ratio of 25.03, OR can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, OR is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
OR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.5 | ||
| Fwd PE | 25.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OR is valued expensively inside the industry as 93.33% of the companies are valued cheaper.
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 | 25.3 | ||
| EV/EBITDA | 18.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
OR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.6
PEG (5Y)2.66
EPS Next 2Y5.19%
EPS Next 3Y6.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.95%, OR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.72, OR has a dividend in line with its industry peers.
OR's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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
OR pays out 62.89% of its income as dividend. 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 2Y5.19%
EPS Next 3Y6.07%
EPA:OR (11/19/2025, 7:00:00 PM)
350.65
-1.1 (-0.31%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners15.96%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap187.16B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68
Price Target393.9 (12.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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)-0.62%
PT rev (3m)-0.49%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.42%
EPS NY rev (3m)-1.72%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.5 | ||
| Fwd PE | 25.03 | ||
| P/S | 4.27 | ||
| P/FCF | 25.3 | ||
| P/OCF | 20.74 | ||
| P/B | 6 | ||
| P/tB | 13.7 | ||
| EV/EBITDA | 18.04 |
EPS(TTM)12.75
EY3.64%
EPS(NY)14.01
Fwd EY4%
FCF(TTM)13.86
FCFY3.95%
OCF(TTM)16.91
OCFY4.82%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)6.6
PEG (5Y)2.66
Graham Number129.45
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 | 6.79 |
F-Score5
WACC7.94%
ROIC/WACC2.2
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 2Y5.19%
EPS Next 3Y6.07%
EPS Next 5Y8.18%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%1.59%
Revenue Next Year2.02%
Revenue Next 2Y3.11%
Revenue Next 3Y3.9%
Revenue Next 5Y5.17%
EBIT growth 1Y8.41%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year22.99%
EBIT Next 3Y11.46%
EBIT Next 5Y10.05%
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 9 / 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 27.5 and the Price/Book (PB) ratio is 6.
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%.