L'OREAL (OR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:OR - FR0000120321 - Common Stock
364.7 EUR
-1.9 (-0.52%)
Overall OR gets a fundamental rating of 6 out of 10. We evaluated OR against 13 industry peers in the Personal Care Products industry. OR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. OR is valied quite expensively at the moment, while 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.
In the past 5 years OR has always been profitable.
OR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.21%, OR is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
With a decent Return On Equity value of 19.63%, OR is doing good in the industry, outperforming 69.23% 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 84.62% 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 12.37%.
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 Profit Margin of 13.96%. This is amongst the best in the industry. OR outperforms 84.62% of its industry peers.
OR's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 20.41%, OR is doing good in the industry, outperforming 76.92% of the companies in the same industry.
OR's Operating Margin has been stable in the last couple of years.
The Gross Margin of OR (74.11%) is better than 76.92% 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
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.
OR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.99 indicates that OR is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.99, OR belongs to the best of the industry, outperforming 92.31% 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.
Looking at the Debt to FCF ratio, with a value of 1.19, OR belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
OR has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
OR has a Debt to Equity ratio of 0.20. This is in the better half of the industry: OR outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 6.99 |
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.
Looking at the Current ratio, with a value of 1.19, OR is doing worse than 61.54% 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 46.15% 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%.
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
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.
The Revenue is expected to grow by 5.04% on average over the next years.
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.
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
OR is valuated quite expensively with a Price/Earnings ratio of 28.60.
Based on the Price/Earnings ratio, OR is valued a bit more expensive than 69.23% of the companies in the same industry.
OR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.60.
Based on the Price/Forward Earnings ratio of 26.00, the valuation of OR can be described as expensive.
Based on the Price/Forward Earnings ratio, OR is valued a bit more expensive than 76.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, OR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.6 | ||
| Fwd PE | 26 |
4.2 Price Multiples
84.62% of the companies in the same industry are cheaper than OR, based on the Enterprise Value to EBITDA ratio.
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 | 26.31 | ||
| EV/EBITDA | 18.77 |
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)7.22
PEG (5Y)2.77
EPS Next 2Y5.25%
EPS Next 3Y5.98%
5. Dividend
5.1 Amount
OR has a Yearly Dividend Yield of 1.92%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.12, OR pays a bit more dividend than its industry peers.
OR's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
The dividend of OR is nicely growing with an annual growth rate of 11.22%!
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.
The dividend of OR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.89%
EPS Next 2Y5.25%
EPS Next 3Y5.98%
EPA:OR (1/2/2026, 7:00:00 PM)
364.7
-1.9 (-0.52%)
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 Cap194.67B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68.57
Price Target396.38 (8.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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)0.1%
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)0.03%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.6 | ||
| Fwd PE | 26 | ||
| P/S | 4.44 | ||
| P/FCF | 26.31 | ||
| P/OCF | 21.57 | ||
| P/B | 6.24 | ||
| P/tB | 14.25 | ||
| EV/EBITDA | 18.77 |
EPS(TTM)12.75
EY3.5%
EPS(NY)14.02
Fwd EY3.85%
FCF(TTM)13.86
FCFY3.8%
OCF(TTM)16.91
OCFY4.64%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)7.22
PEG (5Y)2.77
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 | 6.99 |
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.