L'OREAL (OR.PA) Fundamental Analysis & Valuation

EPA:OR • FR0000120321

Current stock price

349.85 EUR
+4.95 (+1.44%)
Last:

This OR.PA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. OR.PA Profitability Analysis

1.1 Basic Checks

  • OR had positive earnings in the past year.
  • OR had a positive operating cash flow in the past year.
  • OR had positive earnings in each of the past 5 years.
  • OR had a positive operating cash flow in each of the past 5 years.
OR.PA Yearly Net Income VS EBIT VS OCF VS FCFOR.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

1.2 Ratios

  • OR's Return On Assets of 11.21% is fine compared to the rest of the industry. OR outperforms 71.43% 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 has a Return On Invested Capital of 16.86%. This is amongst the best in the industry. OR outperforms 92.86% of its industry peers.
Industry RankSector Rank
ROA 11.21%
ROE 19.63%
ROIC 16.86%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
OR.PA Yearly ROA, ROE, ROICOR.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • With a decent Profit Margin value of 13.96%, OR is doing good in the industry, outperforming 78.57% of the companies in the same industry.
  • OR's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 20.41%, OR belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
  • OR's Operating Margin has been stable in the last couple of years.
  • Looking at the Gross Margin, with a value of 74.11%, OR is in the better half of the industry, outperforming 78.57% 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 RankSector Rank
OM 20.41%
PM (TTM) 13.96%
GM 74.11%
OM growth 3Y-1.18%
OM growth 5Y0.46%
PM growth 3Y-2.3%
PM growth 5Y1.79%
GM growth 3Y0.9%
GM growth 5Y0.33%
OR.PA Yearly Profit, Operating, Gross MarginsOR.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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7

2. OR.PA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OR is creating value.
  • There is no outstanding debt for OR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
OR.PA Yearly Shares OutstandingOR.PA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
OR.PA Yearly Total Debt VS Total AssetsOR.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.2 Solvency

  • An Altman-Z score of 6.69 indicates that OR is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of OR (6.69) is better than 85.71% 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.
  • OR's Debt to FCF ratio of 1.19 is amongst the best of the industry. OR outperforms 85.71% of its industry peers.
  • OR has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
  • OR's Debt to Equity ratio of 0.20 is amongst the best of the industry. OR outperforms 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 1.19
Altman-Z 6.69
ROIC/WACC2.12
WACC7.94%
OR.PA Yearly LT Debt VS Equity VS FCFOR.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.3 Liquidity

  • A Current Ratio of 1.19 indicates that OR should not have too much problems paying its short term obligations.
  • OR has a Current ratio (1.19) which is comparable to the rest of the industry.
  • A Quick Ratio of 0.90 indicates that OR may have some problems paying its short term obligations.
  • OR has a Quick ratio of 0.90. This is comparable to the rest of the industry: OR outperforms 57.14% of its industry peers.
Industry RankSector Rank
Current Ratio 1.19
Quick Ratio 0.9
OR.PA Yearly Current Assets VS Current LiabilitesOR.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. OR.PA Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 0.39% over the past year.
  • OR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.73% yearly.
  • OR shows a small growth in Revenue. In the last year, the Revenue has grown by 1.30%.
  • 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.
  • Based on estimates for the next years, OR will show a small growth in Revenue. The Revenue will grow by 5.58% on average per year.
EPS Next Y10.34%
EPS Next 2Y9.07%
EPS Next 3Y8.77%
EPS Next 5Y9.97%
Revenue Next Year4.11%
Revenue Next 2Y4.78%
Revenue Next 3Y5.02%
Revenue Next 5Y5.58%

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 stable.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
OR.PA Yearly Revenue VS EstimatesOR.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B
OR.PA Yearly EPS VS EstimatesOR.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20 25

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2

4. OR.PA Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 27.53, the valuation of OR can be described as expensive.
  • The rest of the industry has a similar Price/Earnings ratio as OR.
  • OR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.54.
  • A Price/Forward Earnings ratio of 24.95 indicates a rather expensive valuation of OR.
  • Based on the Price/Forward Earnings ratio, OR is valued a bit more expensive than 64.29% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, OR is valued at the same level.
Industry RankSector Rank
PE 27.53
Fwd PE 24.95
OR.PA Price Earnings VS Forward Price EarningsOR.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 85.71% 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 RankSector Rank
P/FCF 25.24
EV/EBITDA 17.26
OR.PA Per share dataOR.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

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 decent profitability rating of OR may justify a higher PE ratio.
PEG (NY)2.66
PEG (5Y)2.35
EPS Next 2Y9.07%
EPS Next 3Y8.77%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. OR.PA Dividend Analysis

5.1 Amount

  • OR has a Yearly Dividend Yield of 1.56%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.37, OR is paying slightly less dividend.
  • OR's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.56%

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
OR.PA Yearly Dividends per shareOR.PA Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8

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 2Y9.07%
EPS Next 3Y8.77%
OR.PA Yearly Income VS Free CF VS DividendOR.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
OR.PA Dividend Payout.OR.PA Dividend Payout, showing the Payout Ratio.OR.PA Dividend Payout.PayoutRetained Earnings

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OR.PA Fundamentals: All Metrics, Ratios and Statistics

L'OREAL

EPA:OR (3/24/2026, 2:05:15 PM)

349.85

+4.95 (+1.44%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)02-12
Earnings (Next)04-22
Inst Owners15.69%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap186.74B
Revenue(TTM)44.05B
Net Income(TTM)6.12B
Analysts73.33
Price Target409.57 (17.07%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.56%
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)1.55%
PT rev (3m)3.3%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.08%
Valuation
Industry RankSector Rank
PE 27.53
Fwd PE 24.95
P/S 4.26
P/FCF 25.24
P/OCF 20.69
P/B 5.99
P/tB 13.67
EV/EBITDA 17.26
EPS(TTM)12.71
EY3.63%
EPS(NY)14.02
Fwd EY4.01%
FCF(TTM)13.86
FCFY3.96%
OCF(TTM)16.91
OCFY4.83%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)2.66
PEG (5Y)2.35
Graham Number129.24
Profitability
Industry RankSector Rank
ROA 11.21%
ROE 19.63%
ROCE 22.82%
ROIC 16.86%
ROICexc 19.21%
ROICexgc 38.99%
OM 20.41%
PM (TTM) 13.96%
GM 74.11%
FCFM 16.88%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-1.18%
OM growth 5Y0.46%
PM growth 3Y-2.3%
PM growth 5Y1.79%
GM growth 3Y0.9%
GM growth 5Y0.33%
F-Score7
Asset Turnover0.8
Health
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 1.19
Debt/EBITDA 0.58
Cap/Depr 83.65%
Cap/Sales 3.71%
Interest Coverage 23.8
Cash Conversion 82.87%
Profit Quality 120.87%
Current Ratio 1.19
Quick Ratio 0.9
Altman-Z 6.69
F-Score7
WACC7.94%
ROIC/WACC2.12
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 Y10.34%
EPS Next 2Y9.07%
EPS Next 3Y8.77%
EPS Next 5Y9.97%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y4.81%
Revenue growth 5Y9.49%
Sales Q2Q%1%
Revenue Next Year4.11%
Revenue Next 2Y4.78%
Revenue Next 3Y5.02%
Revenue Next 5Y5.58%
EBIT growth 1Y8.41%
EBIT growth 3Y3.58%
EBIT growth 5Y9.99%
EBIT Next Year25.68%
EBIT Next 3Y12.32%
EBIT Next 5Y10.71%
FCF growth 1Y23.2%
FCF growth 3Y13.22%
FCF growth 5Y5.49%
OCF growth 1Y19.52%
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 5 / 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 7 / 10.


Can you provide the financial health for OR stock?

The financial health rating of L'OREAL (OR.PA) is 6 / 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 10.34% in the next year.