L'OREAL (OR.PA)
FR0000120321 - Common Stock
Taking everything into account, OR scores 6 out of 10 in our fundamental rating. OR was compared to 14 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. These ratings would make OR suitable for quality investing!
1. Profitability
1.1 Basic Checks
OR had positive earnings in the past year.
OR had a positive operating cash flow in the past year.
Each year in the past 5 years OR has been profitable.
Each year in the past 5 years OR had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.93%, OR belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.27%, OR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.57%, OR belongs to the best of the industry, outperforming 92.86% 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 11.78%.
The last Return On Invested Capital (16.57%) for OR is above the 3 year average (16.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 21.27% | ||
| ROIC | 16.57% |
ROA(3y)11.6%
ROA(5y)10.31%
ROE(3y)20.59%
ROE(5y)17.36%
ROIC(3y)16.33%
ROIC(5y)14.69%
1.3 Margins
OR has a better Profit Margin (15.02%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of OR has remained more or less at the same level.
OR's Operating Margin of 19.52% is amongst the best of the industry. OR outperforms 85.71% of its industry peers.
OR's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 73.86%, OR belongs to the top of the industry, outperforming 92.86% 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 | 19.52% | ||
| PM (TTM) | 15.02% | ||
| GM | 73.86% |
OM growth 3Y0.13%
OM growth 5Y0.44%
PM growth 3Y5.66%
PM growth 5Y0.76%
GM growth 3Y0.35%
GM growth 5Y0.29%
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.
The number of shares outstanding for OR remains at a similar level compared to 1 year ago.
OR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for OR is higher compared to a year ago.
2.2 Solvency
OR has an Altman-Z score of 6.88. This indicates that OR is financially healthy and has little risk of bankruptcy at the moment.
OR has a Altman-Z score of 6.88. This is amongst the best in the industry. OR outperforms 85.71% of its industry peers.
OR has a debt to FCF ratio of 1.42. This is a very positive value and a sign of high solvency as it would only need 1.42 years to pay back of all of its debts.
OR has a Debt to FCF ratio of 1.42. This is amongst the best in the industry. OR outperforms 85.71% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that OR is not too dependend on debt financing.
OR has a Debt to Equity ratio of 0.21. This is in the better half of the industry: OR outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 6.88 |
ROIC/WACC2.24
WACC7.4%
2.3 Liquidity
OR has a Current Ratio of 1.10. This is a normal value and indicates that OR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of OR (1.10) is comparable to the rest of the industry.
A Quick Ratio of 0.79 indicates that OR may have some problems paying its short term obligations.
OR's Quick ratio of 0.79 is fine compared to the rest of the industry. OR outperforms 64.29% of its industry peers.
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 | 1.1 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.27% over the past year.
The Earnings Per Share has been growing by 11.28% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.59% in the past year.
OR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.86% yearly.
EPS 1Y (TTM)3.27%
EPS 3Y18.28%
EPS 5Y11.28%
EPS Q2Q%3.71%
Revenue 1Y (TTM)5.59%
Revenue growth 3Y13.73%
Revenue growth 5Y8.86%
Sales Q2Q%7.52%
3.2 Future
OR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.03% yearly.
The Revenue is expected to grow by 6.75% on average over the next years.
EPS Next Y8.55%
EPS Next 2Y8.78%
EPS Next 3Y8.82%
EPS Next 5Y9.03%
Revenue Next Year5.81%
Revenue Next 2Y6.07%
Revenue Next 3Y6.28%
Revenue Next 5Y6.75%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.28 indicates a quite expensive valuation of OR.
Compared to the rest of the industry, the Price/Earnings ratio of OR is on the same level as its industry peers.
OR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 30.69.
The Price/Forward Earnings ratio is 24.39, which indicates a rather expensive current valuation of OR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OR is on the same level as its industry peers.
OR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.28 | ||
| Fwd PE | 24.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OR indicates a slightly more expensive valuation: OR is more expensive than 78.57% of the companies listed in the same industry.
OR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.46 | ||
| EV/EBITDA | 19.93 |
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)3.31
PEG (5Y)2.51
EPS Next 2Y8.78%
EPS Next 3Y8.82%
5. Dividend
5.1 Amount
OR has a Yearly Dividend Yield of 1.84%. Purely for dividend investing, there may be better candidates out there.
OR's Dividend Yield is a higher than the industry average which is at 2.26.
OR's Dividend Yield is comparable with the S&P500 average which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
The dividend of OR is nicely growing with an annual growth rate of 11.70%!
Dividend Growth(5Y)11.7%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
OR pays out 55.39% of its income as dividend. This is a bit on the high side, but may be sustainable.
OR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP55.39%
EPS Next 2Y8.78%
EPS Next 3Y8.82%
L'OREAL
EPA:OR (10/30/2024, 7:00:00 PM)
348.7
-6.9 (-1.94%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap186.31B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.28 | ||
| Fwd PE | 24.39 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.31
PEG (5Y)2.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 21.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.52% | ||
| PM (TTM) | 15.02% | ||
| GM | 73.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)3.27%
EPS 3Y18.28%
EPS 5Y
EPS Q2Q%
EPS Next Y8.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.59%
Revenue growth 3Y13.73%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y