L'OREAL (OR.PA)
FR0000120321 - Common Stock
Overall OR gets a fundamental rating of 6 out of 10. We evaluated OR against 13 industry peers in the Personal Care Products industry. Both the health and profitability get an excellent rating, making OR a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, OR is valued expensive at the moment.
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.
In the past 5 years OR has always 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 84.62% of the companies in the same industry.
With a decent Return On Equity value of 21.27%, OR is doing good in the industry, outperforming 69.23% of the companies in the same industry.
OR has a better Return On Invested Capital (16.57%) than 84.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OR 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 92.31% 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 has a better Operating Margin (19.52%) than 76.92% of its industry peers.
OR's Operating Margin has been stable in the last couple of years.
OR has a Gross Margin of 73.86%. This is amongst the best in the industry. OR outperforms 84.62% 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 | 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
OR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, OR has about the same amount of shares outstanding.
Compared to 5 years ago, OR has less shares outstanding
Compared to 1 year ago, OR has a worse debt to assets ratio.
2.2 Solvency
OR has an Altman-Z score of 6.66. This indicates that OR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.66, OR belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
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.
The Debt to FCF ratio of OR (1.42) is better than 76.92% of its industry peers.
OR has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of OR (0.21) is better than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 6.66 |
ROIC/WACC2.19
WACC7.58%
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.
Looking at the Current ratio, with a value of 1.10, OR is doing worse than 61.54% of the companies in the same industry.
OR has a Quick Ratio of 1.10. This is a bad value and indicates that OR is not financially healthy enough and could expect problems in meeting its short term obligations.
OR has a Quick ratio (0.79) which is in line with 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
OR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.27%.
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.
The Revenue has been growing by 8.86% on average over the past years. This is quite good.
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 8.00% yearly.
The Revenue is expected to grow by 6.01% on average over the next years.
EPS Next Y4.56%
EPS Next 2Y6.54%
EPS Next 3Y7.57%
EPS Next 5Y8%
Revenue Next Year4.52%
Revenue Next 2Y4.94%
Revenue Next 3Y5.44%
Revenue Next 5Y6.01%
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
A Price/Earnings ratio of 27.56 indicates a quite expensive valuation of OR.
Based on the Price/Earnings ratio, OR is valued a bit more expensive than 69.23% of the companies in the same industry.
When comparing the Price/Earnings ratio of OR to the average of the S&P500 Index (27.54), we can say OR is valued inline with the index average.
OR is valuated rather expensively with a Price/Forward Earnings ratio of 24.78.
69.23% of the companies in the same industry are cheaper than OR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.99. OR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.56 | ||
| Fwd PE | 24.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OR is valued expensively inside the industry as 84.62% of the companies are valued cheaper.
Based on the Price/Free Cash Flow ratio, OR is valued a bit more expensive than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.69 | ||
| EV/EBITDA | 19.07 |
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 excellent profitability rating of OR may justify a higher PE ratio.
PEG (NY)6.05
PEG (5Y)2.44
EPS Next 2Y6.54%
EPS Next 3Y7.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.94%, OR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.35, OR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, OR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
On average, the dividend of OR grows each year by 11.70%, which is quite nice.
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 2Y6.54%
EPS Next 3Y7.57%
L'OREAL
EPA:OR (12/24/2024, 7:00:00 PM)
339.85
+1.8 (+0.53%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners15.57%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner ChangeN/A
Market Cap181.59B
Analysts72.43
Price Target416.79 (22.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Dividend Growth(5Y)11.7%
DP55.39%
Div Incr Years3
Div Non Decr Years3
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)-5.61%
PT rev (3m)-8.18%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.68%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.56 | ||
| Fwd PE | 24.78 | ||
| P/S | 4.41 | ||
| P/FCF | 29.69 | ||
| P/OCF | 23.88 | ||
| P/B | 6.25 | ||
| P/tB | 15.54 | ||
| EV/EBITDA | 19.07 |
EPS(TTM)12.33
EY3.63%
EPS(NY)13.71
Fwd EY4.03%
FCF(TTM)11.45
FCFY3.37%
OCF(TTM)14.23
OCFY4.19%
SpS77.08
BVpS54.41
TBVpS21.87
PEG (NY)6.05
PEG (5Y)2.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 21.27% | ||
| ROCE | 21.75% | ||
| ROIC | 16.57% | ||
| ROICexc | 18.75% | ||
| ROICexgc | 40.09% | ||
| OM | 19.52% | ||
| PM (TTM) | 15.02% | ||
| GM | 73.86% | ||
| FCFM | 14.85% |
ROA(3y)11.6%
ROA(5y)10.31%
ROE(3y)20.59%
ROE(5y)17.36%
ROIC(3y)16.33%
ROIC(5y)14.69%
ROICexc(3y)18.05%
ROICexc(5y)16.77%
ROICexgc(3y)38.07%
ROICexgc(5y)34.38%
ROCE(3y)22.32%
ROCE(5y)19.97%
ROICexcg growth 3Y7.81%
ROICexcg growth 5Y5.47%
ROICexc growth 3Y6.65%
ROICexc growth 5Y4.01%
OM growth 3Y0.13%
OM growth 5Y0.44%
PM growth 3Y5.66%
PM growth 5Y0.76%
GM growth 3Y0.35%
GM growth 5Y0.29%
F-Score6
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.42 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 86.8% | ||
| Cap/Sales | 3.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.98% | ||
| Profit Quality | 98.9% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 6.66 |
F-Score6
WACC7.58%
ROIC/WACC2.19
Cap/Depr(3y)78.21%
Cap/Depr(5y)69.08%
Cap/Sales(3y)3.49%
Cap/Sales(5y)3.61%
Profit Quality(3y)102.78%
Profit Quality(5y)119.27%
High Growth Momentum
Growth
EPS 1Y (TTM)3.27%
EPS 3Y18.28%
EPS 5Y11.28%
EPS Q2Q%3.71%
EPS Next Y4.56%
EPS Next 2Y6.54%
EPS Next 3Y7.57%
EPS Next 5Y8%
Revenue 1Y (TTM)5.59%
Revenue growth 3Y13.73%
Revenue growth 5Y8.86%
Sales Q2Q%7.52%
Revenue Next Year4.52%
Revenue Next 2Y4.94%
Revenue Next 3Y5.44%
Revenue Next 5Y6.01%
EBIT growth 1Y6.49%
EBIT growth 3Y13.88%
EBIT growth 5Y9.34%
EBIT Next Year25.86%
EBIT Next 3Y12.94%
EBIT Next 5Y10.28%
FCF growth 1Y23.93%
FCF growth 3Y3.72%
FCF growth 5Y9.55%
OCF growth 1Y21.13%
OCF growth 3Y5.62%
OCF growth 5Y7.52%