L'OREAL (OR.PA) Stock Fundamental Analysis
EPA:OR - Euronext Paris - Matif - FR0000120321 - Common Stock - Currency: EUR
Overall OR gets a fundamental rating of 5 out of 10. We evaluated OR against 12 industry peers in the Personal Care Products industry. OR scores excellent on profitability, but there are some minor concerns on its financial health. OR is valied quite expensively at the moment, while 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.
In the past 5 years OR has always been profitable.
In the past 5 years OR always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 11.37%, OR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.34%, OR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
OR's Return On Invested Capital of 15.97% is fine compared to the rest of the industry. OR outperforms 75.00% of its industry peers.
OR had an Average Return On Invested Capital over the past 3 years of 16.33%. This is above the industry average of 12.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.37% | ||
| ROE | 19.34% | ||
| ROIC | 15.97% |
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
Looking at the Profit Margin, with a value of 14.74%, OR belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of OR has grown nicely.
OR has a better Operating Margin (19.98%) than 75.00% of its industry peers.
OR's Operating Margin has been stable in the last couple of years.
The Gross Margin of OR (74.18%) is better than 83.33% 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 | 19.98% | ||
| PM (TTM) | 14.74% | ||
| GM | 74.18% |
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
OR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for OR remains at a similar level compared to 1 year ago.
Compared to 5 years ago, OR has less shares outstanding
The debt/assets ratio for OR has been reduced compared to a year ago.
2.2 Solvency
OR has an Altman-Z score of 7.05. This indicates that OR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of OR (7.05) is better than 83.33% of its industry peers.
OR has a debt to FCF ratio of 1.28. This is a very positive value and a sign of high solvency as it would only need 1.28 years to pay back of all of its debts.
OR has a Debt to FCF ratio of 1.28. This is in the better half of the industry: OR outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that OR is not too dependend on debt financing.
OR's Debt to Equity ratio of 0.20 is in line compared to the rest of the industry. OR outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 7.05 |
ROIC/WACC2.03
WACC7.88%
2.3 Liquidity
OR has a Current Ratio of 1.13. This is a normal value and indicates that OR is financially healthy and should not expect problems in meeting its short term obligations.
OR has a Current ratio of 1.13. This is comparable to the rest of the industry: OR outperforms 41.67% of its industry peers.
OR has a Quick Ratio of 1.13. 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 (0.81) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
OR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.80%.
OR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.34% yearly.
Looking at the last year, OR shows a small growth in Revenue. The Revenue has grown by 5.60% in the last year.
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)4.8%
EPS 3Y12.8%
EPS 5Y10.34%
EPS Q2Q%6.17%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%3.68%
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 8.01% yearly.
The Revenue is expected to grow by 5.49% on average over the next years.
EPS Next Y5.99%
EPS Next 2Y7.24%
EPS Next 3Y7.29%
EPS Next 5Y8.01%
Revenue Next Year3.49%
Revenue Next 2Y4.32%
Revenue Next 3Y4.58%
Revenue Next 5Y5.49%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 29.56, OR can be considered very expensive at the moment.
OR's Price/Earnings ratio is rather expensive when compared to the industry. OR is more expensive than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.78. OR is around the same levels.
A Price/Forward Earnings ratio of 27.89 indicates a quite expensive valuation of OR.
83.33% of the companies in the same industry are cheaper than OR, based on the Price/Forward Earnings ratio.
OR's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.56 | ||
| Fwd PE | 27.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OR is valued more expensive than 91.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OR indicates a slightly more expensive valuation: OR is more expensive than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.09 | ||
| EV/EBITDA | 19.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of OR may justify a higher PE ratio.
PEG (NY)4.93
PEG (5Y)2.86
EPS Next 2Y7.24%
EPS Next 3Y7.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, OR has a reasonable but not impressive dividend return.
OR's Dividend Yield is comparable with the industry average which is at 2.64.
OR's Dividend Yield is slightly below the S&P500 average, which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
The dividend of OR is nicely growing with an annual growth rate of 11.22%!
Dividend Growth(5Y)11.22%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
56.41% of the earnings are spent on dividend by OR. This is a bit on the high side, but may be sustainable.
The dividend of OR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.41%
EPS Next 2Y7.24%
EPS Next 3Y7.29%
EPA:OR (4/25/2025, 7:00:00 PM)
374.2
-6.6 (-1.73%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners14.38%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner ChangeN/A
Market Cap199.94B
Analysts71.67
Price Target389.01 (3.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend6.76
Dividend Growth(5Y)11.22%
DP56.41%
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)-1.71%
PT rev (3m)-5.38%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.59%
EPS NY rev (3m)-2.14%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.19%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.56 | ||
| Fwd PE | 27.89 | ||
| P/S | 4.6 | ||
| P/FCF | 30.09 | ||
| P/OCF | 24.13 | ||
| P/B | 6.03 | ||
| P/tB | 13.19 | ||
| EV/EBITDA | 19.38 |
EPS(TTM)12.66
EY3.38%
EPS(NY)13.42
Fwd EY3.59%
FCF(TTM)12.44
FCFY3.32%
OCF(TTM)15.51
OCFY4.14%
SpS81.39
BVpS62.01
TBVpS28.37
PEG (NY)4.93
PEG (5Y)2.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.37% | ||
| ROE | 19.34% | ||
| ROCE | 20.83% | ||
| ROIC | 15.97% | ||
| ROICexc | 17.68% | ||
| ROICexgc | 33.8% | ||
| OM | 19.98% | ||
| PM (TTM) | 14.74% | ||
| GM | 74.18% | ||
| FCFM | 15.28% |
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%
ROICexcg growth 3Y-5.54%
ROICexcg 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-Score7
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.28 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 88.49% | ||
| Cap/Sales | 3.78% | ||
| Interest Coverage | 22.74 | ||
| Cash Conversion | 78.59% | ||
| Profit Quality | 103.68% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 7.05 |
F-Score7
WACC7.88%
ROIC/WACC2.03
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)4.8%
EPS 3Y12.8%
EPS 5Y10.34%
EPS Q2Q%6.17%
EPS Next Y5.99%
EPS Next 2Y7.24%
EPS Next 3Y7.29%
EPS Next 5Y8.01%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%3.68%
Revenue Next Year3.49%
Revenue Next 2Y4.32%
Revenue Next 3Y4.58%
Revenue Next 5Y5.49%
EBIT growth 1Y8.09%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year26.61%
EBIT Next 3Y12.81%
EBIT Next 5Y10.42%
FCF growth 1Y8.64%
FCF growth 3Y5.53%
FCF growth 5Y5.72%
OCF growth 1Y8.96%
OCF growth 3Y7.19%
OCF growth 5Y5.76%