L'OREAL (OR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:OR - FR0000120321 - Common Stock
384.85 EUR
-2.3 (-0.59%)
We assign a fundamental rating of 6 out of 10 to OR. OR was compared to 14 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year OR was profitable.
- In the past year OR had a positive cash flow from operations.
- Each year in the past 5 years OR has been profitable.
- In the past 5 years OR always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of OR (11.21%) is better than 78.57% of its industry peers.
- OR's Return On Equity of 19.63% is fine compared to the rest of the industry. OR outperforms 71.43% of its industry peers.
- With an excellent Return On Invested Capital value of 17.45%, OR belongs to the best of the industry, outperforming 85.71% 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 11.79%.
- 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
- With an excellent Profit Margin value of 13.96%, OR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- OR's Profit Margin has improved in the last couple of years.
- OR's Operating Margin of 20.41% is fine compared to the rest of the industry. OR outperforms 78.57% of its industry peers.
- OR's Operating Margin has been stable in the last couple of years.
- With a decent Gross Margin value of 74.11%, OR is doing good in the industry, outperforming 71.43% 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 | 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
- 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.
- OR has less shares outstanding than it did 5 years ago.
- OR has a better debt/assets ratio than last year.
2.2 Solvency
- OR has an Altman-Z score of 7.27. This indicates that OR is financially healthy and has little risk of bankruptcy at the moment.
- OR has a Altman-Z score of 7.27. This is amongst the best in the industry. OR outperforms 92.86% 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 has a better Debt to FCF ratio (1.19) than 85.71% of its industry peers.
- A Debt/Equity ratio of 0.20 indicates that OR is not too dependend on debt financing.
- The Debt to Equity ratio of OR (0.20) is better than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 7.27 |
ROIC/WACC2.21
WACC7.89%
2.3 Liquidity
- OR has a Current Ratio of 1.19. 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 (1.19) is worse than 64.29% of its industry peers.
- A Quick Ratio of 0.90 indicates that OR may have some problems paying its short term obligations.
- OR has a Quick ratio (0.90) 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 | 1.19 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.41% over the past year.
- Measured over the past years, OR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.34% on average per year.
- The Revenue has been growing slightly by 2.60% in the past year.
- OR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.80% yearly.
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
- OR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.87% yearly.
- The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y3.96%
EPS Next 2Y5.25%
EPS Next 3Y5.98%
EPS Next 5Y7.87%
Revenue Next Year2.05%
Revenue Next 2Y3.12%
Revenue Next 3Y3.86%
Revenue Next 5Y5%
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
- A Price/Earnings ratio of 30.18 indicates a quite expensive valuation of OR.
- OR's Price/Earnings ratio is a bit more expensive when compared to the industry. OR is more expensive than 64.29% of the companies in the same industry.
- When comparing the Price/Earnings ratio of OR to the average of the S&P500 Index (27.47), we can say OR is valued inline with the index average.
- OR is valuated quite expensively with a Price/Forward Earnings ratio of 27.44.
- Based on the Price/Forward Earnings ratio, OR is valued a bit more expensive than 71.43% of the companies in the same industry.
- OR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.18 | ||
| Fwd PE | 27.44 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, OR is valued a bit more expensive than the industry average as 78.57% of the companies are valued more cheaply.
- OR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.77 | ||
| EV/EBITDA | 19.33 |
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 excellent profitability rating of OR may justify a higher PE ratio.
PEG (NY)7.62
PEG (5Y)2.92
EPS Next 2Y5.25%
EPS Next 3Y5.98%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.81%, OR has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.17, OR pays a bit more dividend than its industry peers.
- OR's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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
- 62.89% of the earnings are spent on dividend by OR. 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 (1/16/2026, 7:00:00 PM)
384.85
-2.3 (-0.59%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)10-21 2025-10-21
Earnings (Next)02-12 2026-02-12/amc
Inst Owners15.95%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap205.43B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68.57
Price Target400.33 (4.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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)-0.02%
PT rev (3m)0%
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%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.18 | ||
| Fwd PE | 27.44 | ||
| P/S | 4.69 | ||
| P/FCF | 27.77 | ||
| P/OCF | 22.76 | ||
| P/B | 6.59 | ||
| P/tB | 15.03 | ||
| EV/EBITDA | 19.33 |
EPS(TTM)12.75
EY3.31%
EPS(NY)14.02
Fwd EY3.64%
FCF(TTM)13.86
FCFY3.6%
OCF(TTM)16.91
OCFY4.39%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)7.62
PEG (5Y)2.92
Graham Number129.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.21% | ||
| ROE | 19.63% | ||
| ROCE | 22.82% | ||
| ROIC | 17.45% | ||
| ROICexc | 19.88% | ||
| ROICexgc | 40.35% | ||
| 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 | 83.68% | ||
| Cap/Sales | 3.71% | ||
| Interest Coverage | 23.8 | ||
| Cash Conversion | 82.88% | ||
| Profit Quality | 120.87% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 7.27 |
F-Score5
WACC7.89%
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 5Y7.87%
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%
EBIT growth 1Y8.4%
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 1Y26.68%
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.