L'OREAL (OR.PA) Stock Fundamental Analysis
Europe - EPA:OR - FR0000120321 - Common Stock
380.15 EUR
-8.45 (-2.17%)
Overall OR gets a fundamental rating of 5 out of 10. We evaluated OR against 13 industry peers in the Personal Care Products industry. OR has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
OR had positive earnings in each of the past 5 years.
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 76.92% 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 69.23% of the companies in the same industry.
With a decent Return On Invested Capital value of 15.97%, OR is doing good in the industry, outperforming 76.92% 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 12.42%.
| 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
OR has a Profit Margin of 14.74%. This is amongst the best in the industry. OR outperforms 84.62% of its industry peers.
In the last couple of years the Profit Margin of OR has grown nicely.
OR's Operating Margin of 19.98% is fine compared to the rest of the industry. OR outperforms 76.92% of its industry peers.
In the last couple of years the Operating Margin of OR has remained more or less at the same level.
Looking at the Gross Margin, with a value of 74.18%, OR belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
OR's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so OR is creating value.
OR has about the same amout of shares outstanding than it did 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 7.23. This indicates that OR is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.23, OR belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 1.28, OR is doing good in the industry, outperforming 76.92% of the companies in the same industry.
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 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 7.23 |
ROIC/WACC2.07
WACC7.7%
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.
The Current ratio of OR (1.13) is worse than 61.54% of its industry peers.
A Quick Ratio of 0.81 indicates that OR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.81, OR is in line with its industry, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.41% over the past year.
The Earnings Per Share has been growing by 10.34% on average over the past years. This is quite good.
OR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.60%.
The Revenue has been growing slightly by 7.80% on average over the past years.
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
The Earnings Per Share is expected to grow by 8.29% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.29% on average over the next years.
EPS Next Y4.39%
EPS Next 2Y5.99%
EPS Next 3Y6.5%
EPS Next 5Y8.29%
Revenue Next Year2.1%
Revenue Next 2Y3.43%
Revenue Next 3Y4.1%
Revenue Next 5Y5.29%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
OR is valuated quite expensively with a Price/Earnings ratio of 29.82.
OR's Price/Earnings ratio is a bit more expensive when compared to the industry. OR is more expensive than 76.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of OR to the average of the S&P500 Index (27.27), we can say OR is valued inline with the index average.
With a Price/Forward Earnings ratio of 26.73, OR can be considered very expensive at the moment.
OR's Price/Forward Earnings ratio is rather expensive when compared to the industry. OR is more expensive than 84.62% 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 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.82 | ||
| Fwd PE | 26.73 |
4.2 Price Multiples
OR's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. OR is more expensive than 92.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OR is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.51 | ||
| EV/EBITDA | 20.07 |
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)6.79
PEG (5Y)2.88
EPS Next 2Y5.99%
EPS Next 3Y6.5%
5. Dividend
5.1 Amount
OR has a Yearly Dividend Yield of 1.82%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.90, OR has a dividend in line with its industry peers.
OR's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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
OR pays out 56.41% of its income as dividend. 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 2Y5.99%
EPS Next 3Y6.5%
EPA:OR (9/16/2025, 1:23:20 PM)
380.15
-8.45 (-2.17%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners15.17%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap202.70B
Analysts70
Price Target396 (4.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend6.76
Dividend Growth(5Y)11.22%
DP56.41%
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)0.04%
PT rev (3m)1.4%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.51%
EPS NY rev (3m)-1.51%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.82 | ||
| Fwd PE | 26.73 | ||
| P/S | 4.66 | ||
| P/FCF | 30.51 | ||
| P/OCF | 24.46 | ||
| P/B | 6.12 | ||
| P/tB | 13.37 | ||
| EV/EBITDA | 20.07 |
EPS(TTM)12.75
EY3.35%
EPS(NY)14.22
Fwd EY3.74%
FCF(TTM)12.46
FCFY3.28%
OCF(TTM)15.54
OCFY4.09%
SpS81.56
BVpS62.14
TBVpS28.43
PEG (NY)6.79
PEG (5Y)2.88
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 | 7.23 |
F-Score7
WACC7.7%
ROIC/WACC2.07
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 Y4.39%
EPS Next 2Y5.99%
EPS Next 3Y6.5%
EPS Next 5Y8.29%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%1.59%
Revenue Next Year2.1%
Revenue Next 2Y3.43%
Revenue Next 3Y4.1%
Revenue Next 5Y5.29%
EBIT growth 1Y8.09%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year23.71%
EBIT Next 3Y11.82%
EBIT Next 5Y10.49%
FCF growth 1Y8.64%
FCF growth 3Y5.53%
FCF growth 5Y5.72%
OCF growth 1Y8.96%
OCF growth 3Y7.19%
OCF growth 5Y5.76%