L'OREAL (OR.PA) Stock Fundamental Analysis

EPA:OR • FR0000120321

401.15 EUR
+6.15 (+1.56%)
Last: Feb 20, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to OR. OR was compared to 16 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 does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

9

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.
  • Each year in the past 5 years OR had a positive operating cash flow.
OR.PA Yearly Net Income VS EBIT VS OCF VS FCFOR.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

1.2 Ratios

  • OR has a better Return On Assets (11.21%) than 81.25% of its industry peers.
  • The Return On Equity of OR (19.63%) is better than 75.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 17.45%, OR belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for OR is significantly above the industry average of 11.28%.
  • The 3 year average ROIC (16.33%) for OR is below the current ROIC(17.45%), indicating increased profibility in the last year.
Industry RankSector 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%
OR.PA Yearly ROA, ROE, ROICOR.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

  • Looking at the Profit Margin, with a value of 13.96%, OR belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
  • OR's Profit Margin has improved in the last couple of years.
  • The Operating Margin of OR (20.41%) is better than 81.25% of its industry peers.
  • In the last couple of years the Operating Margin of OR has remained more or less at the same level.
  • With a decent Gross Margin value of 74.11%, OR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
  • OR's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
OR.PA Yearly Profit, Operating, Gross MarginsOR.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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8

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.
  • The number of shares outstanding for OR has been reduced compared to 5 years ago.
  • The debt/assets ratio for OR has been reduced compared to a year ago.
OR.PA Yearly Shares OutstandingOR.PA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
OR.PA Yearly Total Debt VS Total AssetsOR.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.2 Solvency

  • OR has an Altman-Z score of 7.38. This indicates that OR is financially healthy and has little risk of bankruptcy at the moment.
  • OR's Altman-Z score of 7.38 is amongst the best of the industry. OR outperforms 93.75% 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.
  • With an excellent Debt to FCF ratio value of 1.19, OR belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
  • OR has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
  • OR's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. OR outperforms 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 1.19
Altman-Z 7.38
ROIC/WACC2.18
WACC8.02%
OR.PA Yearly LT Debt VS Equity VS FCFOR.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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.
  • With a Current ratio value of 1.19, OR is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.90 indicates that OR may have some problems paying its short term obligations.
  • OR's Quick ratio of 0.90 is on the low side compared to the rest of the industry. OR is outperformed by 62.50% of its industry peers.
  • The current and quick ratio evaluation for OR is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.19
Quick Ratio 0.9
OR.PA Yearly Current Assets VS Current LiabilitesOR.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

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.
  • The Revenue has been growing slightly by 2.60% in the past 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)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 7.18% on average over the next years.
  • OR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.02% yearly.
EPS Next Y3.87%
EPS Next 2Y5.36%
EPS Next 3Y6.02%
EPS Next 5Y7.18%
Revenue Next Year2.05%
Revenue Next 2Y3.12%
Revenue Next 3Y3.86%
Revenue Next 5Y5.02%

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.
OR.PA Yearly Revenue VS EstimatesOR.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B
OR.PA Yearly EPS VS EstimatesOR.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20 25

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2

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 31.46, the valuation of OR can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of OR indicates a slightly more expensive valuation: OR is more expensive than 68.75% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.99. OR is around the same levels.
  • Based on the Price/Forward Earnings ratio of 28.54, the valuation of OR can be described as expensive.
  • 75.00% of the companies in the same industry are cheaper than OR, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, OR is valued at the same level.
Industry RankSector Rank
PE 31.46
Fwd PE 28.54
OR.PA Price Earnings VS Forward Price EarningsOR.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OR indicates a rather expensive valuation: OR more expensive than 81.25% of the companies listed in the same industry.
  • OR's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 28.94
EV/EBITDA 19.72
OR.PA Per share dataOR.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

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)8.12
PEG (5Y)3.04
EPS Next 2Y5.36%
EPS Next 3Y6.02%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.79%, OR has a reasonable but not impressive dividend return.
  • OR's Dividend Yield is a higher than the industry average which is at 1.63.
  • Compared to an average S&P500 Dividend Yield of 1.85, OR has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.79%

5.2 History

  • On average, the dividend of OR grows each year by 11.22%, which is quite nice.
Dividend Growth(5Y)11.22%
Div Incr Years4
Div Non Decr Years4
OR.PA Yearly Dividends per shareOR.PA Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8

5.3 Sustainability

  • OR pays out 62.89% of its income as dividend. This is not a sustainable payout ratio.
  • OR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.89%
EPS Next 2Y5.36%
EPS Next 3Y6.02%
OR.PA Yearly Income VS Free CF VS DividendOR.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
OR.PA Dividend Payout.OR.PA Dividend Payout, showing the Payout Ratio.OR.PA Dividend Payout.PayoutRetained Earnings

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L'OREAL

EPA:OR (2/20/2026, 7:00:00 PM)

401.15

+6.15 (+1.56%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)02-12
Earnings (Next)04-15
Inst Owners15.95%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap214.13B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts71.11
Price Target403.32 (0.54%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.79%
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)1.75%
PT rev (3m)2.39%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.28%
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 RankSector Rank
PE 31.46
Fwd PE 28.54
P/S 4.88
P/FCF 28.94
P/OCF 23.73
P/B 6.87
P/tB 15.67
EV/EBITDA 19.72
EPS(TTM)12.75
EY3.18%
EPS(NY)14.05
Fwd EY3.5%
FCF(TTM)13.86
FCFY3.46%
OCF(TTM)16.91
OCFY4.21%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)8.12
PEG (5Y)3.04
Graham Number129.45
Profitability
Industry RankSector 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 RankSector 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 7.38
F-Score5
WACC8.02%
ROIC/WACC2.18
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 Y3.87%
EPS Next 2Y5.36%
EPS Next 3Y6.02%
EPS Next 5Y7.18%
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 5Y5.02%
EBIT growth 1Y8.4%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year23.17%
EBIT Next 3Y11.26%
EBIT Next 5Y10.53%
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 9 / 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 3.87% in the next year.