L'OREAL (OR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:OR - FR0000120321 - Common Stock
370.05 EUR
-1.9 (-0.51%)
Overall OR gets a fundamental rating of 6 out of 10. We evaluated OR against 14 industry peers in the Personal Care Products industry. OR gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, OR is valued expensive at the moment.
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.
OR had positive earnings in each of the past 5 years.
Each year in the past 5 years OR had a positive operating cash flow.
1.2 Ratios
OR has a Return On Assets of 11.21%. This is amongst the best in the industry. OR outperforms 81.25% of its industry peers.
OR has a better Return On Equity (19.63%) than 75.00% of its industry peers.
OR has a Return On Invested Capital of 17.45%. This is amongst the best in the industry. OR outperforms 87.50% 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 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
OR's Profit Margin of 13.96% is amongst the best of the industry. OR outperforms 87.50% of its industry peers.
OR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.41%, OR belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
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 68.75% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OR is creating value.
OR has about the same amout of shares outstanding than it did 1 year ago.
OR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for OR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.04 indicates that OR is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.04, OR belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.19, OR belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that OR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.20, OR belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 7.04 |
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.
OR has a Current ratio of 1.19. This is comparable to the rest of the industry: OR outperforms 43.75% 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.
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%.
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
The Earnings Per Share is expected to grow by 8.18% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.04% on average over the next years.
EPS Next Y4.17%
EPS Next 2Y5.28%
EPS Next 3Y6.01%
EPS Next 5Y8.18%
Revenue Next Year2.04%
Revenue Next 2Y3.12%
Revenue Next 3Y3.86%
Revenue Next 5Y5.04%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 29.02, OR can be considered very expensive at the moment.
68.75% of the companies in the same industry are cheaper than OR, based on the Price/Earnings ratio.
OR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.56.
Based on the Price/Forward Earnings ratio of 26.37, 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.
OR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.02 | ||
| Fwd PE | 26.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OR is valued expensively inside the industry as 81.25% of the companies are valued cheaper.
The rest of the industry has a similar Price/Free Cash Flow ratio as OR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.7 | ||
| EV/EBITDA | 18.93 |
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)6.97
PEG (5Y)2.81
EPS Next 2Y5.28%
EPS Next 3Y6.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.88%, OR has a reasonable but not impressive dividend return.
OR's Dividend Yield is comparable with the industry average which is at 2.16.
Compared to an average S&P500 Dividend Yield of 1.87, OR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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
5.3 Sustainability
62.89% of the earnings are spent on dividend by OR. 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 2Y5.28%
EPS Next 3Y6.01%
EPA:OR (12/12/2025, 7:00:00 PM)
370.05
-1.9 (-0.51%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners16.05%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap197.53B
Revenue(TTM)43.84B
Net Income(TTM)6.12B
Analysts68.57
Price Target396.47 (7.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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)0.65%
PT rev (3m)0.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.02 | ||
| Fwd PE | 26.37 | ||
| P/S | 4.51 | ||
| P/FCF | 26.7 | ||
| P/OCF | 21.89 | ||
| P/B | 6.34 | ||
| P/tB | 14.46 | ||
| EV/EBITDA | 18.93 |
EPS(TTM)12.75
EY3.45%
EPS(NY)14.03
Fwd EY3.79%
FCF(TTM)13.86
FCFY3.75%
OCF(TTM)16.91
OCFY4.57%
SpS82.13
BVpS58.41
TBVpS25.6
PEG (NY)6.97
PEG (5Y)2.81
Graham Number129.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.21% | ||
| ROE | 19.63% | ||
| ROCE | 22.82% | ||
| ROIC | 17.45% | ||
| ROICexc | 17.45% | ||
| ROICexgc | 31.44% | ||
| 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 | 83.63% | ||
| Cap/Sales | 3.71% | ||
| Interest Coverage | 23.79 | ||
| Cash Conversion | 82.87% | ||
| Profit Quality | 120.87% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 7.04 |
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 Y4.17%
EPS Next 2Y5.28%
EPS Next 3Y6.01%
EPS Next 5Y8.18%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%1.59%
Revenue Next Year2.04%
Revenue Next 2Y3.12%
Revenue Next 3Y3.86%
Revenue Next 5Y5.04%
EBIT growth 1Y8.41%
EBIT growth 3Y12.05%
EBIT growth 5Y9.39%
EBIT Next Year23.32%
EBIT Next 3Y11.27%
EBIT Next 5Y10.06%
FCF growth 1Y29.9%
FCF growth 3Y5.53%
FCF growth 5Y5.72%
OCF growth 1Y26.67%
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.
Can you provide the valuation status for L'OREAL?
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.
What are the PE and PB ratios of L'OREAL (OR.PA) stock?
The Price/Earnings (PE) ratio for L'OREAL (OR.PA) is 29.02 and the Price/Book (PB) ratio is 6.34.
Can you provide the dividend sustainability for OR stock?
The dividend rating of L'OREAL (OR.PA) is 0 / 10 and the dividend payout ratio is 62.89%.