L'OREAL (OR.PA) Stock Fundamental Analysis
EPA:OR - Euronext Paris - Matif - FR0000120321 - Common Stock - Currency: EUR
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. Both the health and profitability get an excellent rating, making OR a very profitable company, without any liquidiy or solvency issues. OR is quite expensive at the moment. It does show a decent growth rate. These ratings could make OR a good candidate for quality investing.
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.
1.2 Ratios
The Return On Assets of OR (12.23%) is better than 92.31% of its industry peers.
OR has a better Return On Equity (21.87%) than 76.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.33%, OR belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.23% | ||
| ROE | 21.87% | ||
| ROIC | 16.33% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
OR has a Profit Margin of 15.17%. This is amongst the best in the industry. OR outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of OR has grown nicely.
OR's Operating Margin of 19.31% is amongst the best of the industry. OR outperforms 84.62% of its industry peers.
OR's Operating Margin has been stable in the last couple of years.
OR has a Gross Margin of 74.15%. This is amongst the best in the industry. OR outperforms 92.31% 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 | 19.31% | ||
| PM (TTM) | 15.17% | ||
| GM | 74.15% |
OM growth 3Y-0.27%
OM growth 5Y0.43%
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.
There is no outstanding debt for OR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 6.79 indicates that OR is not in any danger for bankruptcy at the moment.
OR's Altman-Z score of 6.79 is fine compared to the rest of the industry. OR outperforms 76.92% of its industry peers.
The Debt to FCF ratio of OR is 1.53, which is an excellent value as it means it would take OR, only 1.53 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.53, OR is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
OR has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
OR has a better Debt to Equity ratio (0.25) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 6.79 |
ROIC/WACC2.08
WACC7.87%
2.3 Liquidity
OR has a Current Ratio of 1.01. This is a normal value and indicates that OR is financially healthy and should not expect problems in meeting its short term obligations.
OR's Current ratio of 1.01 is in line compared to the rest of the industry. OR outperforms 46.15% of its industry peers.
A Quick Ratio of 0.73 indicates that OR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.73, OR is in line with its industry, outperforming 53.85% of the companies in the same industry.
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 | 1.01 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.91% 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 12.40% on average per year.
OR shows a small growth in Revenue. In the last year, the Revenue has grown by 5.60%.
OR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.80% yearly.
EPS 1Y (TTM)3.91%
EPS 3Y13.33%
EPS 5Y12.4%
EPS Q2Q%-2.2%
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 11.87% yearly.
The Revenue is expected to grow by 8.77% on average over the next years. This is quite good.
EPS Next Y9.17%
EPS Next 2Y8.81%
EPS Next 3Y8.65%
EPS Next 5Y11.87%
Revenue Next Year5.81%
Revenue Next 2Y5.64%
Revenue Next 3Y5.68%
Revenue Next 5Y8.77%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.09, 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 69.23% of the companies listed in the same industry.
OR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 26.22, which means the current valuation is very expensive for OR.
Based on the Price/Forward Earnings ratio, OR is valued a bit more expensive than 61.54% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. OR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.09 | ||
| Fwd PE | 26.22 |
4.2 Price Multiples
OR's Enterprise Value to EBITDA 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.
OR's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. OR is more expensive than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.99 | ||
| EV/EBITDA | 19.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
OR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.28
PEG (5Y)2.43
EPS Next 2Y8.81%
EPS Next 3Y8.65%
5. Dividend
5.1 Amount
OR has a Yearly Dividend Yield of 1.91%.
Compared to an average industry Dividend Yield of 2.32, OR has a dividend in line with its industry peers.
OR's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
On average, the dividend of OR grows each year by 11.70%, which is quite nice.
Dividend Growth(5Y)11.7%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
56.06% of the earnings are spent on dividend by OR. This is a bit on the high side, but may be sustainable.
OR's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP56.06%
EPS Next 2Y8.81%
EPS Next 3Y8.65%
EPA:OR (3/7/2025, 7:00:00 PM)
359.55
-6.25 (-1.71%)
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 Cap192.11B
Analysts70.81
Price Target395.8 (10.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend6.4
Dividend Growth(5Y)11.7%
DP56.06%
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)-2.05%
PT rev (3m)-5.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.9%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.09 | ||
| Fwd PE | 26.22 | ||
| P/S | 4.5 | ||
| P/FCF | 31.99 | ||
| P/OCF | 25.44 | ||
| P/B | 6.48 | ||
| P/tB | 16.08 | ||
| EV/EBITDA | 19.99 |
EPS(TTM)11.95
EY3.32%
EPS(NY)13.71
Fwd EY3.81%
FCF(TTM)11.24
FCFY3.13%
OCF(TTM)14.13
OCFY3.93%
SpS79.97
BVpS55.45
TBVpS22.37
PEG (NY)3.28
PEG (5Y)2.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.23% | ||
| ROE | 21.87% | ||
| ROCE | 22.51% | ||
| ROIC | 16.33% | ||
| ROICexc | 17.57% | ||
| ROICexgc | 34.47% | ||
| OM | 19.31% | ||
| PM (TTM) | 15.17% | ||
| GM | 74.15% | ||
| FCFM | 14.05% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-0.27%
OM growth 5Y0.43%
PM growth 3Y1.16%
PM growth 5Y3.26%
GM growth 3Y0.14%
GM growth 5Y0.32%
F-Score8
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.53 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 98.24% | ||
| Cap/Sales | 3.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.85% | ||
| Profit Quality | 92.67% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 6.79 |
F-Score8
WACC7.87%
ROIC/WACC2.08
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)3.91%
EPS 3Y13.33%
EPS 5Y12.4%
EPS Q2Q%-2.2%
EPS Next Y9.17%
EPS Next 2Y8.81%
EPS Next 3Y8.65%
EPS Next 5Y11.87%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y10.44%
Revenue growth 5Y7.8%
Sales Q2Q%3.68%
Revenue Next Year5.81%
Revenue Next 2Y5.64%
Revenue Next 3Y5.68%
Revenue Next 5Y8.77%
EBIT growth 1Y2.3%
EBIT growth 3Y10.13%
EBIT growth 5Y8.26%
EBIT Next Year26.58%
EBIT Next 3Y12.76%
EBIT Next 5Y14.37%
FCF growth 1Y5.44%
FCF growth 3Y5.53%
FCF growth 5Y5.72%
OCF growth 1Y5.99%
OCF growth 3Y7.19%
OCF growth 5Y5.76%