ENXTPA:OR

Stock Analysis Report

Executive Summary

L'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has L'Oréal's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

ENXTPA:OR

1.2%

FR Personal Products

0.7%

FR Market


1 Year Return

14.3%

ENXTPA:OR

14.2%

FR Personal Products

-2.4%

FR Market

OR matched the Personal Products industry (14.2%) over the past year.

OR outperformed the Market in France which returned -2.4% over the past year.


Share holder returns

ORIndustryMarket
7 Day1.2%1.2%0.7%
30 Day-4.8%-4.8%-4.4%
90 Day-2.9%-2.8%0.2%
1 Year16.1%14.3%16.0%14.2%1.0%-2.4%
3 Year45.3%37.8%45.5%38.1%39.1%25.6%
5 Year104.4%87.4%104.3%87.3%53.7%30.9%

Price Volatility Vs. Market

How volatile is L'Oréal's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is L'Oréal undervalued based on future cash flows and its price relative to the stock market?

33.49x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

L'Oréal's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

L'Oréal's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

L'Oréal is overvalued based on earnings compared to the Europe Personal Products industry average.

L'Oréal is overvalued based on earnings compared to the France market.


Price Based on Expected Growth

L'Oréal is poor value based on expected growth next year.


Price Based on Value of Assets

L'Oréal is overvalued based on assets compared to the FR Personal Products industry average.


Next Steps

Future Growth

How is L'Oréal expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

L'Oréal's revenue is expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).

L'Oréal's earnings are expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).

L'Oréal's revenue growth is expected to exceed the France market average.

L'Oréal's earnings growth is positive but not above the France market average.

L'Oréal's earnings growth is expected to exceed the low risk savings rate of 0.7%.


Earnings per Share Growth Estimates


Future Return on Equity

L'Oréal is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has L'Oréal performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

L'Oréal's year on year earnings growth rate has been positive over the past 5 years.

L'Oréal's 1-year earnings growth is negative, it can't be compared to the 5-year average.

L'Oréal's 1-year earnings growth is negative, it can't be compared to the Europe Personal Products industry average.


Return on Equity

L'Oréal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

L'Oréal used its assets more efficiently than the Europe Personal Products industry average last year based on Return on Assets.


Return on Capital Employed

L'Oréal's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is L'Oréal's financial position?


Financial Position Analysis

L'Oréal is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

L'Oréal's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

L'Oréal's level of debt (3.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (13.9% vs 3.8% today).

Debt is well covered by operating cash flow (525.4%, greater than 20% of total debt).

L'Oréal earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 12x debt.


Next Steps

Dividend

What is L'Oréal's current dividend yield, its reliability and sustainability?

1.95%

Expected Dividend Yield


Dividend Yield and Payments Analysis

L'Oréal's pays a higher dividend yield than the bottom 25% of dividend payers in France (1.56%).

L'Oréal's dividend is below the markets top 25% of dividend payers in France (4.51%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

What is the CEO of L'Oréal's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Jean-Paul Agon (63yo)

13.3yrs

Tenure

€28,593,294

Compensation

Mr. Jean-Paul Agon has been the Chief Executive Officer of L'Oreal SA since April 25, 2006. Mr. Agon serves as Chief Executive Officer at L'Oreal Australia Pty Ltd. He served as the Chief Executive Officer ...


CEO Compensation Analysis

Jean-Paul's remuneration is higher than average for companies of similar size in France.

Jean-Paul's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

56.5yo

Average Age

The tenure for the L'Oréal management team is about average.


Board Age and Tenure

8.0yrs

Average Tenure

64yo

Average Age

The tenure for the L'Oréal board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jean-Paul Agon (63yo)

    Chairman & CEO

    • Tenure: 13.3yrs
    • Compensation: €28.59m
  • Jochen Zaumseil (62yo)

    Executive Vice-President of Asia Pacific Zone

    • Tenure: 12.9yrs
  • Laurent Attal (61yo)

    Executive Vice President of Research & Innovation

    • Tenure: 0.0yrs
  • Nicolas Hieronimus (55yo)

    Deputy Chief Executive Officer In Charge of Divisions

    • Tenure: 2.3yrs
  • Jean-Claude Le Grand (54yo)

    Executive Vice President of Human Relations

    • Tenure: 1.1yrs
  • Frédéric Rozé (58yo)

    Executive Vice President of Americas Zone

    • Tenure: 6.1yrs
  • Lucia Dumas-Bezian

    Executive VP of the Communication & Public Affairs Division

    • Tenure: 1.6yrs
  • Barbara Lavernos (51yo)

    Executive VP and Chief Technology & Operations Officer

    • Tenure: 4.8yrs
  • Françoise Lauvin

    Head of Investor Relations

    • Tenure: 0.0yrs
  • Christophe Babule (54yo)

    Executive VP & CFO

    • Tenure: 0.5yrs

Board Members

  • Bernard L. Kasriel (73yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: €84.00k
  • Jean-Pierre Meyers (68yo)

    Vice Chairman

    • Tenure: 25.6yrs
    • Compensation: €107.00k
  • Lindsay Owen-Jones (73yo)

    Honorary Chairman

    • Tenure: 8.5yrs
    • Compensation: €11.00k
  • Françoise Meyers (65yo)

    Director

    • Tenure: 22.2yrs
    • Compensation: €77.50k
  • Jean-Paul Agon (63yo)

    Chairman & CEO

    • Tenure: 13.3yrs
    • Compensation: €28.59m
  • Paul Bulcke (65yo)

    Vice-Chairman

    • Tenure: 2.3yrs
    • Compensation: €107.00k
  • Belén Garijo López (59yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: €78.78k
  • Virginie Sarah Morgon (50yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: €130.00k
  • Jean-Victor Meyers (32yo)

    Director

    • Tenure: 7.5yrs
    • Compensation: €94.00k
  • Sophie Bellon (58yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: €134.25k

Company Information

L'Oréal S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: L'Oréal S.A.
  • Ticker: OR
  • Exchange: ENXTPA
  • Founded: 1909
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: €132.417b
  • Shares outstanding: 560.85m
  • Website: https://www.loreal.com

Number of Employees


Location

  • L'Oréal S.A.
  • 41, rue Martre
  • Clichy
  • Ile-de-France
  • 92117
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LRLC.YOTCPK (Pink Sheets LLC)ADRUSUSDAug 1984
LORADB (Deutsche Boerse AG)ADRDEEURAug 1984
ORENXTPA (Euronext Paris)YesCommon SharesFREURJan 1992
LORDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
0NZMLSE (London Stock Exchange)YesCommon SharesGBEURJan 1992
ORBIT (Borsa Italiana)YesCommon SharesITEURJan 1992
LRLC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
ORPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJan 1992
OR NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1992
ORWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1992
ORSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJan 1992
LORXTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1992

Biography

L'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. It operates through four divisions: Consumer Products, L’oréal Luxe, Professional Products, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 20:46
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.