L'Oréal (ENXTPA:OR) - Share price, News & Analysis

OR fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	5/6
Financial Health	4/6
Dividends	4/6

OR Stock Overview

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

Rewards

Earnings are forecast to grow 8.99% per year

Earnings grew by 29% over the past year

Risk Analysis

No risks detected for OR from our risk checks.

L'Oréal Competitors

Price History & Performance

Summary of all time highs, changes and price drops for L'Oréal
Historical stock prices
Current Share Price	€336.85
52 Week High	€433.65
52 Week Low	€300.45
Beta	0.59
1 Month Change	7.98%
3 Month Change	-3.58%
1 Year Change	-12.60%
3 Year Change	34.47%
5 Year Change	84.68%
Change since IPO	3,440.44%

Recent News & Updates

Jun 15

A Look At The Intrinsic Value Of L'Oréal S.A. (EPA:OR)

In this article we are going to estimate the intrinsic value of L'Oréal S.A. ( EPA:OR ) by projecting its future cash...

May 20

We Think L'Oréal (EPA:OR) Can Manage Its Debt With Ease

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

May 06

L'Oréal (EPA:OR) Could Become A Multi-Bagger

What trends should we look for it we want to identify stocks that can multiply in value over the long term? In a...

Shareholder Returns

	OR	FR Personal Products	FR Market
7D	9.5%	7.3%	3.6%
1Y	-12.6%	-12.0%	-11.3%

Return vs Industry: OR matched the French Personal Products industry which returned -12% over the past year.

Return vs Market: OR underperformed the French Market which returned -11.3% over the past year.

Price Volatility

Is OR's price volatile compared to industry and market?
OR volatility
OR Average Weekly Movement	4.6%
Personal Products Industry Average Movement	5.4%
Market Average Movement	5.0%
10% most volatile stocks in FR Market	9.2%
10% least volatile stocks in FR Market	2.9%

Stable Share Price: OR is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: OR's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1909	85,412	Nicolas Hieronimus	https://www.loreal.com

L'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. The company operates through four divisions: Consumer Products, L’oréal Luxe, Professional Products, and Active Cosmetics. It offers shampoos, hair care products, shower gels, skin care products, cleansers, hair colors, styling products, deodorants, sun care products, make-up, perfumes, etc. The company provides its products under the L’Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Essie, Niely, Dark and Lovely, Lancôme, Yves Saint Laurent Beauté, Giorgio Armani Beauty, Kiehl’s, Urban Decay, Biotherm, Ralph Lauren, IT Cosmetics, L'Oréal Professionnel, Kérastase, Redken, Matrix, Biolage, Pureology, Decléor, Carita, Vichy, La Roche-Posay, SkinCeuticals, Roger&Gallet, CeraVe, Stylenanda, Mixa, Magic Mask, Prada, Helena Rubinstein, Valentino, Mugler, Shu Uemura, Viktor&Rolf, Azzaro, Diesel, Atelier Cologne, Cacharel, and Yue Sai brands.

L'Oréal Fundamentals Summary

How do L'Oréal's earnings and revenue compare to its market cap?
OR fundamental statistics
Market Cap	€180.65b
Earnings (TTM)	€4.60b
Revenue (TTM)	€32.29b

39.3x

P/E Ratio

5.6x

P/S Ratio

Is OR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
OR income statement (TTM)
Revenue	€32.29b
Cost of Revenue	€8.43b
Gross Profit	€23.85b
Other Expenses	€19.26b
Earnings	€4.60b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)	8.57
Gross Margin	73.88%
Net Profit Margin	14.24%
Debt/Equity Ratio	19.6%

How did OR perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

58%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is OR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for OR. This is calculated by dividing OR's market cap by their current preferred multiple.
What is OR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€180.65b

OR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.7x
Enterprise Value/EBITDA	26.8x
PEG Ratio	4.4x

Price to Earnings Ratio vs Peers

How does OR's PE Ratio compare to its peers?

OR PE Ratio vs Peers

The above table shows the PE ratio for OR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	70x

Forward PE

Price-To-Earnings vs Peers: OR is good value based on its Price-To-Earnings Ratio (39.3x) compared to the peer average (70x).

Price to Earnings Ratio vs Industry

How does OR's PE Ratio compare vs other companies in the Personal Products Industry?

Price-To-Earnings vs Industry: OR is expensive based on its Price-To-Earnings Ratio (39.3x) compared to the European Personal Products industry average (22.2x)

Price to Earnings Ratio vs Fair Ratio

What is OR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	39.3x
Fair PE Ratio	72.8x

Price-To-Earnings vs Fair Ratio: OR is good value based on its Price-To-Earnings Ratio (39.3x) compared to the estimated Fair Price-To-Earnings Ratio (72.8x).

Share Price vs Fair Value

What is the Fair Price of OR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OR (€336.85) is trading above our estimate of fair value (€316.87)

Significantly Below Fair Value: OR is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: OR is poor value based on its PEG Ratio (4.4x)

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Future Growth

How is L'Oréal forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: OR's forecast earnings growth (9% per year) is above the savings rate (0.3%).

Earnings vs Market: OR's earnings (9% per year) are forecast to grow slower than the French market (11.7% per year).

High Growth Earnings: OR's earnings are forecast to grow, but not significantly.

Revenue vs Market: OR's revenue (7.5% per year) is forecast to grow faster than the French market (5.9% per year).

High Growth Revenue: OR's revenue (7.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: OR's Return on Equity is forecast to be high in 3 years time (22.9%)

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Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

2.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OR has high quality earnings.

Growing Profit Margin: OR's current net profit margins (14.2%) are higher than last year (12.7%).

Past Earnings Growth Analysis

Earnings Trend: OR's earnings have grown by 2.7% per year over the past 5 years.

Accelerating Growth: OR's earnings growth over the past year (29%) exceeds its 5-year average (2.7% per year).

Earnings vs Industry: OR earnings growth over the past year (29%) exceeded the Personal Products industry 8.7%.

Return on Equity

High ROE: OR's Return on Equity (19.5%) is considered low.

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Financial Health

How is L'Oréal's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: OR's short term assets (€12.1B) do not cover its short term liabilities (€16.6B).

Long Term Liabilities: OR's short term assets (€12.1B) exceed its long term liabilities (€2.8B).

Debt to Equity History and Analysis

Debt Level: OR's net debt to equity ratio (8.1%) is considered satisfactory.

Reducing Debt: OR's debt to equity ratio has increased from 5.1% to 19.6% over the past 5 years.

Debt Coverage: OR's debt is well covered by operating cash flow (145.3%).

Interest Coverage: OR earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.42%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: OR's dividend (1.42%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.8%).

High Dividend: OR's dividend (1.42%) is low compared to the top 25% of dividend payers in the French market (5.42%).

Stability and Growth of Payments

Stable Dividend: OR's dividends per share have been stable in the past 10 years.

Growing Dividend: OR's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (58.2%), OR's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (45.5%), OR's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure

CEO

Nicolas Hieronimus (57 yo)

1.08yrs

Tenure

€9,321,447

Compensation

Mr. Nicolas Hieronimus serves as Chief Executive Officer at L'Oréal S.A. since May 1, 2021. Mr. Hieronimus served as Deputy Chief Executive Officer in charge of Divisions at 'LOréal S.A. since May 1, 2017...

CEO Compensation Analysis

Compensation vs Market: Nicolas's total compensation ($USD9.83M) is above average for companies of similar size in the French market ($USD3.96M).

Compensation vs Earnings: Insufficient data to compare Nicolas's compensation with company performance.

Leadership Team

Experienced Management: OR's management team is considered experienced (4.2 years average tenure).

Board Members

Experienced Board: OR's board of directors are considered experienced (7.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31