Executive Summary
L'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. More Details
Rewards
Risk Analysis
No risks detected for OR from our risk checks.
Snowflake Analysis
Flawless balance sheet average 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
Stable Share Price: OR is less volatile than 75% of French stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: OR's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
1.4%
OR
1.4%
FR Personal Products
-2.7%
FR Market
1 Year Return
13.5%
OR
13.6%
FR Personal Products
-4.6%
FR Market
Return vs Industry: OR underperformed the French Personal Products industry which returned 15.4% over the past year.
Return vs Market: OR exceeded the French Market which returned -3.2% over the past year.
Shareholder returns
| OR | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.4% | 1.4% | -2.7% |
| 30 Day | -3.7% | -3.7% | -2.0% |
| 90 Day | 6.6% | 6.7% | 17.9% |
| 1 Year | 14.9%13.5% | 15.0%13.6% | -2.8%-4.6% |
| 3 Year | 70.5%62.5% | 70.2%62.3% | 12.7%3.3% |
| 5 Year | 110.1%93.1% | 111.0%93.9% | 63.3%39.5% |
Long-Term 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
2 days ago | Simply Wall St
Does L'Oréal S.A. (EPA:OR) Have A Place In Your Dividend Portfolio?3 weeks ago | Simply Wall St
L'Oréal S.A.'s (EPA:OR) Stock On An Uptrend: Could Fundamentals Be Driving The Momentum?1 month ago | Simply Wall St
L'Oréal (EPA:OR) Shareholders Have Enjoyed A 91% Share Price GainValuation
Is L'Oréal undervalued compared to its fair value and its price relative to the market?
51.25x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: OR (€297.6) is trading above our estimate of fair value (€199.36)
Significantly Below Fair Value: OR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: OR is poor value based on its PE Ratio (51.3x) compared to the XE Personal Products industry average (22.4x).
PE vs Market: OR is poor value based on its PE Ratio (51.3x) compared to the French market (22.8x).
Price to Earnings Growth Ratio
PEG Ratio: OR is poor value based on its PEG Ratio (5x)
Price to Book Ratio
PB vs Industry: OR is overvalued based on its PB Ratio (5.7x) compared to the XE Personal Products industry average (2.5x).
Next Steps
Future Growth
How is L'Oréal forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
10.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OR's forecast earnings growth (10.3% per year) is above the savings rate (0.4%).
Earnings vs Market: OR's earnings (10.3% per year) are forecast to grow slower than the French market (23.7% per year).
High Growth Earnings: OR's earnings are forecast to grow, but not significantly.
Revenue vs Market: OR's revenue (6.4% per year) is forecast to grow slower than the French market (7% per year).
High Growth Revenue: OR's revenue (6.4% 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 low in 3 years time (14.9%).
Next Steps
Past Performance
How has L'Oréal performed over the past 5 years?
4.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OR has high quality earnings.
Growing Profit Margin: OR's current net profit margins (11.5%) are lower than last year (13.9%).
Past Earnings Growth Analysis
Earnings Trend: OR's earnings have grown by 4.8% per year over the past 5 years.
Accelerating Growth: OR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: OR had negative earnings growth (-17.7%) over the past year, making it difficult to compare to the Personal Products industry average (31.6%).
Return on Equity
High ROE: OR's Return on Equity (11.2%) is considered low.
Next Steps
Financial Health
How is L'Oréal's financial position?
Financial Position Analysis
Short Term Liabilities: OR's short term assets (€15.0B) exceed its short term liabilities (€13.5B).
Long Term Liabilities: OR's short term assets (€15.0B) exceed its long term liabilities (€3.4B).
Debt to Equity History and Analysis
Debt Level: OR's debt to equity ratio (8.4%) is considered satisfactory.
Reducing Debt: OR's debt to equity ratio has reduced from 13.4% to 8.4% over the past 5 years.
Debt Coverage: OR's debt is well covered by operating cash flow (229.2%).
Interest Coverage: OR earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is L'Oréal current dividend yield, its reliability and sustainability?
1.29%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OR's dividend (1.29%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.4%).
High Dividend: OR's dividend (1.29%) is low compared to the top 25% of dividend payers in the French market (4.61%).
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.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (66.3%), OR's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: OR's dividends in 3 years are forecast to be covered by earnings (56.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.2yrs
Average management tenure
CEO
Jean-Paul Agon (64 yo)
14.75yrs
Tenure
€9,798,831
Compensation
Mr. Jean-Paul Agon has been the Chief Executive Officer of L'Oreal SA since April 25, 2006. Mr. Agon has been the Chairman of L'Oreal SA since March 17, 2011. Mr. Agon has been a Director of L'Oreal SA and...
CEO Compensation Analysis
Compensation vs Market: Jean-Paul's total compensation ($USD11.85M) is above average for companies of similar size in the French market ($USD4.11M).
Compensation vs Earnings: Jean-Paul's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 14.75yrs | €9.80m | 0.21% € 358.1m | |
| Executive VP & CFO | 1.92yrs | no data | no data | |
| Executive VP and Chief Technology & Operations Officer | 6.17yrs | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| Chief Human Relations Officer | 2.5yrs | no data | no data | |
| Chief Research & Innovation Officer | no data | no data | no data | |
| Deputy Chief Executive Officer In Charge of Divisions | 3.75yrs | no data | no data | |
| Chief Global Growth Officer | 7.5yrs | no data | no data | |
| President of Eastern Europe & Africa | 4.58yrs | no data | no data | |
| President South Asia Pacific Zone | no data | no data | no data | |
| Chief Innovation Officer | 8.67yrs | no data | no data | |
| Managing Director of Fragrance France | 8.33yrs | no data | no data |
6.2yrs
Average Tenure
59yo
Average Age
Experienced Management: OR's management team is seasoned and experienced (6.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 14.75yrs | €9.80m | 0.21% € 358.1m | |
| Honorary Chairman | 9.92yrs | €11.00k | no data | |
| Vice-President of the Board | 0.58yr | €84.00k | 5.93% € 10.0b | |
| Vice-Chairman | 3.75yrs | €107.00k | 0.00054% € 912.4k | |
| Independent Director | 6.75yrs | €74.00k | 0.00018% € 304.1k | |
| Independent Director | 7.75yrs | €140.00k | 0.00031% € 523.8k | |
| Director | 4.75yrs | €94.00k | 0.00025% € 422.4k | |
| Director | 8.92yrs | €94.00k | 0.00027% € 456.2k | |
| Independent Director | 2.75yrs | €80.50k | 0.00018% € 304.1k | |
| Independent Director | 5.75yrs | €140.00k | 0.00019% € 321.0k | |
| Director | 6.5yrs | €80.50k | no data | |
| Director | 6.5yrs | €94.00k | no data |
6.5yrs
Average Tenure
58yo
Average Age
Experienced Board: OR's board of directors are considered experienced (6.5 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.
Top Shareholders
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: €168.965b
- Shares outstanding: 559.86m
- Website: https://www.loreal.com
Number of Employees
Location
- L'Oréal S.A.
- 41, rue Martre
- Clichy
- Ile-de-France
- 92117
- France
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LRLC.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Aug 1984 | |
| LORA | DB (Deutsche Boerse AG) | ADR | DE | EUR | Aug 1984 | |
| LRLC.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Jan 1992 |
| OR | ENXTPA (Euronext Paris) | Yes | Common Shares | FR | EUR | Jan 1992 |
| LOR | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1992 |
| 0NZM | LSE (London Stock Exchange) | Yes | Common Shares | GB | EUR | Jan 1992 |
| OR | BIT (Borsa Italiana) | Yes | Common Shares | IT | EUR | Jan 1992 |
| LOR | XTRA (XETRA Trading Platform) | Yes | Common Shares | DE | EUR | Jan 1992 |
| OR N | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Jan 1992 |
| OR | WBAG (Wiener Boerse AG) | Yes | Common Shares | AT | EUR | Jan 1992 |
| OR | SWX (SIX Swiss Exchange) | Yes | Common Shares | CH | CHF | Jan 1992 |
Biography
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 Prod...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/27 18:34 |
| End of Day Share Price | 2021/01/27 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.