Executive Summary
L'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide.
Rewards
Risk Analysis
No risks detected for OR from our risk checks.
Snowflake Analysis
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
Stable Share Price: OR has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.9%
OR
-0.9%
FR Personal Products
1.0%
FR Market
1 Year Return
20.9%
OR
20.4%
FR Personal Products
17.2%
FR Market
Return vs Industry: OR matched the French Personal Products industry which returned 20.4% over the past year.
Return vs Market: OR exceeded the French Market which returned 17.2% over the past year.
Shareholder returns
| OR | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.9% | -0.9% | 1.0% |
| 30 Day | -2.6% | -2.6% | -0.3% |
| 90 Day | 2.2% | 2.1% | 3.3% |
| 1 Year | 22.9%20.9% | 22.4%20.4% | 21.3%17.2% |
| 3 Year | 60.5%52.3% | 60.3%52.1% | 43.9%30.3% |
| 5 Year | 85.7%70.2% | 85.4%70.0% | 56.4%34.4% |
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
1 week ago | Simply Wall St
Earnings Miss: L'Oréal S.A. Missed EPS By 11% And Analysts Are Revising Their Forecasts3 weeks ago | Simply Wall St
Boasting A 15% Return On Equity, Is L'Oréal S.A. (EPA:OR) A Top Quality Stock?1 month ago | Simply Wall St
Is L'Oréal (EPA:OR) A Risky Investment?Valuation
Is L'Oréal undervalued compared to its fair value and its price relative to the market?
40.03x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: OR (€268.2) is trading above our estimate of fair value (€225.22)
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 (40x) compared to the Personal Products industry average (24.7x).
PE vs Market: OR is poor value based on its PE Ratio (40x) compared to the French market (18.7x).
Price to Earnings Growth Ratio
PEG Ratio: OR is poor value based on its PEG Ratio (3.7x)
Price to Book Ratio
PB vs Industry: OR is overvalued based on its PB Ratio (5.1x) compared to the FR Personal Products industry average (2.6x).
Next Steps
Future Growth
How is L'Oréal forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
10.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OR's forecast earnings growth (10.8% per year) is above the savings rate (-0.1%).
Earnings vs Market: OR's earnings (10.8% per year) are forecast to grow slower than the French market (13.4% per year).
High Growth Earnings: OR's earnings are forecast to grow, but not significantly.
Revenue vs Market: OR's revenue (5.7% per year) is forecast to grow faster than the French market (4.5% per year).
High Growth Revenue: OR's revenue (5.7% 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 (16%).
Next Steps
Past Performance
How has L'Oréal performed over the past 5 years?
7.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OR has high quality earnings.
Growing Profit Margin: OR's current net profit margins (12.6%) are lower than last year (14.5%).
Past Earnings Growth Analysis
Earnings Trend: OR's earnings have grown by 7.4% 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 (-3.7%) over the past year, making it difficult to compare to the Personal Products industry average (-7.2%).
Return on Equity
High ROE: OR's Return on Equity (12.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is L'Oréal's financial position?
Financial Position Analysis
Short Term Liabilities: OR's short term assets (€13.9B) exceed its short term liabilities (€10.9B).
Long Term Liabilities: OR's short term assets (€13.9B) exceed its long term liabilities (€3.5B).
Debt to Equity History and Analysis
Debt Level: OR's debt to equity ratio (2.9%) is considered satisfactory.
Reducing Debt: OR's debt to equity ratio has reduced from 12.7% to 2.9% over the past 5 years.
Debt Coverage: OR's debt is well covered by operating cash flow (736.1%).
Interest Coverage: OR earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: OR has a low level of unsold assets or inventory.
Debt Coverage by Assets: OR's debt is covered by short term assets (assets are 16.4x debt).
Next Steps
Dividend
What is L'Oréal's current dividend yield, its reliability and sustainability?
1.58%
Current Dividend Yield
Upcoming Dividend Payment
Purchase L'Oréal before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: OR's dividend (1.58%) is higher than the bottom 25% of dividend payers in the French market (1.53%).
High Dividend: OR's dividend (1.58%) is low compared to the top 25% of dividend payers in the French market (4.5%).
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 (63.4%), 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 (55.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.0yrs
Average management tenure
CEO
Jean-Paul Agon (63yo)
13.8yrs
Tenure
€9,531,098
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
Compensation vs Market: Jean-Paul's total compensation ($USD10.33M) is above average for companies of similar size in the French market ($USD3.31M).
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 | 13.8yrs | €9.53m | 0.19% €282.9m | |
| Executive VP & CFO | 1yrs | no data | no data | |
| Executive VP and Chief Technology & Operations Officer | 5.3yrs | no data | no data | |
| Head of Investor Relations | 0yrs | no data | no data | |
| Executive VP of the Communication & Public Affairs Division | 2.1yrs | no data | no data | |
| Executive Vice President of Human Relations | 1.6yrs | no data | no data | |
| Executive Vice President of Research & Innovation | 0yrs | no data | no data | |
| Executive Vice-President of Asia Pacific Zone | 13.4yrs | no data | no data | |
| Deputy Chief Executive Officer In Charge of Divisions | 2.8yrs | no data | no data | |
| Executive Vice President of Americas Zone | 6.6yrs | no data | no data |
4.0yrs
Average Tenure
56.5yo
Average Age
Experienced Management: OR's management team is considered experienced (4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 13.8yrs | €9.53m | 0.19% €282.9m | |
| Independent Director | 15.8yrs | €84.00k | 0.00027% €404.2k | |
| Vice Chairman | 26.1yrs | €107.00k | 0.0027% €4.1m | |
| Honorary Chairman | 9yrs | €11.00k | no data | |
| Director | 22.7yrs | €77.50k | 5.95% €8.9b | |
| Vice-Chairman | 2.8yrs | €107.00k | 0.00054% €808.3k | |
| Independent Director | 5.8yrs | €78.78k | 0.00018% €269.4k | |
| Independent Director | 6.8yrs | €130.00k | 0.00031% €464.0k | |
| Director | 8yrs | €94.00k | 0.00027% €404.2k | |
| Independent Director | 4.8yrs | €134.25k | 0.00019% €284.4k |
8.5yrs
Average Tenure
64yo
Average Age
Experienced Board: OR's board of directors are considered experienced (8.5 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: €149.691b
- Shares outstanding: 558.13m
- 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 EACH REP 1/5 ORD EUR0.20 | US | USD | Aug 1984 | |
| LORA | DB (Deutsche Boerse AG) | ADR EACH REP 1/5 ORD EUR0.20 | 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 |
| ORP | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Shares | GB | 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. It 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 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, and Roger&Gallet brands. The company sells its products through distribution channels, such as hair salons, mass-market retail channels, perfumeries, department stores, pharmacies, drugstores, medispas, branded retail, travel retail and e-commerce. The company was founded in 1909 and is headquartered in Clichy, France.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 20:44 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| 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.