ENXTPA:OR

Stock Analysis Report

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Executive Summary

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

Rewards

Earnings are forecast to grow 10.33% per year

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

ORIndustryMarket
7 Day1.4%1.4%-2.7%
30 Day-3.7%-3.7%-2.0%
90 Day6.6%6.7%17.9%
1 Year14.9%13.5%15.0%13.6%-2.8%-4.6%
3 Year70.5%62.5%70.2%62.3%12.7%3.3%
5 Year110.1%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

Valuation

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

NamePositionTenureCompensationOwnership
Jean-Paul Agon
Chairman & CEO14.75yrs€9.80m0.21%
€ 358.1m
Christophe Babule
Executive VP & CFO1.92yrsno datano data
Barbara Lavernos
Executive VP and Chief Technology & Operations Officer6.17yrsno datano data
Françoise Lauvin
Head of Investor Relationsno datano datano data
Jean-Claude Le Grand
Chief Human Relations Officer2.5yrsno datano data
Laurent Attal
Chief Research & Innovation Officerno datano datano data
Nicolas Hieronimus
Deputy Chief Executive Officer In Charge of Divisions3.75yrsno datano data
Frédéric Rozé
Chief Global Growth Officer7.5yrsno datano data
Alexandre Popoff
President of Eastern Europe & Africa4.58yrsno datano data
Vismay Sharma
President South Asia Pacific Zoneno datano datano data
Jacques Challes
Chief Innovation Officer8.67yrsno datano data
Emmanuel Goulin
Managing Director of Fragrance France8.33yrsno datano 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

NamePositionTenureCompensationOwnership
Jean-Paul Agon
Chairman & CEO14.75yrs€9.80m0.21%
€ 358.1m
Lindsay Owen-Jones
Honorary Chairman9.92yrs€11.00kno data
Françoise Meyers
Vice-President of the Board0.58yr€84.00k5.93%
€ 10.0b
Paul Bulcke
Vice-Chairman3.75yrs€107.00k0.00054%
€ 912.4k
Belen Garijo Lopez
Independent Director6.75yrs€74.00k0.00018%
€ 304.1k
Virginie Sarah Morgon
Independent Director7.75yrs€140.00k0.00031%
€ 523.8k
Béatrice Guillaume-Grabisch
Director4.75yrs€94.00k0.00025%
€ 422.4k
Jean-Victor Meyers
Director8.92yrs€94.00k0.00027%
€ 456.2k
Patrice Caine
Independent Director2.75yrs€80.50k0.00018%
€ 304.1k
Sophie Bellon
Independent Director5.75yrs€140.00k0.00019%
€ 321.0k
Ana Amaral
Director6.5yrs€80.50kno data
Georges Liarokapis
Director6.5yrs€94.00kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LRLC.YOTCPK (Pink Sheets LLC)ADRUSUSDAug 1984
LORADB (Deutsche Boerse AG)ADRDEEURAug 1984
LRLC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
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
LORXTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1992
OR NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1992
ORWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1992
ORSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/27 18:34
End of Day Share Price2021/01/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.