NYSE:EL

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Estée Lauder Companies

Executive Summary

The Estée Lauder Companies Inc. manufactures and markets skin care, makeup, fragrance, and hair care products. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Estée Lauder Companies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

EL

-0.8%

US Personal Products

-2.4%

US Market


1 Year Return

20.1%

EL

6.5%

US Personal Products

18.2%

US Market

Return vs Industry: EL exceeded the US Personal Products industry which returned 7.6% over the past year.

Return vs Market: EL matched the US Market which returned 19.5% over the past year.


Shareholder returns

ELIndustryMarket
7 Day-0.3%-0.8%-2.4%
30 Day4.7%2.2%4.2%
90 Day13.7%10.1%6.3%
1 Year21.0%20.1%7.6%6.5%20.9%18.2%
3 Year107.6%101.7%51.3%44.8%41.2%31.8%
5 Year181.4%165.7%61.5%48.2%84.8%63.9%

Price Volatility Vs. Market

How volatile is Estée Lauder Companies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Estée Lauder Companies undervalued compared to its fair value and its price relative to the market?

117.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EL ($222.34) is trading above our estimate of fair value ($157.65)

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


Price To Earnings Ratio

PE vs Industry: EL is poor value based on its PE Ratio (117.2x) compared to the US Personal Products industry average (19.6x).

PE vs Market: EL is poor value based on its PE Ratio (117.2x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: EL is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: EL is overvalued based on its PB Ratio (20.4x) compared to the US Personal Products industry average (1.7x).


Next Steps

Future Growth

How is Estée Lauder Companies forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

24.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EL's forecast earnings growth (24.2% per year) is above the savings rate (2.2%).

Earnings vs Market: EL's earnings (24.2% per year) are forecast to grow faster than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EL's revenue (7.2% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: EL's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EL's Return on Equity is forecast to be very high in 3 years time (62.1%).


Next Steps

Past Performance

How has Estée Lauder Companies performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EL has a large one-off loss of $965.0M impacting its June 30 2020 financial results.

Growing Profit Margin: EL's current net profit margins (4.8%) are lower than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: EL's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: EL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EL had negative earnings growth (-61.7%) over the past year, making it difficult to compare to the Personal Products industry average (7.3%).


Return on Equity

High ROE: EL's Return on Equity (17.6%) is considered low.


Next Steps

Financial Health

How is Estée Lauder Companies's financial position?


Financial Position Analysis

Short Term Liabilities: EL's short term assets ($8.9B) exceed its short term liabilities ($5.2B).

Long Term Liabilities: EL's short term assets ($8.9B) exceed its long term liabilities ($8.6B).


Debt to Equity History and Analysis

Debt Level: EL's debt to equity ratio (154.5%) is considered high.

Reducing Debt: EL's debt to equity ratio has increased from 44.8% to 154.5% over the past 5 years.

Debt Coverage: EL's debt is well covered by operating cash flow (37.2%).

Interest Coverage: EL's interest payments on its debt are well covered by EBIT (18.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Estée Lauder Companies's current dividend yield, its reliability and sustainability?

0.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EL's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: EL's dividend (0.86%) is low compared to the top 25% of dividend payers in the US market (4.66%).


Stability and Growth of Payments

Stable Dividend: EL's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.3%), EL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EL's dividends in 3 years are forecast to be well covered by earnings (35% payout ratio).


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Fabrizio Freda (63 yo)

11.25yrs

Tenure

US$18,423,927

Compensation

Mr. Fabrizio Freda has been the Chief Executive Officer and Director of The Estée Lauder Companies Inc. since July 1, 2009 and has been its President since 2008. Previously, Mr. Freda served as Chief Opera ...


CEO Compensation Analysis

Compensation vs Market: Fabrizio's total compensation ($USD18.42M) is above average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Fabrizio's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Fabrizio Freda
President11.25yrsUS$18.42m0.019%
$ 15.2m
Tracey Travis
Executive VP of Finance & CFO8.17yrsUS$9.01m0.011%
$ 8.5m
Deirdre Stanley
Executive VP & General Counsel1yrUS$7.72mno data
John Demsey
Executive Group President4.75yrsUS$7.06m0.0033%
$ 2.7m
Cedric Prouve
Group President of International17.75yrsUS$8.75m0.076%
$ 60.7m
William Lauder
Executive Chairman11.25yrsUS$9.52m2.37%
$ 1.9b
Deborah Krulewitch
Senior Vice President of Corporate Administrationno datano datano data
Laraine Mancini
Senior Vice President of Investor Relations2.42yrsno datano data
Alexandra Trower
Executive Vice President of Global Communications12.5yrsno data0.0032%
$ 2.5m
Jane Lauder
Executive VP of Enterprise Marketing11.25yrsno data4.84%
$ 3.9b
Andrew Ross
Executive Vice President of Strategy & New Business Development4.08yrsno datano data
Michael O'Hare
Executive Vice President of Global Human Resources7.08yrsno datano data

5.9yrs

Average Tenure

56yo

Average Age

Experienced Management: EL's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fabrizio Freda
President11.25yrsUS$18.42m0.019%
$ 15.2m
William Lauder
Executive Chairman11.25yrsUS$9.52m2.37%
$ 1.9b
Jane Lauder
Executive VP of Enterprise Marketing11.25yrsno data4.84%
$ 3.9b
Leonard Lauder
Chairman Emeritus & Director11.25yrsUS$2.86m0.17%
$ 133.7m
Barry Sternlicht
Independent Director16.25yrsUS$255.99k0.019%
$ 14.9m
Ronald Lauder
Director3.92yrsno data2.17%
$ 1.7b
Irvine Hockaday
Independent Presiding Directorno dataUS$289.74k0.0016%
$ 1.3m
Rose Bravo
Independent Director17.5yrsUS$255.99k0.0011%
$ 891.4k
Richard Parsons
Director21.75yrsUS$261.99k0%
$ 0
Richard Zannino
Independent Director10.75yrsUS$277.74k0%
$ 0
Charlene Barshefsky
Independent Director19.75yrsUS$313.32k0.019%
$ 15.5m
Lynn De Rothschild
Independent Director20.75yrsUS$255.99k0.0011%
$ 891.4k

11.3yrs

Average Tenure

67.5yo

Average Age

Experienced Board: EL's board of directors are seasoned and experienced ( 11.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

The Estée Lauder Companies Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Estée Lauder Companies Inc.
  • Ticker: EL
  • Exchange: NYSE
  • Founded: 1946
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: US$80.311b
  • Shares outstanding: 361.21m
  • Website: https://www.elcompanies.com

Number of Employees


Location

  • The Estée Lauder Companies Inc.
  • 767 Fifth Avenue
  • New York
  • New York
  • 10153
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELNYSE (New York Stock Exchange)YesClass A Common StockUSUSDNov 1995
ELAADB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 1995
EL *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNNov 1995
0JTMLSE (London Stock Exchange)YesClass A Common StockGBUSDNov 1995
ESLAWBAG (Wiener Boerse AG)YesClass A Common StockATEURNov 1995
ELAAETLX (Eurotlx)YesClass A Common StockITEURNov 1995
ELCI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REP 0.5 COM CL 'A'BRBRLMay 2019

Biography

The Estée Lauder Companies Inc. manufactures and markets skin care, makeup, fragrance, and hair care products. The company offers a range of skin care products, including moisturizers, serums, cleansers, t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:12
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.