Estée Lauder Companies
Market Cap
US$121.0b
Last Updated
2021/07/31 22:34 UTC
Data Sources
Company Financials +
Executive Summary
The Estée Lauder Companies Inc. manufactures and markets skin care, makeup, fragrance, and hair care products. More Details
Rewards
Risk Analysis
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: EL's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
0.08%
EL
0.5%
US Personal Products
-0.5%
US Market
1 Year Return
69.0%
EL
68.2%
US Personal Products
35.9%
US Market
Return vs Industry: EL matched the US Personal Products industry which returned 68.2% over the past year.
Return vs Market: EL exceeded the US Market which returned 35.9% over the past year.
Shareholder returns
| EL | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.08% | 0.5% | -0.5% |
| 30 Day | 5.3% | 1.9% | 0.09% |
| 90 Day | 6.4% | 3.2% | 3.2% |
| 1 Year | 70.3%69.0% | 69.7%68.2% | 38.0%35.9% |
| 3 Year | 153.9%147.3% | 94.4%87.2% | 62.8%52.6% |
| 5 Year | 276.1%256.7% | 130.7%112.5% | 121.2%96.9% |
Long-Term 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
6 days ago | Simply Wall St
When Should You Buy The Estée Lauder Companies Inc. (NYSE:EL)?2 weeks ago | Simply Wall St
Shareholders Are Thrilled That The Estée Lauder Companies (NYSE:EL) Share Price Increased 241%1 month ago | Simply Wall St
What Type Of Shareholders Make Up The Estée Lauder Companies Inc.'s (NYSE:EL) Share Registry?Valuation
Is Estée Lauder Companies undervalued compared to its fair value and its price relative to the market?
87.02x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: EL ($333.83) is trading above our estimate of fair value ($254.36)
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 (87x) compared to the US Personal Products industry average (17.3x).
PE vs Market: EL is poor value based on its PE Ratio (87x) compared to the US market (18x).
Price to Earnings Growth Ratio
PEG Ratio: EL is poor value based on its PEG Ratio (5.7x)
Price to Book Ratio
PB vs Industry: EL is overvalued based on its PB Ratio (21.9x) compared to the US Personal Products industry average (3.1x).
Future Growth
How is Estée Lauder Companies forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
15.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EL's forecast earnings growth (15.3% per year) is above the savings rate (2%).
Earnings vs Market: EL's earnings (15.3% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: EL's earnings are forecast to grow, but not significantly.
Revenue vs Market: EL's revenue (10.3% per year) is forecast to grow faster than the US market (9.2% per year).
High Growth Revenue: EL's revenue (10.3% 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 (55.1%).
Past Performance
How has Estée Lauder Companies performed over the past 5 years?
1.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EL has a large one-off loss of $657.0M impacting its March 31 2021 financial results.
Growing Profit Margin: EL's current net profit margins (9.4%) are higher than last year (8.4%).
Past Earnings Growth Analysis
Earnings Trend: EL's earnings have grown by 1.6% per year over the past 5 years.
Accelerating Growth: EL's earnings growth over the past year (6.7%) exceeds its 5-year average (1.6% per year).
Earnings vs Industry: EL earnings growth over the past year (6.7%) underperformed the Personal Products industry 8.6%.
Return on Equity
High ROE: Whilst EL's Return on Equity (25.21%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is Estée Lauder Companies's financial position?
Financial Position Analysis
Short Term Liabilities: EL's short term assets ($11.0B) exceed its short term liabilities ($5.2B).
Long Term Liabilities: EL's short term assets ($11.0B) exceed its long term liabilities ($9.1B).
Debt to Equity History and Analysis
Debt Level: EL's debt to equity ratio (107.2%) is considered high.
Reducing Debt: EL's debt to equity ratio has increased from 50.5% to 107.2% over the past 5 years.
Debt Coverage: EL's debt is well covered by operating cash flow (52.2%).
Interest Coverage: EL's interest payments on its debt are well covered by EBIT (19x coverage).
Balance Sheet
Dividend
What is Estée Lauder Companies's current dividend yield, its reliability and sustainability?
0.63%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EL's dividend (0.64%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: EL's dividend (0.64%) is low compared to the top 25% of dividend payers in the US market (3.54%).
Stability and Growth of Payments
Stable Dividend: EL is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: EL is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: EL is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of EL's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.1yrs
Average management tenure
CEO
Fabrizio Freda (64 yo)
12yrs
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 ($USD11.17M).
Compensation vs Earnings: Fabrizio's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: EL's management team is seasoned and experienced (5.1 years average tenure).
Board Members
Experienced Board: EL's board of directors are seasoned and experienced ( 12 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$121.017b
- Shares outstanding: 362.51m
- 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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/31 22:34 |
| End of Day Share Price | 2021/07/30 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/06/30 |
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.