Estée Lauder Companies
The Estée Lauder Companies Inc. manufactures and markets skin care, makeup, fragrance, and hair care products. The last earnings update was 19 days ago. More info.
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EL Share Price and Events
7 Day Returns
1 Year Returns
EL Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Estée Lauder Companies (EL) | 2.1% | 14.8% | 5.4% | 15.1% | 68.6% | 93.8% |
| US Personal Products | -0.4% | 5.8% | 1.3% | 24.4% | 79.1% | 90.5% |
| US Market | -3.4% | -0.6% | -4.3% | 10% | 55.8% | 96.7% |
1 Year Return vs Industry and Market
- EL underperformed the Personal Products industry which returned 24.4% over the past year.
- EL outperformed the Market in United States of America which returned 10% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Estée Lauder Companies
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Estée Lauder Companies.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 25 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.6% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 3% |
| Equity Risk Premium | S&P Global | 7.1% |
| Personal Products Unlevered Beta | Simply Wall St/ S&P Global | 0.63 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.629 (1 + (1- 21%) (6.78%)) |
0.663 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.8 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.8 * 7.05%) |
8.59% |
Discounted Cash Flow Calculation for NYSE:EL using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Estée Lauder Companies is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Levered FCF (USD, Millions) | 1,622.91 | 1,858.43 | 2,086.42 | 2,196.01 | 2,311.35 |
| Source | Analyst x8 | Analyst x8 | Analyst x4 | Est @ 5.25% | Est @ 5.25% |
|
Present Value Discounted (@ 8.59%) |
1,494.53 | 1,576.04 | 1,629.41 | 1,579.33 | 1,530.80 |
| Present value of next 5 years cash flows | $7,810.11 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= $2,311.35 × (1 + 2.95%) ÷ (8.59% – 2.95%) |
$42,190.38 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $42,190.38 ÷ (1 + 8.59%)5 |
$27,942.44 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $7,810.11 + $27,942.44 |
$35,752.55 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $35,752.55 / 362.85 |
$98.53 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $98.53 |
| Current discount | Discount to share price of
$144.02
= -1 x ($144.02 - $98.53) / $98.53 |
-46.2% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Estée Lauder Companies is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Estée Lauder Companies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Estée Lauder Companies's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-09-30) in USD | $3.21 |
| NYSE:EL Share Price ** | NYSE (2018-11-16) in USD | $144.02 |
| United States of America Personal Products Industry PE Ratio | Median Figure of 17 Publicly-Listed Personal Products Companies | 22.17x |
| United States of America Market PE Ratio | Median Figure of 2,977 Publicly-Listed Companies | 17.93x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Estée Lauder Companies.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:EL Share Price ÷ EPS (both in USD) = 144.02 ÷ 3.21 |
44.83x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Estée Lauder Companies is overvalued based on earnings compared to the US Personal Products industry average.
- Estée Lauder Companies is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Estée Lauder Companies's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 44.83x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts |
10.5%per year |
| United States of America Personal Products Industry PEG Ratio | Median Figure of 7 Publicly-Listed Personal Products Companies | 1.78x |
| United States of America Market PEG Ratio | Median Figure of 2,096 Publicly-Listed Companies | 1.24x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 44.83x ÷ 10.5% |
4.26x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Estée Lauder Companies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Estée Lauder Companies's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-09-30) in USD | $12.09 |
| NYSE:EL Share Price * | NYSE (2018-11-16) in USD | $144.02 |
| United States of America Personal Products Industry PB Ratio | Median Figure of 41 Publicly-Listed Personal Products Companies | 4.07x |
| United States of America Market PB Ratio | Median Figure of 4,980 Publicly-Listed Companies | 1.85x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:EL Share Price ÷ Book Value per Share (both in USD) = 144.02 ÷ 12.09 |
11.91x |
* Primary Listing of Estée Lauder Companies.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Estée Lauder Companies is overvalued based on assets compared to the US Personal Products industry average.
Value checks
We assess Estée Lauder Companies's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Personal Products industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Personal Products industry average (and greater than 0)? (1 check) Estée Lauder Companies has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Estée Lauder Companies's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
- Estée Lauder Companies's earnings growth is positive but not above the United States of America market average.
- Estée Lauder Companies's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:EL Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts | 10.5% |
| NYSE:EL Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 25 Analysts | 5.9% |
| United States of America Personal Products Industry Earnings Growth Rate | Market Cap Weighted Average | 14.9% |
| United States of America Personal Products Industry Revenue Growth Rate | Market Cap Weighted Average | 6.1% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 25 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-06-30 | 17,897 | 2,382 | 2 | |
| 2022-06-30 | 17,457 | 2,238 | 3 | |
| 2021-06-30 | 16,229 | 3,025 | 2,126 | 12 |
| 2020-06-30 | 15,263 | 2,660 | 1,953 | 25 |
| 2019-06-30 | 14,344 | 2,390 | 1,721 | 25 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-09-30 | 13,933 | 2,372 | 1,181 |
| 2018-06-30 | 13,683 | 2,573 | 1,108 |
| 2018-03-31 | 13,282 | 2,468 | 1,151 |
| 2017-12-31 | 12,769 | 2,415 | 1,077 |
| 2017-09-30 | 12,233 | 2,032 | 1,382 |
| 2017-06-30 | 11,824 | 1,800 | 1,249 |
| 2017-03-31 | 11,576 | 1,725 | 1,114 |
| 2016-12-31 | 11,376 | 1,651 | 1,081 |
| 2016-09-30 | 11,292 | 1,631 | 1,100 |
| 2016-06-30 | 11,262 | 1,789 | 1,115 |
| 2016-03-31 | 11,140 | 1,874 | 1,174 |
| 2015-12-31 | 11,064 | 1,912 | 1,181 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 25 Analyst Estimates (S&P Global) | See Below |
All data from Estée Lauder Companies Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-06-30 | 6.73 | 6.73 | 6.73 | 1.00 |
| 2022-06-30 | 6.25 | 6.25 | 6.25 | 1.00 |
| 2021-06-30 | 5.98 | 6.49 | 5.78 | 6.00 |
| 2020-06-30 | 5.30 | 5.51 | 4.96 | 14.00 |
| 2019-06-30 | 4.65 | 4.90 | 4.42 | 13.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-09-30 | 3.21 |
| 2018-06-30 | 3.01 |
| 2018-03-31 | 3.13 |
| 2017-12-31 | 2.93 |
| 2017-09-30 | 3.76 |
| 2017-06-30 | 3.40 |
| 2017-03-31 | 3.03 |
| 2016-12-31 | 2.94 |
| 2016-09-30 | 2.99 |
| 2016-06-30 | 3.01 |
| 2016-03-31 | 3.16 |
| 2015-12-31 | 3.15 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Estée Lauder Companies is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
Future performance checks
We assess Estée Lauder Companies's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Estée Lauder Companies has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Estée Lauder Companies performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Estée Lauder Companies's year on year earnings growth rate has been positive over the past 5 years.
- Estée Lauder Companies's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Estée Lauder Companies's 1-year earnings growth is negative, it can't be compared to the US Personal Products industry average.
Earnings and Revenue History
All data from Estée Lauder Companies Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-09-30 | 13,933.00 | 1,181.00 | 8,687.00 | |
| 2018-06-30 | 13,683.00 | 1,108.00 | 8,599.00 | |
| 2018-03-31 | 13,282.00 | 1,151.00 | 8,215.00 | |
| 2017-12-31 | 12,769.00 | 1,077.00 | 7,910.00 | |
| 2017-09-30 | 12,233.00 | 1,382.00 | 7,634.00 | |
| 2017-06-30 | 11,824.00 | 1,249.00 | 7,511.00 | |
| 2017-03-31 | 11,576.00 | 1,114.00 | 7,364.00 | |
| 2016-12-31 | 11,376.00 | 1,081.00 | 7,376.00 | |
| 2016-09-30 | 11,292.00 | 1,100.00 | 7,355.00 | |
| 2016-06-30 | 11,262.00 | 1,115.00 | 7,330.00 | |
| 2016-03-31 | 11,140.40 | 1,174.00 | 7,304.50 | |
| 2015-12-31 | 11,063.90 | 1,181.10 | 7,197.60 | |
| 2015-09-30 | 10,984.40 | 1,169.80 | 7,134.60 | |
| 2015-06-30 | 10,780.00 | 1,089.00 | 7,074.00 | |
| 2015-03-31 | 10,981.30 | 1,193.60 | 7,082.60 | |
| 2014-12-31 | 10,950.60 | 1,134.70 | 7,110.70 | |
| 2014-09-30 | 10,924.80 | 1,131.50 | 7,047.20 | |
| 2014-06-30 | 10,968.80 | 1,204.10 | 6,985.90 | |
| 2014-03-31 | 10,650.90 | 1,040.40 | 6,934.50 | |
| 2013-12-31 | 10,392.90 | 1,006.00 | 6,832.90 | |
| 2013-09-30 | 10,307.20 | 1,021.00 | 6,751.70 | |
| 2013-06-30 | 10,181.70 | 1,019.80 | 6,597.00 | |
| 2013-03-31 | 10,025.50 | 977.00 | 6,540.20 | |
| 2012-12-31 | 9,981.90 | 928.60 | 6,471.60 | |
| 2012-09-30 | 9,786.40 | 877.80 | 6,345.00 | |
| 2012-06-30 | 9,713.60 | 856.90 | 6,324.80 | |
| 2012-03-31 | 9,523.00 | 846.80 | 6,183.20 | |
| 2011-12-31 | 9,440.50 | 841.10 | 6,060.10 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Estée Lauder Companies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Estée Lauder Companies used its assets less efficiently than the US Personal Products industry average last year based on Return on Assets.
- Estée Lauder Companies's use of capital has not improved over the past 3 years (Return on Capital Employed).
Past performance checks
We assess Estée Lauder Companies's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Personal Products industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Estée Lauder Companies has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Estée Lauder Companies's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Estée Lauder Companies's finances.
The net worth of a company is the difference between its assets and liabilities.
- Estée Lauder Companies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Estée Lauder Companies's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Estée Lauder Companies Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-09-30 | 4,430.00 | 3,544.00 | 1,993.00 |
| 2018-06-30 | 4,710.00 | 3,544.00 | 2,715.00 |
| 2018-03-31 | 4,737.00 | 3,659.00 | 2,524.00 |
| 2017-12-31 | 4,589.00 | 3,787.00 | 2,499.00 |
| 2017-09-30 | 4,753.00 | 3,935.00 | 1,827.00 |
| 2017-06-30 | 4,402.00 | 3,572.00 | 1,744.00 |
| 2017-03-31 | 4,135.00 | 3,896.00 | 1,840.00 |
| 2016-12-31 | 3,808.00 | 4,033.00 | 1,687.00 |
| 2016-09-30 | 3,675.00 | 2,500.00 | 1,203.00 |
| 2016-06-30 | 3,587.00 | 2,242.00 | 1,401.00 |
| 2016-03-31 | 3,822.40 | 1,925.30 | 1,086.70 |
| 2015-12-31 | 3,615.50 | 1,981.70 | 1,419.80 |
| 2015-09-30 | 3,502.00 | 2,066.20 | 1,087.40 |
| 2015-06-30 | 3,654.30 | 1,624.90 | 1,525.10 |
| 2015-03-31 | 3,864.90 | 1,452.80 | 1,425.00 |
| 2014-12-31 | 3,829.30 | 1,389.20 | 1,372.00 |
| 2014-09-30 | 3,794.20 | 1,333.00 | 1,395.40 |
| 2014-06-30 | 3,869.40 | 1,343.10 | 1,629.10 |
| 2014-03-31 | 3,682.40 | 1,346.10 | 1,530.20 |
| 2013-12-31 | 3,883.10 | 1,338.80 | 1,748.00 |
| 2013-09-30 | 3,612.50 | 1,340.60 | 1,322.20 |
| 2013-06-30 | 3,301.90 | 1,344.30 | 1,495.70 |
| 2013-03-31 | 3,206.80 | 1,349.20 | 1,438.60 |
| 2012-12-31 | 3,123.10 | 1,356.10 | 1,323.60 |
| 2012-09-30 | 3,040.50 | 1,354.70 | 1,053.70 |
| 2012-06-30 | 2,747.50 | 1,288.10 | 1,347.70 |
| 2012-03-31 | 2,855.50 | 1,209.90 | 1,192.80 |
| 2011-12-31 | 2,643.70 | 1,212.50 | 999.10 |
- Estée Lauder Companies's level of debt (80%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (37.1% vs 80% today).
- Debt is well covered by operating cash flow (66.9%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 32.1x coverage).
Financial health checks
We assess Estée Lauder Companies's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Estée Lauder Companies has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Estée Lauder Companies's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Estée Lauder Companies
shares you are expected to receive
$24
in your first year as a dividend.
Dividend Amount
- Estée Lauder Companies's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.38%).
- Estée Lauder Companies's dividend is below the markets top 25% of dividend payers in United States of America (3.54%).
Upcoming dividend payment
Purchase Estée Lauder Companies on or before the 'Buy Limit' to receive their next dividend payment.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 25 Analyst Estimates (S&P Global) | See Below |
| United States of America Personal Products Industry Average Dividend Yield | Market Cap Weighted Average of 8 Stocks | 1.8% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 1977 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.5% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-06-30 | ||
| 2022-06-30 | 2.25 | 1.00 |
| 2021-06-30 | 2.07 | 12.00 |
| 2020-06-30 | 1.85 | 17.00 |
| 2019-06-30 | 1.66 | 17.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-10-31 | 1.720 | 1.209 |
| 2018-08-20 | 1.520 | 1.118 |
| 2018-05-02 | 1.520 | 1.065 |
| 2018-02-02 | 1.520 | 1.054 |
| 2017-11-01 | 1.520 | 1.188 |
| 2017-08-18 | 1.360 | 1.248 |
| 2017-02-02 | 1.360 | 1.500 |
| 2016-11-02 | 1.360 | 1.729 |
| 2016-08-19 | 1.200 | 1.362 |
| 2016-05-03 | 1.200 | 1.296 |
| 2016-02-05 | 1.200 | 1.287 |
| 2015-11-02 | 1.200 | 1.403 |
| 2015-08-17 | 0.960 | 1.191 |
| 2015-05-05 | 0.960 | 1.088 |
| 2015-02-05 | 0.960 | 1.165 |
| 2014-11-04 | 0.960 | 1.301 |
| 2014-08-15 | 0.800 | 1.070 |
| 2014-05-02 | 0.800 | 1.067 |
| 2014-02-05 | 0.800 | 1.159 |
| 2013-10-31 | 0.800 | 1.104 |
| 2013-08-15 | 0.720 | 1.035 |
| 2013-05-02 | 0.720 | 1.062 |
| 2013-02-05 | 0.720 | 1.106 |
| 2012-11-01 | 0.720 | 1.193 |
| 2012-08-17 | 0.525 | 0.853 |
| 2012-08-14 | 0.525 | 0.861 |
| 2012-05-07 | 0.525 | 0.964 |
| 2012-05-04 | 0.525 | 0.858 |
| 2011-11-03 | 0.525 | 0.897 |
| 2011-08-22 | 0.375 | 0.784 |
| 2011-08-15 | 0.375 | 0.816 |
| 2011-05-06 | 0.375 | 0.744 |
| 2011-05-05 | 0.375 | 0.769 |
| 2010-11-09 | 0.375 | 0.875 |
| 2010-08-20 | 0.275 | 0.879 |
| 2010-08-12 | 0.275 | 0.947 |
| 2010-04-27 | 0.275 | 0.909 |
| 2009-11-13 | 0.275 | 0.992 |
| 2009-08-19 | 0.275 | 1.432 |
| 2009-08-13 | 0.275 | 1.540 |
| 2009-05-05 | 0.275 | 1.639 |
| 2009-05-04 | 0.275 | 1.541 |
| 2008-11-20 | 0.275 | 2.087 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Estée Lauder Companies's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (2.1x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).
Income/ dividend checks
We assess Estée Lauder Companies's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Estée Lauder Companies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Estée Lauder Companies has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $48,753,819 |
| AGE | 61 |
| TENURE AS CEO | 9.3 years |
CEO Bio
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 Operating Officer of The Estée Lauder Companies Inc. from 2008 to July 2009. Prior to this, he held various senior positions at Procter & Gamble Company over the span of twenty years. From 1986 to 1988, Mr. Freda directed marketing and strategic planning at Gucci SpA. He has been an Independent Director of BlackRock, Inc. since October 2012. Mr. Freda has extensive experience in product strategy, innovation and global branding. He holds a Business Administration Degree in Economics from Universita' degli Studi di Napoli Federico II in 1981.
CEO Compensation
- Fabrizio's compensation has increased by more than 20% in the past year.
- Fabrizio's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Estée Lauder Companies management team in years:
- The average tenure for the Estée Lauder Companies management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
William Lauder
Executive Chairman
$9M
58
Fabrizio Freda
President
$49M
61
9.3 yrs
Tracey Travis
Executive VP & CFO
$7M
56
6.3 yrs
Cedric Prouve
Group President of International
$10M
58
15.8 yrs
John Demsey
Executive Group President
$10M
62
2.8 yrs
Deborah Krulewitch
Senior Vice President of Corporate Administration
Rainey Mancini
Senior Vice President of Investor Relations
48
0.5 yrs
Sara Moss
Executive VP & General Counsel
71
15.2 yrs
Alexandra Trower
Executive Vice President of Global Communications
54
10.6 yrs
Georgia Garinois-Melenikiotou
Executive Vice President of Corporate Marketing
58
Board of Directors Tenure
Average tenure and age of the Estée Lauder Companies board of directors in years:
- The tenure for the Estée Lauder Companies board of directors is about average.
Board of Directors
William Lauder
Executive Chairman
$9M
58
9.3 yrs
Fabrizio Freda
President
$49M
61
9.3 yrs
Leonard Lauder
Chairman Emeritus & Director
$3M
85
9.3 yrs
Jane Lauder
Director
45
9.3 yrs
Charlene Barshefsky
Independent Director
$301K
67
17.8 yrs
Irv Hockaday
Presiding Director
$336K
82
Rich Zannino
Director
$289K
59
8.8 yrs
Ronald Lauder
Director
74
2 yrs
Dick Parsons
Director
$300K
70
19.8 yrs
Rose Bravo
Director
$277K
67
15.6 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 15. Nov 18 | Sell | Alexandra Trower | Individual | 14. Nov 18 | 14. Nov 18 | -4,781 | $145.02 | $-693,341 | ||
| 08. Nov 18 | Sell | Sara Moss | Individual | 07. Nov 18 | 07. Nov 18 | -11,404 | $141.89 | $-1,618,114 | ||
| 06. Nov 18 | Sell | Tracey Travis | Individual | 06. Nov 18 | 06. Nov 18 | -7,406 | $142.19 | $-1,053,059 | ||
| 12. Sep 18 | Sell | Irvine Hockaday | Individual | 11. Sep 18 | 11. Sep 18 | -1,700 | $137.57 | $-233,869 | ||
| 07. Sep 18 | Sell | The Ronald S. Lauder Foundation, Endowment Arm | Company | 06. Sep 18 | 06. Sep 18 | -15,700 | $139.32 | $-2,187,324 | ||
| 06. Sep 18 | Sell | Michael O'Hare | Individual | 05. Sep 18 | 05. Sep 18 | -5,671 | $138.23 | $-783,841 | ||
| 02. Mar 18 | Sell | The Ronald S. Lauder Foundation, Endowment Arm | Company | 01. Mar 18 | 01. Mar 18 | -16,447 | $139.07 | $-2,271,426 | ||
| 20. Feb 18 | Sell | Tracey Travis | Individual | 16. Feb 18 | 16. Feb 18 | -5,000 | $140.11 | $-700,550 | ||
| 15. Feb 18 | Sell | Alexandra Trower | Individual | 15. Feb 18 | 15. Feb 18 | -26,039 | $139.50 | $-3,632,441 | ||
| 15. Feb 18 | Sell | Tracey Travis | Individual | 13. Feb 18 | 13. Feb 18 | -5,000 | $137.02 | $-685,100 | ||
| 24. Nov 17 | Sell | William Lauder | Individual | 21. Nov 17 | 22. Nov 17 | -571,351 | $126.29 | $-71,670,322 | ||
| 20. Nov 17 | Sell | William Lauder | Individual | 16. Nov 17 | 20. Nov 17 | -570,000 | $126.23 | $-71,554,261 | ||
Management checks
We assess Estée Lauder Companies's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Estée Lauder Companies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
External News
Simply Wall St News
Before Investing In The Estée Lauder Companies Inc (NYSE:EL), Consider This
I will take you through Estée Lauder Companies’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Estée Lauder Companies’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … There are two methods I will use to evaluate the quality of Estée Lauder Companies’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability
Simply Wall St - – Full articleIs The Estée Lauder Companies Inc's (NYSE:EL) 24% Better Than Average?
To keep the lesson grounded in practicality, we'll use ROE to better understand The Estée Lauder Companies Inc (NYSE:EL). … Our data shows Estée Lauder Companies has a return on equity of 24% for the last year. … Check out our latest analysis for Estée Lauder Companies?
Simply Wall St - – Full articleHave Investors Priced In The Estée Lauder Companies Inc's (NYSE:EL) Growth?
The Estée Lauder Companies Inc (NYSE:EL) is considered a high growth stock. … View our latest analysis for Estée Lauder Companies? … Analysts are predicting good growth prospects for Estée Lauder Companies over the next couple of years
Simply Wall St - – Full articleThe Estée Lauder Companies Inc (NYSE:EL): Immense Growth Potential?
The Estée Lauder Companies Inc's (NYSE:EL) latest earnings announcement in June 2018a
Simply Wall St - – Full articleWhat Do Analysts Think About The Future Of The Estée Lauder Companies Inc's (NYSE:EL)?
Looking at The Estée Lauder Companies Inc's (NYSE:EL) earnings update in March 2018,. … analyst consensus outlook appear cautiously optimistic, … with earnings expected to grow by 41.83% in the upcoming year
Simply Wall St - – Full articleHow Financially Strong Is The Estée Lauder Companies Inc (NYSE:EL)?
The Estée Lauder Companies Inc (NYSE:EL), a large-cap worth US$48.83b, comes to mind for investors seeking a strong and reliable stock investment. … I will provide an overview of Estée Lauder Companies’s financial liquidity and leverage to give you an idea of Estée Lauder Companies’s position to take advantage of potential acquisitions or comfortably endure future downturns. … View our latest analysis for Estée Lauder Companies
Simply Wall St - – Full articleShould You Worry About The Estée Lauder Companies Inc's (NYSE:EL) CEO Salary Level?
Leading The Estée Lauder Companies Inc (NYSE:EL) as the CEO, Fabrizio Freda took the company to a valuation of US$49.55b. … Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … CEOs leading companies of similar size and profitability
Simply Wall St - – Full articleIntrinsic Calculation For The Estée Lauder Companies Inc (NYSE:EL) Shows Investors Are Overpaying
Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of The Estée Lauder Companies Inc (NYSE:EL) as an investment opportunity. … by projecting its future cash flows and then discounting them to today's value. … If you are reading this and its not July 2018 then I highly recommend you check out the latest calculation for Estée Lauder Companies by following the link below
Simply Wall St - – Full articleThe Estée Lauder Companies Inc's (NYSE:EL) Most Important Factor To Consider
I’ve analysed below, the health and outlook of Estée Lauder Companies’s cash flow, which will help you understand the stock from a cash standpoint. … Estée Lauder Companies generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … I will be analysing Estée Lauder Companies’s FCF by looking at its FCF yield and its operating cash flow growth.
Simply Wall St - – Full articleIs The Estée Lauder Companies Inc's (NYSE:EL) ROE Of 24.47% Sustainable?
and want a simplistic look at the return on The Estée Lauder Companies Inc (NYSE:EL) stock. … The Estée Lauder Companies Inc (NYSE:EL) delivered an ROE of 24.47% over the past 12 months, which is an impressive feat relative to its industry average of 16.18% during the same period. … However, ROE only measures returns against equity, not debt
Simply Wall St - – Full articleCompany Info
Map
Description
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, such as moisturizers, serums, cleansers, toners, body care products, exfoliators, acne care products, facial masks, cleansing devices, and sun care products; and makeup products, including lipsticks, lip glosses, mascaras, foundations, eyeshadows, nail polishes, and powders, as well as related items, including compacts, brushes, and other makeup tools. It also provides fragrance products in various forms comprising eau de parfum sprays and colognes, lotions, powders, creams, candles, and soaps; and hair care products consisting of shampoos, conditioners, styling products, treatment, finishing sprays, and hair color products, as well as sells ancillary products and services. The company offers its products under the brand names of Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, M·A·C, Bobbi Brown, La Mer, Aveda, Jo Malone London, Bumble and bumble, Darphin, Ojon, Smashbox, RODIN olio lusso, FLIRT!, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, By Kilian, BECCA, and Too Faced. In addition, it operates as a licensee for fragrances and/or cosmetics sold under the Tommy Hilfiger, Donna Karan New York, DKNY, Kiton, Michael Kors, Tom Ford, Dr. Andrew Weil, Ermenegildo Zegna, AERIN, and Tory Burch brand names. The company sells its products through department stores, specialty multi-brand retailers, upscale perfumeries, pharmacies, and salons and spas; freestanding stores; e-commerce Websites; stores in airports and on cruise ships; in-flight and duty-free shops; and self-select outlets. It has operations in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The Estée Lauder Companies Inc. was founded in 1946 and is based in New York, New York.
Details
| Name: | The Estée Lauder Companies Inc. |
| EL | |
| Exchange: | NYSE |
| Founded: | 1946 |
| $52,258,023,098 | |
| 362,852,542 | |
| Website: | http://www.elcompanies.com |
| Address: |
The Estée Lauder Companies Inc. 767 Fifth Avenue, New York, New York, 10153, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | EL | Class A Common Stock | New York Stock Exchange | US | USD | 17. Nov 1995 | |
| DB | ELAA | Class A Common Stock | Deutsche Boerse AG | DE | EUR | 17. Nov 1995 | |
| LSE | 0JTM | Class A Common Stock | London Stock Exchange | GB | USD | 17. Nov 1995 | |
| BMV | EL * | Class A Common Stock | Bolsa Mexicana de Valores | MX | MXN | 17. Nov 1995 |
Number of employees
Current staff
Industry
| Personal Products | |
| Household |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2018/11/19 00:52 |
| End of day share price update: | 2018/11/16 00:00 |
| Last estimates confirmation: | 2018/11/13 |
| Last earnings filing: | 2018/10/31 |
| Last earnings reported: | 2018/09/30 |
| Last annual earnings reported: | 2018/06/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
