Estée Lauder Companies
Market Cap
US$67.1b
Last Updated
2019/10/23 23:40 UTC
Data Sources
Company Financials +
Executive Summary
The Estée Lauder Companies Inc. manufactures and markets skin care, makeup, fragrance, and hair care products.
Snowflake
Fundamentals
Outstanding track record with adequate balance sheet and pays a dividend.
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
Market Performance
7 Day Return
-3.5%
EL
-0.8%
US Personal Products
0.4%
US Market
1 Year Return
49.6%
EL
27.7%
US Personal Products
11.4%
US Market
Return vs Industry: EL exceeded the US Personal Products industry which returned 27.7% over the past year.
Return vs Market: EL exceeded the US Market which returned 11.4% over the past year.
Shareholder returns
| EL | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.5% | -0.8% | 0.4% |
| 30 Day | -3.7% | -1.1% | 0.3% |
| 90 Day | -1.9% | -0.3% | -1.2% |
| 1 Year | 51.2%49.6% | 29.6%27.7% | 13.9%11.4% |
| 3 Year | 124.9%116.8% | 45.6%38.1% | 47.2%37.6% |
| 5 Year | 164.7%148.8% | 81.3%63.1% | 62.4%44.6% |
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
1 week ago | Simply Wall St
Why We Think The Estée Lauder Companies Inc. (NYSE:EL) Could Be Worth Looking At2 weeks ago | Simply Wall St
A Closer Look At The Estée Lauder Companies Inc.'s (NYSE:EL) Impressive ROE4 weeks ago | Simply Wall St
How Does The Estée Lauder Companies Inc. (NYSE:EL) Stand Up To These Simple Dividend Safety Checks?Valuation
Is Estée Lauder Companies undervalued compared to its fair value and its price relative to the market?
37.86x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: EL ($185.9) is trading above our estimate of fair value ($162.31)
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 (37.9x) compared to the Personal Products industry average (17.6x).
PE vs Market: EL is poor value based on its PE Ratio (37.9x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
PEG Ratio: EL is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: EL is overvalued based on its PB Ratio (15.3x) compared to the US Personal Products industry average (3.2x).
Next Steps
Future Growth
How is Estée Lauder Companies forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
13.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EL's forecast earnings growth (13.1% per year) is above the savings rate (2.7%).
Earnings vs Market: EL's earnings (13.1% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: EL's earnings are forecast to grow, but not significantly.
Revenue vs Market: EL's revenue (6.6% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: EL's revenue (6.6% 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 (51.7%).
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
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 earnings growth over the past year (61.1%) exceeds its 5-year average (6.8% per year).
Earnings vs Industry: EL earnings growth over the past year (61.1%) exceeded the Personal Products industry 21%.
Return on Equity
High ROE: EL's Return on Equity (40.7%) is considered outstanding.
Return on Assets
ROA vs Industry: EL has a higher Return on Assets than the Personal Products industry average last year.
Return on Capital Employed
ROCE Improving: EL has improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Estée Lauder Companies's financial position?
Financial Position Analysis
Short Term Liabilities: EL's short term assets ($7.2B) exceeds its short term liabilities ($4.6B)
Long Term Liabilities: EL's short term assets (7.2B) exceeds its long term liabilities (4.1B)
Debt to Equity History and Analysis
Debt Level: EL's debt to equity ratio (77.4%) is considered high
Reducing Debt: EL's debt to equity ratio has increased from 34.7% to 77.4% over the past 5 years.
Debt Coverage: EL's debt is well covered by operating cash flow (73.8%).
Interest Coverage: EL's interest payments on its debt are well covered by EBIT (34.7x coverage).
Balance Sheet
Inventory Level: EL has a high level of physical assets or inventory.
Debt Coverage by Assets: EL's debt is covered by short term assets (assets are 2.1x debt).
Next Steps
Dividend
What is Estée Lauder Companies's current dividend yield, its reliability and sustainability?
0.92%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: EL's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: EL's dividend (0.93%) is low compared to the top 25% of dividend payers in the US market (3.68%).
Stable Dividend: EL's dividends per share have been stable 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 reasonably low payout ratio (34%), EL's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: EL's dividends in 3 years are forecast to be well covered by earnings (31.6% payout ratio).
Next Steps
Management
What is the CEO of Estée Lauder Companies's salary, the management and board of directors tenure and is there insider trading?
7.2yrs
Average management tenure
CEO
Fabrizio Freda (62yo)
10.3yrs
Tenure
US$21,435,428
Compensation
Mr. Fabrizio Freda has been the Chief Executive Officer and Director of The Estée Lauder Companies Inc. since July 1, 2009 and has been its President since 2008. Previously, Mr. Freda served as Chief Opera ...
CEO Compensation Analysis
Compensation vs. Market: Fabrizio's total compensation ($USD21.44M) is about 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.
Management Age and Tenure
7.2yrs
Average Tenure
59yo
Average Age
Experienced Management: EL's management team is seasoned and experienced (7.2 years average tenure).
Board Age and Tenure
13.4yrs
Average Tenure
68yo
Average Age
Experienced Board: EL's board of directors are seasoned and experienced ( 13.4 years average tenure).
Insider Trading
Insider Buying: EL insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 300 |
| Max Price | US$200.61 |
| Entity | Individual |
| Shares | 4,705 |
| Max Price | US$204.04 |
| Entity | Individual |
| Role | Senior Key Executive Executive Group President |
| Shares | 15,317 |
| Max Price | US$202.55 |
| Entity | Company |
| Shares | 16,140 |
| Max Price | US$200.83 |
| Entity | Individual |
| Role | Head of Corporate Communications Executive Vice President of Global Communications |
| Shares | 6,608 |
| Max Price | US$203.78 |
| Entity | Individual |
| Shares | 8,950 |
| Max Price | US$169.03 |
| Entity | Company |
| Shares | 27,830 |
| Max Price | US$167.28 |
| Entity | Individual |
| Role | Chief Executive Officer President |
| Shares | 5,000 |
| Max Price | US$164.42 |
| Entity | Individual |
| Role | Head of Corporate Communications Executive Vice President of Global Communications |
| Shares | 25,296 |
| Max Price | US$158.71 |
| Entity | Individual |
| Role | Chairman of the Board Executive Chairman |
| Shares | 12,418 |
| Max Price | US$156.45 |
| Entity | Company |
| Shares | 422,056 |
| Max Price | US$159.14 |
| Entity | Individual |
| Role | Lead Director Presiding Director |
| Shares | 1,500 |
| Max Price | US$155.31 |
| Entity | Company |
| Shares | 38,080 |
| Max Price | US$153.41 |
| Entity | Individual |
| Shares | 6,700 |
| Max Price | US$149.44 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP of Finance & CFO |
| Shares | 13,297 |
| Max Price | US$152.47 |
| Entity | Company |
| Shares | 15,000 |
| Max Price | US$144.33 |
| Entity | Individual |
| Role | Head of Corporate Communications Executive Vice President of Global Communications |
| Shares | 4,781 |
| Max Price | US$145.02 |
| Entity | Individual |
| Shares | 11,404 |
| Max Price | US$141.89 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP of Finance & CFO |
| Shares | 7,406 |
| Max Price | US$142.19 |
Ownership Breakdown
Management Team
William Lauder (59yo)
Executive Chairman
- Tenure: 10.3yrs
- Compensation: US$9.52m
Tracey Travis (57yo)
Executive VP of Finance & CFO
- Tenure: 7.2yrs
- Compensation: US$7.54m
Fabrizio Freda (62yo)
President
- Tenure: 10.3yrs
- Compensation: US$21.44m
Cedric Prouve (59yo)
Group President of International
- Tenure: 16.8yrs
- Compensation: US$10.23m
John Demsey (63yo)
Executive Group President
- Tenure: 3.8yrs
- Compensation: US$9.37m
Rainey Mancini (49yo)
Senior Vice President of Investor Relations
- Tenure: 1.4yrs
Alexandra Trower (55yo)
Executive Vice President of Global Communications
- Tenure: 11.5yrs
Deborah Krulewitch
Senior Vice President of Corporate Administration
- Tenure: 0yrs
Georgia Garinois-Melenikiotou (59yo)
Executive Vice President of Corporate Marketing
- Tenure: 0yrs
Andrew Ross (51yo)
Executive Vice President of Strategy & New Business Development
- Tenure: 3.1yrs
Board Members
Leonard Lauder (86yo)
Chairman Emeritus & Director
- Tenure: 10.3yrs
- Compensation: US$2.86m
William Lauder (59yo)
Executive Chairman
- Tenure: 10.3yrs
- Compensation: US$9.52m
Ronald Lauder (75yo)
Director
- Tenure: 0yrs
Irv Hockaday (83yo)
Presiding Director
- Tenure: 0yrs
- Compensation: US$320.46k
Rose Bravo (68yo)
Independent Director
- Tenure: 16.5yrs
- Compensation: US$282.96k
Dick Parsons (71yo)
Director
- Tenure: 20.8yrs
- Compensation: US$290.96k
Rich Zannino (60yo)
Independent Director
- Tenure: 9.8yrs
- Compensation: US$311.96k
Charlene Barshefsky (68yo)
Independent Director
- Tenure: 18.8yrs
- Compensation: US$327.37k
Fabrizio Freda (62yo)
President
- Tenure: 10.3yrs
- Compensation: US$21.44m
Lynn De Rothschild (65yo)
Independent Director
- Tenure: 19.8yrs
- Compensation: US$282.96k
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$67.133b
- Shares outstanding: 361.12m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| EL | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Nov 1995 |
| ELAA | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Nov 1995 |
| EL * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Stock | MX | MXN | Nov 1995 |
| 0JTM | LSE (London Stock Exchange) | Yes | Class A Common Stock | GB | USD | Nov 1995 |
| ESLA | WBAG (Wiener Boerse AG) | Yes | Class A Common Stock | AT | EUR | Nov 1995 |
| ELCI34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EA REP 0.5 COM CL 'A' | BR | BRL | May 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/23 23:40 |
| End of Day Share Price | 2019/10/23 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/06/30 |
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.