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Estée Lauder Companies

NYSE:EL
Snowflake Description

Solid track record with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EL
NYSE
$58B
Market Cap
  1. Home
  2. US
  3. Household
Company description

The Estée Lauder Companies Inc. manufactures and markets skin care, makeup, fragrance, and hair care products. The last earnings update was 45 days ago. More info.


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EL Share Price and Events
7 Day Returns
-2%
NYSE:EL
0.3%
US Personal Products
0.4%
US Market
1 Year Returns
10.9%
NYSE:EL
0.6%
US Personal Products
3.5%
US Market
EL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Estée Lauder Companies (EL) -2% 1.8% 26.8% 10.9% 71% 139%
US Personal Products 0.3% 1.7% 25.8% 0.6% 23.4% 44.4%
US Market 0.4% 1.6% 16.4% 3.5% 39.4% 44%
1 Year Return vs Industry and Market
  • EL outperformed the Personal Products industry which returned 0.6% over the past year.
  • EL outperformed the Market in United States of America which returned 3.5% over the past year.
Price Volatility
EL
Industry
5yr Volatility vs Market

Value

 Is Estée Lauder Companies undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Estée Lauder Companies.

NYSE:EL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 27 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:EL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Personal Products Unlevered Beta Simply Wall St/ S&P Global 0.67
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.67 (1 + (1- 21%) (5.89%))
0.799
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)
= 2.73% + (0.8 * 5.96%)
7.5%

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 try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:EL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 1,649.67 Analyst x9 1,534.60
2020 1,850.22 Analyst x9 1,601.12
2021 2,166.99 Analyst x4 1,744.44
2022 2,329.61 Est @ 7.5% 1,744.54
2023 2,471.06 Est @ 6.07% 1,721.40
2024 2,596.33 Est @ 5.07% 1,682.51
2025 2,709.72 Est @ 4.37% 1,633.51
2026 2,814.76 Est @ 3.88% 1,578.48
2027 2,914.19 Est @ 3.53% 1,520.25
2028 3,010.12 Est @ 3.29% 1,460.76
Present value of next 10 years cash flows $16,221.60
NYSE:EL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $3,010.12 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$64,855.10
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $64,855.10 ÷ (1 + 7.5%)10
$31,473.16
NYSE:EL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $16,221.60 + $31,473.16
$47,694.76
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $47,694.76 / 361.16
$132.06
NYSE:EL Discount to Share Price
Calculation Result
Value per share (USD) From above. $132.06
Current discount Discount to share price of $159.50
= -1 x ($159.50 - $132.06) / $132.06
-20.8%

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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NYSE:EL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $4.45
NYSE:EL Share Price ** NYSE (2019-03-22) in USD $159.5
United States of America Personal Products Industry PE Ratio Median Figure of 18 Publicly-Listed Personal Products Companies 26.11x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.52x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Estée Lauder Companies.

NYSE:EL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:EL Share Price ÷ EPS (both in USD)

= 159.5 ÷ 4.45

35.82x

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?
Raw Data
NYSE:EL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 35.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts
10.1%per year
United States of America Personal Products Industry PEG Ratio Median Figure of 8 Publicly-Listed Personal Products Companies 1.47x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:EL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 35.82x ÷ 10.1%

3.54x

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?
Raw Data
NYSE:EL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $11.90
NYSE:EL Share Price * NYSE (2019-03-22) in USD $159.5
United States of America Personal Products Industry PB Ratio Median Figure of 45 Publicly-Listed Personal Products Companies 4.55x
United States of America Market PB Ratio Median Figure of 5,157 Publicly-Listed Companies 1.88x
NYSE:EL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:EL Share Price ÷ Book Value per Share (both in USD)

= 159.5 ÷ 11.90

13.4x

* 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.
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Value checks
We assess Estée Lauder Companies's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Personal Products industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Personal Products industry average (and greater than 0)? (1 check)
  5. 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

 How is Estée Lauder Companies expected to perform in the next 1 to 3 years based on estimates from 27 analysts?

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!
Annual Growth Rate
10.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Estée Lauder Companies expected to grow at an attractive rate?
  • Estée Lauder Companies's earnings growth is expected to exceed the low risk savings rate of 2.7%.
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
Raw Data
NYSE:EL Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:EL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts 10.1%
NYSE:EL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 27 Analysts 6.1%
United States of America Personal Products Industry Earnings Growth Rate Market Cap Weighted Average 19.5%
United States of America Personal Products Industry Revenue Growth Rate Market Cap Weighted Average 6.5%
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 7.2%

*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
Raw Data
NYSE:EL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:EL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 18,435 2,559 4
2022-06-30 17,525 2,366 6
2021-06-30 16,522 3,055 2,224 16
2020-06-30 15,495 2,743 2,028 27
2019-06-30 14,536 2,489 1,739 27
NYSE:EL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 14,194 2,407 1,631
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Estée Lauder Companies's earnings are expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).
  • Estée Lauder Companies's revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:EL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below

All data from Estée Lauder Companies Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 7.06 7.22 6.90 2.00
2022-06-30 6.50 6.68 6.31 2.00
2021-06-30 6.21 6.42 6.13 6.00
2020-06-30 5.51 5.73 5.19 14.00
2019-06-30 4.70 4.90 4.57 11.00
NYSE:EL Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 4.45
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

*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%).
X
Future performance checks
We assess Estée Lauder Companies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Estée Lauder Companies's growth in the last year to its industry (Personal Products).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 exceeds its 5-year average (51.4% vs 3.4%)
  • Estée Lauder Companies's earnings growth has exceeded the US Personal Products industry average in the past year (51.4% vs 29.3%).
Earnings and Revenue History
Estée Lauder Companies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Estée Lauder Companies Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 14,194.00 1,631.00 8,698.00
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 8,229.00
2017-12-31 12,769.00 1,077.00 7,924.00
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

*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 more efficiently than the US Personal Products industry average last year based on Return on Assets.
  • Estée Lauder Companies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Estée Lauder Companies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Personal Products industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Estée Lauder Companies has a total score of 5/6, 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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Estée Lauder Companies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.9x 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.
Raw Data

All data from Estée Lauder Companies Company Filings, last reported 2 months ago.

NYSE:EL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,333.00 3,391.00 2,401.00
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
  • Estée Lauder Companies's level of debt (78.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (34.5% vs 78.3% today).
  • Debt is well covered by operating cash flow (71%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 32.2x coverage).
X
Financial health checks
We assess Estée Lauder Companies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Estée Lauder Companies has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
1.08%
Current annual income from Estée Lauder Companies dividends. Estimated to be 1.17% next year.
If you bought $2,000 of Estée Lauder Companies shares you are expected to receive $22 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Estée Lauder Companies's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • Estée Lauder Companies's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).
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.
Raw Data
NYSE:EL Annualized Past and Future Dividends
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 27 Analyst Estimates (S&P Global) See Below
United States of America Personal Products Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2006 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 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:EL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30 2.25 2.00
2021-06-30 2.07 12.00
2020-06-30 1.86 16.00
2019-06-30 1.66 16.00
NYSE:EL Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-05 1.720 1.098
2018-10-31 1.720 1.276
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
2009-03-23 0.275 2.037

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 (2.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess Estée Lauder Companies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Estée Lauder Companies's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Fabrizio Freda
COMPENSATION $48,753,819
AGE 61
TENURE AS CEO 9.7 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:

9.7
Average Tenure
58
Average Age
  • 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

TITLE
Executive Chairman
COMPENSATION
$9M
AGE
58

Fabrizio Freda

TITLE
President
COMPENSATION
$49M
AGE
61
TENURE
9.7 yrs

Tracey Travis

TITLE
Executive VP & CFO
COMPENSATION
$7M
AGE
56
TENURE
6.6 yrs

Cedric Prouve

TITLE
Group President of International
COMPENSATION
$10M
AGE
58
TENURE
16.2 yrs

John Demsey

TITLE
Executive Group President
COMPENSATION
$10M
AGE
62
TENURE
3.2 yrs

Deborah Krulewitch

TITLE
Senior Vice President of Corporate Administration

Rainey Mancini

TITLE
Senior Vice President of Investor Relations
AGE
48
TENURE
0.8 yrs

Sara Moss

TITLE
Executive VP & General Counsel
AGE
71
TENURE
15.5 yrs

Alexandra Trower

TITLE
Executive Vice President of Global Communications
AGE
54
TENURE
10.9 yrs

Georgia Garinois-Melenikiotou

TITLE
Executive Vice President of Corporate Marketing
AGE
58
Board of Directors Tenure

Average tenure and age of the Estée Lauder Companies board of directors in years:

9.7
Average Tenure
67
Average Age
  • The tenure for the Estée Lauder Companies board of directors is about average.
Board of Directors

William Lauder

TITLE
Executive Chairman
COMPENSATION
$9M
AGE
58
TENURE
9.7 yrs

Fabrizio Freda

TITLE
President
COMPENSATION
$49M
AGE
61
TENURE
9.7 yrs

Leonard Lauder

TITLE
Chairman Emeritus & Director
COMPENSATION
$3M
AGE
85
TENURE
9.7 yrs

Jane Lauder

TITLE
Global Brand President of Clinique and Director
AGE
45
TENURE
9.7 yrs

Charlene Barshefsky

TITLE
Independent Director
COMPENSATION
$301K
AGE
67
TENURE
18.2 yrs

Irv Hockaday

TITLE
Presiding Director
COMPENSATION
$336K
AGE
82

Rich Zannino

TITLE
Director
COMPENSATION
$289K
AGE
59
TENURE
9.2 yrs

Ronald Lauder

TITLE
Director
AGE
74
TENURE
2.3 yrs

Dick Parsons

TITLE
Director
COMPENSATION
$300K
AGE
70
TENURE
20.2 yrs

Rose Bravo

TITLE
Director
COMPENSATION
$277K
AGE
67
TENURE
15.9 yrs
Who owns this company?
Recent Insider Trading
  • Estée Lauder Companies insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
01. Mar 19 Sell Alexandra Trower Individual 01. Mar 19 01. Mar 19 -25,296 $158.71 $-4,014,728
27. Feb 19 Sell Leonard Lauder Individual 25. Feb 19 26. Feb 19 -422,056 $159.14 $-66,435,563
27. Feb 19 Sell William Lauder Individual 26. Feb 19 26. Feb 19 -12,418 $156.45 $-1,942,796
20. Feb 19 Sell Irvine Hockaday Individual 19. Feb 19 19. Feb 19 -1,500 $155.31 $-232,965
15. Feb 19 Sell The Ronald S. Lauder Foundation, Endowment Arm Company 14. Feb 19 14. Feb 19 -38,080 $153.41 $-5,841,853
07. Feb 19 Sell Jane Hudis Individual 06. Feb 19 06. Feb 19 -6,700 $149.44 $-1,001,248
04. Dec 18 Sell Tracey Travis Individual 03. Dec 18 03. Dec 18 -13,297 $152.47 $-2,027,152
20. Nov 18 Sell The Ronald S. Lauder Foundation, Endowment Arm Company 19. Nov 18 19. Nov 18 -15,000 $144.33 $-2,140,982
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
X
Management checks
We assess Estée Lauder Companies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

Simply Wall St News

Are The Estée Lauder Companies Inc.'s (NYSE:EL) Interest Costs Too High?

Today we will look at Estée Lauder Companies’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis … View our latest analysis for Estée Lauder Companies

Simply Wall St -

Is The Estée Lauder Companies Inc. (NYSE:EL) A High Quality Stock To Own?

This article is for those who would like to learn about Return On Equity (ROE). … Our data shows Estée Lauder Companies has a return on equity of 38% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

A Look At The Estée Lauder Companies Inc.'s (NYSE:EL) Exceptional Fundamentals

Help shape the future of investing tools and you could win a $250 gift card! … I've been keeping an eye on The Estée Lauder Companies Inc. … Looking at the company as a whole, as a potential stock investment, I believe EL has a lot to offer.

Simply Wall St -

What Should You Know About The Future Of The Estée Lauder Companies Inc.'s (NYSE:EL)?

In September 2018, The Estée Lauder Companies Inc. … analyst consensus outlook appear vastly optimistic, … with profits predicted to ramp up by an impressive 50% next year,

Simply Wall St -

Have Insiders Been Selling The Estée Lauder Companies Inc. (NYSE:EL) Shares This Year?

So shareholders might well want to know whether insiders have been buying or selling shares in The Estée Lauder Companies Inc. … It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. … The Last 12 Months Of Insider Transactions At Estée Lauder Companies.

Simply Wall St -

Does The Estée Lauder Companies Inc.'s (NYSE:EL) -15% Earnings Drop Reflect A Longer Term Trend?

After looking at The Estée Lauder Companies Inc.'s (NYSE:EL) latest earnings announcement (30 September 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … Was EL's recent earnings decline worse than the long-term trend and the industry. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 1.8%, indicating the rate at which EL is growing has slowed down

Simply Wall St -

Intrinsic Calculation For The Estée Lauder Companies Inc. (NYSE:EL) Shows Investors Are Overpaying

by taking the foreast future cash flows of the company and discounting them back to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

What Do You Get For Owning The Estée Lauder Companies Inc (NYSE:EL)?

and want to better understand how you can grow your money by investing in The Estée Lauder Companies Inc (NYSE:EL). … Purchasing Estée Lauder Companies gives you an ownership stake in the company. … Thus, to understand how your money can grow by investing in Estée Lauder Companies, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Our Take On The Estée Lauder Companies Inc's (NYSE:EL) CEO Salary

Fabrizio Freda became the CEO of The Estée Lauder Companies Inc (NYSE:EL) in 2009. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … At the time of writing our data says that The Estée Lauder Companies Inc has a market cap of US$51b, and is paying total annual CEO compensation of US$49m.

Simply Wall St -

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 -

Company Info

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
$57,605,420,504
361,162,511
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
Staff numbers
46,000
Estée Lauder Companies employees.
Industry
Personal Products
Household
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/22 23:38
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/03/21
Last earnings filing: 2019/02/05
Last earnings reported: 2018/12/31
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.