Estée Lauder Companies
Market Cap
US$75.2b
Last Updated
2020/02/23 00:59 UTC
Data Sources
Company Financials +
Executive Summary
The Estée Lauder Companies Inc. manufactures and markets skin care, makeup, fragrance, and hair care products.
Rewards
Risk Analysis
Snowflake Analysis
Proven track record average dividend payer.
Similar Companies
Share Price & News
How has Estée Lauder Companies's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: EL has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.7%
EL
-2.5%
US Personal Products
-1.1%
US Market
1 Year Return
31.6%
EL
15.7%
US Personal Products
17.9%
US Market
Return vs Industry: EL exceeded the US Personal Products industry which returned 15.7% over the past year.
Return vs Market: EL exceeded the US Market which returned 17.9% over the past year.
Shareholder returns
| EL | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.7% | -2.5% | -1.1% |
| 30 Day | 1.9% | 1.9% | 1.4% |
| 90 Day | 7.5% | 5.3% | 6.9% |
| 1 Year | 33.0%31.6% | 17.4%15.7% | 20.3%17.9% |
| 3 Year | 157.7%149.9% | 66.5%58.6% | 47.8%38.3% |
| 5 Year | 168.3%153.1% | 65.4%48.3% | 71.9%53.0% |
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 day ago | Simply Wall St
Should You Buy The Estée Lauder Companies Inc. (NYSE:EL) For Its Upcoming Dividend In 4 Days?4 days ago | Simply Wall St
With EPS Growth And More, Estée Lauder Companies (NYSE:EL) Is Interesting2 weeks ago | Simply Wall St
Is The Estée Lauder Companies Inc. (NYSE:EL) A High Quality Stock To Own?Valuation
Is Estée Lauder Companies undervalued compared to its fair value and its price relative to the market?
6.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: EL ($209.27) is trading below our estimate of fair value ($224.77)
Significantly Below Fair Value: EL is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: EL is poor value based on its PE Ratio (40.6x) compared to the Personal Products industry average (16x).
PE vs Market: EL is poor value based on its PE Ratio (40.6x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: EL is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: EL is overvalued based on its PB Ratio (16.4x) compared to the US Personal Products industry average (1.9x).
Next Steps
Future Growth
How is Estée Lauder Companies forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
15.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EL's forecast earnings growth (15.8% per year) is above the savings rate (1.7%).
Earnings vs Market: EL's earnings (15.8% per year) are forecast to grow faster than the US market (14.1% per year).
High Growth Earnings: EL's earnings are forecast to grow, but not significantly.
Revenue vs Market: EL's revenue (7.1% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: EL's revenue (7.1% 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 (53.3%).
Next Steps
Past Performance
How has Estée Lauder Companies performed over the past 5 years?
10.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EL has high quality earnings.
Growing Profit Margin: EL's current net profit margins (11.8%) are higher than last year (11.5%).
Past Earnings Growth Analysis
Earnings Trend: EL's earnings have grown by 10.6% per year over the past 5 years.
Accelerating Growth: EL's earnings growth over the past year (14.3%) exceeds its 5-year average (10.6% per year).
Earnings vs Industry: EL earnings growth over the past year (14.3%) underperformed the Personal Products industry 21.4%.
Return on Equity
High ROE: Whilst EL's Return on Equity (40.73%) is outstanding, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Estée Lauder Companies's financial position?
Financial Position Analysis
Short Term Liabilities: EL's short term assets ($8.3B) exceed its short term liabilities ($5.0B).
Long Term Liabilities: EL's short term assets ($8.3B) do not cover its long term liabilities ($8.4B).
Debt to Equity History and Analysis
Debt Level: EL's debt to equity ratio (112.3%) is considered high.
Reducing Debt: EL's debt to equity ratio has increased from 36.3% to 112.3% over the past 5 years.
Debt Coverage: EL's debt is well covered by operating cash flow (48.4%).
Interest Coverage: EL's interest payments on its debt are well covered by EBIT (38.5x 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 1.6x debt).
Next Steps
Dividend
What is Estée Lauder Companies's current dividend yield, its reliability and sustainability?
0.92%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Estée Lauder Companies before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: EL's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: EL's dividend (0.92%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
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 (34.3%), 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 (32.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.5yrs
Average management tenure
CEO
Fabrizio Freda (62yo)
10.6yrs
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 above average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Fabrizio's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 10.6yrs | US$9.52m | 2.37% $1.8b | |
| President | 10.6yrs | US$21.44m | 0.019% $14.3m | |
| Executive VP of Finance & CFO | 7.5yrs | US$7.54m | 0.0087% $6.6m | |
| Executive Group President | 4.1yrs | US$9.37m | 0.0033% $2.5m | |
| Group President of International | 17.1yrs | US$10.23m | 0.062% $46.5m | |
| Senior Vice President of Corporate Administration | 0yrs | no data | no data | |
| Senior Vice President of Investor Relations | 1.8yrs | no data | no data | |
| Executive VP & General Counsel | 0.3yrs | no data | no data | |
| Executive Vice President of Global Communications | 11.8yrs | no data | 0.0040% $3.0m | |
| Executive Vice President of Corporate Marketing | 0yrs | no data | no data |
7.5yrs
Average Tenure
59yo
Average Age
Experienced Management: EL's management team is seasoned and experienced (7.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 10.6yrs | US$9.52m | 2.37% $1.8b | |
| President | 10.6yrs | US$21.44m | 0.019% $14.3m | |
| Chairman Emeritus & Director | 10.6yrs | US$2.86m | 0.17% $125.8m | |
| Director | 3.3yrs | no data | 2.73% $2.1b | |
| Presiding Director | 0yrs | US$320.46k | 0.0033% $2.5m | |
| Independent Director | 16.8yrs | US$282.96k | 0.0022% $1.7m | |
| Director | 21.1yrs | US$290.96k | no data | |
| Independent Director | 10.1yrs | US$311.96k | no data | |
| Independent Director | 19.1yrs | US$327.37k | 0.017% $12.9m | |
| Independent Director | 20.1yrs | US$282.96k | 0.0011% $835.2k |
10.6yrs
Average Tenure
68yo
Average Age
Experienced Board: EL's board of directors are seasoned and experienced ( 10.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: EL insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
The Estée Lauder Companies Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: The Estée Lauder Companies Inc.
- Ticker: EL
- Exchange: NYSE
- Founded: 1946
- Industry: Personal Products
- Sector: Household
- Market Cap: US$75.241b
- Shares outstanding: 359.54m
- 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 |
| ELAA | ETLX (Eurotlx) | Yes | Class A Common Stock | IT | 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, toners, body care, exfoliators, acne care and oil correctors, facial masks, cleansing devices, and sun care products; and makeup products, such as lipsticks, lip glosses, mascaras, foundations, eyeshadows, nail polishes, and powders, as well as compacts, brushes, and other makeup tools. It also provides fragrance products in various forms comprising eau de parfum sprays and colognes, as well as lotions, powders, creams, candles, and soaps; and hair care products that include 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 Estée Lauder, Aramis, Clinique, Lab Series, Origins, M·A·C, Bobbi Brown, La Mer, Aveda, Jo Malone London, Bumble and bumble, Darphin, Smashbox, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, By Kilian, BECCA, Too Faced, RODIN olio lusso, FLIRT!, Kiton, and Tom Ford brands. It also holds license arrangements for Tommy Hilfiger, Donna Karan New York, DKNY, Michael Kors, Ermenegildo Zegna, Dr. Andrew Weil, TOM FORD BEAUTY, AERIN, and Tory Burch brands. The company sells its products through department stores, specialty-multi retailers, upscale perfumeries and pharmacies, and salons and spas; freestanding stores; its own and authorized retailer Websites; third-party online malls; 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 headquartered in New York, New York.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 00:59 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| 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.