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EL

Estée Lauder CompaniesNYSE:EL Stock Report

Market Cap

US$115.8b

7D

0.2%

1Y

49.0%

Updated

25 Sep, 2021

Data

Company Financials +
EL fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance6/6
Financial Health4/6
Dividends0/6

EL Overview

The Estée Lauder Companies Inc. manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide.

Estée Lauder Companies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Estée Lauder Companies
Historical stock prices
Current Share PriceUS$320.65
52 Week HighUS$212.73
52 Week LowUS$347.82
Beta0.94
1 Month Change-4.71%
3 Month Change1.49%
1 Year Change49.00%
3 Year Change120.65%
5 Year Change262.07%
Change since IPO3,617.68%

Recent News & Updates

Aug 22
If You Like EPS Growth Then Check Out Estée Lauder Companies (NYSE:EL) Before It's Too Late

If You Like EPS Growth Then Check Out Estée Lauder Companies (NYSE:EL) Before It's Too Late

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

ELUS Personal ProductsUS Market
7D0.2%-0.4%0.1%
1Y49.0%48.7%35.3%

Return vs Industry: EL matched the US Personal Products industry which returned 48.8% over the past year.

Return vs Market: EL exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is EL's price volatile compared to industry and market?
EL volatility
EL Beta0.94
Industry Beta1.04
Market Beta1

Stable Share Price: EL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: EL's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194648,670Fabrizio Fredahttps://www.elcompanies.com

The Estée Lauder Companies Inc. manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. 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.

Estée Lauder Companies Fundamentals Summary

How do Estée Lauder Companies's earnings and revenue compare to its market cap?
EL fundamental statistics
Market CapUS$115.80b
Earnings (TTM)US$2.87b
Revenue (TTM)US$16.22b

40.3x

P/E Ratio

7.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EL income statement (TTM)
RevenueUS$16.22b
Cost of RevenueUS$3.82b
Gross ProfitUS$12.39b
ExpensesUS$9.52b
EarningsUS$2.87b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 02, 2021

Earnings per share (EPS)7.95
Gross Margin76.42%
Net Profit Margin17.70%
Debt/Equity Ratio79.5%

How did EL perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

26%

Payout Ratio

Valuation

Is Estée Lauder Companies undervalued compared to its fair value and its price relative to the market?

40.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EL ($320.65) is trading above our estimate of fair value ($230.37)

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 (40.3x) compared to the US Personal Products industry average (16.9x).

PE vs Market: EL is poor value based on its PE Ratio (40.3x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: EL is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: EL is overvalued based on its PB Ratio (19.1x) compared to the US Personal Products industry average (2.7x).


Future Growth

How is Estée Lauder Companies forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EL's forecast earnings growth (7.3% per year) is above the savings rate (2%).

Earnings vs Market: EL's earnings (7.3% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: EL's earnings are forecast to grow, but not significantly.

Revenue vs Market: EL's revenue (9.3% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: EL's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EL's Return on Equity is forecast to be very high in 3 years time (60.7%).


Past Performance

How has Estée Lauder Companies performed over the past 5 years?

7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EL has high quality earnings.

Growing Profit Margin: EL's current net profit margins (17.7%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: EL's earnings have grown by 7.3% per year over the past 5 years.

Accelerating Growth: EL's earnings growth over the past year (319.6%) exceeds its 5-year average (7.3% per year).

Earnings vs Industry: EL earnings growth over the past year (319.6%) exceeded the Personal Products industry 54.7%.


Return on Equity

High ROE: EL's Return on Equity (41.4%) is considered outstanding.


Financial Health

How is Estée Lauder Companies's financial position?


Financial Position Analysis

Short Term Liabilities: EL's short term assets ($9.8B) exceed its short term liabilities ($5.3B).

Long Term Liabilities: EL's short term assets ($9.8B) exceed its long term liabilities ($9.7B).


Debt to Equity History and Analysis

Debt Level: EL's debt to equity ratio (79.5%) is considered high.

Reducing Debt: EL's debt to equity ratio has increased from 62.6% to 79.5% over the past 5 years.

Debt Coverage: EL's debt is well covered by operating cash flow (65.7%).

Interest Coverage: EL's interest payments on its debt are well covered by EBIT (25x coverage).


Balance Sheet


Dividend

What is Estée Lauder Companies's current dividend yield, its reliability and sustainability?

0.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EL's dividend (0.66%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: EL's dividend (0.66%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: EL is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: EL is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: EL is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Fabrizio Freda (64 yo)

12.17yrs

Tenure

US$18,423,927

Compensation

Mr. Fabrizio Freda has been the Chief Executive Officer and Director of The Estée Lauder Companies Inc. since July 1, 2009 and has been its President since 2008. Previously, Mr. Freda served as Chief Opera...


CEO Compensation Analysis

Compensation vs Market: Fabrizio's total compensation ($USD18.42M) is above average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Fabrizio's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EL's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: EL's board of directors are seasoned and experienced ( 15.4 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 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$115.804b
  • Shares outstanding: 361.15m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 22:07
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.