NYSE:EL

Stock Analysis Report

Estée Lauder Companies

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

11.8%

NYSE:EL

8.3%

US Personal Products

0.2%

US Market


1 Year Return

48.0%

NYSE:EL

18.8%

US Personal Products

-0.7%

US Market

EL outperformed the Personal Products industry which returned 17.3% over the past year.

EL outperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

ELIndustryMarket
7 Day11.8%8.3%0.2%
30 Day6.0%2.5%-2.7%
90 Day20.7%8.7%1.6%
1 Year49.7%48.0%20.6%18.8%1.6%-0.7%
3 Year129.4%120.8%39.0%31.8%40.0%30.9%
5 Year178.7%161.8%79.6%61.5%53.8%36.8%

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

Valuation

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

41.18x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Estée Lauder Companies's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Estée Lauder Companies's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Estée Lauder Companies is poor value based on expected growth next year.


Price Based on Value of Assets

Estée Lauder Companies is overvalued based on assets compared to the US Personal Products industry average.


Next Steps

Future Growth

How is Estée Lauder Companies expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Estée Lauder Companies's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).

Estée Lauder Companies's earnings are expected to grow by 12.9% yearly, however this is not considered high growth (20% yearly).

Estée Lauder Companies's revenue growth is positive but not above the United States of America market average.

Estée Lauder Companies's earnings growth is positive but not above the United States of America market average.

Estée Lauder Companies's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Estée Lauder Companies is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


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

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 (61.1% vs 6.8%)

Estée Lauder Companies's earnings growth has exceeded the US Personal Products industry average in the past year (61.1% vs 21.4%).


Return on Equity

Estée Lauder Companies made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

Estée Lauder Companies used its assets more efficiently than the US Personal Products industry average last year based on Return on Assets.


Return on Capital Employed

Estée Lauder Companies has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Estée Lauder Companies's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Estée Lauder Companies's level of debt (77.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (34.7% vs 77.4% today).

Debt is well covered by operating cash flow (70.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 34.7x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.02%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Estée Lauder Companies's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

Estée Lauder Companies's dividend is below the markets top 25% of dividend payers in United States of America (3.83%).

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

Dividends paid are well covered by earnings (2.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).


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?

10.1yrs

Average management tenure


CEO

Fabrizio Freda (62yo)

10.1yrs

Tenure

US$48,753,819

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

Fabrizio's remuneration is higher than average for companies of similar size in United States of America.

Fabrizio's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

10.1yrs

Average Tenure

59yo

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.


Board Age and Tenure

10.1yrs

Average Tenure

68yo

Average Age

The average tenure for the Estée Lauder Companies board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$1,512,81915 May 19
Carl Haney
EntityIndividual
Shares8,950
Max PriceUS$169.03
SellUS$4,649,62415 May 19
The Ronald S. Lauder Foundation, Endowment Arm
EntityCompany
Shares27,830
Max PriceUS$167.28
SellUS$822,10015 May 19
Fabrizio Freda
EntityIndividual
Role
Chief Executive Officer
President
Shares5,000
Max PriceUS$164.42
SellUS$4,014,72801 Mar 19
Alexandra Trower
EntityIndividual
Role
Head of Corporate Communications
Executive Vice President of Global Communications
Shares25,296
Max PriceUS$158.71
SellUS$1,942,79627 Feb 19
William Lauder
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares12,418
Max PriceUS$156.45
SellUS$66,435,56327 Feb 19
Leonard Lauder
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus & Director
Shares422,056
Max PriceUS$159.14
SellUS$232,96520 Feb 19
Irvine Hockaday
EntityIndividual
Role
Lead Director
Presiding Director
Shares1,500
Max PriceUS$155.31
SellUS$5,841,85315 Feb 19
The Ronald S. Lauder Foundation, Endowment Arm
EntityCompany
Shares38,080
Max PriceUS$153.41
SellUS$1,001,24807 Feb 19
Jane Hudis
EntityIndividual
Shares6,700
Max PriceUS$149.44
SellUS$2,027,15204 Dec 18
Tracey Travis
EntityIndividual
Role
Chief Financial Officer
Executive VP of Finance & CFO
Shares13,297
Max PriceUS$152.47
SellUS$2,140,98220 Nov 18
The Ronald S. Lauder Foundation, Endowment Arm
EntityCompany
Shares15,000
Max PriceUS$144.33
SellUS$693,34115 Nov 18
Alexandra Trower
EntityIndividual
Role
Head of Corporate Communications
Executive Vice President of Global Communications
Shares4,781
Max PriceUS$145.02
SellUS$1,618,11408 Nov 18
Sara Moss
EntityIndividual
Role
Chief Legal Officer
Vice Chairman & General Counsel
Shares11,404
Max PriceUS$141.89
SellUS$1,053,05906 Nov 18
Tracey Travis
EntityIndividual
Role
Chief Financial Officer
Executive VP of Finance & CFO
Shares7,406
Max PriceUS$142.19
SellUS$233,86912 Sep 18
Irvine Hockaday
EntityIndividual
Role
Lead Director
Presiding Director
Shares1,700
Max PriceUS$137.57
SellUS$2,187,32407 Sep 18
The Ronald S. Lauder Foundation, Endowment Arm
EntityCompany
Shares15,700
Max PriceUS$139.32
SellUS$783,84106 Sep 18
Michael O'Hare
EntityIndividual
Shares5,671
Max PriceUS$138.23

Ownership Breakdown


Management Team

  • William Lauder (59yo)

    Executive Chairman

    • Tenure: 10.1yrs
    • Compensation: US$8.71m
  • Sara Moss (72yo)

    Vice Chairman & General Counsel

    • Tenure: 15.9yrs
  • Tracey Travis (57yo)

    Executive VP of Finance & CFO

    • Tenure: 7.0yrs
    • Compensation: US$7.03m
  • Fabrizio Freda (62yo)

    President

    • Tenure: 10.1yrs
    • Compensation: US$48.75m
  • Cedric Prouve (59yo)

    Group President of International

    • Tenure: 16.6yrs
    • Compensation: US$9.78m
  • John Demsey (63yo)

    Executive Group President

    • Tenure: 3.6yrs
    • Compensation: US$10.50m
  • Rainey Mancini (49yo)

    Senior Vice President of Investor Relations

    • Tenure: 1.3yrs
  • Alexandra Trower (55yo)

    Executive Vice President of Global Communications

    • Tenure: 11.3yrs
  • Deborah Krulewitch

    Senior Vice President of Corporate Administration

    • Tenure: 0.0yrs
  • Georgia Garinois-Melenikiotou (59yo)

    Executive Vice President of Corporate Marketing

    • Tenure: 0.0yrs

Board Members

  • Leonard Lauder (86yo)

    Chairman Emeritus & Director

    • Tenure: 10.1yrs
    • Compensation: US$2.86m
  • William Lauder (59yo)

    Executive Chairman

    • Tenure: 10.1yrs
    • Compensation: US$8.71m
  • Ronald Lauder (75yo)

    Director

    • Tenure: 2.8yrs
  • Irv Hockaday (83yo)

    Presiding Director

    • Tenure: 0.0yrs
    • Compensation: US$335.72k
  • Rose Bravo (68yo)

    Director

    • Tenure: 16.3yrs
    • Compensation: US$276.72k
  • Dick Parsons (71yo)

    Director

    • Tenure: 20.6yrs
    • Compensation: US$299.72k
  • Rich Zannino (60yo)

    Director

    • Tenure: 9.6yrs
    • Compensation: US$288.72k
  • Charlene Barshefsky (68yo)

    Independent Director

    • Tenure: 18.6yrs
    • Compensation: US$300.75k
  • Fabrizio Freda (62yo)

    President

    • Tenure: 10.1yrs
    • Compensation: US$48.75m
  • Jane Lauder (46yo)

    Global Brand President of Clinique and Director

    • Tenure: 10.1yrs

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$73.171b
  • Shares outstanding: 361.87m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELNYSE (New York Stock Exchange)YesClass A Common StockUSUSDNov 1995
ELAADB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 1995
EL *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNNov 1995
0JTMLSE (London Stock Exchange)YesClass A Common StockGBUSDNov 1995
ESLAWBAG (Wiener Boerse AG)YesClass A Common StockATEURNov 1995
ELCI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REP 0.5 COM CL 'A'BRBRLMay 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, such as moisturizers, serums, cleansers, ton ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 23:42
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.