Estee Lauder Cos. Inc - Class A
Exchange: NYSESector: Consumer DefensiveIndustry: Household & Personal Products
The Estee Lauder Companies Inc. is a manufacturer and marketer of skin care, makeup, fragrance and hair care products. The Company's products are sold in over 150 countries and territories under a number of brand names, including Estee Lauder, Aramis, Clinique, Origins, M.A.C, Bobbi Brown, La Mer and Aveda. It is also the global licensee for fragrances and/or cosmetics sold under brand names, such as Tommy Hilfiger, Donna Karan, Michael Kors, Tom Ford and Coach. It sells its products principally through limited distribution channels to complement the images associated with its brands. These channels include over 30,000 points of sale, consisting of upscale department stores, specialty retailers, upscale perfumeries and pharmacies and prestige salons and spas.
Did you know?
Free cash flow has been growing at -14.9% annually.
Current Price
$72.67
-0.85%GoodMoat Value
$11.65
84.0% overvaluedProfile
Valuation (TTM)
Market Cap$26.19B
P/E-147.12
EV$34.88B
P/B6.78
Shares Out360.36M
P/Sales1.78
Revenue$14.67B
EV/EBITDA23.39
Estee Lauder Cos. Inc - Class A (EL) Stock Analysis
GoodMoat Analysis
Estee Lauder's analysis is unfavourable for value investors. While the company possesses a strong brand moat, its current financial quality is weak and the stock appears significantly overvalued based on the provided target price, failing the Decision Framework's initial gates.
Read full analysis
Estee Lauder is a global leader in prestige beauty, selling skincare, makeup, fragrance, and haircare products under a portfolio of iconic brands like Estee Lauder, Clinique, and MAC. Applying the GoodMoat framework, the company's primary competitive advantage lies in its Brand & Culture (Section 1, criterion 6), with deep cultural relevance and significant brand awareness. However, its current financial profile shows significant weakness. Key quality indicators (Section 2) are poor: the company is not GAAP profitable (negative EPS of -$3.15 and profit margin of -1.2%), has high leverage (Debt/Equity of 2.45), and shows low revenue growth of 5.6% YoY. This combination of weak quality metrics would likely result in a low Quality rating, failing the 'Moat & Quality Gate' in the Decision Framework (Section 6, Step 1). Furthermore, the valuation appears extreme. The negative P/E is not meaningful, but the provided GoodMoat Target of $11.65 suggests the current price of $73.11 represents a substantial premium. For a value investor focused on a margin of safety, this discrepancy, coupled with the weak financials, makes the stock unfavourable for further investigation without a significant improvement in fundamentals or a much lower entry price. Analysis based on data as of 2024-05-15.
Market Cap$26.19B
Current Price$72.67
P/E Ratio-147.12
Forward P/E—
PEG Ratio1.29
EPS$-3.15
Book Value$10.73
P/B Ratio6.78
EL Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -14.9% FCF growth (CAGR)
Cash vs Debt
Net Debt: 6.5B
Revenue
14.9B
FY19
14.3B
FY20
16.2B
FY21
17.7B
FY22
15.9B
FY23
15.6B
FY24
14.3B
FY25
Net Income
1.8B
FY19
684M
FY20
2.9B
FY21
2.4B
FY22
1.0B
FY23
390M
FY24
—
FY25
EL 52-Week Range
$51.83
$119.23
50-Day MA: $93.55200-Day MA: $94.26
Did you know?
Free cash flow has been growing at -14.9% annually.
Estee Lauder Cos. Inc - Class A (EL) Financial Summary
Estee Lauder Cos. Inc - Class A (EL) is a Consumer Defensive company in the Household & Personal Products industry, listed on NYSE. The stock currently trades at $72.67 with a market capitalization of $26.19B.
Key valuation metrics include a P/E ratio of -147.12, price-to-book ratio of 6.78, and EPS of $-3.15. The company reports a profit margin of -1.2% and return on equity of -4.6%.
EL Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $26.19B |
| P/E Ratio | -147.12 |
| EPS | $-3.15 |
| P/B Ratio | 6.78 |
| P/S Ratio | 1.78 |
| EV/EBITDA | 23.39 |
| Dividend Yield | 2.36% |
| Profit Margin | -1.2% |
| Return on Equity | -4.6% |
| Debt/Equity | 2.45 |
EL Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $14.86B | $1.78B |
| FY20 | $14.29B | $684.00M |
| FY21 | $16.21B | $2.87B |
| FY22 | $17.74B | $2.39B |
| FY23 | $15.91B | $1.01B |
| FY24 | $15.61B | $390.00M |
| FY25 | $14.33B | $-1.13B |
Estee Lauder Cos. Inc - Class A (EL) Valuation
Based on GoodMoat's DCF model, Estee Lauder Cos. Inc - Class A has a fair value estimate of $11.65. At the current price of $72.67, the stock appears 523.8% overvalued relative to our intrinsic value estimate.
EL Quality Indicators
Estee Lauder Cos. Inc - Class A maintains a profit margin of -1.2% and an operating margin of -5.5%. Return on equity stands at -4.6%. The current ratio is 1.30. Debt-to-equity ratio is 2.45.
About Estee Lauder Cos. Inc - Class A
The Estee Lauder Companies Inc. is a manufacturer and marketer of skin care, makeup, fragrance and hair care products. The Company's products are sold in over 150 countries and territories under a number of brand names, including Estee Lauder, Aramis, Clinique, Origins, M.A.C, Bobbi Brown, La Mer and Aveda. It is also the global licensee for fragrances and/or cosmetics sold under brand names, such as Tommy Hilfiger, Donna Karan, Michael Kors, Tom Ford and Coach. It sells its products principally through limited distribution channels to complement the images associated with its brands. These channels include over 30,000 points of sale, consisting of upscale department stores, specialty retailers, upscale perfumeries and pharmacies and prestige salons and spas.
EL Free Cash Flow
Estee Lauder Cos. Inc - Class A generated $673.00M in trailing twelve-month free cash flow, representing an FCF yield of 2.57%. This moderate FCF yield indicates reasonable cash generation.
EL Shares Outstanding
Estee Lauder Cos. Inc - Class A has 0.36 billion shares outstanding at a share price of $72.67, giving it a market capitalization of $26.19B.