The Estée Lauder Companies, Inc. (EL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Inter Parfums, Inc.

Procter & Gamble Co.

e.l.f. Beauty, Inc.

Kenvue, Inc.

Church & Dwight Co., Inc.

Colgate-Palmolive Co.

Reynolds Consumer Products, Inc.

Kimberly-Clark Corp.

The Estée Lauder Companies, Inc.

The Clorox Co.

Coty, Inc.

Why is The Estée Lauder Companies, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate -12.49% of over the last 5 years

Negative results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 1,272 MM
ROCE(HY) Lowest at -24.69%
CASH AND EQV(HY) Lowest at USD 5,552 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 29.97%, its profits have risen by 53.2% ; the PEG ratio of the company is 0.8

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is The Estée Lauder Companies, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Estée Lauder Companies, Inc.

26.28%

-0.23

48.19%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.68%

EBIT Growth (5y)

-8.24%

EBIT to Interest (avg)

13.70

Debt to EBITDA (avg)

1.23

Net Debt to Equity (avg)

1.17

Sales to Capital Employed (avg)

1.18

Tax Ratio

0.58%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

27.56%

ROE (avg)

31.38%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

100

Industry P/E

Price to Book Value

13.21

EV to EBIT

42.25

EV to EBITDA

26.52

EV to Capital Employed

6.67

EV to Sales

3.95

PEG Ratio

Dividend Yield

0.62%

ROCE (Latest)

15.79%

ROE (Latest)

13.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 78.81%

RAW MATERIAL COST(Y)

Fallen by -0.71% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.93 times

NET SALES(Q)

Highest at USD 4,238 MM

OPERATING PROFIT(Q)

Highest at USD 782 MM

OPERATING PROFIT MARGIN(Q)

Highest at 18.45 %

PRE-TAX PROFIT(Q)

Highest at USD 516 MM

EPS(Q)

Highest at USD 0.44

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 1,670 MM

NET PROFIT(Q)

At USD 251.03 MM has Fallen at -39.07%

Here's what is working for The Estée Lauder Companies, Inc.

Net Sales

Highest at USD 4,238 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 782 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 18.45 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 516 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

EPS

Highest at USD 0.44

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Highest at 1.93 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 78.81%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.71% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for The Estée Lauder Companies, Inc.

Operating Cash Flow

Lowest at USD 1,670 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Profit

At USD 251.03 MM has Fallen at -39.07%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)