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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Inter Parfums, Inc.

Procter & Gamble Co.

Colgate-Palmolive Co.

Kenvue, Inc.

Church & Dwight Co., Inc.

Reynolds Consumer Products, Inc.

Coty, Inc.

Kimberly-Clark Corp.

e.l.f. Beauty, Inc.

The Estée Lauder Companies, Inc.

The Clorox Co.

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 30.94%, 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.

30.94%

-0.26

48.02%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.04%

EBIT Growth (5y)

-12.49%

EBIT to Interest (avg)

13.70

Debt to EBITDA (avg)

1.23

Net Debt to Equity (avg)

1.17

Sales to Capital Employed (avg)

1.16

Tax Ratio

0.58%

Dividend Payout Ratio

244.24%

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

Industry P/E

Price to Book Value

9.30

EV to EBIT

38.27

EV to EBITDA

22.66

EV to Capital Employed

4.83

EV to Sales

3.09

PEG Ratio

0.75

Dividend Yield

120.53%

ROCE (Latest)

12.63%

ROE (Latest)

23.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.44% (YoY

-23What is not working for the Company

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

DEBT-EQUITY RATIO (HY)

Highest at 169.37 %

DIVIDEND PER SHARE(HY)

Lowest at USD 8.78

OPERATING PROFIT(Q)

Lowest at USD 368 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.8 %

PRE-TAX PROFIT(Q)

Lowest at USD 79 MM

NET PROFIT(Q)

Lowest at USD -16 MM

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

Raw Material Cost

Fallen by -0.44% (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

Depreciation

Highest at USD 221 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

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

Pre-Tax Profit

At USD 79 MM has Fallen at -65.65%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -16 MM has Fallen at -107.11%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 1,272 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit

Lowest at USD 368 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 10.8 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 79 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 5,552 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 169.37 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend per share

Lowest at USD 8.78

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)