Estee Lauder Companies Inc

Consumer Discretionary
Package Goods/Cosmetics
www.elcompanies.com

Earnings Score
Moat Score
Safety Score

Market Cap $29.43B
PE 145
Debt $7.82B
Cash $2.35B
EV $34.90B
FCF $1.33B

Earnings

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Sales & Net Margins

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Earnings	$203.00M
EBIT	$751.00M
ROE	4%
ROA	4%
FCF	$1.33B
Equity	$5.08B
Growth Stability	19%
PE	144.99
PEG	-6.25
PB	5.79
P/FCF	22.08
P/S	1.9
Price/Cash	0.08
Debt/Equity	1.54
Debt/FCF	5.86
Net Margins	-5%
Gross Margins	72%
Op. Margins	5%
Earnings CAGR	-5%
Sales Growth YoY	-4%
Sales Growth QoQ	-13%
Sales CAGR	5%
FCF CAGR	-2%
Equity CAGR	5%
Earnings Stability	0.06
Earnings Growth YoY	-603%
Earnings Growth QoQ	-45%
Earnings CAGR 5Y	-23%

Sales CAGR 5Y	1%
FCF CAGR 5Y	-18%
Equity CAGR 5Y	4%
Earnings CAGR 3Y	-6%
Sales CAGR 3Y	-6%
FCF CAGR 3Y	-22%
Equity CAGR 3Y	-5%
Market Cap	$29.43B
Revenue	$15.45B
Dividend Yield	3%
Payout Ratio	468%
Assets	$21.32B
Total Debt	$7.82B
Cash	$2.35B
Shares Outstanding	359.6M
EV	34.9B
Earnings Score	6%
Moat Score	31%
Safety Score	50%
Final Score	29%
Working Capital	1.73B
Current Ratio	1.32
Gross Profit	$11.17B
Shares Growth 3y	-0%
Equity Growth QoQ	-4%
Equity Growth YoY	-5%

Assets & ROA

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Stockholders Equity & ROE

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Estee Lauder is the world leader in the global prestige beauty market, participating across skincare (59% of fiscal 2021 sales), makeup (26%), fragrance (12%), and haircare (3%) categories, with popular brands such as Estee Lauder, Clinique, MAC, La Mer, Jo Malone, Aveda, Bobbi Brown, Too Faced, Origins, Dr. Jart+, and The Ordinary. The firm operates in 150 countries, with 23% of fiscal 2021 revenue stemming from the Americas, 43% from Europe, the Middle East and Africa, and 34% from Asia-Pacific. The company sells its products through department stores, travel retail, multibrand specialty beauty stores, brand-dedicated freestanding stores, e-commerce, salons/spas, and perfumeries.

SEC Filings

Direct access to Estee Lauder Companies Inc (EL) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31

Sector Comparison

How does Estee Lauder Companies Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Estee Lauder Companies Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -5%

Stability 6%

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Estee Lauder Companies Inc Discounted Cash Flow

Fully customizable DCF calculator online for Estee Lauder Companies Inc.

Years

Calculation mode

= $12B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.3B	$1.3B	$1.3B	$1.3B	$1.2B	$1.2B	$1.2B	$1.2B	$1.2B	$1.1B	$1.1B	$11B
DCF		$1.2B	$1.1B	$952M	$851M	$761M	$680M	$608M	$543M	$485M	$434M	$4.3B
Value	$12B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Net Margins	10%	10%	11%	8%	12%	5%	18%	13%	6%	2%	-5%
ROA	-	17%	15%	16%	18%	6%	15%	15%	6%	4%	4%
ROE	-	31%	28%	24%	40%	17%	47%	43%	18%	7%	4%

Bad Net Margins (-4.64%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Debt over FCF	-	1.77	2.76	1.82	1.92	3.7	1.86	2.71	11.15	5.39	5.86
Debt over Equity	0.45	0.62	0.81	0.75	0.77	1.55	0.91	0.97	1.45	1.46	1.54
Growth Stability	-	-	-	96%	100%	50%	100%	100%	51%	19%	19%

Bad Debt/FCF ratio (5.86)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (1.54)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (19%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	CAGR 5Y
Revenue YoY growth	-	4%	5%	16%	9%	-4%	13%	9%	-10%	-2%	1%
Earnings YoY growth	-	2%	12%	-11%	61%	-62%	320%	-17%	-58%	-61%	-23%
Equity YoY growth	-	-2%	23%	7%	-6%	-10%	54%	-8%	-0%	-5%	4%
FCF YoY growth	-	-14%	3%	50%	-9%	-7%	81%	-33%	-64%	98%	-18%