Estée Lauder (EL) Stock Analysis
This is a peer-relative look at Estée Lauder (EL): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Household & Personal Products peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | EL |
|---|---|
| Name | The Estée Lauder Companies Inc. Class A Common Stock |
| Country/Region | United States |
| GICS Sector | Consumer Staples |
| GICS Industry Group | Household & Personal Products |
| GICS Industry | Personal Care Products |
| GICS Sub-Industry | Personal Care Products |
| Market Capitalization | 35.14 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | November 17, 1995 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: EL | Industry group median |
|---|---|---|
| Total Return (1Y) | 13.47% | -1.14% |
| Total Return (3Y, Annualized) | -12.52% | -2.39% |
| Total Return (5Y, Annualized) | -20.76% | -0.24% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: EL | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 48.63% | 31.46% |
| Beta (5Y) | 1.27 | 0.63 |
| Max Drawdown (5Y) | -85.82% | -46.11% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: EL | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 0.19 | -0.17 |
| Sortino Ratio (1Y) | 0.27 | -0.24 |
Profitability
ROE (TTM)
Estée Lauder (EL) posts ROE of 4.75%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
EL
Household & Personal Products industry group
4.75%
Group distribution
- Max
- 42.18%
- Q3
- 31.08%
- Median
- 15.43%
- EL
- 4.75%
- Q1
- 4.60%
- Min
- -28.58%
Largest peers
- CL
- 267.37%
- KMB
- 104.91%
- UL
- 31.87%
- PG
- 30.29%
- KVUE
- 15.58%
- HLN
- 10.09%
- EL
- 4.75%
Net Margin (TTM)
Estée Lauder (EL) keeps 1.21% of revenue as net profit, in the lower peer quartile for net margin. More of each sales dollar is being absorbed by costs, financing, taxes, or other charges than at most peers.
EL
Household & Personal Products industry group
1.21%
Group distribution
- Max
- 18.44%
- Q3
- 11.35%
- Median
- 7.28%
- Q1
- 2.23%
- EL
- 1.21%
- Min
- -10.42%
Largest peers
- PG
- 18.44%
- UL
- 18.32%
- HLN
- 14.55%
- KMB
- 11.79%
- KVUE
- 10.76%
- CL
- 9.68%
- EL
- 1.21%
Operating Margin (TTM)
Estée Lauder (EL) turns 7.00% of revenue into operating profit, in the lower peer quartile for operating margin. Operating costs are taking a larger share of sales than they do at most peers.
EL
Household & Personal Products industry group
7.00%
Group distribution
- Max
- 23.94%
- Q3
- 19.00%
- Median
- 14.26%
- Q1
- 9.75%
- EL
- 7.00%
- Min
- -2.44%
Largest peers
- HLN
- 23.94%
- PG
- 22.09%
- CL
- 20.97%
- UL
- 20.35%
- KVUE
- 19.42%
- KMB
- 19.00%
- EL
- 7.00%
Profitability Metrics
| Metric | Current stock: EL | Industry group median |
|---|---|---|
| ROE (TTM) | 4.75% | 15.43% |
| ROA (TTM) | 5.23% | 6.98% |
| Net Margin (TTM) | 1.21% | 7.28% |
| Operating Margin (TTM) | 7.00% | 14.26% |
| Gross Margin (TTM) | 75.49% | 45.56% |
Growth
Revenue Growth
Estée Lauder (EL) grew revenue 5.05%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.
EPS Growth
No usable EPS growth is available for Estée Lauder (EL) this period, so the earnings-momentum read is skipped.
Growth Metrics
| Metric | Current stock: EL | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 5.05% | -0.32% |
| Revenue Growth (3Y CAGR) | -1.84% | 0.66% |
| EPS Growth (YoY) | -- | 2.34% |
| EPS Growth (3Y CAGR) | -43.62% | 7.28% |
Financial Strength
Current Ratio (MRQ)
Estée Lauder (EL) has current ratio of 1.22, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
EL
Household & Personal Products industry group
1.22
Group distribution
- Max
- 3.94
- Q3
- 3.07
- Median
- 1.80
- EL
- 1.22
- Q1
- 1.01
- Min
- 0.66
Largest peers
- EL
- 1.22
- CL
- 1.03
- KVUE
- 1.01
- KMB
- 0.91
- UL
- 0.74
- HLN
- 0.69
- PG
- 0.68
Debt / Equity (MRQ)
Estée Lauder (EL) has debt-to-equity ratio of 2.43, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.
EL
Household & Personal Products industry group
2.43
Group distribution
- Max
- 3.49
- EL
- 2.43
- Q3
- 2.03
- Median
- 0.81
- Q1
- 0.47
- Min
- 0.06
Largest peers
- CL
- 13.88
- KMB
- 3.49
- EL
- 2.43
- UL
- 1.75
- KVUE
- 0.82
- PG
- 0.64
- HLN
- 0.50
Financial Strength Metrics
| Metric | Current stock: EL | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.22 | 1.80 |
| Debt / Equity (MRQ) | 2.43 | 0.81 |
| Net Debt / EBITDA | 2.34 | 2.22 |
Dividends
Dividend Yield (TTM)
Estée Lauder (EL) has dividend yield of 1.45%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
EL
Household & Personal Products industry group
1.45%
Group distribution
- Max
- 5.99%
- Q3
- 2.98%
- EL
- 1.45%
- Median
- 1.45%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- KMB
- 5.16%
- KVUE
- 4.67%
- UL
- 3.06%
- PG
- 2.98%
- CL
- 2.38%
- EL
- 1.45%
- HLN
- 0.79%
Dividend Payout Ratio (TTM)
Estée Lauder (EL) has payout ratio of 280.00%, meaning dividends exceeded current-period earnings. The gap would need to be covered by cash, retained earnings, financing, or other sources, so earnings alone do not support the payout.
EL
Household & Personal Products industry group
280.00%
Group distribution
- EL
- 280.00%
- Max
- 103.12%
- Q3
- 82.28%
- Median
- 56.44%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- EL
- 280.00%
- KMB
- 100.40%
- KVUE
- 97.65%
- CL
- 82.28%
- UL
- 76.51%
- PG
- 64.33%
- HLN
- 39.53%
Dividend Metrics
| Metric | Current stock: EL | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 1.45% | 1.45% |
| Dividend Payout Ratio (TTM) | 280.00% | 56.44% |
Valuation
P/E Ratio (TTM)
Estée Lauder (EL) trades at P/E ratio of 194.24, above the peer range for its industry. The market is paying unusually heavily for TTM earnings relative to comparable companies.
EL
Household & Personal Products industry group
194.24
Group distribution
- EL
- 194.24
- Max
- 34.17
- Q3
- 29.61
- Median
- 20.95
- Q1
- 17.29
- Min
- 6.44
Largest peers
- EL
- 194.24
- CL
- 34.17
- PG
- 21.94
- UL
- 20.95
- KVUE
- 20.92
- KMB
- 19.40
- HLN
- 18.76
P/S Ratio (TTM)
Estée Lauder (EL) trades at 2.33 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
EL
Household & Personal Products industry group
2.33
Group distribution
- Max
- 4.22
- Q3
- 3.29
- EL
- 2.33
- Median
- 1.96
- Q1
- 0.70
- Min
- 0.24
Largest peers
- PG
- 3.88
- HLN
- 3.62
- CL
- 3.29
- UL
- 2.64
- EL
- 2.33
- KVUE
- 2.22
- KMB
- 1.96
P/B Ratio (MRQ)
Estée Lauder (EL) trades at 9.23 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.
EL
Household & Personal Products industry group
9.23
Group distribution
- Max
- 18.65
- EL
- 9.23
- Q3
- 9.23
- Median
- 4.12
- Q1
- 1.44
- Min
- -2.65
Largest peers
- CL
- 293.24
- KMB
- 18.65
- EL
- 9.23
- UL
- 7.08
- PG
- 6.33
- KVUE
- 3.24
- HLN
- 1.84
Valuation Metrics
| Metric | Current stock: EL | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 194.24 | 20.95 |
| P/S Ratio (TTM) | 2.33 | 1.96 |
| P/B Ratio (MRQ) | 9.23 | 4.12 |
| Free Cash Flow Yield (TTM) | 5.16% | 5.16% |