L'Oreal SA
OR: XPAR (FRA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| €916.00 | Tfbcy | Ryzmksvwb |
Wide-Moat L'Oreal Poised to Expand With Top Brands and Innovation Across All Beauty Categories
Business Strategy and Outlook
As the largest beauty product maker globally, L’Oreal has built an impressive collection of top-selling beauty brands balanced across core categories (skin care, makeup, hair care, and fragrance) that straddle the premium and mass segments. We believe its strong brand differentiation based on innovation, marketing, and consumer experience, coupled with scale-based cost advantages, should support a durable competitive edge, enabling the firm to maintain excess returns for more than 20 years. As such, we award L’Oreal a wide economic moat rating.