Morningstar

L'Oreal SA OR

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Stock XPAR Rating as of
€371.75 −7.70 (2.03%)
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As of Delayed Price Closed

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L'Oréal's Beauty Leadership and Investment Discipline Position It for Durable Growth

Diana Radu

As the largest beauty product maker globally, L’Oréal has amassed an impressive collection of top-selling beauty brands across core categories (skin care, makeup, hair care, and fragrances) that straddle the premium and mass segments. We believe its strong brand intangibles based on innovation, marketing, and consumer knowledge, coupled with scale-based cost advantages, should support a durable competitive edge, enabling the firm to deliver excess returns for more than 20 years. We assign L’Oréal a Morningstar Economic Moat Rating of wide.

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Price vs Fair Value

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OR is trading at a LOCK|ZmF^Pw! premium.
Price
€379.45
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

L’Oréal is poised to capture structural growth opportunities in the beauty market thanks to its well-balanced category exposure and strong positions across brick-and-mortar and digital channels.

Bears

As the largest beauty company globally, L’Oréal is susceptible to factors such as macroeconomic headwinds and geopolitical tension that could pressure consumers’ desire and purchasing power for beauty products.

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Trading Information

Previous Close Price
€379.45
Day Range
€369.50–377.80
52-Week Range
€338.85–405.80
Bid/Ask
€369.90 / €377.85
Shares Outstanding
532.65M
Market Cap
€198.01B
Volume/Avg
375,249 / 312,408

Key Statistics

Price/Earnings (Normalized)
29.84
Price/Sales
4.39
Dividend Yield (Trailing)
1.90%
Dividend Yield (Forward)
1.90%
Dividend Payment Schedule
May
Total Yield
2.16%

Company Profile

L’Oréal is the largest beauty product maker in the world, with consumer products (37% of sales) and luxury beauty (35%) the major segments, followed by derma skin care (16%) and professional products (12%). The firm also has a diversified geographic footprint, generating 34% of sales in Europe, 27% from North America, 23% in North Asia, and the rest from various emerging markets across South Asia, Latin America, and Africa. L’Oréal owns a mix of premium and mass beauty brands sold through a wide range of channels such as mass retail, drugstores, department stores, travel retail, e-commerce, hair salons, and medi-spas. Leading brands include Lancôme, Yves Saint Laurent, Maybelline, Kiehl’s, L’Oréal Paris, Kerastase, CeraVe, Garnier, and Armani.
Sector
Consumer Defensive
Industry
Household & Personal Products
Stock Style Box
Large Core
Total Number of Employees
95,000
Website
https://www.loreal.com

Competitors

Valuation

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Metric
OR
EL
PG
Price/Earnings (Normalized)
 29.8435.9321.21
Price/Book Value
 5.858.576.20
Price/Sales
 4.392.194.01
Price/Cash Flow
 22.7227.8118.17
Price/Earnings
OR
EL
PG

Financial Strength

Metric
OR
EL
PG
Quick Ratio
 0.580.810.41
Current Ratio
 0.971.220.68
Interest Coverage
 19.892.2823.74
Quick Ratio
OR
EL
PG

Profitability

Metric
OR
EL
PG
Return on Assets (Normalized)
 11.46%5.88%13.14%
Return on Equity (Normalized)
 20.96%29.51%31.34%
Return on Invested Capital (Normalized)
 15.09%10.16%19.01%
Return on Assets
OR
EL
PG

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1-Day Chart
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Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
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LOCK|x?Fk@<?LOCK|?d$334B
 L'Oreal SA
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—LOCK|Bh$229B
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LOCK|$@v%#GRLOCK|?R$131B
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LOCK|#sh#M#&LOCK|#f$67B
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LOCK|YgVmtSLOCK|r<?$42B
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KVUE
LOCK|^w&JvlLOCK|d!$33B
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EL
LOCK|$@?j!?LOCK|&%y$33B
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LOCK|b%>Dm^xLOCK|L&nYX$31B
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LOCK|dpRbpn?LOCK|zd$22B
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LOCK|%&n<vRBLOCK|!#H$10B

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