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L'Occitane International SA 00973

Morningstar Rating
HKD 32.50 +0.15 (0.46%)
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Company Report

The Combination of a Strong Brand and Effective Marketing Should Be a Winning Recipe for Elemis

We think L’Occitane’s growth over the next five years will largely depend on the performance of Elemis and Sol De Janeiro. Elemis, a premium skincare brand acquired in March 2019, is predominantly sold in the UK and US, with few sales elsewhere. Whether Elemis can repeat its success in other markets, especially China, will make a big difference in L’Occitane’s fortunes, given the steep price L’Occitane paid for the acquisition.

Price vs Fair Value

00973 is trading at a 574% premium.
Price
HKD 32.50
Fair Value
HKD 76.00
Uncertainty
Medium
1-Star Price
HKD 16.91
5-Star Price
HKD 73.70
Economic Moat
Ykzdrs
Capital Allocation
Klqhzryl

Bulls Say, Bears Say

Bulls

Recent acquisitions of smaller skincare brands should fuel growth and boost profitability.

Bears

Same-store sales growth for its core brand could remain sluggish as the brand fails to bring in new customers.

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News

Trading Information

Previous Close Price
HKD 32.35
Day Range
HKD 32.3532.80
52-Week Range
HKD 16.6433.30
Bid/Ask
HKD 32.50 / HKD 32.60
Market Cap
HKD 47.85 Bil
Volume/Avg
654,500 / 3.1 Mil

Key Statistics

Price/Earnings (Normalized)
29.46
Price/Sales
2.47
Dividend Yield (Trailing)
0.79%
Dividend Yield (Forward)
0.79%
Total Yield
0.80%

Company Profile

L’Occitane International manufactures and sells beauty and well-being products with natural and organic ingredients. It currently has seven brands: L’Occitane en Provence, Elemis, Sol de Janeiro, Grown Alchemist, Melvita, Erborian, and LimeLife. L’Occitane en Provence is the core brand and contributed 67% to group sales in the financial year ended March 2023. The company sells its products mainly through its own retail stores but also through distributors and other channels. It has a global presence; its top three markets are the United States, Japan, and China.
Sector
Consumer Defensive
Industry
Household & Personal Products
Stock Style Box
Large Growth
Total Number of Employees
9,179

Competitors

Valuation

Metric
00973
OR
EL
Price/Earnings (Normalized)
29.4634.7062.10
Price/Book Value
6.578.187.87
Price/Sales
2.475.802.96
Price/Cash Flow
17.6329.8530.38
Price/Earnings
00973
OR
EL

Financial Strength

Metric
00973
OR
EL
Quick Ratio
0.600.701.03
Current Ratio
1.191.101.58
Interest Coverage
6.0635.253.13
Quick Ratio
00973
OR
EL

Profitability

Metric
00973
OR
EL
Return on Assets (Normalized)
6.79%12.99%3.98%
Return on Equity (Normalized)
18.09%23.11%16.15%
Return on Invested Capital (Normalized)
11.04%17.20%6.38%
Return on Assets
00973
OR
EL
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