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The Estee Lauder Companies Inc Class A EL

Morningstar Rating
$100.72 +0.82 (0.82%)
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Company Report

Estee Lauder: Company Veteran to Assume CFO Role as Profit Recovery Plan Is Underway

We plan to maintain our $210 fair value estimate and our Standard Capital Allocation Rating for wide-moat Estee Lauder following the announcement that the company has promoted Corporate Controller Akhil Shrivastava to CFO, effective November. The outgoing CFO, Tracey Travis, will remain a senior advisor until her retirement in June 2025. As the two executives have worked together in the finance department for the past nine years, we expect a smooth transition of responsibilities in the coming months.

Price vs Fair Value

EL is trading at a 752% premium.
Price
$100.72
Fair Value
$432.00
Uncertainty
Medium
1-Star Price
$232.80
5-Star Price
$319.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

As a premium beauty pure-play, Estee Lauder is best equipped to capture growth opportunities as middle-class consumers globally upgrade from mass brands.

Bears

Estee lags key rival L’Oréal in research and development for derma-based skin care products, which are gaining popularity among consumers.

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News

Trading Information

Previous Close Price
$99.90
Day Range
$99.42102.17
52-Week Range
$95.87183.20
Bid/Ask
$100.00 / $102.08
Market Cap
$36.11 Bil
Volume/Avg
2.0 Mil / 3.1 Mil

Key Statistics

Price/Earnings (Normalized)
49.62
Price/Sales
2.37
Dividend Yield (Trailing)
2.62%
Dividend Yield (Forward)
2.62%
Total Yield
2.75%

Company Profile

Estee Lauder is a leader in the global prestige beauty market, participating across skin care (52% of 2023 sales), makeup (28%), fragrance (16%), and hair care (4%) categories, with top-selling brands such as Estee Lauder, Clinique, M.A.C, La Mer, Jo Malone London, Aveda, Bobbi Brown, and Origins. The firm operates in more than 150 countries, generating 28% of revenue from the Americas, 39% from Europe, the Middle East and Africa (including travel retail), and 33% from Asia-Pacific. Estee Lauder sells its products through department stores, travel retail, specialty multibrand beauty stores, brand-dedicated freestanding stores, e-commerce, salons/spas, and perfumeries.
Sector
Consumer Defensive
Industry
Household & Personal Products
Stock Style Box
Mid Core
Total Number of Employees
62,000

Competitors

Valuation

Metric
EL
OR
BEI
Price/Earnings (Normalized)
49.6230.6232.59
Price/Book Value
6.297.223.69
Price/Sales
2.375.123.25
Price/Cash Flow
24.2726.3429.57
Price/Earnings
EL
OR
BEI

Financial Strength

Metric
EL
OR
BEI
Quick Ratio
1.030.701.24
Current Ratio
1.581.101.74
Interest Coverage
3.1335.2541.85
Quick Ratio
EL
OR
BEI

Profitability

Metric
EL
OR
BEI
Return on Assets (Normalized)
3.98%12.99%6.96%
Return on Equity (Normalized)
16.15%23.11%10.82%
Return on Invested Capital (Normalized)
6.38%17.20%10.33%
Return on Assets
EL
OR
BEI
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