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The Estée Lauder Companies Inc. (EL) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

The Estée Lauder Companies Inc.

ELMarket cap $34BPrice $94.5

Country🇺🇸United States

SectorConsumer

IndustryPersonal Care

Makes and sells prestige skincare, makeup, and fragrance through brands like Estée Lauder, Clinique, and MAC. It's the quiet giant behind luxury beauty counters worldwide, dominating a market where a tiny jar of cream can cost more than groceries.

In Bastion Portfolios?

52W Return-6%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-2%2

Revenue Forecast

Rev CAGR (1y)+4%4

Rev CAGR (3y)+5%4

Rev CAGR (5y)+4%3

Earnings Forecast

EPS Growth Y+1+572%10

EPS Growth Y+2+20%8

EPS Growth Y+3+12%7

Quality

Margins

EBIT Margin11%5

Net Income Margin1%2

Free Cash Flow Margin9%5

Debt

Net Debt/EBITDA1.85

Efficiency

ROE5%3

ROA1%3

Earnings Stability33

GEAR+VERY WEAK7

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)282

P/E Ratio (Forward 3y)213

P/BV9.02

EV Multiples

EV/EBITDA Fwd144

EV/EBIT Fwd194

Yield

Free Cash Flow Yield3.9%5

Dividend Yield1.5%4

Momentum

Short term

1 month return-7%4

3 month return+16%9

YTD return-9%4

Mid term

Price vs 52wHigh78%5

1 year return+0%5

Long term

3 year return-31%1

5 year return-67%1

Risk Shield

Price Risk

Beta1.62

Volatility49%3

Free Cash Flow

Free Cash Flow Margin9%5

Free Cash Flow Yield3.9%5

Quality

ROCE12%6

Earnings Stability33

Net Debt/EBITDA1.85

02Growth

Is it actually growing, and how fast?

ELThe Estée Lauder Companies

Revenue FY26$15.0B

GROWTH RATING↗

WEAK32 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-2%2

Revenue, next 1Y+4%4

Revenue, next 3Y, CAGR+5%4

Revenue, next 5Y, CAGR+4%3

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+572%10

EPS growth, FY28E+20%8

EPS growth, FY29E+12%7

GROWTH ASSESSMENT

STRENGTHS

After shrinking over the last 3 years, revenue is set to grow 5%/yr from here.

Earnings are set to grow faster than sales (EPS about 20%/yr vs revenue 5%/yr), so margins should widen.

WATCH

Revenue is set to grow 5%/yr over the next 3 years, a little behind the market.4/10

WEAKNESSES

Growth is the weak spot here, trailing 68% of companies worldwide.

Revenue fell 2%/yr over the last 3 years, behind 80% of companies worldwide.2/10

Over five years revenue is set to grow 4%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Margin Expander

Growth is a weak point here: a business that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK31 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-7%4

3-month return+16%9

YTD return-9%4

MID & LONG-TERM▾SCORE

% of 52-week high78%5

1-year return+0%5

3-year return-31%1

5-year return-67%1

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over three months (+16%).

WATCH

It's up 0% over the past year, but 22% below its 52-week high. That is right in line with the market.

Returns sit at the market level over the past month (-7%) and so far this year (-9%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-31% over three years and -67% over five), behind 90% of the market.

BOTTOM LINE

Weak Tape

Returns across short and long horizons rank poorly versus the market. Momentum offers no support here; the case has to come from other factors. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Estée Lauder. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

ELThe Estée Lauder Companies

Revenue FY26$15.0B

GROWTH RATING↗

WEAK32 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-2%2

Revenue, next 1Y+4%4

Revenue, next 3Y, CAGR+5%4

Revenue, next 5Y, CAGR+4%3

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+572%10

EPS growth, FY28E+20%8

EPS growth, FY29E+12%7

GROWTH ASSESSMENT

STRENGTHS

After shrinking over the last 3 years, revenue is set to grow 5%/yr from here.

Earnings are set to grow faster than sales (EPS about 20%/yr vs revenue 5%/yr), so margins should widen.

WATCH

Revenue is set to grow 5%/yr over the next 3 years, a little behind the market.4/10

WEAKNESSES

Growth is the weak spot here, trailing 68% of companies worldwide.

Revenue fell 2%/yr over the last 3 years, behind 80% of companies worldwide.2/10

Over five years revenue is set to grow 4%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Margin Expander

Growth is a weak point here: a business that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK31 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-7%4

3-month return+16%9

YTD return-9%4

MID & LONG-TERM▾SCORE

% of 52-week high78%5

1-year return+0%5

3-year return-31%1

5-year return-67%1

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over three months (+16%).

WATCH

It's up 0% over the past year, but 22% below its 52-week high. That is right in line with the market.

Returns sit at the market level over the past month (-7%) and so far this year (-9%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-31% over three years and -67% over five), behind 90% of the market.

BOTTOM LINE

Weak Tape

Returns across short and long horizons rank poorly versus the market. Momentum offers no support here; the case has to come from other factors. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Estée Lauder. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community