Estee Lauder EL
Estee Lauder is a global manufacturer and distributor of cosmetics, makeup, skincare, and fragrances, with brands such as Estée Lauder, Clinique, and MAC, selling through department stores, duty-free shops, and e-commerce. Estée Lauder shows an exceptional gross margin (75.49%) and an attractive FCF yield (5.30%), but its financial health is weighed down by high leverage (Debt/Equity 242.93%) and an unsustainable payout (280%). Revenue growth of 6.30% is positive, although the valuation (P/E 188.94) is very demanding.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Estee Lauder is a global manufacturer and distributor of cosmetics, makeup, skincare, and fragrances, with brands such as Estée Lauder, Clinique, and MAC, selling through department stores, duty-free shops, and e-commerce. Estée Lauder shows an exceptional gross margin (75.49%) and an attractive FCF yield (5.30%), but its financial health is weighed down by high leverage (Debt/Equity 242.93%) and an unsustainable payout (280%). Revenue growth of 6.30% is positive, although the valuation (P/E 188.94) is very demanding.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.7 |
| Quality / Moat | 6.0 |
| Valuation | 3.9 |
| Growth | 6.0 |
| Dividend | 1.9 |
| Momentum | 7.0 |
| Risk & Context | 5.0 |
OVERALL SCORE: 4.9/10
Context and risks
The macro context (rates, oil, geopolitics) does not materially affect Estée Lauder. Its luxury cosmetics business has no direct exposure to commodities or critical shipping routes, and its debt (Net Debt/EBITDA 2.34) is not high enough for rate hikes to have a significant impact.
News considered in the analysis
- Unpacking Q2 Earnings: Estée Lauder (NYSE:EL) In The Context Of Other Personal Care Stocks — Análisis comparativo genérico de resultados sin información nueva específica sobre la compañía.
- Publicis Media Tops First Half New Business — Noticia sobre un competidor en publicidad, sin impacto directo en los fundamentales de Estée Lauder.
- The Estée Lauder Cos.’ Aude Gandon on Taking the Right Career Risks — Perfil de una ejecutiva, sin relevancia para la valoración o los resultados.
- Estée Lauder (EL) Partners with University of Leeds to Address Shade-Matching Challenges — Colaboración para innovar en maquillaje; podría reforzar la ventaja competitiva a largo plazo, pero el impacto es incierto.
- Estée Lauder Companies (EL) Expands AI Marketing Push, Is The Stock Still Cheap? — Iniciativa de marketing con IA para mejorar la eficiencia; efecto positivo moderado, parcialmente descontado.
Verdict: Hold; brand quality and gross margin are solid, but debt and payout are concerning. Wait for an improvement in financial health or a more reasonable valuation.
Main risk: High leverage (Debt/Equity 242.93%) and a 280% payout are the main risks, as they limit financial flexibility and could lead to a dividend cut.
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