The Estée Lauder Companies (EL) AI Stock Analysis

• Market Cap: $37.62B
• Dividend Yield: 1.33%
• Average Volume (3M): 3.64M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -6.36%
• EPS Growth: -554.84%
• Country: US
• Employees: 44,020
• Sector: N/A
• Sector Strength: N/A
• Industry: Household & Personal Products
• EPS (TTM): 0.32
• Shares Outstanding: 245,852,890
• 10 Day Avg. Volume: 3,909,899
• 30 Day Avg. Volume: 3,639,745
• PEG Ratio: 0.07
• Price to Book (P/B): 7.53
• Price to Sales (P/S): 2.04
• P/FCF Ratio: 43.43
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 2.72
• Enterprise Value/Gross Profit: 3.66
• Enterprise Value/Ebitda: 86.96
• 1Y Price Target: $104.18
• Price Target Upside: -0.20% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $103.00 ▼(-1.33% Downside)

The overall stock score is primarily influenced by the company's strong cash flow management and positive technical indicators, which suggest a potential recovery. However, significant concerns remain regarding profitability and valuation, with a negative P/E ratio and high leverage posing risks. The optimistic earnings call outlook provides some confidence, but challenges in key markets and segments need to be addressed for sustained improvement.

The Estée Lauder Companies Business Overview & Revenue Model

Company Description

The Estée Lauder Companies Inc. manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. The company offers a range of skin care products, including moisturizers, serums, cleansers, toners, body care, exfoliators, acne care and oil correctors, facial masks, cleansing devices, and sun care products; and makeup products, such as lipsticks, lip glosses, mascaras, foundations, eyeshadows, nail polishes, and powders, as well as compacts, brushes, and other makeup tools. It also provides fragrance products in various forms comprising eau de parfum sprays and colognes, as well as lotions, powders, creams, candles, and soaps; and hair care products that include shampoos, conditioners, styling products, treatment, finishing sprays, and hair color products, as well as sells ancillary products and services. The company offers its products under Estée Lauder, Aramis, Clinique, Lab Series, Origins, M·A·C, Bobbi Brown, La Mer, Aveda, Jo Malone London, Bumble and bumble, Darphin, Smashbox, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, By Kilian, BECCA, Too Faced, Dr. Jart+, DECIEM, and The Ordinary brands. It also holds license arrangements for Tommy Hilfiger, Donna Karan New York, DKNY, Michael Kors, and Ermenegildo Zegna brands. The company sells its products through department stores, specialty-multi retailers, upscale perfumeries and pharmacies, and salons and spas; freestanding stores; its own and authorized retailer websites; third-party online malls; stores in airports; and in-flight and duty-free shops. The company was founded in 1946 and is headquartered in New York, New York.

How the Company Makes Money

The Estée Lauder Companies generates revenue primarily through the sale of its beauty products across multiple channels, including department stores, specialty retailers, e-commerce platforms, and direct-to-consumer sales. Key revenue streams include skincare, makeup, fragrance, and hair care products, with skincare being the largest segment. The company benefits from strong brand recognition and loyalty, which allows it to command premium pricing. Additionally, strategic partnerships with retailers and e-commerce platforms enhance distribution and accessibility, contributing to sales growth. Seasonal promotions, product launches, and collaborations with influencers and celebrities also play a significant role in driving revenue. Furthermore, the company's focus on expanding its presence in emerging markets and investing in digital innovation positions it for continued financial success.

The Estée Lauder Companies Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
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The Estée Lauder Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 104.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EL, the sentiment is Positive. The current price of 104.39 is above the 20-day moving average (MA) of 98.60, above the 50-day MA of 95.78, and above the 200-day MA of 80.59, indicating a bullish trend. The MACD of 3.39 indicates Negative momentum. The RSI at 62.21 is Neutral, neither overbought nor oversold. The STOCH value of 36.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EL.

The Estée Lauder Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	―	―	―	―	―	―
UL	73 Outperform	$139.75B	23.34	28.36%	3.82%	-0.30%	-14.60%
PG	69 Neutral	$339.32B	21.20	31.90%	2.83%	1.23%	17.97%
IPAR	69 Neutral	$2.68B	16.33	19.95%	3.78%	3.12%	9.01%
ELF	67 Neutral	$4.70B	55.89	8.77%	―	13.80%	-25.02%
EL	56 Neutral	$37.62B	-40.76	-20.73%	1.33%	-6.36%	-554.84%
COTY	47 Neutral	$2.86B	-7.17	-9.96%	―	-5.68%	-358.36%

The Estée Lauder Companies Corporate Events

Estée Lauder Holds Annual Stockholders Meeting

On November 13, 2025, The Estée Lauder Companies Inc. held its Annual Meeting of Stockholders, where several key decisions were made. Stockholders elected new directors, ratified the appointment of independent auditors, approved executive compensation, and sanctioned amendments to the company’s Restated Certificate of Incorporation, which included eliminating certain officers’ monetary liability as permitted by Delaware law.

Estée Lauder Converts and Sells Class A Shares

On November 4, 2025, The Estée Lauder Companies Inc. issued over 11 million shares of Class A Common Stock to trusts affiliated with Leonard A. Lauder’s descendants, following the conversion of an equal number of Class B shares. Additionally, the company entered an underwriting agreement with J.P. Morgan Securities LLC for the sale of over 11 million shares of Class A Common Stock by the selling stockholders, priced at $89.70 per share. The company did not receive proceeds from this sale, which was conducted under a prospectus supplement and included customary terms and conditions.

Estée Lauder Reorganizes Geographic Regions for Efficiency

On July 1, 2025, The Estée Lauder Companies reorganized its geographic regions to enhance accountability and streamline operations, aligning with recent leadership changes. This reorganization, effective from the fiscal 2026 first quarter, involves reporting results by four new geographic regions: The Americas, EUKEM, Asia/Pacific, and Mainland China. The changes in reporting methodology, such as excluding intercompany royalty impacts and reallocating corporate expenses, aim to reflect a global business perspective. These adjustments do not affect the company’s operating segments or previously reported consolidated results, but they provide a consistent basis for historical financial information.