The Estée Lauder Companies (EL) AI Stock Analysis

• Market Cap: $33.47B
• Dividend Yield: 1.43%
• Average Volume (3M): 3.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: -6.36%
• EPS Growth: -554.84%
• Country: US
• Employees: 44,020
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.32
• Shares Outstanding: 234,818,200
• 10 Day Avg. Volume: 3,383,128
• 30 Day Avg. Volume: 3,480,240
• 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: 1.17
• Enterprise Value/Revenue: 2.72
• Enterprise Value/Gross Profit: 3.66
• Enterprise Value/Ebitda: 86.96
• 1Y Price Target: $103.69
• Price Target Upside: 13.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $103.00 ▲(13.07% Upside)

The Estée Lauder Companies' stock score is primarily influenced by its strong technical indicators and positive earnings call outlook, which highlight growth potential in emerging markets and online sales. However, financial performance concerns, particularly in profitability and leverage, and a negative P/E ratio weigh down the overall score.

Positive Factors

Strategic Partnership

The partnership with Shopify aims to modernize Estee Lauder's digital infrastructure, enhancing omnichannel consumer experiences and potentially driving sustainable growth through improved speed and efficiencies.

Gross Margin Expansion

The expansion in gross margin indicates improved cost management and product pricing strategies, which can enhance profitability and provide a buffer against market fluctuations.

Online Sales Growth

The growth in online sales highlights Estee Lauder's successful digital strategy, which is crucial for capturing market share in the increasingly digital retail environment.

Negative Factors

Decline in Travel Retail

The significant decline in travel retail sales reflects challenges in this segment, which could impact overall revenue if not addressed, especially given the global nature of Estee Lauder's business.

High Leverage

High leverage poses financial risks, potentially limiting Estee Lauder's ability to invest in growth opportunities and making it vulnerable to interest rate increases or economic downturns.

Operating Margin Contraction

The contraction in operating margin suggests increased costs or inefficiencies, which could affect profitability if not managed effectively, especially in a competitive market.

The Estée Lauder Companies Business Overview & Revenue Model

Company Description

The Estée Lauder Companies Inc. is a leading global manufacturer and marketer of prestige skincare, makeup, fragrance, and hair care products. Founded in 1946, the company operates in various sectors, including skincare, makeup, fragrance, and hair care, and is renowned for its diverse portfolio of brands, which includes Estée Lauder, MAC, Clinique, and Aveda, among others. The company is committed to innovation and quality, leveraging its extensive research and development capabilities to create high-performance products that cater to a wide range of consumer preferences across different global markets.

How the Company Makes Money

The Estée Lauder Companies generates revenue primarily through the sale of its wide array of beauty products, which are distributed through multiple channels, including department stores, specialty retailers, online platforms, and direct-to-consumer sales. Key revenue streams include sales from skincare, makeup, fragrance, and hair care products, with skincare being the largest segment. The company also benefits from strategic partnerships with retailers, collaborations with influencers and celebrities, and a strong presence in e-commerce, which have all contributed to its growth. Seasonal promotions and limited-edition product launches further enhance sales, while the global expansion of its brand portfolio into emerging markets continues to drive revenue growth.

The Estée Lauder Companies Financial Statement Overview

Summary

The Estée Lauder Companies faces challenges with declining revenues and profitability, as seen in the income statement. The balance sheet shows high leverage, which could be risky if financial performance does not improve. However, the company demonstrates strong cash flow management, which is a positive aspect. Overall, while there are significant areas of concern, particularly in profitability and leverage, the company's ability to generate cash provides some stability.

Income Statement

The Estée Lauder Companies has faced declining revenue over the past few years, with a notable decrease in net income leading to negative net profit margins in the most recent periods. The gross profit margin remains strong, indicating efficient production, but the negative EBIT and EBITDA margins highlight operational challenges. The revenue growth rate has been inconsistent, with recent declines suggesting potential market or operational issues.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which could pose risks if earnings do not improve. Return on equity has turned negative, reflecting recent losses. However, the equity ratio remains stable, suggesting that a reasonable portion of assets is financed by equity.

Cash Flow

Cash flow analysis reveals a positive trend in free cash flow growth, indicating improved cash generation capabilities. The operating cash flow to net income ratio is low, reflecting the impact of recent losses. Despite this, the free cash flow to net income ratio is relatively healthy, suggesting that cash flow management is a strength.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.44B	14.29B	15.61B	15.91B	17.74B	16.21B
Gross Profit	10.72B	10.56B	11.18B	11.35B	13.43B	12.38B
EBITDA	451.00M	193.00M	1.98B	2.40B	3.93B	4.16B
Net Income	-930.00M	-1.13B	390.00M	1.01B	2.39B	2.87B
Balance Sheet
Total Assets	19.33B	19.89B	21.68B	23.41B	20.91B	21.97B
Cash, Cash Equivalents and Short-Term Investments	2.22B	2.92B	3.40B	4.03B	3.96B	4.96B
Total Debt	9.42B	9.44B	9.83B	10.17B	7.64B	8.10B
Total Liabilities	15.44B	16.03B	16.36B	17.00B	14.48B	15.02B
Stockholders Equity	3.89B	3.87B	5.31B	5.58B	5.59B	6.06B
Cash Flow
Free Cash Flow	1.04B	670.00M	1.44B	-1.56B	2.00B	2.99B
Operating Cash Flow	1.60B	1.27B	2.36B	1.73B	3.04B	3.63B
Investing Cash Flow	-600.00M	-644.00M	-1.71B	-3.22B	-960.00M	-1.86B
Financing Cash Flow	-1.14B	-1.12B	-1.29B	1.59B	-3.02B	-1.89B

The Estée Lauder Companies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 91.09
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EL, the sentiment is Neutral. The current price of 91.09 is below the 20-day moving average (MA) of 96.58, below the 50-day MA of 91.79, and above the 200-day MA of 77.59, indicating a neutral trend. The MACD of 0.76 indicates Positive momentum. The RSI at 42.34 is Neutral, neither overbought nor oversold. The STOCH value of 11.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EL.

The Estée Lauder Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	74 Outperform	$343.90B	21.48	31.90%	2.87%	1.23%	17.97%
UL	73 Outperform	$147.84B	24.82	28.36%	3.17%	-0.30%	-14.60%
IPAR	67 Neutral	$2.88B	17.92	20.68%	3.45%	7.04%	13.52%
ELF	65 Neutral	$6.71B	69.89	12.97%	―	18.61%	-21.36%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EL	61 Neutral	$33.47B	―	-20.73%	1.43%	-6.36%	-554.84%
COTY	52 Neutral	$3.35B	―	-9.98%	―	-3.68%	-631.67%

The Estée Lauder Companies Corporate Events

Estée Lauder Reports Strong Start to Fiscal 2026

The Estée Lauder Companies Inc. is a leading global manufacturer and marketer of quality skincare, makeup, fragrance, and hair care products, known for its stewardship of luxury and prestige brands across approximately 150 countries and territories.

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.

The most recent analyst rating on (EL) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on The Estée Lauder Companies stock, see the EL Stock Forecast page.

Estée Lauder’s Earnings Call: Mixed Sentiments and Strategic Plans

The recent earnings call for Estée Lauder presented a mixed sentiment, reflecting both achievements and challenges faced by the company. While there were significant efforts in expanding gross margins and gaining market shares in key regions, these were offset by notable challenges such as a decline in travel retail and operating margin contraction. The overall sentiment was thus a blend of optimism and caution.

Estée Lauder Reports Fiscal 2025 Results Amid Strategic Shifts

Estée Lauder Companies Inc., a leader in the global beauty industry, specializes in skincare, makeup, fragrance, and hair care products, and is known for its prestigious brand portfolio. The company recently reported its fiscal 2025 results, highlighting strategic progress under new leadership despite an 8% decline in net sales compared to the previous year. Key financial metrics showed a gross margin expansion to 74.0%, although the company faced a significant operating loss due to impairment charges and restructuring costs. The company achieved market share gains in key regions like China and Japan, and introduced innovative products across its brands. Looking ahead, Estée Lauder is focused on restoring sales growth and improving profitability, with a strategic plan aimed at achieving a double-digit operating margin in the coming years.