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The Estée Lauder Companies (EL)
NYSE:EL
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The Estée Lauder Companies
(NYSE:EL)
Rating:50Neutral
Price Target:
$87.00
▼(-0.53% Downside)
Positive Factors
Market Share
Estée Lauder's market share is rebounding in China, the US, and Japan for the second-straight quarter.
Productivity and Margins
There is significant margin expansion potential due to ramping productivity.
Sales Growth
The company expects solid retail sales growth and market share generally above the category in key markets.
Negative Factors
Earnings Forecast
The company's earnings forecasts for FY26 and FY27 have been adjusted downward, with expectations for consensus estimates to decrease as well.
Tariffs
Tariffs are a significant headwind, resulting in a $100M negative impact.
Travel Retail Weakness
Travel retail weakness contributes approximately two-thirds of FY25 topline declines, with global travel retail declining 28% year-over-year.
The Estée Lauder Companies (EL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.67B
Dividend Yield1.6%
Average Volume (3M)4.06M
Price to Earnings (P/E)147.3
Beta (1Y)1.14
Revenue Growth-8.14%
EPS Growth-389.12%
CountryUS
Employees44,020
SectorConsumer Defensive
Sector Strength48
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.09
Shares Outstanding234,347,410
10 Day Avg. Volume4,262,720
30 Day Avg. Volume4,058,596
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue2.49
Enterprise Value/Gross Profit3.37
Enterprise Value/Ebitda202.79
Forecast
1Y Price Target
$94.53Price Target Upside8.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
The Estée Lauder Companies Business Overview & Revenue Model
Company DescriptionThe 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 MoneyThe 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 Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which product lines or services are driving growth and which may need strategic adjustments.
Analyzes revenue from different business segments, highlighting which product lines or services are driving growth and which may need strategic adjustments.
Data provided by:
Main Street Data
Main Street DataThe Estée Lauder Companies Earnings Call Summary
Earnings Call Date:Aug 20, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Neutral
The earnings call showcased significant efforts and achievements in expanding gross margins, gaining market shares in key regions, and increasing online sales. However, these were countered by notable challenges in travel retail, operating margin contraction, and a decline in net sales across most categories, leading to a mixed sentiment.Q4-2025 Updates
Positive Updates
Gross Margin Expansion
Gross margin expanded 230 basis points to 74%, driven by PRGP benefits, despite significant volume deleverage.
Market Share Gains
In the second half of fiscal '25, the company gained prestige beauty share in China, Japan, and the U.S., with brands like La Mer, TOM FORD, and Estée Lauder fueling share gains.
Online Sales Growth
Online organic sales growth accelerated from low single digits in the first half to mid-single digits in the second half, reaching 31% of reported sales for fiscal '25, an all-time record.
New Consumer Acquisition
The company increased consumer-facing investments, resulting in high single-digit retail sales growth in Mainland China and strategic expansions in online and physical retail channels.
Negative Updates
Decline in Travel Retail
Nearly 2/3 of the 8% organic sales decline came from travel retail, which decreased 28% due to strategic decisions and prolonged weak conversion.
Operating Margin Contraction
Operating margin of 8% contracted 220 basis points, driven by sales declines and increased consumer-facing investments.
Diluted EPS Decrease
Diluted EPS decreased by 42%.
Revenue Decline Across Categories
Organic net sales declined 13% in the fourth quarter, with declines across all product categories except fragrance and across every geographic region.
Company Guidance
In the fiscal year 2025 fourth-quarter and full-year conference call, The Estée Lauder Companies reported an 8% decline in organic net sales, largely driven by a 28% decrease in travel retail. The company highlighted a gross margin expansion of 230 basis points to 74%, despite significant volume deleverage, and an operating margin contraction of 220 basis points to 8% due to sales declines and increased consumer-facing investments. Diluted EPS decreased by 42%. For fiscal 2026, Estée Lauder anticipates low single-digit organic sales growth and an operating margin expansion of 165 basis points at the midpoint. The company plans to further reduce discounts, accelerate consumer coverage, and focus on high-growth emerging markets, which currently represent 10% of reported sales. Additionally, Estée Lauder aims to maintain its stronger gross margin despite incremental tariffs. The company continues to execute its Profit Recovery and Growth Plan (PRGP), expecting continued cost savings and reinvestments in consumer-facing areas to fuel growth.The Estée Lauder Companies Financial Statement Overview
Summary
The Estée Lauder Companies is facing financial headwinds, with declining revenue and profitability, high leverage, and weakened cash flow generation. While the gross profit margin remains strong, the negative net profit margin and high debt levels highlight potential risks. The company needs to address these challenges to improve its financial health.Income Statement
The Estée Lauder Companies has experienced a decline in revenue and profitability over the TTM period. The gross profit margin remains relatively strong at approximately 74%, but the net profit margin has turned negative, indicating a loss. Revenue growth has been negative, and EBIT and EBITDA margins have also decreased significantly, reflecting operational challenges.45
Neutral
Balance Sheet
The company's balance sheet shows a high debt-to-equity ratio of 2.45, indicating significant leverage. Return on equity has turned negative, reflecting recent losses. The equity ratio is moderate, suggesting a balanced asset structure, but the high leverage poses potential risks.50
Neutral
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth and a decrease in operating cash flow coverage. The free cash flow to net income ratio is positive but reflects a challenging cash flow situation due to negative net income. The company's ability to generate cash from operations has weakened.40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.32B | 14.29B | 15.61B | 15.91B | 17.74B | 16.21B |
| Gross Profit | 10.60B | 10.56B | 11.18B | 11.35B | 13.43B | 12.38B |
| EBITDA | 176.00M | 193.00M | 1.98B | 2.40B | 3.93B | 4.16B |
| Net Income | -1.13B | -1.13B | 390.00M | 1.01B | 2.39B | 2.87B |
Balance Sheet | ||||||
| Total Assets | 19.89B | 19.89B | 21.68B | 23.41B | 20.91B | 21.97B |
| Cash, Cash Equivalents and Short-Term Investments | 2.92B | 2.92B | 3.40B | 4.03B | 3.96B | 4.96B |
| Total Debt | 9.44B | 9.44B | 9.83B | 10.17B | 7.64B | 8.10B |
| Total Liabilities | 16.03B | 16.03B | 16.36B | 17.00B | 14.48B | 15.02B |
| Stockholders Equity | 3.87B | 3.87B | 5.31B | 5.58B | 5.59B | 6.06B |
Cash Flow | ||||||
| Free Cash Flow | 670.00M | 670.00M | 1.44B | -1.56B | 2.00B | 2.99B |
| Operating Cash Flow | 1.27B | 1.27B | 2.36B | 1.73B | 3.04B | 3.63B |
| Investing Cash Flow | -644.00M | -644.00M | -1.71B | -3.22B | -960.00M | -1.86B |
| Financing Cash Flow | -1.12B | -1.12B | -1.29B | 1.59B | -3.02B | -1.89B |
The Estée Lauder Companies Technical Analysis
Neutral
87.46
Price Trends
88.56
Negative
76.16
Positive
73.52
Positive
Market Momentum
0.61
Positive
45.90
Neutral
51.18
Neutral
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 87.46 is below the 20-day moving average (MA) of 90.18, below the 50-day MA of 88.56, and above the 200-day MA of 73.52, indicating a neutral trend. The MACD of 0.61 indicates Positive momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 51.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EL.
The Estée Lauder Companies Risk Analysis
The Estée Lauder Companies disclosed 18 risk factors in its most recent earnings report. The Estée Lauder Companies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
The Estée Lauder Companies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $372.88B | 24.30 | 31.23% | 2.59% | 0.29% | 7.85% | |
77 Outperform | $7.13B | 77.21 | 12.97% | ― | 18.61% | -21.36% | |
73 Outperform | $155.88B | 25.94 | 28.36% | 3.09% | -0.30% | -14.60% | |
65 Neutral | $3.68B | 22.74 | 20.68% | 2.73% | 7.04% | 13.52% | |
63 Neutral | $20.49B | 14.78 | -2.88% | 3.11% | 1.86% | -5.76% | |
50 Neutral | $32.67B | 147.29 | -24.69% | 1.60% | -8.14% | -389.12% | |
46 Neutral | $3.79B | 40.12 | -9.98% | ― | -3.68% | -631.67% |
* Consumer Defensive Sector Average
Performance Comparison
EL
The Estée Lauder Companies
87.46
1.56
1.82%
IPAR
Inter Parfums
114.47
-1.35
-1.17%
PG
Procter & Gamble
159.19
-12.07
-7.05%
UL
Unilever
65.01
1.87
2.96%
COTY
Coty
4.38
-4.61
-51.28%
ELF
e.l.f. Beauty
133.72
11.12
9.07%
The Estée Lauder Companies Corporate Events
Executive/Board ChangesShareholder Meetings
Estée Lauder Announces Board Member Departures
Neutral
Jul 15, 2025
On July 9, 2025, Lynn Forester de Rothschild announced she would not seek re-election as a Class II director at The Estée Lauder Companies‘ 2025 Annual Meeting, ending her tenure since 2000. Angela Wei Dong also announced her retirement from the Board effective the day before the 2025 Annual Meeting. Both departures are not due to disagreements with the company, and the company expressed gratitude for their contributions.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.