The Estée Lauder Companies (EL) AI Stock Analysis

• Market Cap: $24.63B
• Dividend Yield: 1.99%
• Average Volume (3M): 3.54M
• Price to Earnings (P/E): 147.3
• Beta (1Y): 1.23
• Revenue Growth: -3.70%
• EPS Growth: -235.59%
• Country: US
• Employees: 44,020
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Household & Personal Products
• EPS (TTM): 0.65
• Shares Outstanding: 234,209,950
• 10 Day Avg. Volume: 3,557,772
• 30 Day Avg. Volume: 3,544,200
• PEG Ratio: -1.58
• Price to Book (P/B): 7.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.25
• Enterprise Value/Market Cap: 2.71
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 6.11
• Enterprise Value/Ebitda: 14.84
• 1Y Price Target: $66.41
• Price Target Upside: -4.94% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 19

• Rating: 59 Neutral
• Price Target: $69.00 ▼(-1.23%Downside)

The overall stock score reflects a mix of challenges and opportunities. The most significant factor is the company's financial performance, which is under pressure from declining revenues and high leverage. Technical analysis shows bullish momentum, providing some positive sentiment. Valuation is weakened by negative earnings, though the dividend yield offers some support. The earnings call highlighted strategic initiatives that could drive future improvements, but risks such as tariffs remain a concern.

Positive Factors

Financial Performance

EL's Profit Recovery and Growth Plan (PRGP) helped reduce expenses and improve gross margins, leading to adj. EPS of $0.65, handily beating guidance of $0.20-$0.30.

Market Share

Management highlights share gains in key markets, including the US, Mainland China, and Japan, as they execute their 'Beauty Reimagined' strategy.

Strategic Vision

EL's Beauty Reimagined strategic vision is set to drive long-term growth with a focus on streamlining operations, expanding consumer reach, accelerating innovation, and increasing investments in digital capabilities and high-growth channels.

Negative Factors

Economic Conditions

Key downside risks include prolonged weakness in China's growth trajectory, extended headwinds from Asia travel retail, persistent market share erosion in key markets, deteriorating macroeconomic conditions, escalating competition, and adverse foreign exchange fluctuations.

Market Outlook

Sales outlook remains uncertain, particularly in Asia travel retail, with the company's performance expected to remain weak due to the slower-than-anticipated recovery of the prestige beauty market and challenges in key regions like mainland China, Korea, and Hong Kong SAR.

Sales Decline

Organic sales in 3Q25 declined 9% y/y, driven by a double-digit decline in the global travel retail business and mid-single-digit decline in North America due to ongoing retail softness for some brands and declines in consumer sentiment.

The Estée Lauder Companies Business Overview & Revenue Model

Company Description

The Estée Lauder Companies Inc. is a leading manufacturer and marketer of high-end skincare, makeup, fragrance, and hair care products. With a diverse portfolio that includes over 25 brands such as Estée Lauder, Clinique, MAC, Bobbi Brown, and La Mer, the company operates in the beauty and personal care sectors. It caters to a global clientele through a combination of retail outlets, e-commerce, and direct-to-consumer channels.

How the Company Makes Money

The Estée Lauder Companies generates revenue primarily through the sale of its premium beauty and personal care products. The company earns income from multiple key revenue streams, including department stores, specialty multi-brand retailers, upscale perfumeries, pharmacies, and its own branded retail stores and websites. A significant portion of its earnings comes from international markets, with a strong presence in Asia, Europe, and the Americas. Additionally, strategic partnerships and collaborations with influencers and celebrities help enhance brand visibility and drive sales. The company also invests in digital marketing and technology to boost its online sales, which have become an increasingly important component of its revenue model.

The Estée Lauder Companies Financial Statement Overview

Summary

The Estée Lauder Companies are experiencing a challenging financial period, with declining revenues and net losses impacting profitability. High leverage reflected in the balance sheet poses potential risks, despite the company maintaining positive cash flows. Strategic actions are necessary to address revenue declines and leverage to improve financial health.

Income Statement

The Estée Lauder Companies faced significant challenges with a negative net income and EBIT for TTM (Trailing-Twelve-Months), leading to negative profit margins. Revenue decreased by approximately 10.9% from the previous year, pointing to declining sales performance. Despite these setbacks, the gross profit margin remains relatively healthy at approximately 78.6%, indicating efficient production costs management.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of approximately 2.07, indicating significant leverage and potential financial risk. Stockholders' equity constitutes around 21.8% of total assets, reflecting moderate equity coverage. Return on equity is negative due to the net loss, highlighting profitability challenges.

Cash Flow

The cash flow analysis reveals a positive free cash flow of $948 million for TTM, although it decreased by 34.2% compared to the previous year. The operating cash flow to net income ratio is negative due to net losses, but the company maintains a positive operating cash flow, underscoring some operational strength.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
14.79B	15.61B	15.91B	17.74B	16.21B	14.29B
	Gross Profit
10.92B	11.18B	11.35B	13.43B	12.38B	10.74B
	EBIT
-628.00M	970.00M	1.51B	3.17B	3.90B	2.71B
	EBITDA
136.00M	1.98B	2.35B	3.79B	3.66B	2.71B
	Net Income Common Stockholders
-871.00M	390.00M	1.01B	2.39B	2.87B	684.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.63B	3.40B	4.03B	3.96B	4.96B	5.02B
	Total Assets
19.89B	21.68B	23.41B	20.91B	21.97B	17.78B
	Total Debt
9.38B	9.83B	10.17B	7.64B	8.10B	8.79B
	Net Debt
6.75B	6.43B	6.14B	3.69B	3.14B	3.77B
	Total Liabilities
15.54B	16.36B	17.00B	14.48B	15.02B	13.82B
	Stockholders Equity
4.34B	5.31B	5.58B	5.59B	6.09B	3.96B
Cash Flow		Free Cash Flow
948.00M	1.44B	-1.56B	2.00B	2.99B	1.66B
	Operating Cash Flow
1.56B	2.36B	1.73B	3.04B	3.63B	2.28B
	Investing Cash Flow
-1.38B	-960.00M	-3.22B	-945.00M	-1.86B	-1.70B
	Financing Cash Flow
-1.25B	-2.04B	1.52B	-3.04B	-1.89B	1.46B

The Estée Lauder Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 69.86 is above the 20-day moving average (MA) of 66.55, above the 50-day MA of 61.32, and below the 200-day MA of 73.34, indicating a neutral trend. The MACD of 2.15 indicates Negative momentum. The RSI at 63.16 is Neutral, neither overbought nor oversold. The STOCH value of 77.62 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
IPAR	82 Outperform	$4.48B	27.12	22.16%	2.29%	10.32%	18.55%
UL	76 Outperform	$154.12B	25.28	30.53%	2.96%	1.99%	-10.59%
ELF	75 Outperform	$6.64B	61.42	15.97%	―	28.28%	-14.79%
CL	66 Neutral	$74.51B	26.03	977.07%	2.26%	0.98%	12.12%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
COTY	59 Neutral	$4.48B	40.12	-10.58%	―	-1.68%	-302.11%
EL	59 Neutral	$24.63B	147.29	-17.27%	1.99%	-3.70%	-235.59%

The Estée Lauder Companies Corporate Events

Estée Lauder Updates Bylaws for Strategic Alignment

On May 22, 2025, The Estée Lauder Companies‘ Board of Directors approved significant amendments to the company’s bylaws. These changes include revised procedures for stockholder proposals and director nominations, provisions for exclusive forum selection, and updates to indemnification and board committee appointments, reflecting a strategic alignment with Delaware law.

The most recent analyst rating on (EL) stock is a Hold with a $100.00 price target. To see the full list of analyst forecasts on The Estée Lauder Companies stock, see the EL Stock Forecast page.