The Estée Lauder Companies (EL) AI Stock Analysis

• Market Cap: $31.41B
• Dividend Yield: 1.64%
• Average Volume (3M): 3.71M
• Price to Earnings (P/E): 147.3
• Beta (1Y): 1.11
• Revenue Growth: -8.14%
• EPS Growth: -389.12%
• Country: US
• Employees: 44,020
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.09
• Shares Outstanding: 234,347,410
• 10 Day Avg. Volume: 2,669,180
• 30 Day Avg. Volume: 3,705,681
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: 202.79
• 1Y Price Target: $95.41
• Price Target Upside: 11.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 50 Neutral
• Price Target: $87.00 ▲(1.96% Upside)

The overall stock score reflects significant financial challenges, including declining revenue and profitability, high leverage, and valuation concerns. While there are some positive technical signals and strategic initiatives in place, the mixed sentiment from the earnings call and ongoing operational challenges weigh heavily on the score.

Positive Factors

Gross Margin Expansion

The expansion in gross margin indicates effective cost management and operational efficiency, which can enhance profitability and provide a buffer against revenue fluctuations.

Market Share Gains

Gaining market share in key regions strengthens competitive positioning and can drive future revenue growth as the company capitalizes on these expanding markets.

Online Sales Growth

Increased online sales reflect successful digital strategies, which are crucial for capturing consumer shifts towards e-commerce and can support long-term revenue growth.

Negative Factors

Decline in Travel Retail

A significant decline in travel retail impacts overall sales and highlights vulnerability to sector-specific downturns, necessitating diversification to mitigate risks.

High Leverage

High leverage can strain financial flexibility and increase risk, especially in downturns, potentially impacting the company's ability to invest in growth opportunities.

Operating Margin Contraction

The contraction in operating margin suggests increased costs or inefficiencies, which can erode profitability and require strategic adjustments to improve financial health.

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 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 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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 85.33
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 85.33 is below the 20-day moving average (MA) of 88.50, below the 50-day MA of 89.21, and above the 200-day MA of 74.80, indicating a neutral trend. The MACD of -0.60 indicates Positive momentum. The RSI at 42.36 is Neutral, neither overbought nor oversold. The STOCH value of 46.48 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELF	77 Outperform	7.31B	76.41	14.40%	―	18.61%	-21.36%
PG	74 Outperform	356.74B	23.43	30.71%	2.71%	0.29%	7.85%
UL	71 Outperform	147.00B	24.73	28.73%	3.30%	-0.30%	-14.60%
IPAR	65 Neutral	3.24B	20.40	27.41%	3.13%	7.04%	13.52%
EL	50 Neutral	$31.41B	147.29	-24.69%	1.64%	-8.14%	-389.12%
COTY	47 Neutral	3.45B	-9.05	-9.98%	―	-3.68%	-631.67%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

The Estée Lauder Companies Corporate Events

Estée Lauder Announces Board Member Departures

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.