The Estée Lauder Companies (EL) AI Stock Analysis

• Market Cap: $41.54B
• Dividend Yield: 1.3%
• Average Volume (3M): 2.80M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• 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: 2,764,590
• 30 Day Avg. Volume: 2,801,475
• 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: 3.38
• Enterprise Value/Gross Profit: 4.55
• Enterprise Value/Ebitda: 108.12
• 1Y Price Target: $114.57
• Price Target Upside: -0.61% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $119.00 ▲(3.23% Upside)

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.

Positive Factors

Strong brand portfolio

A diversified roster of well-known prestige and mass brands provides durable competitive advantage: pricing power, cross-category distribution, and customer loyalty. This breadth supports new product introductions, channel leverage, and resilience across economic cycles.

Improving free cash flow

Sustained free cash flow growth enhances financial flexibility to fund innovation, DTC investments, and debt reduction without relying on equity raises. Strong cash generation underpins execution of strategic plans and shareholder returns over the medium term.

China and digital momentum

Double-digit growth in China and accelerating online sales signal structural market share gains and channel shift capture. Strength in high-growth markets and digital platforms supports sustainable revenue expansion and diversification of geographic risk.

Negative Factors

High leverage

Material leverage increases interest and refinancing risk and reduces financial flexibility to invest behind growth or absorb shocks. If earnings fail to recover, high debt can constrain strategic options and slow deleveraging over multiple quarters.

Negative profitability trends

Persistent revenue declines and negative operating profitability signal structural pressure on margins. This undermines internal funding for marketing and R&D, weakens returns on invested capital, and complicates sustainable margin recovery plans.

Regional and travel retail weakness

Underperformance in large developed markets and volatile Travel Retail demand reduce global revenue stability. Structural weakness in these channels can limit scale benefits, slow overall recovery, and require sustained investment to regain market share.

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

Estée Lauder 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: Positive
• Last Price: 115.28
• 50DMA: Positive
• 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 Positive. The current price of 115.28 is above the 20-day moving average (MA) of 113.81, above the 50-day MA of 106.01, and above the 200-day MA of 87.59, indicating a bullish trend. The MACD of 2.86 indicates Positive momentum. The RSI at 58.48 is Neutral, neither overbought nor oversold. The STOCH value of 32.65 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	75 Outperform	$3.13B	18.67	19.95%	3.80%	3.12%	9.01%
PG	74 Outperform	$352.71B	22.21	31.58%	2.92%	1.23%	17.97%
UL	73 Outperform	$147.51B	24.50	28.36%	3.74%	-0.30%	-14.60%
ELF	68 Neutral	$5.07B	60.24	8.77%	―	13.80%	-25.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EL	56 Neutral	$41.54B	-44.63	-20.73%	1.30%	-6.36%	-554.84%
COTY	49 Neutral	$2.77B	-6.97	-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.

The most recent analyst rating on (EL) stock is a Hold with a $84.00 price target. To see the full list of analyst forecasts on The Estée Lauder Companies stock, see the EL Stock Forecast page.

Estée Lauder 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.

The most recent analyst rating on (EL) stock is a Hold with a $91.00 price target. To see the full list of analyst forecasts on The Estée Lauder Companies stock, see the EL Stock Forecast page.