The Estée Lauder Companies (EL) AI Stock Analysis

• Market Cap: $30.62B
• Dividend Yield: 1.73%
• Average Volume (3M): 4.25M
• Price to Earnings (P/E): 147.3
• Beta (1Y): 1.17
• Revenue Growth: -3.70%
• EPS Growth: -235.59%
• Country: US
• Employees: 44,020
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Household & Personal Products
• EPS (TTM): 0.65
• Shares Outstanding: 234,209,950
• 10 Day Avg. Volume: 6,138,191
• 30 Day Avg. Volume: 4,252,394
• PEG Ratio: 1.26
• Price to Book (P/B): 6.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.53
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 3.10
• Enterprise Value/Ebitda: 7.52
• 1Y Price Target: $71.21
• Price Target Upside: -16.33% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 21

• Rating: 61 Neutral
• Price Target: $90.00 ▲(5.75%Upside)

The overall stock score of 61 reflects significant financial pressures due to declining revenues and high leverage. While technical indicators are bullish, valuation concerns persist with a negative P/E ratio. The earnings call suggests potential for recovery through strategic initiatives, but external challenges, including tariffs and travel retail pressures, remain obstacles.

Positive Factors

Earnings

The magnitude of the restructuring program and the USD weakness could signal an end to earnings downgrades.

Market Share

There is evidence of market share gains in local markets, importantly the US, Japan as well as China.

Negative Factors

Consumer Demand

Tariff talks have created additional uncertainty around consumer demand leading to an anticipated step down in sales and profitability in 4Q25.

Sales 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.

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 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 facing significant financial challenges with declining revenues and net losses impacting profitability. The high debt-to-equity ratio indicates financial risk, although the company maintains positive cash flows, suggesting operational strength.

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
EBITDA	136.00M	1.98B	2.35B	3.79B	3.66B	2.71B
Net Income	-871.00M	390.00M	1.01B	2.39B	2.87B	684.00M
Balance Sheet
Total Assets	19.89B	21.68B	23.41B	20.91B	21.97B	17.78B
Cash, Cash Equivalents and Short-Term Investments	2.63B	3.40B	4.03B	3.96B	4.96B	5.02B
Total Debt	9.38B	9.83B	10.17B	7.64B	8.10B	8.79B
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: 85.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 85.11 is above the 20-day moving average (MA) of 73.90, above the 50-day MA of 66.64, and above the 200-day MA of 72.55, indicating a bullish trend. The MACD of 4.35 indicates Negative momentum. The RSI at 78.61 is Negative, neither overbought nor oversold. The STOCH value of 83.41 is Negative, 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	$4.32B	26.12	22.16%	2.44%	10.32%	18.55%
ELF	75 Outperform	$7.12B	64.80	15.97%	―	28.28%	-14.79%
UL	71 Outperform	$149.32B	24.45	30.53%	3.40%	1.99%	-10.59%
CL	64 Neutral	$71.89B	25.12	977.07%	2.29%	0.98%	12.12%
Sector *	62 Neutral	$16.65B	11.16	-7.38%	3.11%	1.59%	-23.30%
EL	61 Neutral	$30.62B	147.29	-17.27%	1.73%	-3.70%	-235.59%
COTY	58 Neutral	$4.28B	40.12	-10.58%	―	-1.68%	-302.11%

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.