The Estée Lauder Companies (EL)
NYSE:EL
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The Estée Lauder Companies
(NYSE:EL)
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Rating:47Neutral
Price Target:
$70.00
▼(-4.49% Downside)
Action:ReiteratedDate:03/25/26
The score is constrained primarily by weakened financial performance (losses and thin operating profitability) and elevated leverage, alongside bearish technicals with the stock far below major moving averages. A raised outlook and improving margins/cash flow in the latest earnings call help offset some downside, but valuation remains demanding with a high P/E and only a modest dividend yield.
Positive Factors
High gross margins
Sustained high gross margins reflect strong brand pricing power and premium product mix across skincare and fragrance. This structural margin cushion supports cash generation and reinvestment even if underlying volumes fluctuate, giving time to restore operating leverage and margins.
Negative Factors
Elevated leverage
High debt-to-equity materially constrains financial flexibility and raises refinancing and interest-rate exposure. With earnings depressed, leverage increases downside risk from slower recovery, limiting ability to invest organically or pursue M&A without additional deleveraging progress.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained high gross margins reflect strong brand pricing power and premium product mix across skincare and fragrance. This structural margin cushion supports cash generation and reinvestment even if underlying volumes fluctuate, giving time to restore operating leverage and margins.
Read all positive factors
The Estée Lauder Companies (EL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.51B
Dividend Yield1.3%
Average Volume (3M)5.25M
Price to Earnings (P/E)58.5
Beta (1Y)1.41
Revenue Growth-6.36%
EPS Growth-554.84%
CountryUS
Employees57,000
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.87
Shares Outstanding247,219,700
10 Day Avg. Volume5,161,064
30 Day Avg. Volume5,246,745
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)7.53
Price to Sales (P/S)2.04
P/FCF Ratio43.43
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue2.35
Enterprise Value/Gross Profit3.15
Enterprise Value/Ebitda21.71
Forecast
1Y Price Target
$108.57Price Target Upside48.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering21
EPS Forecast (FY)2.23
Revenue Forecast (FY)$14.97B
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, exfoli...
How the Company Makes Money
The Estée Lauder Companies makes money primarily by selling prestige beauty products across four main product categories—skincare, makeup, fragrance, and hair care—under a portfolio of brands. Revenue is generated when products are sold through mu...
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:
The Fly
The FlyThe Estée Lauder Companies Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 01, 2026
Earnings Call Sentiment Positive
The call presented multiple clear operational and financial improvements: revenue growth (4% organic), significant margin expansion, strong EPS and cash-flow gains, raised FY guidance, faster innovation cadence, and concrete brand- and channel-level wins (notably in China and online). Offsetting these positives are meaningful near-term costs and disruptions: a large restructuring charge (~$904M) and short-term migration costs related to the PRGP, travel-retail and Beijing/Shanghai online platform transitions, continued makeup category weakness, and regional softness in parts of Europe and Latin America. Management communicated confidence in the turnaround, emphasized PRGP benefits, and raised guidance while acknowledging the remaining execution work and transitory headwinds.Positive Updates
Quarterly Organic Net Sales Growth
Organic net sales grew 4% year-over-year in Q2, led by skincare and fragrance (each +6%), with retail sales trend improving from down 4% in Q1 to flat in Q2 and retail sales +4% in the first half excluding travel retail.
Negative Updates
Travel Retail Disruption and Near-Term Headwinds
Transition of duty-free retailers and online platforms servicing Beijing and Shanghai (transfer from Sunrise to CDF/OneFuji/Avolta) created disruption; company expects a transitory headwind in the second half related to Asia travel retail and related online businesses.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Organic Net Sales Growth
Organic net sales grew 4% year-over-year in Q2, led by skincare and fragrance (each +6%), with retail sales trend improving from down 4% in Q1 to flat in Q2 and retail sales +4% in the first half excluding travel retail.
Read all positive updates
Company Guidance
The Company raised its fiscal 2026 outlook, now expecting full‑year organic net sales growth of 1%–3% (midpoint ~2%), operating margin of 9.8%–10.2% (up from a prior 9.4%–9.9%) and diluted EPS of roughly $2.25–$2.50 (weighted average shares ~365M), implying year‑over‑year EPS growth of ~36%–49% (midpoint ~43%); management also expects operating margin expansion of roughly 165–200 basis points at the midpoint, second‑half organic sales to increase low single digits with stronger Q4 vs Q3 (Q3 expected to contract ~50 bps year‑over‑year due to consumer investments and tariffs), and continued PRGP benefits (cumulative restructuring charges recorded through Dec. 31 were $904M) while six‑month operating cash flow was $785M and CapEx was down ~25% year‑over‑year.The Estée Lauder Companies Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
41
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.68B | 14.29B | 15.61B | 15.91B | 17.74B | 16.21B |
| Gross Profit | 10.91B | 10.56B | 11.18B | 11.35B | 13.43B | 12.38B |
| EBITDA | 1.59B | 193.00M | 1.98B | 2.40B | 3.93B | 4.16B |
| Net Income | -178.00M | -1.13B | 390.00M | 1.01B | 2.39B | 2.87B |
Balance Sheet | ||||||
| Total Assets | 19.63B | 19.89B | 21.68B | 23.41B | 20.91B | 21.97B |
| Cash, Cash Equivalents and Short-Term Investments | 3.08B | 2.92B | 3.40B | 4.03B | 3.96B | 4.96B |
| Total Debt | 11.04B | 9.44B | 9.83B | 10.17B | 7.64B | 8.10B |
| Total Liabilities | 15.60B | 16.03B | 16.36B | 17.00B | 14.48B | 15.02B |
| Stockholders Equity | 4.03B | 3.87B | 5.31B | 5.58B | 5.59B | 6.06B |
Cash Flow | ||||||
| Free Cash Flow | 1.14B | 670.00M | 1.44B | -1.56B | 2.00B | 2.99B |
| Operating Cash Flow | 1.67B | 1.27B | 2.36B | 1.73B | 3.04B | 3.63B |
| Investing Cash Flow | -558.00M | -644.00M | -1.71B | -3.22B | -960.00M | -1.86B |
| Financing Cash Flow | -664.00M | -1.12B | -1.29B | 1.59B | -3.02B | -1.89B |
The Estée Lauder Companies Technical Analysis
Negative
73.29
Price Trends
94.38
Negative
99.21
Negative
94.28
Negative
Market Momentum
-7.17
Negative
37.96
Neutral
62.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EL, the sentiment is Negative. The current price of 73.29 is below the 20-day moving average (MA) of 76.63, below the 50-day MA of 94.38, and below the 200-day MA of 94.28, indicating a bearish trend. The MACD of -7.17 indicates Negative momentum. The RSI at 37.96 is Neutral, neither overbought nor oversold. The STOCH value of 62.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $340.84B | 20.05 | 31.23% | 2.92% | 1.23% | 17.97% | |
73 Outperform | $2.94B | 16.17 | 19.93% | 3.80% | 3.12% | 9.01% | |
69 Neutral | $125.80B | 12.84 | 26.01% | 3.74% | -0.30% | -14.60% | |
64 Neutral | $3.78B | 28.63 | 10.75% | ― | 13.80% | -25.02% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
50 Neutral | $1.84B | -5.46 | -14.49% | ― | -5.68% | -358.36% | |
47 Neutral | $26.51B | 58.52 | -4.41% | 1.30% | -6.36% | -554.84% |
* Consumer Defensive Sector Average
EL
The Estée Lauder Companies
73.29
18.93
34.82%
IPAR
Inter Parfums
91.68
-11.13
-10.82%
PG
Procter & Gamble
146.66
-15.79
-9.72%
UL
Unilever
58.46
-5.71
-8.90%
COTY
Coty
2.09
-3.11
-59.81%
ELF
e.l.f. Beauty
63.93
10.32
19.25%
The Estée Lauder Companies Corporate Events
Business Operations and StrategyM&A Transactions
Estée Lauder Confirms Merger Talks With Puig Group
Neutral
Mar 24, 2026
On March 23, 2026, The Estée Lauder Companies confirmed it is in talks with Spanish beauty group Puig about a potential business combination that would merge their operations. The company emphasized that no final decision has been made and no...
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.