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L'Oreal S.A. (UK) (FR:OR)
:OR
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L'Oreal (OR) AI Stock Analysis

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FR:OR

L'Oreal

(LSE:OR)

Rating:72Outperform
Price Target:
€408.00
▲(2.54% Upside)
L'Oreal's strong financial performance is the primary driver of its high score, reflecting its robust revenue growth, profitability, and cash flow management. However, the technical analysis indicates some short-term uncertainty, and the high valuation may limit upside potential, balancing the overall score.
Positive Factors
Market Performance
Despite uncertainties, L'Oreal S.A. is expected to outperform the market with a growth forecast of 4.0%.
Regional Performance
Europe impressively outperformed the global category.
Negative Factors
Earnings Valuation
The current price-to-earnings ratio of 27.5x is seen as lacking opportunity for fiscal year growth.
Growth Forecast
The forecast indicates a slowdown in growth for L'Oreal S.A. due to poor visibility in the US and China.
Market Sentiment
There is a risk that L'Oreal might miss the formal consensus for the first quarter.

L'Oreal (OR) vs. iShares MSCI France ETF (EWQ)

L'Oreal Business Overview & Revenue Model

Company DescriptionL'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. The company operates through four divisions: Consumer Products, L'oréal Luxe, Professional Products, and Active Cosmetics. It offers shampoos, hair care products, shower gels, skin care products, cleansers, hair colors, styling products, deodorants, sun care products, make-up, perfumes, etc. The company provides its products under the L'Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Essie, Niely, Dark and Lovely, Lancôme, Yves Saint Laurent Beauté, Giorgio Armani Beauty, Kiehl's, Urban Decay, Biotherm, Ralph Lauren, IT Cosmetics, L'Oréal Professionnel, Kérastase, Redken, Matrix, Biolage, Pureology, Decléor, Carita, Vichy, La Roche-Posay, SkinCeuticals, Roger&Gallet, CeraVe, Stylenanda, Mixa, Magic Mask, Prada, Helena Rubinstein, Valentino, Mugler, Shu Uemura, Viktor&Rolf, Azzaro, Diesel, Atelier Cologne, Cacharel, and Yue Sai brands. It sells its products through distribution channels, such as hair salons, mass-market retail channels, perfumeries, department stores, pharmacies, drugstores, medispas, branded retail, travel retail, and e-commerce. L'Oréal S.A. was founded in 1909 and is headquartered in Clichy, France.
How the Company Makes MoneyL'Oreal generates revenue primarily through the sale of its beauty products across various distribution channels, including retail, e-commerce, and professional salons. The company operates through several divisions, with its largest revenue streams coming from its Consumer Products Division, which offers mass-market beauty products, and its Professional Products Division, which serves salons and beauty professionals. Additionally, L'Oreal's Luxury Products Division and Active Cosmetics Division contribute significantly to its earnings through premium and dermatological products. The company also benefits from strategic partnerships and collaborations with retailers and e-commerce platforms, enhancing its market reach. Moreover, L'Oreal invests heavily in research and development to innovate and expand its product offerings, which helps maintain its competitive edge and drive sales growth.

L'Oreal Financial Statement Overview

Summary
L'Oreal demonstrates strong financial health with consistent revenue growth, robust margins, a solid balance sheet, and impressive cash flow management. Low financial leverage and high return on equity further contribute to its excellent financial performance.
Income Statement
88
Very Positive
L'Oreal has shown strong revenue growth with a 5.6% increase from 2023 to 2024. The gross profit margin remains robust at 74.2%, reflecting cost efficiency. The net profit margin improved to 14.7%, indicating better profitability. EBIT and EBITDA margins are healthy at 20.0% and 24.5%, respectively, showcasing operational strength.
Balance Sheet
85
Very Positive
The company maintains a solid balance sheet with a debt-to-equity ratio of 0.26, indicating low financial leverage. The return on equity is strong at 19.3%, highlighting efficient use of equity capital. An equity ratio of 58.8% underscores a stable capital structure with a significant equity base.
Cash Flow
90
Very Positive
L'Oreal exhibits impressive cash flow management with a free cash flow growth rate of 8.6%. The operating cash flow to net income ratio is 1.29, suggesting effective cash conversion. The free cash flow to net income ratio is 1.04, reflecting healthy cash flow relative to net earnings.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue43.49B41.18B38.26B32.29B27.99B
Gross Profit32.26B30.42B27.68B23.85B20.46B
EBITDA10.39B9.66B9.16B7.54B6.47B
Net Income6.41B6.18B5.71B4.60B3.56B
Balance Sheet
Total Assets56.35B51.86B46.84B43.01B43.61B
Cash, Cash Equivalents and Short-Term Investments4.08B4.32B2.62B2.72B6.41B
Total Debt8.49B8.69B5.65B6.30B2.55B
Total Liabilities23.22B22.77B19.66B19.42B14.61B
Stockholders Equity33.13B29.07B27.18B23.59B28.99B
Cash Flow
Free Cash Flow6.64B6.12B4.93B5.65B5.48B
Operating Cash Flow8.29B7.60B6.28B6.73B6.45B
Investing Cash Flow-3.70B-4.14B-2.22B-1.63B-2.64B
Financing Cash Flow-4.79B-1.61B-4.08B-8.86B-2.59B

L'Oreal Technical Analysis

Technical Analysis Sentiment
Positive
Last Price397.90
Price Trends
50DMA
377.69
Positive
100DMA
373.84
Positive
200DMA
355.90
Positive
Market Momentum
MACD
6.95
Negative
RSI
64.30
Neutral
STOCH
58.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:OR, the sentiment is Positive. The current price of 397.9 is above the 20-day moving average (MA) of 389.85, above the 50-day MA of 377.69, and above the 200-day MA of 355.90, indicating a bullish trend. The MACD of 6.95 indicates Negative momentum. The RSI at 64.30 is Neutral, neither overbought nor oversold. The STOCH value of 58.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:OR.

L'Oreal Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
€210.97B35.1120.13%1.74%2.60%-5.44%
57
Neutral
$3.34B8.61-34.32%2.95%-25.56%-353.61%
€6.05B12.21
€2.68B19.2719.41%
€1.62B19.1917.71%1.22%
€7.55B10.9816.07%
50
Neutral
€59.64M12.10
4.04%-1.21%-110.90%
* Consumer Goods Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:OR
L'Oreal
397.90
9.59
2.47%
GB:0MUM
EDENRED
24.66
-11.02
-30.89%
GB:0IUJ
Interparfums
32.02
-7.29
-18.54%
GB:0NZN
Robertet
837.00
-27.20
-3.15%
GB:0J3F
Sodexo SA
51.30
-26.45
-34.02%
FR:JBOG
Jacques Bogart SA
3.96
-2.70
-40.54%
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.Date of analysis: Jul 23, 2025