L'Oreal (FR:OR)
:OR
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L'Oreal
(OR)
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Rating:72Outperform
Price Target:
€389.00
▲(7.85% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by strong financial performance (high margins, strong ROE, and consistent cash generation), tempered by near-term 2025 pressure (lower net income/FCF and higher debt). Technical signals are currently weak, and valuation is relatively rich given the ~32x P/E, with only partial support from the ~1.88% dividend yield.
Positive Factors
High margins & profitability
Sustained high gross, operating and net margins reflect durable brand pricing power and product mix advantages. These margins support robust internal funding for marketing, R&D and distribution, helping maintain competitive position and long-term cash flow generation even as growth normalizes.
Negative Factors
2025 net income pressure despite revenue
Earnings falling while revenue rises suggests margin compression from cost inflation, adverse mix, or one-off items. If these pressures persist, they can erode sustainable profitability and free cash flow, limiting ability to fund growth investments and shareholder returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & profitability
Sustained high gross, operating and net margins reflect durable brand pricing power and product mix advantages. These margins support robust internal funding for marketing, R&D and distribution, helping maintain competitive position and long-term cash flow generation even as growth normalizes.
Read all positive factors
L'Oreal (OR) vs. iShares MSCI France ETF (EWQ)
Market Cap
€189.97B
Dividend Yield1.91%
Average Volume (3M)351.32K
Price to Earnings (P/E)31.9
Beta (1Y)0.73
Revenue Growth2.60%
EPS Growth-5.44%
CountryFR
Employees94,397
SectorGeneral
Sector StrengthN/A
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)5.64
Shares Outstanding533,783,000
10 Day Avg. Volume286,001
30 Day Avg. Volume351,321
Financial Highlights & Ratios
PEG Ratio-7.51
Price to Book (P/B)5.60
Price to Sales (P/S)4.44
P/FCF Ratio27.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€392.91Price Target Upside8.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)13.58
Revenue Forecast (FY)€46.03B
L'Oreal Business Overview & Revenue Model
Company Description
L'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 sham...
How the Company Makes Money
L’Oréal makes money primarily by selling beauty and personal care products under its portfolio of brands to retailers, distributors, professionals, and directly to consumers. Its revenue model is largely product-sales driven, with earnings generat...
L'Oreal Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
80
Positive
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 44.05B | 43.49B | 41.18B | 38.26B | 32.29B |
| Gross Profit | 32.74B | 32.26B | 30.42B | 27.68B | 23.85B |
| EBITDA | 10.69B | 10.39B | 9.94B | 9.16B | 7.54B |
| Net Income | 6.13B | 6.41B | 6.18B | 5.71B | 4.60B |
Balance Sheet | |||||
| Total Assets | 61.82B | 56.35B | 51.86B | 46.84B | 43.01B |
| Cash, Cash Equivalents and Short-Term Investments | 9.87B | 4.08B | 4.32B | 2.62B | 2.72B |
| Total Debt | 11.92B | 8.49B | 8.69B | 5.65B | 6.30B |
| Total Liabilities | 26.82B | 23.22B | 22.77B | 19.66B | 19.42B |
| Stockholders Equity | 34.95B | 33.13B | 29.07B | 27.18B | 23.59B |
Cash Flow | |||||
| Free Cash Flow | 7.16B | 6.64B | 6.12B | 4.93B | 5.65B |
| Operating Cash Flow | 8.66B | 8.29B | 7.60B | 6.28B | 6.73B |
| Investing Cash Flow | -1.41B | -3.70B | -4.14B | -2.22B | -1.63B |
| Financing Cash Flow | -1.40B | -4.79B | -1.61B | -4.08B | -8.86B |
L'Oreal Technical Analysis
Neutral
360.70
Price Trends
371.70
Negative
372.65
Negative
375.10
Negative
Market Momentum
-2.45
Negative
50.57
Neutral
50.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:OR, the sentiment is Neutral. The current price of 360.7 is above the 20-day moving average (MA) of 353.24, below the 50-day MA of 371.70, and below the 200-day MA of 375.10, indicating a neutral trend. The MACD of -2.45 indicates Negative momentum. The RSI at 50.57 is Neutral, neither overbought nor oversold. The STOCH value of 50.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:OR.
L'Oreal Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | €189.97B | 31.93 | 20.13% | 1.91% | 2.60% | -5.44% | |
65 Neutral | €2.01B | 10.16 | 20.31% | 3.66% | 9.68% | 19.46% | |
64 Neutral | €82.99B | 23.71 | 19.54% | 2.33% | -3.24% | -21.65% | |
63 Neutral | €239.47B | 29.51 | 16.39% | 2.06% | -3.24% | -21.24% | |
56 Neutral | €40.82M | -1.25 | ― | 3.88% | -3.97% | -269.15% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
48 Neutral | €33.35B | -23.01 | 0.49% | 2.03% | -14.56% | -64.91% |
* General Sector Average
FR:OR
L'Oreal
358.30
22.54
6.71%
FR:CDI
Christian Dior
459.00
26.17
6.05%
FR:ITP
Interparfums
24.22
-5.71
-19.08%
FR:KER
Kering SA
254.00
93.72
58.47%
FR:MC
LVMH Moet Hennessy Louis Vuitton
481.90
7.67
1.62%
FR:JBOG
Jacques Bogart SA
2.81
-2.17
-43.57%
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.