L'Oreal (OR) AI Stock Analysis

• Market Cap: €193.40B
• Dividend Yield: 1.92%
• Average Volume (3M): 306.43K
• Price to Earnings (P/E): 30.4
• Beta (1Y): 0.80
• Revenue Growth: 5.60%
• EPS Growth: 3.75%
• Country: FR
• Employees: 94,397
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Household & Personal Products
• EPS (TTM): 5.67
• Shares Outstanding: 534,315,370
• 10 Day Avg. Volume: 238,635
• 30 Day Avg. Volume: 306,425
• PEG Ratio: -25.25
• Price to Book (P/B): 6.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €372.69
• Price Target Upside: 2.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 77 Outperform
• Price Target: €413.00 ▲(13.45%Upside)

L'Oreal's strong financial performance, characterized by robust revenue growth, profitability, and cash flow management, is the most significant strength supporting the stock score. The technical analysis suggests mixed momentum, while the valuation indicates a premium price, slightly tempering the overall positive outlook.

Positive Factors

Company Performance

Despite uncertainties, L'Oreal S.A. is expected to outperform the market with a growth forecast of 4.0%.

Market Trends

Better than feared trends in China & Europe make up for soft NORAM, supporting L'Oreal's outperformance versus peers.

Negative Factors

Earnings Expectations

There is a risk that L'Oreal might miss the formal consensus for the first quarter.

Market Conditions

The forecast indicates a slowdown in growth for L'Oreal S.A. due to poor visibility in the US and China.

Segment Performance

Negative read from LVMH missing in Perfume & Cosmetics adds to concerns about L'Oreal's performance.

L'Oreal Business Overview & Revenue Model

Company Description

L'Oréal S.A. is a global leader in the beauty and personal care industry, headquartered in Clichy, France. The company operates across several sectors including skincare, haircare, makeup, and fragrances, offering a diverse portfolio of over 30 international brands. Key brands under L'Oréal's umbrella include Lancôme, Maybelline, Garnier, and L'Oréal Paris. The company is committed to innovation and sustainability, investing heavily in research and development to create cutting-edge beauty products that cater to a wide range of consumer needs.

How the Company Makes Money

L'Oréal generates revenue through the sale of its beauty and personal care products across various distribution channels including mass-market retailers, department stores, pharmacies, and online platforms. The company operates in four main divisions: Consumer Products, L'Oréal Luxe, Professional Products, and Active Cosmetics, each targeting different market segments and price points. L'Oréal also benefits from strategic partnerships and acquisitions, allowing for expansion in emerging markets and access to new technologies. The company's robust global presence and strong brand portfolio enable it to capitalize on trends in the beauty industry, contributing significantly to its earnings.

L'Oreal Financial Statement Overview

Summary

L'Oreal demonstrates strong financial health with significant revenue and profit growth, a stable balance sheet with low leverage, and robust cash flow generation and management. These factors contribute to its excellent financial performance and stability in the consumer products industry.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.49B	41.18B	38.26B	32.29B	27.99B
Gross Profit	32.26B	30.42B	27.68B	23.85B	20.46B
EBITDA	10.39B	9.66B	9.16B	7.54B	6.47B
Net Income	6.41B	6.18B	5.71B	4.60B	3.56B
Balance Sheet
Total Assets	56.35B	51.86B	46.84B	43.01B	43.61B
Cash, Cash Equivalents and Short-Term Investments	4.08B	4.32B	2.62B	2.72B	6.41B
Total Debt	8.49B	8.69B	5.65B	6.30B	2.55B
Total Liabilities	23.22B	22.77B	19.66B	19.42B	14.61B
Stockholders Equity	33.13B	29.07B	27.18B	23.59B	28.99B
Cash Flow
Free Cash Flow	6.64B	6.12B	4.93B	5.65B	5.48B
Operating Cash Flow	8.29B	7.60B	6.28B	6.73B	6.45B
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: Neutral
• Last Price: 364.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 364.05 is below the 20-day moving average (MA) of 367.30, below the 50-day MA of 372.71, and above the 200-day MA of 351.64, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 44.28 is Neutral, neither overbought nor oversold. The STOCH value of 1.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:OR.

L'Oreal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITP	78 Outperform	€2.84B	20.97	19.41%	2.94%	10.27%	8.20%
OR	77 Outperform	€193.40B	30.36	20.60%	1.92%	5.60%	3.75%
RBT	73 Outperform	€1.57B	18.40	17.71%	1.24%	11.99%	20.45%
EDEN	67 Neutral	€6.12B	12.55		4.73%	12.89%	92.80%
Sector *	65 Neutral	$26.91B	15.41	-4.18%	3.21%	1.01%	1.34%
SW	65 Neutral	€7.41B	10.98	16.07%	5.23%	6.71%	141.19%
JBOG	50 Neutral	€64.76M	12.10		3.72%	-1.21%	-110.90%