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L'Oreal
(OR)
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Rating:78Outperform
Price Target:
€444.00
▲(18.49% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by strong financial performance (premium margins, solid multi-year growth, and reliable cash generation), tempered by 2025 pressure signals (lower net income/free cash flow and higher debt). Technicals are supportive with price above key moving averages and positive MACD, while valuation is the main constraint due to a high P/E despite a modest dividend yield.
Positive Factors
High Profitability and Margins
Sustained very high gross and solid operating margins indicate durable pricing power, efficient supply chain and brand premium. These margin levels support reinvestment in R&D and marketing, buffering profitability through cycles and enabling consistent cash generation over months to years.
Negative Factors
2025 Profit and Cash Pressure
Net income and FCF falling in 2025 despite revenue growth signals margin compression or rising costs. If structural (cost inflation, mix shift, higher operating expenses), it could erode cash available for reinvestment and returns, weakening medium-term earnings resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability and Margins
Sustained very high gross and solid operating margins indicate durable pricing power, efficient supply chain and brand premium. These margin levels support reinvestment in R&D and marketing, buffering profitability through cycles and enabling consistent cash generation over months to years.
Read all positive factors
L'Oreal (OR) vs. iShares MSCI France ETF (EWQ)
Market Cap
€203.86B
Dividend Yield1.89%
Average Volume (3M)351.32K
Price to Earnings (P/E)32.2
Beta (1Y)0.66
Revenue Growth3.46%
EPS Growth3.19%
CountryFR
Employees94,610
SectorGeneral
Sector StrengthN/A
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)11.82
Shares Outstanding532,649,840
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
€407.45Price Target Upside8.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)13.66
Revenue Forecast (FY)€47.01B
L'Oreal Business Overview & Revenue Model
Company Description
L'Oréal S.A., a leading global beauty enterprise, manufactures and markets a comprehensive array of cosmetic items for male and female consumers across the globe, operating through its subsidiaries. The company structures its vast operations into ...
How the Company Makes Money
L’Oréal primarily makes money by selling branded beauty and personal care products to retailers, distributors, professional salon networks, pharmacies/drugstores, and directly to consumers via e-commerce and brand-owned digital channels. Revenue i...
L'Oreal Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
80
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.35B | 44.05B | 43.49B | 41.18B | 38.26B | 32.29B |
| Gross Profit | 34.76B | 32.74B | 32.26B | 30.42B | 27.68B | 23.85B |
| EBITDA | 10.99B | 10.69B | 10.39B | 9.94B | 9.16B | 7.54B |
| Net Income | 6.31B | 6.13B | 6.41B | 6.18B | 5.71B | 4.60B |
Balance Sheet | ||||||
| Total Assets | 66.35B | 61.82B | 56.35B | 51.86B | 46.84B | 43.01B |
| Cash, Cash Equivalents and Short-Term Investments | 4.05B | 9.87B | 4.08B | 4.32B | 2.62B | 2.72B |
| Total Debt | 16.71B | 11.92B | 8.49B | 8.69B | 5.65B | 6.30B |
| Total Liabilities | 32.47B | 26.82B | 23.22B | 22.77B | 19.66B | 19.42B |
| Stockholders Equity | 33.84B | 34.95B | 33.13B | 29.07B | 27.18B | 23.59B |
Cash Flow | ||||||
| Free Cash Flow | 7.54B | 7.16B | 6.64B | 6.12B | 4.93B | 5.65B |
| Operating Cash Flow | 8.99B | 8.66B | 8.29B | 7.60B | 6.28B | 6.73B |
| Investing Cash Flow | -11.77B | -1.41B | -3.70B | -4.14B | -2.22B | -1.63B |
| Financing Cash Flow | 1.98B | -1.40B | -4.79B | -1.61B | -4.08B | -8.86B |
L'Oreal Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | €203.86B | 32.19 | 18.53% | 1.92% | 3.46% | 3.19% | |
70 Outperform | €2.17B | 16.42 | 17.96% | 4.05% | 2.15% | -2.20% | |
70 Outperform | €235.75B | 21.18 | 16.39% | 2.82% | -3.83% | -0.26% | |
64 Neutral | €78.77B | 16.78 | 18.84% | 3.25% | -3.83% | -0.09% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | €34.75B | -157.66 | 0.49% | 2.14% | -9.23% | -129.21% | |
51 Neutral | €34.49M | -1.43 | ― | 3.88% | -8.57% | -5005.28% |
* General Sector Average
FR:OR
L'Oreal
383.30
2.04
0.54%
FR:CDI
Christian Dior
419.40
-19.89
-4.53%
FR:ITP
Interparfums
24.62
-4.52
-15.50%
FR:KER
Kering SA
270.60
62.03
29.74%
FR:MC
LVMH Moet Hennessy Louis Vuitton
460.00
-1.33
-0.29%
FR:JBOG
Jacques Bogart SA
2.20
-1.80
-45.00%
L'Oreal Corporate Events
L’Oréal Updates Share Capital and Voting Rights Structure as of July 31, 2026
Aug 6, 2026
L’Oréal disclosed that as of July 31, 2026, its share capital consists of 532,649,814 shares, all carrying voting rights, with no difference between theoretical and real voting rights after treasury shares are taken into account. The pu...
L’Oréal Files and Publishes 2026 Half-Year Financial Report
Jul 31, 2026
L’Oréal has published its Half-Year Financial Report for the period ending 30 June 2026, making it available to the public and filing it with the French securities regulator. The document, accessible on the group’s investor websit...
L’Oréal Extends Lead in Global Beauty Market with Strong H1 2026 Results
Jul 29, 2026
L’Oréal reported first-half 2026 sales of €23.77 billion, with adjusted like-for-like growth of 6.5%, outpacing the global beauty market and delivering record operating margins of 21.3%. Growth was broad-based across all divisions...
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.