L'Oreal SA (LRLCY)
OTHER OTC:LRLCY
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L'Oreal
(OTC:LRLCY)
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Rating:69Neutral
Price Target:
$91.00
▲(7.11% Upside)
Action:DowngradedDate:02/18/26
The score is driven primarily by strong underlying financial performance (durable margins, strong ROE, and manageable leverage), partially offset by weaker near-term technicals (RSI below 50 and price below the 20-day average) and a relatively high P/E with only a modest dividend yield.
Positive Factors
Durable Profit Margins
Sustained gross margins near 71–74% and EBIT margins ~17–20% indicate durable pricing power and scale economics across brands. These margins support reinvestment in R&D/marketing, fund shareholder returns, and provide cushion versus cyclical revenue swings.
Negative Factors
Step-up in Debt (2025)
A notable step-up in debt in 2025, even from moderate leverage, reduces financial flexibility. Higher debt can increase interest burden and constrain strategic options (M&A, buybacks, aggressive reinvestment) if cash flow weakens or rates rise, making balance sheet management more important.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable Profit Margins
Sustained gross margins near 71–74% and EBIT margins ~17–20% indicate durable pricing power and scale economics across brands. These margins support reinvestment in R&D/marketing, fund shareholder returns, and provide cushion versus cyclical revenue swings.
Read all positive factors
L'Oreal (LRLCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$227.78B
Dividend Yield1.89%
Average Volume (3M)27.48K
Price to Earnings (P/E)31.7
Beta (1Y)0.33
Revenue Growth3.19%
EPS Growth-4.86%
CountryUS
Employees94,397
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)1.32
Shares Outstanding2,668,915,000
10 Day Avg. Volume64,623
30 Day Avg. Volume27,483
Financial Highlights & Ratios
PEG Ratio-3.92
Price to Book (P/B)5.57
Price to Sales (P/S)4.42
P/FCF Ratio27.16
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue4.50
Enterprise Value/Gross Profit5.87
Enterprise Value/Ebitda18.47
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.17
Revenue Forecast (FY)$53.70B
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 primarily makes money by selling beauty and personal care products under a large portfolio of brands through a multi-channel distribution model.
Key revenue streams include:
- Consumer product sales: Revenue is generated from high-volume,...
L'Oreal Earnings Call Summary
Earnings Call Date:Feb 06, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
L'Oréal experienced a record-breaking year with strong performances in Europe, North America, and emerging markets, as well as impressive growth in key categories like fragrances and hair care. However, challenges in North Asia, particularly in China and travel retail, posed significant hurdles. Despite these challenges, L'Oréal's strategic acquisitions and strong innovation pipeline for 2025 position the company for continued growth.Positive Updates
Record-Breaking Year for L'Oréal
L'Oréal set several new records with a like-for-like growth of 5.1%, gross margin at 74.2%, and operating profit margin reaching 20% for the first time.
Negative Updates
Challenges in North Asia
Sales in North Asia declined by 3.2% due to continued weakness in Mainland China and travel retail.
Read all updates
Q4-2024 Updates
Positive
Negative
Record-Breaking Year for L'Oréal
L'Oréal set several new records with a like-for-like growth of 5.1%, gross margin at 74.2%, and operating profit margin reaching 20% for the first time.
Read all positive updates
Company Guidance
During the 2024 Annual Results Presentation, L'Oréal reported several impressive financial metrics. The company achieved a like-for-like growth rate of 5.1%, marking another year of market outperformance. Their gross margin reached an all-time high of 74.2%, up 30 basis points from the previous year, while the operating profit margin increased by 20 basis points, reaching 20% for the first time. Consolidated sales rose by 5.6% to EUR 43.5 billion, with operating net cash flow reaching EUR 6.6 billion, an increase of nearly 9%. Each division contributed to growth, with Professional Products seeing a 5.3% increase, Consumer Products up by 5.4%, L'Oréal Luxe by 2.7% like-for-like, and L'Oréal Dermatological Beauty achieving a 9.8% increase in sales. Regionally, Europe advanced by 8.2%, North America grew by 5.5%, and emerging markets led with an 11.7% increase. Despite a decline in North Asia, the company maintained a strong global footprint, with emerging markets now accounting for more than 16% of sales. The year also marked strategic investments in AI, research, and sustainability efforts, positioning L'Oréal well for future growth.L'Oreal Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
71
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 | 9.64B | 8.97B | 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
Negative
84.96
Price Trends
87.40
Negative
86.90
Negative
87.45
Negative
Market Momentum
-1.47
Negative
40.73
Neutral
68.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LRLCY, the sentiment is Negative. The current price of 84.96 is above the 20-day moving average (MA) of 81.45, below the 50-day MA of 87.40, and below the 200-day MA of 87.45, indicating a bearish trend. The MACD of -1.47 indicates Negative momentum. The RSI at 40.73 is Neutral, neither overbought nor oversold. The STOCH value of 68.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LRLCY.
L'Oreal Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $336.75B | 20.05 | 31.23% | 2.92% | 1.23% | 17.97% | |
69 Neutral | $227.78B | 31.75 | 18.53% | 1.89% | 3.19% | -4.86% | |
69 Neutral | $125.80B | 12.84 | 26.01% | 3.74% | -0.30% | -14.60% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $68.57B | -429.64 | 431.59% | 2.67% | -0.05% | 2.49% | |
50 Neutral | $1.84B | -5.46 | -14.49% | ― | -5.68% | -358.36% | |
47 Neutral | $25.84B | 58.52 | -4.41% | 1.30% | -6.36% | -554.84% |
* Consumer Defensive Sector Average
LRLCY
L'Oreal
85.79
11.70
15.80%
CL
Colgate-Palmolive
85.55
-2.51
-2.85%
EL
The Estée Lauder Companies
71.44
16.16
29.24%
PG
Procter & Gamble
144.90
-13.09
-8.28%
UL
Unilever
58.25
-3.34
-5.43%
COTY
Coty
2.09
-3.27
-61.01%
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.