LAUDER (ESTEE) COS INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. LAUDER (ESTEE) COS INC has average liquidity. Currently, the Quick Ratio is 1.14 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 5.61% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||3124.8||3044.5|
|Net Income ($mil)||446.2||435.7|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||1414.2||1372.0|
|Total Assets ($mil)||8582.1||7856.6|
|Total Debt ($mil)||1981.7||1389.2|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||84.49||84.44|
|Return on Assets||13.75||14.44|
|Return on Equity||32.75||29.71|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||369.39||378.84|
|Div / share||0.3||0.24|
|Book value / share||9.76||10.08|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1942244.0||2455855.0|
BUY. LAUDER (ESTEE) COS INC's P/E ratio indicates a premium compared to an average of 23.99 for the Personal Products industry and a premium compared to the S&P 500 average of 20.18. For additional comparison, its price-to-book ratio of 8.89 indicates a significant premium versus the S&P 500 average of 2.40 and a significant premium versus the industry average of 7.27. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, LAUDER (ESTEE) COS INC proves to trade at a premium to investment alternatives within the industry.
|EL 27.80||Peers 23.99||EL 16.79||Peers 15.43|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
EL is trading at a premium to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
EL is trading at a valuation on par to its peers.
|EL 24.40||Peers 19.96||EL 2.41||Peers 1.15|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
EL is trading at a significant premium to its peers.
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
EL trades at a significant premium to its peers.
|EL 8.89||Peers 7.27||EL 6.84||Peers -8.53|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
EL is trading at a premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
EL is expected to have an earnings growth rate that significantly exceeds its peers.
|EL 2.90||Peers 2.08||EL 1.03||Peers -3.55|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
EL is trading at a significant premium to its industry.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
EL has a sales growth rate that significantly exceeds its peers.
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