This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!
Estee Lauder Cos Inc
EL : NYSE : Consumer Goods
$75.78 1.78 | 2.41%
Today's Range: 74.53 - 75.78
Avg. Daily Volume: 1,777,400
12/18/14 - 4:03 PM ET

Financial Analysis


LAUDER (ESTEE) COS INC's gross profit margin for the first quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. LAUDER (ESTEE) COS INC has average liquidity. Currently, the Quick Ratio is 1.49 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 5.12% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY15 Q1 FY14
Net Sales ($mil)2631.02675.0
EBITDA ($mil)448.6541.0
EBIT ($mil)348.0450.7
Net Income ($mil)228.1300.7


Balance Sheet Q1 FY15 Q1 FY14
Cash & Equiv. ($mil)1395.41322.2
Total Assets ($mil)7664.37520.5
Total Debt ($mil)1333.01340.6
Equity ($mil)3780.23595.8


Profitability Q1 FY15 Q1 FY14
Gross Profit Margin83.4383.04
EBITDA Margin17.0520.22
Operating Margin13.2316.85
Sales Turnover1.431.37
Return on Assets14.7613.57
Return on Equity29.9328.39
Debt Q1 FY15 Q1 FY14
Current Ratio2.432.33
Debt/Capital0.260.27
Interest Expense13.213.5
Interest Coverage26.3633.39


Share Data Q1 FY15 Q1 FY14
Shares outstanding (mil)381.23387.94
Div / share0.20.18
EPS0.590.76
Book value / share9.929.27
Institutional Own % n/a n/a
Avg Daily Volume1799060.01492906.0

Valuation


BUY. LAUDER (ESTEE) COS INC's P/E ratio indicates a premium compared to an average of 24.30 for the Personal Products industry and a premium compared to the S&P 500 average of 19.74. Conducting a second comparison, its price-to-book ratio of 7.46 indicates a significant premium versus the S&P 500 average of 2.73 and a premium versus the industry average of 6.48. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
EL 25.70 Peers 24.30   EL 17.34 Peers 14.86

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

EL is trading at a valuation on par with its peers.

 

Premium. 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 premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
EL 21.51 Peers 21.38   EL NM Peers 0.98

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 premium to its peers.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EL 7.46 Peers 6.48   EL 11.62 Peers -48.35

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EL 2.58 Peers 1.93   EL 5.97 Peers 6.04

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

EL is keeping pace with its peers on the basis of sales growth.

 

 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV

Latest Stock Upgrades/Downgrades


Top Rated Stocks Top Rated Funds Top Rated ETFs