The Estee Lauder Companies IncFind Ratings Reports
LAUDER (ESTEE) COS INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. LAUDER (ESTEE) COS INC has average liquidity. Currently, the Quick Ratio is 1.02 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, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.12% 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.
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|Income Statement||Q3 FY16||Q3 FY15|
|Net Sales ($mil)||2656.5||2580.5|
|Net Income ($mil)||265.6||272.1|
|Balance Sheet||Q3 FY16||Q3 FY15|
|Cash & Equiv. ($mil)||1073.8||1425.0|
|Total Assets ($mil)||8816.3||8095.1|
|Total Debt ($mil)||1925.3||1452.8|
|Profitability||Q3 FY16||Q3 FY15|
|Gross Profit Margin||84.93||84.42|
|Return on Assets||13.31||14.74|
|Return on Equity||30.8||30.96|
|Debt||Q3 FY16||Q3 FY15|
|Share Data||Q3 FY16||Q3 FY15|
|Shares outstanding (mil)||369.17||378.38|
|Div / share||0.3||0.24|
|Book value / share||10.33||10.19|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1588113.0||1527224.0|
BUY. LAUDER (ESTEE) COS INC's P/E ratio indicates a premium compared to an average of 27.50 for the Personal Products industry and a premium compared to the S&P 500 average of 25.03. To use another comparison, its price-to-book ratio of 9.11 indicates a significant premium versus the S&P 500 average of 2.80 and a significant discount versus the industry average of 18.16. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, LAUDER (ESTEE) COS INC seems to be trading at a premium to investment alternatives within the industry.
|EL 30.14||Peers 27.50||EL 18.48||Peers 16.61|
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.
|EL 26.53||Peers 21.66||EL 2.54||Peers 1.97|
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 9.11||Peers 18.16||EL 0.97||Peers -18.36|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
EL is trading at a significant discount 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 3.12||Peers 2.27||EL 1.44||Peers 1.18|
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 exceeds its peers.