The Estee Lauder Companies IncFind Ratings Reports
LAUDER (ESTEE) COS INC's gross profit margin for the second quarter of its fiscal year 2017 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 weak liquidity. Currently, the Quick Ratio is 0.71 which shows a lack of 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 increased by 5.25% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q2 FY17||Q2 FY16|
|Net Sales ($mil)||3208.0||3124.8|
|Net Income ($mil)||428.0||446.2|
|Balance Sheet||Q2 FY17||Q2 FY16|
|Cash & Equiv. ($mil)||1675.0||1414.2|
|Total Assets ($mil)||11212.0||8582.1|
|Total Debt ($mil)||4033.0||1981.7|
|Profitability||Q2 FY17||Q2 FY16|
|Gross Profit Margin||83.79||84.49|
|Return on Assets||9.64||13.75|
|Return on Equity||28.5||32.75|
|Debt||Q2 FY17||Q2 FY16|
|Share Data||Q2 FY17||Q2 FY16|
|Shares outstanding (mil)||366.14||369.39|
|Div / share||0.34||0.3|
|Book value / share||10.36||9.76|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1880237.0||2094076.0|
BUY. The current P/E ratio indicates a discount compared to an average of 37.13 for the Personal Products industry and a premium compared to the S&P 500 average of 24.92. Conducting a second comparison, its price-to-book ratio of 8.30 indicates a significant premium versus the S&P 500 average of 2.99 and a premium versus the industry average of 7.59. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium.
|EL 29.67||Peers 37.13||EL 19.08||Peers 32.91|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
EL is trading at a discount to its peers.
Discount. 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 significant discount to its peers.
|EL 23.13||Peers 22.96||EL 2.37||Peers 1.87|
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.
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 8.30||Peers 7.59||EL -7.06||Peers -3.17|
Average. 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 valuation on par with its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, EL is expected to significantly trail its peers on the basis of its earnings growth rate.
|EL 2.77||Peers 2.31||EL 2.84||Peers -1.33|
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 premium to its industry on this measurement.
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.