The Estee Lauder Companies Inc

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EL : NYSE : Consumer Goods
$77.46 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1793400.0
12/06/16 - 4:00 PM ET

Financial Analysis

LAUDER (ESTEE) COS INC's gross profit margin for the first 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 average liquidity. Currently, the Quick Ratio is 1.04 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.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.77% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)2867.02834.7
EBITDA ($mil)559.0556.8
EBIT ($mil)453.0457.9
Net Income ($mil)294.0309.3

Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)1189.01079.3
Total Assets ($mil)9348.08425.4
Total Debt ($mil)2500.02066.2
Equity ($mil)3657.03490.4

Profitability Q1 FY17 Q1 FY16
Gross Profit Margin83.0183.13
EBITDA Margin19.4919.64
Operating Margin15.816.15
Sales Turnover1.211.3
Return on Assets11.7513.88
Return on Equity30.0633.52
Debt Q1 FY17 Q1 FY16
Current Ratio1.621.79
Interest Expense21.017.1
Interest Coverage21.5726.78

Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)366.32370.69
Div / share0.30.24
Book value / share9.989.42
Institutional Own % n/a n/a
Avg Daily Volume1835175.01565411.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 82.98 for the Personal Products industry and a value on par with the S&P 500 average of 25.37. To use another comparison, its price-to-book ratio of 7.73 indicates a significant premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 14.19. 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 discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
EL 26.24 Peers 82.98   EL 17.41 Peers 33.17

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

EL is trading at a significant 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
EL 19.78 Peers 21.38   EL 1.65 Peers 1.65

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

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


Average. 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 valuation on par to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EL 7.73 Peers 14.19   EL -3.93 Peers -1.21

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.


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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EL 2.50 Peers 1.74   EL 2.83 Peers -0.25

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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