Now trading at a price of $134.9, Estee Lauder has moved -0.6% so far today.
Estee Lauder returned losses of -48.3% last year, with its stock price reaching a high of $283.62 and a low of $102.22. Over the same period, the stock underperformed the S&P 500 index by -68.4%. As of April 2023, the company's 50-day average price was $131.12. The Estée Lauder Companies Inc. manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. Based in New York, NY, the large-cap Consumer Discretionary company has 44,020 full time employees. Estee Lauder has offered a 1.9% dividend yield over the last 12 months.
Increasing Revenues but Narrowing Margins:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $13,683 | $14,863 | $14,294 | $16,215 | $17,737 | $15,910 |
| Revenue Growth | n/a | 8.62% | -3.83% | 13.44% | 9.39% | -10.3% |
| Operating Margins | 15% | 16% | 4% | 16% | 18% | 9% |
| Net Margins | 8% | 12% | 5% | 18% | 14% | 6% |
| Net Income (MM) | $1,117 | $1,794 | $684 | $2,875 | $2,408 | $1,010 |
| Net Interest Expense (MM) | $128 | $133 | $161 | $173 | $167 | $255 |
| Depreciation & Amort. (MM) | $531 | $557 | $611 | $651 | $727 | $744 |
| Earnings Per Share | $2.95 | $4.82 | $1.86 | $7.79 | $6.55 | $3.59 |
| EPS Growth | n/a | 63.39% | -61.41% | 318.82% | -15.92% | -46.12% |
| Diluted Shares (MM) | 370 | 367 | 368 | 366 | 360 | 360 |
| Free Cash Flow (MM) | $1,933 | $1,773 | $1,657 | $2,994 | $2,000 | $728 |
| Capital Expenditures (MM) | $629 | $744 | $623 | $637 | $1,040 | $1,003ß |
| Current Ratio | 1.71 | 1.69 | 1.9 | 1.73 | 1.66 | 1.45 |
| Total Debt (MM) | $3,391 | $5,178 | $6,135 | $5,291 | $5,379 | $8,085 |
| Net Debt / EBITDA | 0.47 | 0.55 | 0.48 | 0.21 | 0.42 | 2.22 |
Estee Lauder has growing revenues and increasing reinvestment in the business, exceptional EPS growth, and healthy leverage. However, the firm suffers from weak operating margins with a negative growth trend and irregular cash flows.
The Market May Be Overvaluing Estee Lauder's Earnings and Assets:
Estee Lauder has a trailing twelve month P/E ratio of 85.7, compared to an average of 22.96 for the Consumer Discretionary sector. Based on its EPS guidance of $4.18, the company has a forward P/E ratio of 31.4. The 5.1% compound average growth rate of Estee Lauder's historical and projected earnings per share yields a PEG ratio of 16.79. This suggests that these shares are overvalued. Furthermore, Estee Lauder is likely overvalued compared to the book value of its equity, since its P/B ratio of 9.04 is higher than the sector average of 4.24.
Analysts Give Estee Lauder an Average Rating of Buy:
The 29 analysts following Estee Lauder have set target prices ranging from $100.0 to $280.0 per share, for an average of $148.34 with a buy rating. As of April 2023, the company is trading -11.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Estee Lauder has a very low short interest because 1.8% of the company's shares are sold short. Institutions own 90.6% of the company's shares, and the insider ownership rate stands at 0.42%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 8% stake in the company is worth $2,512,731,598.
