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The Estée Lauder Companies (EL) AI Stock Analysis
The Estée Lauder Companies
(NYSE:EL)
The score reflects a balanced setup: improving outlook and execution (raised FY2027 guidance and margin expansion expectations) plus constructive price trends support the stock, but the overall rating is held back by mixed underlying financial quality—especially high leverage and low net margin—and a very expensive valuation (P/E ~103) that reduces margin for error.
The Estée Lauder Companies Key Performance Indicators (KPIs)
Revenue by GeographyBreaks down revenue across different regions, revealing where The Estée Lauder Companies is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Regional recovery is clear: Asia‑Pacific has emerged as the primary growth engine (led by Mainland China and travel retail), the Americas show steady, resilient performance, and EMEA/EUKEM remain the most volatile due to geopolitical disruptions. The huge June/FY‑end regional totals look like reporting/timing outliers tied to year‑end dynamics and PRGP restructuring cash timing, so focus on the sequential quarters: broad-based strength in Fragrance and Skin Care, digital gains, and PRGP cost cuts underpin management’s 3–5% organic guide, though Hair Care and some regional pockets still pose downside risk.
The FlyThe Estée Lauder Companies (EL) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $40.60B
- Dividend Yield
- 1.25%
- Average Volume (3M)
- 3.45M
- Price to Earnings (P/E)
- 109.8
- Beta (1Y)
- 1.47
- Revenue Growth
- 6.23%
- EPS Growth
- ―
- Country
- US
- Employees
- 41,800
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Household & Personal Products
The Estée Lauder Companies Business Overview & Revenue Model
Company Description
The Estée Lauder Companies Inc. is a global entity dedicated to the development, marketing, and sale of a diverse range of premium beauty and personal care items worldwide. Its extensive product catalog encompasses numerous offerings across four prim...
How the Company Makes Money
The Estée Lauder Companies primarily makes money by selling prestige beauty products across several product categories—skincare, makeup, fragrance, and hair care—under its portfolio of brands. Revenue is generated when products are sold through a mix...
The Estée Lauder Companies Earnings Call Summary
The call was strongly positive. Management reported broad-based organic sales growth, significant margin and EPS expansion, market share gains, improved cash productivity and raised fiscal 2027 guidance. The main challenges were expected second-half moderation from innovation phasing and Travel Retail comparisons, Aveda supply chain issues, unresolved U.S. value share recovery, and ongoing geopolitical, commodity and freight uncertainties.
Q1-2027 Updates
Positive Updates
Negative Updates
Company Guidance
For fiscal 2027, the company now expects organic sales growth of 4% to 5.5%, up from 3% to 5% previously, and reported sales growth of 5% to 6.5%; operating margin is expected to show 170 to 250 basis point expansion, up from 150 to 230 basis points, with full year operating margin expected to range between 12.9% to 13.7%, diluted EPS between $3.20 to $3.45, and net cash flow from operating activities between $1.4 billion and $1.5 billion, up from previously expected ranges of $1.3 billion and $1.4 billion. Stronger growth is still expected in the first half of the year compared to the second, with 25% of sales expected to come from innovation for the fiscal year versus 29% in the first quarter; the outlook assumes no further deterioration in the geopolitical landscape or related impacts, including no material impact from the conflict in the Middle East and the stabilization of current disruptions in other key markets in EUKEM, while the vast majority of the PRGP's full run rate benefits are still expected to be realized by the end of fiscal 2027.
The Estée Lauder Companies Financial Statement Overview
Summary
Overall fundamentals are mixed. The business retains very strong gross margin (~76%) and improved cash generation (TTM FCF ~$1.52B, +15.3%), but net margin remains thin (~2.4%) versus historical levels and the balance sheet is a constraint with high leverage (debt-to-equity ~2.28x) and reduced equity flexibility.
Income Statement
55NeutralBalance Sheet
44NeutralCash Flow
63Positive| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.28B | 15.05B | 14.33B | 15.61B | 15.91B | 17.74B |
| Gross Profit | 11.62B | 11.36B | 10.60B | 11.18B | 11.35B | 13.43B |
| EBITDA | 1.87B | 1.65B | 146.00M | 1.98B | 2.40B | 3.93B |
| Net Income | 368.00M | 182.00M | -1.13B | 390.00M | 1.01B | 2.39B |
Balance Sheet | ||||||
| Total Assets | 19.96B | 19.76B | 19.89B | 21.68B | 23.41B | 20.91B |
| Cash, Cash Equivalents and Short-Term Investments | 3.20B | 3.50B | 2.92B | 3.40B | 4.03B | 3.96B |
| Total Debt | 9.20B | 9.25B | 9.47B | 9.83B | 10.17B | 7.64B |
| Total Liabilities | 15.93B | 15.96B | 16.03B | 16.36B | 17.00B | 14.48B |
| Stockholders Equity | 4.04B | 3.81B | 3.87B | 5.31B | 5.58B | 5.59B |
Cash Flow | ||||||
| Free Cash Flow | 1.52B | 1.32B | 670.00M | 1.44B | -1.56B | 2.00B |
| Operating Cash Flow | 1.95B | 1.77B | 1.27B | 2.36B | 1.73B | 3.04B |
| Investing Cash Flow | -434.00M | -489.00M | -644.00M | -1.71B | -3.22B | -960.00M |
| Financing Cash Flow | -553.00M | -712.00M | -1.12B | -1.29B | 1.59B | -3.02B |
The Estée Lauder Companies Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EL, the sentiment is Positive. The current price of 112.04 is above the 20-day moving average (MA) of 105.21, above the 50-day MA of 100.57, and above the 200-day MA of 91.02, indicating a bullish trend. The MACD of 3.02 indicates Negative momentum. The RSI at 65.83 is Neutral, neither overbought nor oversold. The STOCH value of 44.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EL.
The Estée Lauder Companies Risk Analysis
The Estée Lauder Companies disclosed 18 risk factors in its most recent earnings report. The Estée Lauder Companies reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksThe Estée Lauder Companies Peers Comparison
Overall Rating
IPAR80Outperform
PG72Outperform
KVUE70Outperform
ELF68Neutral- EL60Neutral
COTY52Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IPAR | 80Outperform | $3.75B | 23.27 | 19.15% | 2.59% | 2.93% | 4.24% |
| PG | 72Outperform | $375.62B | 24.80 | 29.55% | 2.58% | 3.52% | -3.74% |
| KVUE | 70Outperform | $37.09B | 21.94 | 16.06% | 5.40% | 3.50% | 17.82% |
| ELF | 68Neutral | $6.58B | 77.83 | 5.18% | ― | 31.23% | -42.14% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| EL | 60Neutral | $38.19B | 109.84 | 9.28% | 1.25% | 6.23% | ― |
| COTY | 52Neutral | $2.90B | -5.34 | -18.06% | ― | -1.46% | -60.87% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| EL | Estée Lauder | 112.04 | 25.49 | 29.45% | |
| IPAR | Inter Parfums | 123.57 | 38.71 | 45.62% | |
| PG | Procter & Gamble Company | 167.32 | 25.31 | 17.82% | |
| COTY | Coty Inc | 3.47 | -0.25 | -6.72% | |
| ELF | e.l.f. Beauty, Inc. | 113.63 | 37.09 | 48.46% | |
| KVUE | Kenvue, Inc. | 19.31 | 3.79 | 24.42% |
The Estée Lauder Companies Corporate Events
Estée Lauder Outlines China Growth and Operating Strategy
PositiveThe Estée Lauder Companies, a beauty-products company spanning skincare, makeup, fragrance and hair care, held its Capital Markets Experience: China Ecosystem Immersion event in Shanghai on November 4, 2026. Senior executives discussed the Beaut...
Estée Lauder Nominates New Directors To Strengthen Board
PositiveThe Estée Lauder Companies Inc. has nominated Jean-Frédéric Dufour, Chief Executive Officer of luxury watchmaker Rolex SA, and Matthew E. Rubel, non-executive Chairman of high-performance automotive products firm Holley Inc., to stand...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 04, 2026