The Estée Lauder Companies (EL) AI Stock Analysis

• Market Cap: $36.90B
• Dividend Yield: 1.42%
• Average Volume (3M): 3.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: -8.14%
• EPS Growth: -389.12%
• Country: US
• Employees: 44,020
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.09
• Shares Outstanding: 234,347,410
• 10 Day Avg. Volume: 3,765,121
• 30 Day Avg. Volume: 3,126,066
• PEG Ratio: 0.07
• Price to Book (P/B): 7.53
• Price to Sales (P/S): 2.04
• P/FCF Ratio: 43.43
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: 202.79
• 1Y Price Target: $97.87
• Price Target Upside: -0.77% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 53 Neutral
• Price Target: $100.00 ▲(1.39% Upside)

The overall stock score reflects significant financial challenges, including declining revenue and profitability, and high leverage. Despite strong technical indicators suggesting positive momentum, the negative valuation metrics and mixed earnings call sentiment weigh heavily on the score.

Positive Factors

Innovation in Fragrance

The new Fragrance Atelier in Paris enhances Estee Lauder's capabilities in luxury fragrances, supporting long-term growth in a high-margin segment.

Leadership in Research & Innovation

Rene Lammers' appointment strengthens Estee Lauder's focus on cutting-edge product development, aligning with strategic goals for innovation and consumer-centric growth.

Gross Margin Strength

Strong gross margins indicate effective cost management and pricing power, which can support profitability even amid revenue challenges.

Negative Factors

Declining Revenue

Revenue declines across most categories highlight challenges in maintaining market share and demand, impacting long-term growth prospects.

High Leverage

Significant leverage limits financial flexibility and increases risk, potentially affecting the company's ability to invest in growth opportunities.

Weak Cash Flow Generation

Weakened cash flow generation reduces the company's ability to fund operations and strategic initiatives, posing a risk to long-term sustainability.

The Estée Lauder Companies Business Overview & Revenue Model

Company Description

The Estée Lauder Companies Inc. is a leading global manufacturer and marketer of prestige skincare, makeup, fragrance, and hair care products. Founded in 1946, the company operates in various sectors, including skincare, makeup, fragrance, and hair care, and is renowned for its diverse portfolio of brands, which includes Estée Lauder, MAC, Clinique, and Aveda, among others. The company is committed to innovation and quality, leveraging its extensive research and development capabilities to create high-performance products that cater to a wide range of consumer preferences across different global markets.

How the Company Makes Money

The Estée Lauder Companies generates revenue primarily through the sale of its wide array of beauty products, which are distributed through multiple channels, including department stores, specialty retailers, online platforms, and direct-to-consumer sales. Key revenue streams include sales from skincare, makeup, fragrance, and hair care products, with skincare being the largest segment. The company also benefits from strategic partnerships with retailers, collaborations with influencers and celebrities, and a strong presence in e-commerce, which have all contributed to its growth. Seasonal promotions and limited-edition product launches further enhance sales, while the global expansion of its brand portfolio into emerging markets continues to drive revenue growth.

The Estée Lauder Companies Financial Statement Overview

Summary

The Estée Lauder Companies is facing financial headwinds, with declining revenue and profitability, high leverage, and weakened cash flow generation. While the gross profit margin remains strong, the negative net profit margin and high debt levels highlight potential risks. The company needs to address these challenges to improve its financial health.

Income Statement

The Estée Lauder Companies has experienced a decline in revenue and profitability over the TTM period. The gross profit margin remains relatively strong at approximately 74%, but the net profit margin has turned negative, indicating a loss. Revenue growth has been negative, and EBIT and EBITDA margins have also decreased significantly, reflecting operational challenges.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 2.45, indicating significant leverage. Return on equity has turned negative, reflecting recent losses. The equity ratio is moderate, suggesting a balanced asset structure, but the high leverage poses potential risks.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth and a decrease in operating cash flow coverage. The free cash flow to net income ratio is positive but reflects a challenging cash flow situation due to negative net income. The company's ability to generate cash from operations has weakened.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.32B	14.29B	15.61B	15.91B	17.74B	16.21B
Gross Profit	10.60B	10.56B	11.18B	11.35B	13.43B	12.38B
EBITDA	176.00M	193.00M	1.98B	2.40B	3.93B	4.16B
Net Income	-1.13B	-1.13B	390.00M	1.01B	2.39B	2.87B
Balance Sheet
Total Assets	19.89B	19.89B	21.68B	23.41B	20.91B	21.97B
Cash, Cash Equivalents and Short-Term Investments	2.92B	2.92B	3.40B	4.03B	3.96B	4.96B
Total Debt	9.44B	9.44B	9.83B	10.17B	7.64B	8.10B
Total Liabilities	16.03B	16.03B	16.36B	17.00B	14.48B	15.02B
Stockholders Equity	3.87B	3.87B	5.31B	5.58B	5.59B	6.06B
Cash Flow
Free Cash Flow	670.00M	670.00M	1.44B	-1.56B	2.00B	2.99B
Operating Cash Flow	1.27B	1.27B	2.36B	1.73B	3.04B	3.63B
Investing Cash Flow	-644.00M	-644.00M	-1.71B	-3.22B	-960.00M	-1.86B
Financing Cash Flow	-1.12B	-1.12B	-1.29B	1.59B	-3.02B	-1.89B

The Estée Lauder Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 98.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 98.63 is above the 20-day moving average (MA) of 92.49, above the 50-day MA of 90.34, and above the 200-day MA of 76.45, indicating a bullish trend. The MACD of 2.96 indicates Negative momentum. The RSI at 59.94 is Neutral, neither overbought nor oversold. The STOCH value of 75.98 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	74 Outperform	$355.66B	23.35	31.23%	2.71%	0.29%	7.85%
UL	73 Outperform	$152.81B	25.67	28.36%	3.19%	-0.30%	-14.60%
ELF	70 Outperform	$7.21B	73.35	12.97%	―	18.61%	-21.36%
IPAR	68 Neutral	$3.19B	19.85	20.68%	3.18%	7.04%	13.52%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EL	53 Neutral	$36.90B	―	-24.69%	1.42%	-8.14%	-389.12%
COTY	52 Neutral	$3.61B	―	-9.98%	―	-3.68%	-631.67%

The Estée Lauder Companies Corporate Events

Estée Lauder Reorganizes Geographic Regions for Efficiency

On July 1, 2025, The Estée Lauder Companies reorganized its geographic regions to enhance accountability and streamline operations, aligning with recent leadership changes. This reorganization, effective from the fiscal 2026 first quarter, involves reporting results by four new geographic regions: The Americas, EUKEM, Asia/Pacific, and Mainland China. The changes in reporting methodology, such as excluding intercompany royalty impacts and reallocating corporate expenses, aim to reflect a global business perspective. These adjustments do not affect the company’s operating segments or previously reported consolidated results, but they provide a consistent basis for historical financial information.

The most recent analyst rating on (EL) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on The Estée Lauder Companies stock, see the EL Stock Forecast page.

Estée Lauder’s Earnings Call: Mixed Sentiments and Strategic Plans

The recent earnings call for Estée Lauder presented a mixed sentiment, reflecting both achievements and challenges faced by the company. While there were significant efforts in expanding gross margins and gaining market shares in key regions, these were offset by notable challenges such as a decline in travel retail and operating margin contraction. The overall sentiment was thus a blend of optimism and caution.

Estée Lauder Reports Fiscal 2025 Results Amid Strategic Shifts

Estée Lauder Companies Inc., a leader in the global beauty industry, specializes in skincare, makeup, fragrance, and hair care products, and is known for its prestigious brand portfolio. The company recently reported its fiscal 2025 results, highlighting strategic progress under new leadership despite an 8% decline in net sales compared to the previous year. Key financial metrics showed a gross margin expansion to 74.0%, although the company faced a significant operating loss due to impairment charges and restructuring costs. The company achieved market share gains in key regions like China and Japan, and introduced innovative products across its brands. Looking ahead, Estée Lauder is focused on restoring sales growth and improving profitability, with a strategic plan aimed at achieving a double-digit operating margin in the coming years.