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The Estée Lauder Companies
(NYSE:EL)
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Rating:53Neutral
Price Target:
$86.00
▲(7.11% Upside)
Action:Reiterated
Date:08/19/26
The score is held down primarily by weak financial fundamentals (thin profitability and high leverage despite improved cash flow) and an unfavorable valuation signal (negative P/E). These are partially offset by a constructive earnings-call outlook with guided margin/EPS improvement and steady technicals that are neutral-to-slightly positive but not yet a strong long-term uptrend.
Positive Factors
Prestige brand portfolio strength
A broad portfolio of globally recognized prestige brands supports pricing power, consumer loyalty and cross-category reach. Continued growth from The Ordinary and billion-dollar brands strengthens the platform and helps diversify performance across consumer segments.
Negative Factors
Elevated leverage and limited balance-sheet flexibility
High leverage reduces financial flexibility while profitability remains weak, making the company more sensitive to operating setbacks. If the recovery slows, debt obligations could constrain investment, shareholder returns and the ability to absorb further restructuring costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Prestige brand portfolio strength
A broad portfolio of globally recognized prestige brands supports pricing power, consumer loyalty and cross-category reach. Continued growth from The Ordinary and billion-dollar brands strengthens the platform and helps diversify performance across consumer segments.
Read all positive factors
The Estée Lauder Companies Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks 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.
Breaks 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.
Data provided by:
The Fly
The FlyThe Estée Lauder Companies (EL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.51B
Dividend Yield1.66%
Average Volume (3M)2.83M
Price to Earnings (P/E)―
Beta (1Y)1.56
Revenue Growth0.71%
EPS Growth71.47%
CountryUS
Employees44,460
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.51
Shares Outstanding247,287,570
10 Day Avg. Volume2,079,471
30 Day Avg. Volume2,832,349
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)7.53
Price to Sales (P/S)2.04
P/FCF Ratio43.43
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$98.43Price Target Upside22.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)3.19
Revenue Forecast (FY)$15.56B
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 p...
How the Company Makes Money
The Estée Lauder Companies primarily makes money by selling prestige beauty products across several product categories and distribution channels under a portfolio of brands.
Key revenue streams
- Product sales by category: Revenue is generated fr...
The Estée Lauder Companies Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
The call conveyed clear operational and financial improvement: the company returned to organic growth, delivered strong margin expansion, materially higher EPS, robust cash generation, and meaningful brand and channel momentum (online, Fragrance, China). At the same time, the company incurred substantial restructuring charges ($823M) and acknowledged remaining category and regional weaknesses (Hair Care, some geographic disruptions) and near-term cash flow headwinds from restructuring payments. Management signaled confidence with raised fiscal '27 margin targets and a concrete plan to further diversify growth, positioning the company for continued improvement while recognizing transitional costs and pockets of underperformance.Positive Updates
Return to Organic Growth
Organic net sales rose 3% in fiscal 2026 (reported sales +5%), marking a return to growth with positive sales performance every quarter and sequential improvement across most brands and regions.
Negative Updates
Restructuring Charges and Cash Impact
The company recorded $823 million of cumulative PRGP charges in fiscal '26 (primarily employee-related). Fiscal '27 net cash flows from operations are expected to decline to $1.3–$1.4 billion due to higher restructuring payments and increased working capital needs.
Read all updates
Q4-2026 Updates
Positive
Negative
Return to Organic Growth
Organic net sales rose 3% in fiscal 2026 (reported sales +5%), marking a return to growth with positive sales performance every quarter and sequential improvement across most brands and regions.
Read all positive updates
Company Guidance
Management guided fiscal 2027 to organic net sales growth of 3–5% (stronger in H1 than H2; EUKEM to improve in H2), operating margin of 12.7%–13.5% (vs. FY26 operating margin 11.2%, +320 bps), an effective tax rate of ~33%–34% (vs. FY26 adjusted ETR 35.7%), diluted EPS of $3.10–$3.35 (assuming ~368M shares), and net cash from operations of $1.3–$1.4B (vs. $1.8B in FY26) as most PRGP cash payments fall in FY27; CapEx is expected at ~4% of sales (FY26 CapEx $457M), innovation as a percent of sales is targeted to rise 200–250 bps (FY26 innovation = 23% of sales), and management expects modest gross‑margin expansion plus continued SG&A leverage from PRGP to drive further profitability into FY28.The Estée Lauder Companies Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
40
Negative
Cash Flow
62
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.05B | 14.29B | 15.61B | 15.91B | 17.74B | 16.21B |
| Gross Profit | 11.36B | 10.56B | 11.18B | 11.35B | 13.43B | 12.38B |
| EBITDA | 1.43B | 193.00M | 1.98B | 2.40B | 3.93B | 4.16B |
| Net Income | 182.00M | -1.13B | 390.00M | 1.01B | 2.39B | 2.87B |
Balance Sheet | ||||||
| Total Assets | 19.76B | 19.89B | 21.68B | 23.41B | 20.91B | 21.97B |
| Cash, Cash Equivalents and Short-Term Investments | 3.50B | 2.92B | 3.40B | 4.03B | 3.96B | 4.96B |
| Total Debt | 8.34B | 9.44B | 9.83B | 10.17B | 7.64B | 8.10B |
| Total Liabilities | 15.96B | 16.03B | 16.36B | 17.00B | 14.48B | 15.02B |
| Stockholders Equity | 3.81B | 3.87B | 5.31B | 5.58B | 5.59B | 6.06B |
Cash Flow | ||||||
| Free Cash Flow | 1.32B | 670.00M | 1.44B | -1.56B | 2.00B | 2.99B |
| Operating Cash Flow | 1.77B | 1.27B | 2.36B | 1.73B | 3.04B | 3.63B |
| Investing Cash Flow | -481.00M | -644.00M | -1.71B | -3.22B | -960.00M | -1.86B |
| Financing Cash Flow | -658.00M | -1.12B | -1.29B | 1.59B | -3.02B | -1.89B |
The Estée Lauder Companies Technical Analysis
Negative
80.29
Price Trends
84.18
Positive
81.30
Positive
91.12
Negative
Market Momentum
0.72
Positive
47.65
Neutral
22.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EL, the sentiment is Negative. The current price of 80.29 is below the 20-day moving average (MA) of 85.04, below the 50-day MA of 84.18, and below the 200-day MA of 91.12, indicating a neutral trend. The MACD of 0.72 indicates Positive momentum. The RSI at 47.65 is Neutral, neither overbought nor oversold. The STOCH value of 22.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
The Estée Lauder Companies Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $3.58B | 21.56 | 19.15% | 2.61% | 2.93% | 4.24% | |
78 Outperform | $332.67B | 21.27 | 29.84% | 2.91% | 3.26% | 1.15% | |
70 Outperform | $131.54B | 20.46 | 35.40% | 3.71% | -17.45% | 8.84% | |
69 Neutral | $5.53B | 93.96 | 5.18% | ― | 31.23% | -42.14% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | $2.35B | -4.32 | -15.12% | ― | -3.57% | -32.30% | |
53 Neutral | $30.51B | -125.35 | -6.29% | 1.74% | 0.71% | 71.47% |
* Consumer Defensive Sector Average
EL
The Estée Lauder Companies
98.01
12.69
14.88%
IPAR
Inter Parfums
117.01
7.49
6.84%
PG
Procter & Gamble
144.38
-10.57
-6.82%
UL
Unilever
63.18
-2.64
-4.01%
COTY
Coty
3.03
-1.83
-37.65%
ELF
e.l.f. Beauty
99.65
-20.79
-17.26%
The Estée Lauder Companies Corporate Events
Executive/Board Changes
Estée Lauder Announces Upcoming Retirement of Board Member
Neutral
Jul 24, 2026
The Estée Lauder Companies Inc. announced that board member Jennifer Hyman, a Class I director who has served since 2018, will retire from its Board of Directors effective November 16, 2026, one day before the company’s 2026 Annual Meet...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.