Want to see FR:OR full AI Analyst Report?
Top Page
L'Oreal
(OR)
Select Model
Select Model
Rating:78Outperform
Price Target:
€497.00
▲(27.93% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by strong financial performance (premium margins, solid multi-year growth, and reliable cash generation), tempered by 2025 pressure signals (lower net income/free cash flow and higher debt). Technicals are supportive with price above key moving averages and positive MACD, while valuation is the main constraint due to a high P/E despite a modest dividend yield.
Positive Factors
High Profitability
Gross margins of roughly 72%–74%, operating margins of 17%–20%, and net margins of 14%–15% indicate substantial profitability across the portfolio. These levels can support brand investment, innovation, and resilience while preserving earnings capacity through normal cost or mix shifts.
Negative Factors
2025 Net Income Decline
Revenue rose in 2025 but net income declined versus 2024, indicating that growth did not fully translate into bottom-line performance. If sustained, pressure from costs, product mix, or below-the-line items could weaken earnings compounding and reduce the benefit of continued sales expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Gross margins of roughly 72%–74%, operating margins of 17%–20%, and net margins of 14%–15% indicate substantial profitability across the portfolio. These levels can support brand investment, innovation, and resilience while preserving earnings capacity through normal cost or mix shifts.
Read all positive factors
L'Oreal (OR) vs. iShares MSCI France ETF (EWQ)
Market Cap
€232.04B
Dividend Yield1.65%
Average Volume (3M)350.86K
Price to Earnings (P/E)36.9
Beta (1Y)0.57
Revenue Growth3.46%
EPS Growth3.19%
CountryFR
Employees94,610
SectorGeneral
Sector StrengthN/A
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)11.82
Shares Outstanding533,314,940
10 Day Avg. Volume400,171
30 Day Avg. Volume350,864
Financial Highlights & Ratios
PEG Ratio-7.51
Price to Book (P/B)5.60
Price to Sales (P/S)4.44
P/FCF Ratio27.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€424.58Price Target Upside9.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)13.72
Revenue Forecast (FY)€47.54B
L'Oreal Business Overview & Revenue Model
Company Description
L'Oréal S.A., a leading global beauty enterprise, manufactures and markets a comprehensive array of cosmetic items for male and female consumers across the globe, operating through its subsidiaries. The company structures its vast operations into ...
How the Company Makes Money
L’Oréal primarily makes money by selling branded beauty and personal care products to retailers, distributors, and professional customers, and increasingly through direct-to-consumer digital commerce. Its revenue model is largely product-sales dri...
L'Oreal Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
80
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.35B | 44.05B | 43.49B | 41.18B | 38.26B | 32.29B |
| Gross Profit | 34.76B | 32.74B | 32.26B | 30.42B | 27.68B | 23.85B |
| EBITDA | 10.90B | 10.69B | 10.39B | 9.94B | 9.16B | 7.87B |
| Net Income | 6.31B | 6.13B | 6.41B | 6.18B | 5.71B | 4.60B |
Balance Sheet | ||||||
| Total Assets | 66.35B | 61.82B | 56.35B | 51.86B | 46.84B | 43.01B |
| Cash, Cash Equivalents and Short-Term Investments | 4.05B | 9.87B | 4.08B | 4.32B | 2.62B | 2.72B |
| Total Debt | 16.71B | 11.92B | 8.49B | 8.69B | 5.65B | 6.30B |
| Total Liabilities | 32.47B | 26.82B | 23.22B | 22.77B | 19.66B | 19.42B |
| Stockholders Equity | 33.84B | 34.95B | 33.13B | 29.07B | 27.18B | 23.59B |
Cash Flow | ||||||
| Free Cash Flow | 7.54B | 7.16B | 6.64B | 6.12B | 4.93B | 5.65B |
| Operating Cash Flow | 8.99B | 8.66B | 8.29B | 7.60B | 6.28B | 6.73B |
| Investing Cash Flow | -11.77B | -1.41B | -3.70B | -4.14B | -2.22B | -1.63B |
| Financing Cash Flow | 1.98B | -1.40B | -4.79B | -1.61B | -4.08B | -8.86B |
L'Oreal Technical Analysis
Positive
388.50
Price Trends
387.22
Positive
385.07
Positive
375.40
Positive
Market Momentum
11.59
Negative
80.96
Negative
94.61
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:OR, the sentiment is Positive. The current price of 388.5 is below the 20-day moving average (MA) of 392.94, above the 50-day MA of 387.22, and above the 200-day MA of 375.40, indicating a bullish trend. The MACD of 11.59 indicates Negative momentum. The RSI at 80.96 is Negative, neither overbought nor oversold. The STOCH value of 94.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:OR.
L'Oreal Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | €232.04B | 36.90 | 18.33% | 1.65% | 3.46% | 3.19% | |
71 Outperform | €3.07B | 25.53 | 16.52% | 2.72% | -4.21% | -15.38% | |
70 Outperform | €189.76B | 17.56 | 16.05% | 3.37% | -3.83% | -0.26% | |
64 Neutral | €75.66B | 16.62 | 18.39% | 3.41% | -3.83% | -0.09% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
47 Neutral | €22.01B | -103.79 | -1.46% | 2.89% | -9.23% | -129.21% | |
43 Neutral | €19.66M | -0.87 | ― | 11.43% | -7.83% | -122.82% |
* General Sector Average
FR:OR
L'Oreal
430.10
66.79
18.38%
FR:CDI
Christian Dior
423.20
-133.43
-23.97%
FR:ITP
Interparfums
34.56
8.17
30.96%
FR:KER
Kering SA
179.50
-143.47
-44.42%
FR:MC
LVMH Moet Hennessy Louis Vuitton
388.25
-211.31
-35.24%
FR:JBOG
Jacques Bogart SA
1.20
-2.82
-70.15%
L'Oreal Corporate Events
L’Oréal Outpaces Global Beauty Market With Strong Nine-Month Sales and E-Commerce Surge
Oct 22, 2026
L’Oréal reported nine-month 2026 sales of €35.33 billion, up 6.9% like-for-like and 7.7% on a reported basis, outpacing the global beauty market. Growth was broad-based, with Professional Products and Dermatological Beauty deliver...
L’Oréal Reports Updated Share Capital and Voting Rights Structure
Oct 6, 2026
L’Oréal, the global beauty leader, operates an extensive portfolio of 40 international brands spanning cosmetics, skincare, haircare, and fragrance, supported by a broad multichannel distribution network. The group combines significant ...
L’Oréal Raises €2 Billion in Triple-Tranche Bond to Bolster Corporate Funding
Sep 24, 2026
L’Oréal has priced a €2 billion triple-tranche euro bond, comprising a €850 million two-year floating-rate note, a €500 million three-year fixed-rate bond and a €650 million seven-year fixed-rate bond. The issue,...
L’Oréal Updates Market on Share Capital and Voting Rights Structure
Sep 2, 2026
L’Oréal has confirmed that its share capital stands at €106.53 million, represented by 532,649,823 shares as of 31 August 2026, with an identical number of actual and theoretical voting rights. The disclosure, made in line with Fr...
L’Oréal Updates Share Capital and Voting Rights Structure as of July 31, 2026
Aug 6, 2026
L’Oréal disclosed that as of July 31, 2026, its share capital consists of 532,649,814 shares, all carrying voting rights, with no difference between theoretical and real voting rights after treasury shares are taken into account. The pu...
L’Oréal Files and Publishes 2026 Half-Year Financial Report
Jul 31, 2026
L’Oréal has published its Half-Year Financial Report for the period ending 30 June 2026, making it available to the public and filing it with the French securities regulator. The document, accessible on the group’s investor websit...
L’Oréal Extends Lead in Global Beauty Market with Strong H1 2026 Results
Jul 29, 2026
L’Oréal reported first-half 2026 sales of €23.77 billion, with adjusted like-for-like growth of 6.5%, outpacing the global beauty market and delivering record operating margins of 21.3%. Growth was broad-based across all divisions...
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.