The Estée Lauder Companies (1ELX) AI Stock Analysis

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The Estée Lauder Companies

(Milan:1ELX)

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Positive Factors

Raised Growth and Margin OutlookHigher organic growth and margin guidance indicates improving execution across the portfolio and greater confidence in the recovery plan. If delivered, stronger sales productivity and operating leverage should support more durable earnings and cash-flow improvement over the next several quarters.

Negative Factors

High LeverageHeavy leverage reduces financial flexibility and leaves less capacity to absorb weaker operating conditions or fund strategic investments internally. It also increases the importance of sustained cash generation, since a downturn could place greater pressure on debt servicing and capital allocation.

The Estée Lauder Companies (1ELX) vs. iShares MSCI Italy ETF (EWI)

Market Cap: EUR 38.19B
Dividend Yield: 1.28%
Average Volume (3M): 101
Price to Earnings (P/E): 103.3
Beta (1Y): 0.88
Revenue Growth: 0.73%
EPS Growth: ―
Country: Italy
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...

The Estée Lauder Companies Earnings Call Summary

Earnings Call Date:Nov 01, 2026(Q1-2027)|% Change Since:3.90%|Next Earnings Date:Feb 02, 2027

Earnings Call SentimentPositive

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.

Positive Updates

Strong First-Quarter Sales Growth

Reported sales increased 7% and organic net sales rose 6%, with 3 of 4 categories growing and every geographic region delivering growth. The company said this represented its fifth consecutive quarter of organic sales growth.

Negative Updates

Second-Half Net Sales Growth Expected to Moderate

Management expects the first half of fiscal 2027 to be stronger than the second half because innovation is more heavily phased into the first half and the company will lap a higher Travel Retail base in the second half. Retail sales are expected to remain strong, but net sales growth is expected to be lower in the back half.

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 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

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

IT:1ELX against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPAR	74Outperform	$3.84B	22.39	19.15%	2.73%	2.93%	4.24%
PG	72Outperform	$379.10B	24.01	29.55%	2.67%	3.52%	-3.74%
KVUE	70Outperform	$37.09B	21.94	16.06%	5.40%	3.50%	17.82%
ELF	65Neutral	$6.53B	111.36	5.18%	―	31.23%	-42.14%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
COTY	62Neutral	$3.06B	-4.73	-18.06%	―	-1.46%	-60.87%

* Consumer Defensive Sector Average

Performance Comparison

IT:1ELX and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IT:1ELX	Estée Lauder	100.10	23.18	30.14%
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%

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.

The Estée Lauder Companies AI Stock Analysis