(OR) L’Oreal - Overview
Sector: Consumer Defensive | Industry: Household & Personal Products | Exchange: PA (France) | Market Cap: 196.246m EUR | Total Return: 6.6% in 12m
Avg Turnover: 137M
Warnings
No concerns identified
Tailwinds
No distinct edge detected
L’Oréal S.A. is a global leader in the personal care products industry, headquartered in France and operating across four primary divisions: Consumer Products, Luxe, Professional Products, and Dermatological Beauty. The company maintains a diversified portfolio of over 35 global brands, including Lancôme, CeraVe, and Maybelline, covering skincare, makeup, haircare, and fragrances.
The business model relies on a multi-channel distribution strategy that spans mass-market retail, e-commerce, travel retail, and professional salons. This diversification allows the company to capture value across different price points, from accessible mass-market goods to premium luxury items. In the beauty sector, high brand equity and continuous research and development are critical barriers to entry, as consumer loyalty often depends on perceived product efficacy and brand prestige.
For a deeper dive into the companys valuation and historical performance, consider reviewing the detailed metrics on ValueRay.
Founded in 1909, L’Oréal has expanded its geographic footprint to include significant operations in North Asia, North America, and Europe. Its Dermatological Beauty division represents a growing segment within the industry, focusing on medical-grade skincare distributed through pharmacies and medi-spas.
- Luxe division performance hinges on rebounding high-end consumer demand in mainland China
- Dermatological Beauty segment maintains double-digit growth through clinical skincare expansion
- Global advertising and promotion expenditure directly impacts operating profit margins
- E-commerce penetration and digital transformation drive direct-to-consumer revenue scaling
- Raw material price volatility and packaging costs influence gross margin stability
| Net Income: 10.3b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.22 > 0.02 and ΔFCF/TA 9.79 > 1.0 |
| NWC/Revenue: 8.96% < 20% (prev 0.53%; Δ 8.43% < -1%) |
| CFO/TA 0.27 > 3% & CFO 16.9b > Net Income 10.3b |
| Net Debt (8.73b) to EBITDA (17.3b): 0.51 < 3 |
| Current Ratio: 1.44 > 1.5 & < 3 |
| Outstanding Shares: last quarter (535.8m) vs 12m ago -0.12% < -2% |
| Gross Margin: 74.89% > 18% (prev 0.74%; Δ 7.42k% > 0.5%) |
| Asset Turnover: 132.8% > 50% (prev 80.65%; Δ 52.17% > 0%) |
| Interest Coverage Ratio: 27.24 > 6 (EBITDA TTM 17.3b / Interest Expense TTM 567.1m) |
| A: 0.11 (Total Current Assets 22.2b - Total Current Liabilities 15.4b) / Total Assets 61.8b |
| B: 0.39 (Retained Earnings 24.3b / Total Assets 61.8b) |
| C: 0.27 (EBIT TTM 15.5b / Avg Total Assets 57.4b) |
| D: 1.17 (Book Value of Equity 31.4b / Total Liabilities 26.8b) |
| Altman-Z'' = 5.05 = AAA |
| DSRI: 0.50 (Receivables 5.73b/6.42b, Revenue 76.2b/42.7b) |
| GMI: 0.99 (GM 74.89% / 74.18%) |
| AQI: 0.94 (AQ_t 0.55 / AQ_t-1 0.58) |
| SGI: 1.78 (Revenue 76.2b / 42.7b) |
| TATA: -0.11 (NI 10.3b - CFO 16.9b) / TA 61.8b) |
| Beneish M = -3.03 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at EUR 382.55 with a total of 1,444,652 shares traded.
Over the past week, the price has changed by +5.78%,
over one month by +4.64%,
over three months by -1.85% and
over the past year by +6.55%.
L’Oreal has no consensus analysts rating.
P/E Trailing = 32.1654
P/E Forward = 26.3158
P/S = 4.4549
P/B = 5.5229
P/EG = 3.0451
Revenue TTM = 76.2b EUR
EBIT TTM = 15.5b EUR
EBITDA TTM = 17.3b EUR
Long Term Debt = 8.07b EUR (from longTermDebt, last quarter)
Short Term Debt = 2.48b EUR (from shortTermDebt, last quarter)
Debt = 13.7b EUR (from shortLongTermDebtTotal, last quarter) + Leases 1.80b
Net Debt = 8.73b EUR (calculated: Debt 13.7b - CCE 4.99b)
Enterprise Value = 205b EUR (196b + Debt 13.7b - CCE 4.99b)
Interest Coverage Ratio = 27.24 (Ebit TTM 15.5b / Interest Expense TTM 567.1m)
EV/FCF = 14.85x (Enterprise Value 205b / FCF TTM 13.8b)
FCF Yield = 6.74% (FCF TTM 13.8b / Enterprise Value 205b)
FCF Margin = 18.11% (FCF TTM 13.8b / Revenue TTM 76.2b)
Net Margin = 13.53% (Net Income TTM 10.3b / Revenue TTM 76.2b)
Gross Margin = 74.89% ((Revenue TTM 76.2b - Cost of Revenue TTM 19.1b) / Revenue TTM)
Gross Margin QoQ = 78.70% (prev 74.67%)
Tobins Q-Ratio = 3.32 (Enterprise Value 205b / Total Assets 61.8b)
Interest Expense / Debt = 4.14% (Interest Expense 567.1m / Debt 13.7b)
Taxrate = 26.99% (1.02b / 3.78b)
NOPAT = 11.3b (EBIT 15.5b * (1 - 26.99%))
Current Ratio = 1.44 (Total Current Assets 22.2b / Total Current Liabilities 15.4b)
Debt / Equity = 0.39 (Debt 13.7b / totalStockholderEquity, last quarter 35.0b)
Debt / EBITDA = 0.51 (Net Debt 8.73b / EBITDA 17.3b)
Debt / FCF = 0.63 (Net Debt 8.73b / FCF TTM 13.8b)
Total Stockholder Equity = 32.2b (last 4 quarters mean from totalStockholderEquity)
RoA = 17.97% (Net Income 10.3b / Total Assets 61.8b)
RoE = 32.01% (Net Income TTM 10.3b / Total Stockholder Equity 32.2b)
RoCE = 38.35% (EBIT 15.5b / Capital Employed (Equity 32.2b + L.T.Debt 8.07b))
RoIC = 23.06% (NOPAT 11.3b / Invested Capital 48.9b)
WACC = 6.30% (E(196b)/V(210b) * Re(6.53%) + D(13.7b)/V(210b) * Rd(4.14%) * (1-Tc(0.27)))
Discount Rate = 6.53% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -53.94 | Cagr: -1.93%
[DCF] Terminal Value 77.97% ; FCFF base≈10.9b ; Y1≈12.5b ; Y5≈18.5b
[DCF] Fair Price = 504.0 (EV 278b - Net Debt 8.73b = Equity 269b / Shares 533.8m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -63.47 | EPS CAGR: -2.38% | SUE: N/A | # QB: 0
Revenue Correlation: -26.97 | Revenue CAGR: -3.99% | SUE: -0.02 | # QB: 0
EPS current Year (2026-12-31): EPS=13.57 | Chg30d=+0.03% | Revisions=+48% | GrowthEPS=+6.8% | GrowthRev=+4.9%
EPS next Year (2027-12-31): EPS=14.72 | Chg30d=+0.19% | Revisions=+45% | GrowthEPS=+8.5% | GrowthRev=+5.7%
[Analyst] Revisions Ratio: +48%