Fundamental analysis · SEC EDGAR · as of 30/06/2026

Fundamental analysis of Estee Lauder Companies Inc

EL · NYSE · Consumer

Fundamental quality

DEMANDING

42

out of 100

Estee Lauder Companies Inc earns a fundamental-quality score of 42 out of 100, profiling it as a company with demanding fundamentals. Its score rests mainly on its financial strength (net debt 2.42× EBITDA). Its weakest area is its growth (revenue -1.5%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Estée Lauder is the premium beauty group: its brands (La Mer, Clinique, MAC, Estée Lauder itself) live off high-end skincare. Years of dependence on the Chinese consumer and Asian duty-free hurt badly when that engine stalled.

What will shape its future

  • The recovery (or not) of luxury consumption in China, its biggest market and biggest wound.
  • Travel-retail (duty-free) inventory, where much of the problem got stuck.
  • Competition from digital-native newcomers eroding the classic houses.

Breakdown by area

I.Growth
8

EPS growth: -42.3% · Revenue growth: -1.5%

II.Profitability
51

Net margin: 1.2% · ROE: 4.8% · ROIC: 6.7%

III.Financial health
66

Net debt/EBITDA: 2.42x · FCF: 8.7%

Source: SEC EDGAR · as of 30/06/2026

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 98 Consumer companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 20%
ROEbeats 20%
Growthbeats 6%
Cash generationbeats 59%
Less debtbeats 30%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Estee Lauder Companies Inc strengths

  • High gross margin (75.5%), pointing to pricing power.
  • Positive free cash flow year after year, a self-funding business.

Estee Lauder Companies Inc risks and weaknesses

  • Shrinking margins: net margin has fallen from 18% to 1% in recent years.
  • Declining revenue (-1.5% annualized).
  • Declining earnings per share (-42.3% annualized).
  • Its net debt has grown over the period.

Estee Lauder Companies Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
202116,2152,8752,994611
202217,7372,4082,0001,455
202315,9101,0107284,085
202415,6084091,4414,376
202514,326-1,1336704,396
202615,0491821,3163,808

Between 2021 and 2026, revenue went from $16,215M to $15,049M (-7%) and net income went from $2,875M to $182M (-94%). Meanwhile, its margins have narrowed (from 18% to 1%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score4342
  • Net margin-1.7%1.2%
  • ROE-6.2%4.8%
  • Revenue growth0.6%-1.5%
  • Net debt/EBITDA3.39×2.42×

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$1.4

per share, yearly

38.6% of free cash flow

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Estee Lauder Companies Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Estee Lauder Companies Inc a good company to invest in?

In terms of business quality, Estee Lauder Companies Inc scores 42 out of 100 in our analysis, placing it as a company with demanding fundamentals. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Estee Lauder Companies Inc a profitable company?

Estee Lauder Companies Inc is profitable, with a net margin of 1.2%, though a thin one.

Does Estee Lauder Companies Inc have a lot of debt?

A moderate level: its net debt is 2.42 times its EBITDA.

Is Estee Lauder Companies Inc growing?

Its revenue has fallen 1.5% annualized in recent years.

Does Estee Lauder Companies Inc generate cash?

Yes. It converts about 8.7% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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