Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Estee Lauder Companies Inc

EL · NYSE · Consumer

Fundamental quality

DEMANDING

43

out of 100

Estee Lauder Companies Inc is going through a tough financial stretch: it hasn't been profitable over the last twelve months. On fundamental quality it scores 43 out of 100, profiling it as a company with demanding fundamentals. Its weakest area is its growth (revenue +0.6%/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
30

Revenue growth: 0.6%

II.Profitability
42

Net margin: -1.7% · ROE: -6.2% · ROIC: 3.4%

III.Financial health
58

Net debt/EBITDA: 3.39x · FCF: 8.7%

Source: SEC EDGAR · TTM through 31/03/2026

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 7%
ROEbeats 6%
Growthbeats 12%
Cash generationbeats 61%
Less debtbeats 17%

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 (74.7%), pointing to pricing power.
  • Positive free cash flow year after year, a self-funding business.

Estee Lauder Companies Inc risks and weaknesses

  • No profits over the last twelve months (negative EPS).
  • Losses over the last twelve months (net margin of -1.7%).
  • It has slipped into losses after years of profit.
  • Its net debt has grown over the period.

Estee Lauder Companies Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
202014,2946841,6571,114
202116,2152,8752,994611
202217,7372,4082,0001,455
202315,9101,0107284,085
202415,6084091,4414,376
202514,326-1,1336704,396

Between 2020 and 2025, revenue went from $14,294M to $14,326M (+0%) and net income went from $684M to -$1,133M (-266%).

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

Latest results

Versus the same period a year earlier

Figures for the nine months ended March 31, 2026, versus the nine months ended March 31, 2025 (SEC filings):

  • Revenue+4.6%

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

$1.71

per share, yearly

92.2% 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 43 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?

Over the last twelve months, no: Estee Lauder Companies Inc posts a negative net margin (-1.7%).

Does Estee Lauder Companies Inc have a lot of debt?

Yes, its leverage is high: net debt is 3.39 times its EBITDA, and it has been rising.

Is Estee Lauder Companies Inc growing?

Its revenue has grown 0.6% 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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