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Estée Lauder Companies

NYSE:EL
Snowflake Description

Average dividend payer with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EL
NYSE
$55B
Market Cap
  1. Home
  2. US
  3. Household
Company description

The Estée Lauder Companies Inc. manufactures and markets skin care, makeup, fragrance, and hair care products. The last earnings update was 58 days ago. More info.


Add to Portfolio Compare Print
  • Estée Lauder Companies has significant price volatility in the past 3 months.
EL Share Price and Events
7 Day Returns
-4.1%
NYSE:EL
-8.8%
US Personal Products
-2%
US Market
1 Year Returns
-5.8%
NYSE:EL
-21.8%
US Personal Products
-15.1%
US Market
EL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Estée Lauder Companies (EL) -4.1% -18.7% -24.7% -5.8% 83.1% 84.7%
US Personal Products -8.8% -25.5% -30.9% -21.8% 11% -1.3%
US Market -2% -19.7% -23.2% -15.1% 3.7% 14.4%
1 Year Return vs Industry and Market
  • EL outperformed the Personal Products industry which returned -21.8% over the past year.
  • EL outperformed the Market in United States of America which returned -15.1% over the past year.
Price Volatility
EL
Industry
5yr Volatility vs Market

Value

 Is Estée Lauder Companies undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Estée Lauder Companies to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Estée Lauder Companies.

NYSE:EL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:EL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Personal Products Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.597 (1 + (1- 21%) (14.21%))
0.775
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.8 * 5.44%)
6.09%

Discounted Cash Flow Calculation for NYSE:EL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Estée Lauder Companies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:EL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.09%)
2020 1,543.67 Analyst x6 1,455.03
2021 2,087.50 Analyst x6 1,854.65
2022 2,812.60 Analyst x5 2,355.38
2023 2,647.00 Analyst x1 2,089.41
2024 2,950.00 Analyst x1 2,194.87
2025 3,155.93 Est @ 6.98% 2,213.25
2026 3,326.61 Est @ 5.41% 2,198.99
2027 3,469.92 Est @ 4.31% 2,162.01
2028 3,592.67 Est @ 3.54% 2,109.96
2029 3,700.39 Est @ 3% 2,048.43
Present value of next 10 years cash flows $20,681.00
NYSE:EL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $3,700.39 × (1 + 1.74%) ÷ (6.09% – 1.74%)
$86,506.79
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $86,506.79 ÷ (1 + 6.09%)10
$47,887.68
NYSE:EL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $20,681.00 + $47,887.68
$68,568.68
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $68,568.68 / 359.54
$190.71
NYSE:EL Discount to Share Price
Calculation Result
Value per share (USD) From above. $190.71
Current discount Discount to share price of $154.08
= -1 x ($154.08 - $190.71) / $190.71
19.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Estée Lauder Companies is available for.
Intrinsic value
19%
Share price is $154.08 vs Future cash flow value of $190.71
Current Discount Checks
For Estée Lauder Companies to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Estée Lauder Companies's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Estée Lauder Companies's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Estée Lauder Companies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Estée Lauder Companies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:EL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $5.16
NYSE:EL Share Price ** NYSE (2020-04-03) in USD $154.08
United States of America Personal Products Industry PE Ratio Median Figure of 18 Publicly-Listed Personal Products Companies 10.64x
United States of America Market PE Ratio Median Figure of 2,947 Publicly-Listed Companies 12.4x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Estée Lauder Companies.

NYSE:EL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:EL Share Price ÷ EPS (both in USD)

= 154.08 ÷ 5.16

29.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Estée Lauder Companies is overvalued based on earnings compared to the US Personal Products industry average.
  • Estée Lauder Companies is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Estée Lauder Companies's expected growth come at a high price?
Raw Data
NYSE:EL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
16.2%per year
United States of America Personal Products Industry PEG Ratio Median Figure of 6 Publicly-Listed Personal Products Companies 1.57x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.89x

*Line of best fit is calculated by linear regression .

NYSE:EL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.87x ÷ 16.2%

1.84x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Estée Lauder Companies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Estée Lauder Companies's assets?
Raw Data
NYSE:EL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $12.73
NYSE:EL Share Price * NYSE (2020-04-03) in USD $154.08
United States of America Personal Products Industry PB Ratio Median Figure of 43 Publicly-Listed Personal Products Companies 1.73x
United States of America Market PB Ratio Median Figure of 5,144 Publicly-Listed Companies 1.2x
NYSE:EL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:EL Share Price ÷ Book Value per Share (both in USD)

= 154.08 ÷ 12.73

12.11x

* Primary Listing of Estée Lauder Companies.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Estée Lauder Companies is overvalued based on assets compared to the US Personal Products industry average.
X
Value checks
We assess Estée Lauder Companies's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Personal Products industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Personal Products industry average (and greater than 0)? (1 check)
  5. Estée Lauder Companies has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Estée Lauder Companies expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Estée Lauder Companies expected to grow at an attractive rate?
  • Estée Lauder Companies's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Estée Lauder Companies's earnings growth is expected to exceed the United States of America market average.
  • Estée Lauder Companies's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:EL Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:EL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 16.2%
NYSE:EL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 6.1%
United States of America Personal Products Industry Earnings Growth Rate Market Cap Weighted Average 19.1%
United States of America Personal Products Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:EL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:EL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-06-30
2023-06-30 16,519 1
2022-06-30 17,116 3,072 2,318 11
2021-06-30 16,095 2,829 2,196 20
2020-06-30 14,839 2,542 1,674 20
2020-04-04
NYSE:EL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 15,853 2,499 1,864
2019-09-30 15,234 2,466 1,880
2019-06-30 14,863 2,517 1,785
2019-03-31 14,568 2,398 1,814
2018-12-31 14,194 2,396 1,631
2018-09-30 13,933 2,361 1,181
2018-06-30 13,683 2,562 1,108
2018-03-31 13,282 2,468 1,151
2017-12-31 12,769 2,415 1,077
2017-09-30 12,233 2,032 1,382
2017-06-30 11,824 1,790 1,249
2017-03-31 11,576 1,725 1,114

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Estée Lauder Companies's earnings are expected to grow by 16.2% yearly, however this is not considered high growth (20% yearly).
  • Estée Lauder Companies's revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:EL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from Estée Lauder Companies Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-06-30
2023-06-30
2022-06-30 6.46 6.93 6.02 3.00
2021-06-30 6.07 6.69 5.32 8.00
2020-06-30 4.50 5.48 2.71 7.00
2020-04-04
NYSE:EL Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 5.16
2019-09-30 5.19
2019-06-30 4.91
2019-03-31 4.97
2018-12-31 4.45
2018-09-30 3.21
2018-06-30 3.01
2018-03-31 3.13
2017-12-31 2.93
2017-09-30 3.76
2017-06-30 3.40
2017-03-31 3.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Estée Lauder Companies is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Estée Lauder Companies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Estée Lauder Companies has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Estée Lauder Companies performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Estée Lauder Companies's growth in the last year to its industry (Personal Products).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Estée Lauder Companies's year on year earnings growth rate has been positive over the past 5 years.
  • Estée Lauder Companies's 1-year earnings growth exceeds its 5-year average (14.3% vs 10.6%)
  • Estée Lauder Companies's earnings growth has not exceeded the US Personal Products industry average in the past year (14.3% vs 25.5%).
Earnings and Revenue History
Estée Lauder Companies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Estée Lauder Companies Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 15,853.00 1,864.00 9,357.00
2019-09-30 15,234.00 1,880.00 9,074.00
2019-06-30 14,863.00 1,785.00 8,896.00
2019-03-31 14,568.00 1,814.00 8,767.00
2018-12-31 14,194.00 1,631.00 8,689.00
2018-09-30 13,933.00 1,181.00 8,654.00
2018-06-30 13,683.00 1,108.00 8,599.00
2018-03-31 13,282.00 1,151.00 8,241.00
2017-12-31 12,769.00 1,077.00 7,924.00
2017-09-30 12,233.00 1,382.00 7,634.00
2017-06-30 11,824.00 1,249.00 7,529.00
2017-03-31 11,576.00 1,114.00 7,364.00
2016-12-31 11,376.00 1,081.00 7,376.00
2016-09-30 11,292.00 1,100.00 7,355.00
2016-06-30 11,262.00 1,115.00 7,330.00
2016-03-31 11,140.40 1,174.00 7,304.50
2015-12-31 11,063.90 1,181.10 7,197.60
2015-09-30 10,984.40 1,169.80 7,134.60
2015-06-30 10,780.00 1,089.00 7,074.00
2015-03-31 10,981.30 1,193.60 7,082.60
2014-12-31 10,950.60 1,134.70 7,110.70
2014-09-30 10,924.80 1,131.50 7,047.20
2014-06-30 10,968.80 1,204.10 6,985.90
2014-03-31 10,650.90 1,040.40 6,934.50
2013-12-31 10,392.90 1,006.00 6,832.90
2013-09-30 10,307.20 1,021.00 6,751.70
2013-06-30 10,181.70 1,019.80 6,597.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Estée Lauder Companies made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Estée Lauder Companies used its assets less efficiently than the US Personal Products industry average last year based on Return on Assets.
  • Estée Lauder Companies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Estée Lauder Companies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Personal Products industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Estée Lauder Companies has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Estée Lauder Companies's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Estée Lauder Companies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Estée Lauder Companies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Estée Lauder Companies's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Estée Lauder Companies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Estée Lauder Companies Company Filings, last reported 3 months ago.

NYSE:EL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 4,601.00 5,167.00 3,599.00
2019-09-30 4,558.00 3,395.00 2,263.00
2019-06-30 4,411.00 3,412.00 2,990.00
2019-03-31 4,617.00 3,399.00 2,902.00
2018-12-31 4,333.00 3,408.00 2,401.00
2018-09-30 4,430.00 3,544.00 1,993.00
2018-06-30 4,710.00 3,544.00 2,715.00
2018-03-31 4,737.00 3,659.00 2,524.00
2017-12-31 4,589.00 3,787.00 2,499.00
2017-09-30 4,753.00 3,935.00 1,827.00
2017-06-30 4,402.00 3,572.00 1,744.00
2017-03-31 4,135.00 3,896.00 1,840.00
2016-12-31 3,808.00 4,033.00 1,687.00
2016-09-30 3,675.00 2,500.00 1,203.00
2016-06-30 3,587.00 2,242.00 1,401.00
2016-03-31 3,822.40 1,925.30 1,086.70
2015-12-31 3,615.50 1,981.70 1,419.80
2015-09-30 3,502.00 2,066.20 1,087.40
2015-06-30 3,654.30 1,624.90 1,525.10
2015-03-31 3,864.90 1,452.80 1,425.00
2014-12-31 3,829.30 1,389.20 1,372.00
2014-09-30 3,794.20 1,333.00 1,395.40
2014-06-30 3,869.40 1,343.10 1,629.10
2014-03-31 3,682.40 1,346.10 1,530.20
2013-12-31 3,883.10 1,338.80 1,748.00
2013-09-30 3,612.50 1,340.60 1,322.20
2013-06-30 3,301.90 1,344.30 1,495.70
  • Estée Lauder Companies's level of debt (112.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (36.3% vs 112.3% today).
  • Debt is well covered by operating cash flow (48.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 38.5x coverage).
X
Financial health checks
We assess Estée Lauder Companies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Estée Lauder Companies has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Estée Lauder Companies's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.25%
Current annual income from Estée Lauder Companies dividends. Estimated to be 1.31% next year.
If you bought $2,000 of Estée Lauder Companies shares you are expected to receive $25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Estée Lauder Companies's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (2.05%).
  • Estée Lauder Companies's dividend is below the markets top 25% of dividend payers in United States of America (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:EL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
United States of America Personal Products Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 2.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1938 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2.1%
United States of America Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:EL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-06-30
2023-06-30 2.06 1.00
2022-06-30 2.26 9.00
2021-06-30 2.04 13.00
2020-06-30 1.84 13.00
2020-04-04
NYSE:EL Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-06 1.920 1.074
2019-10-31 1.920 0.960
2019-08-19 1.720 0.883
2019-05-01 1.720 0.967
2019-02-05 1.720 1.067
2018-10-31 1.720 1.276
2018-08-20 1.520 1.118
2018-05-02 1.520 1.065
2018-02-02 1.520 1.054
2017-11-01 1.520 1.188
2017-08-18 1.360 1.248
2017-02-02 1.360 1.500
2016-11-02 1.360 1.729
2016-08-19 1.200 1.362
2016-05-03 1.200 1.296
2016-02-05 1.200 1.287
2015-11-02 1.200 1.403
2015-08-17 0.960 1.191
2015-05-05 0.960 1.088
2015-02-05 0.960 1.165
2014-11-04 0.960 1.301
2014-08-15 0.800 1.070
2014-05-02 0.800 1.067
2014-02-05 0.800 1.159
2013-10-31 0.800 1.104
2013-08-15 0.720 1.035
2013-05-02 0.720 1.062
2013-02-05 0.720 1.106
2012-11-01 0.720 1.193
2012-08-17 0.525 0.853
2012-08-14 0.525 0.861
2012-05-07 0.525 0.964
2012-05-04 0.525 0.858
2011-11-03 0.525 0.897
2011-08-22 0.375 0.784
2011-08-15 0.375 0.816
2011-05-06 0.375 0.744
2011-05-05 0.375 0.769
2010-11-09 0.375 0.875
2010-08-20 0.275 0.879
2010-08-12 0.275 0.947
2010-04-27 0.275 0.909
2009-11-13 0.275 0.992
2009-08-19 0.275 1.432
2009-08-13 0.275 1.540
2009-05-05 0.275 1.639
2009-05-04 0.275 1.541

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Estée Lauder Companies's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess Estée Lauder Companies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Estée Lauder Companies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Estée Lauder Companies has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Estée Lauder Companies's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Fabrizio Freda
COMPENSATION $21,435,428
AGE 62
TENURE AS CEO 10.8 years
CEO Bio

Mr. Fabrizio Freda has been the Chief Executive Officer and Director of The Estée Lauder Companies Inc. since July 1, 2009 and has been its President since 2008. Previously, Mr. Freda served as Chief Operating Officer of The Estée Lauder Companies Inc. from 2008 to July 2009. Prior to this, he held various senior positions at Procter & Gamble Company over the span of twenty years. From 1986 to 1988, Mr. Freda directed marketing and strategic planning at Gucci SpA. He has been an Independent Director of BlackRock, Inc. since October 2012. Mr. Freda has extensive experience in product strategy, innovation and global branding. He holds a Business Administration Degree in Economics from Universita' degli Studi di Napoli Federico II in 1981.

CEO Compensation
  • Fabrizio's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Fabrizio's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Estée Lauder Companies management team in years:

7.7
Average Tenure
59
Average Age
  • The average tenure for the Estée Lauder Companies management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

William Lauder

TITLE
Executive Chairman
COMPENSATION
$10M
AGE
59

Fabrizio Freda

TITLE
President
COMPENSATION
$21M
AGE
62
TENURE
10.8 yrs

Tracey Travis

TITLE
Executive VP of Finance & CFO
COMPENSATION
$8M
AGE
57
TENURE
7.7 yrs

John Demsey

TITLE
Executive Group President
COMPENSATION
$9M
AGE
63
TENURE
4.3 yrs

Cedric Prouve

TITLE
Group President of International
COMPENSATION
$10M
AGE
59
TENURE
17.3 yrs

Deborah Krulewitch

TITLE
Senior Vice President of Corporate Administration

Rainey Mancini

TITLE
Senior Vice President of Investor Relations
AGE
49
TENURE
1.9 yrs

Deirdre Stanley

TITLE
Executive VP & General Counsel
AGE
55
TENURE
0.5 yrs

Alexandra Trower

TITLE
Executive Vice President of Global Communications
AGE
55
TENURE
12 yrs

Georgia Garinois-Melenikiotou

TITLE
Executive Vice President of Corporate Marketing
AGE
59
Board of Directors Tenure

Average tenure and age of the Estée Lauder Companies board of directors in years:

10.8
Average Tenure
68
Average Age
  • The average tenure for the Estée Lauder Companies board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Fabrizio Freda

TITLE
President
COMPENSATION
$21M
AGE
62
TENURE
10.8 yrs

Leonard Lauder

TITLE
Chairman Emeritus & Director
COMPENSATION
$3M
AGE
86
TENURE
10.8 yrs

William Lauder

TITLE
Executive Chairman
COMPENSATION
$10M
AGE
59
TENURE
10.8 yrs

Charlene Barshefsky

TITLE
Independent Director
COMPENSATION
$327K
AGE
68
TENURE
19.3 yrs

Irv Hockaday

TITLE
Presiding Director
COMPENSATION
$320K
AGE
83

Rich Zannino

TITLE
Independent Director
COMPENSATION
$312K
AGE
60
TENURE
10.3 yrs

Ronald Lauder

TITLE
Director
AGE
75
TENURE
3.4 yrs

Dick Parsons

TITLE
Director
COMPENSATION
$291K
AGE
71
TENURE
21.3 yrs

Rose Bravo

TITLE
Independent Director
COMPENSATION
$283K
AGE
68
TENURE
17 yrs

Lynn De Rothschild

TITLE
Independent Director
COMPENSATION
$283K
AGE
65
TENURE
20.3 yrs
Who owns this company?
Recent Insider Trading
  • Estée Lauder Companies individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
27. Feb 20 Sell Irvine Hockaday Individual 25. Feb 20 25. Feb 20 -4,000 $193.39 $-771,180
20. Feb 20 Sell The Ronald S. Lauder Foundation, Endowment Arm Company 19. Feb 20 19. Feb 20 -19,300 $213.11 $-4,094,257
09. Dec 19 Sell William Lauder Individual 05. Dec 19 05. Dec 19 -11,318 $196.50 $-2,223,987
20. Nov 19 Sell Sara Moss Individual 20. Nov 19 20. Nov 19 -3,644 $192.74 $-702,345
12. Nov 19 Sell Tracey Travis Individual 11. Nov 19 11. Nov 19 -15,058 $186.80 $-2,812,834
05. Sep 19 Sell Michael O'Hare Individual 04. Sep 19 04. Sep 19 -5,488 $200.63 $-1,101,049
05. Sep 19 Sell Jane Hudis Individual 05. Sep 19 05. Sep 19 -4,705 $204.04 $-960,008
05. Sep 19 Sell John Demsey Individual 04. Sep 19 04. Sep 19 -15,317 $202.55 $-3,091,153
27. Aug 19 Sell The Ronald S. Lauder Foundation, Endowment Arm Company 26. Aug 19 26. Aug 19 -16,140 $200.83 $-3,230,456
21. Aug 19 Sell Alexandra Trower Individual 20. Aug 19 20. Aug 19 -6,608 $203.78 $-1,346,578
15. May 19 Sell Carl Haney Individual 15. May 19 15. May 19 -8,950 $169.03 $-1,512,819
15. May 19 Sell The Ronald S. Lauder Foundation, Endowment Arm Company 14. May 19 14. May 19 -27,830 $167.28 $-4,649,624
15. May 19 Sell Fabrizio Freda Individual 13. May 19 13. May 19 -5,000 $164.42 $-822,100
X
Management checks
We assess Estée Lauder Companies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Estée Lauder Companies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

The Estée Lauder Companies Inc. (NYSE:EL) Earns Among The Best Returns In Its Industry

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Estée Lauder Companies:0.30 = US$2.6b ÷ (US$13b - US$4.6b) (Based on the trailing twelve months to June 2019.) Therefore, Estée Lauder Companies has an ROCE of 30%. … How Estée Lauder Companies's Current Liabilities Impact Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … A medium level of current liabilities boosts Estée Lauder Companies's ROCE somewhat.

Simply Wall St -

Alexandra Trower Is The Executive Vice President of Global Communications of The Estée Lauder Companies Inc. (NYSE:EL) And They Just Sold 42.3% Of Their Shares

See our latest analysis for Estée Lauder Companies Estée Lauder Companies Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the Chairman Emeritus &amp; Director, Leonard Lauder, for US$66m worth of shares, at about US$159 per share. … Estée Lauder Companies insiders didn't buy any shares over the last year. … An insider sold Estée Lauder Companies shares recently, but they didn't buy any.

Simply Wall St -

How Do Analysts See The Estée Lauder Companies Inc. (NYSE:EL) Performing In The Next 12 Months?

Below is a brief commentary around Estée Lauder Companies's earnings outlook going forward, which may give you a sense of market sentiment for the company. … View our latest analysis for Estée Lauder Companies Can we expect Estée Lauder Companies to keep growing? … NYSE:EL Past and Future Earnings, August 21st 2019 From the current net income level of US$1.8b and the final forecast of US$2.6b by 2022, the annual rate of growth for EL’s earnings is 13%.

Simply Wall St -

Are The Estée Lauder Companies Inc. (NYSE:EL) Investors Paying Above The Intrinsic Value?

(NYSE:EL) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $1.9b $2.2b $2.4b $2.6b $2.7b $2.8b $3.0b $3.1b $3.2b $3.3b Growth Rate Estimate Source Analyst x7 Analyst x3 Est @ 9.13% Est @ 7.21% Est @ 5.86% Est @ 4.92% Est @ 4.27% Est @ 3.81% Est @ 3.48% Est @ 3.26% Present Value ($, Millions) Discounted @ 7.79% $1.8k $1.9k $1.9k $1.9k $1.9k $1.8k $1.7k $1.7k $1.6k $1.5k ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $17.7b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … NYSE:EL Intrinsic value, August 18th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

What Does The Estée Lauder Companies Inc.'s (NYSE:EL) P/E Ratio Tell You?

To keep it practical, we'll show how The Estée Lauder Companies Inc.'s (NYSE:EL) P/E ratio could help you assess the value on offer. … See our latest analysis for Estée Lauder Companies How Do I Calculate Estée Lauder Companies's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Estée Lauder Companies: P/E of 37.49 = $186.43 ÷ $4.97 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

If You Had Bought Estée Lauder Companies (NYSE:EL) Stock Five Years Ago, You Could Pocket A 156% Gain Today

For instance, the price of The Estée Lauder Companies Inc. … During five years of share price growth, Estée Lauder Companies achieved compound earnings per share (EPS) growth of 13% per year. … NYSE:EL Past and Future Earnings, July 31st 2019 We know that Estée Lauder Companies has improved its bottom line lately, but is it going to grow revenue?

Simply Wall St -

Here's Why I Think Estée Lauder Companies (NYSE:EL) Is An Interesting Stock

So if you're like me, you might be more interested in profitable, growing companies, like Estée Lauder Companies (NYSE:EL). … View our latest analysis for Estée Lauder Companies How Fast Is Estée Lauder Companies Growing? … So as you can imagine, the fact that Estée Lauder Companies insiders own a significant number of shares certainly appeals to me.

Simply Wall St -

The Estée Lauder Companies Inc. (NYSE:EL): Commentary On Fundamentals

If you're interested in understanding beyond my broad commentary, take a look at the report on Estée Lauder Companies here. … NYSE:EL Income Statement, July 2nd 2019 EL is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy. … Take a look at our free research report of analyst consensus for EL’s outlook.

Simply Wall St -

Is The Estée Lauder Companies Inc. (NYSE:EL) A High Quality Stock To Own?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Estée Lauder Companies: 40% = US$1.8b ÷ US$4.6b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Estée Lauder Companies's Debt And Its 40% ROE Estée Lauder Companies has a debt to equity ratio of 0.74, which is far from excessive. … But It's Just One Metric Return on equity is one way we can compare the business quality of different companies.

Simply Wall St -

Is The Estée Lauder Companies Inc.'s (NYSE:EL) ROE Of 40% Impressive?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Estée Lauder Companies: 40% = US$1.8b ÷ US$4.6b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Estée Lauder Companies Have A Good Return On Equity? … Estée Lauder Companies's Debt And Its 40% ROE While Estée Lauder Companies does have some debt, with debt to equity of just 0.74, we wouldn't say debt is excessive.

Simply Wall St -

Company Info

Description

The Estée Lauder Companies Inc. manufactures and markets skin care, makeup, fragrance, and hair care products. The company offers a range of skin care products, including moisturizers, serums, cleansers, toners, body care, exfoliators, acne care and oil correctors, facial masks, cleansing devices, and sun care products; and makeup products, such as lipsticks, lip glosses, mascaras, foundations, eyeshadows, nail polishes, and powders, as well as compacts, brushes, and other makeup tools. It also provides fragrance products in various forms comprising eau de parfum sprays and colognes, as well as lotions, powders, creams, candles, and soaps; and hair care products that include shampoos, conditioners, styling products, treatment, finishing sprays, and hair color products, as well as sells ancillary products and services. The company offers its products under Estée Lauder, Aramis, Clinique, Lab Series, Origins, M·A·C, Bobbi Brown, La Mer, Aveda, Jo Malone London, Bumble and bumble, Darphin, Smashbox, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, By Kilian, BECCA, Too Faced, RODIN olio lusso, FLIRT!, Kiton, and Tom Ford brands. It also holds license arrangements for Tommy Hilfiger, Donna Karan New York, DKNY, Michael Kors, Ermenegildo Zegna, Dr. Andrew Weil, TOM FORD BEAUTY, AERIN, and Tory Burch brands. The company sells its products through department stores, specialty-multi retailers, upscale perfumeries and pharmacies, and salons and spas; freestanding stores; its own and authorized retailer Websites; third-party online malls; stores in airports and on cruise ships; in-flight and duty-free shops; and self-select outlets. It has operations in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The Estée Lauder Companies Inc. was founded in 1946 and is headquartered in New York, New York.

Details
Name: The Estée Lauder Companies Inc.
EL
Exchange: NYSE
Founded: 1946
$55,397,961,103
359,540,246
Website: http://www.elcompanies.com
Address: The Estée Lauder Companies Inc.
767 Fifth Avenue,
New York,
New York, 10153,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE EL Class A Common Stock New York Stock Exchange US USD 17. Nov 1995
DB ELAA Class A Common Stock Deutsche Boerse AG DE EUR 17. Nov 1995
LSE 0JTM Class A Common Stock London Stock Exchange GB USD 17. Nov 1995
WBAG ESLA Class A Common Stock Wiener Boerse AG AT EUR 17. Nov 1995
BMV EL * Class A Common Stock Bolsa Mexicana de Valores MX MXN 17. Nov 1995
ETLX ELAA Class A Common Stock Eurotlx IT EUR 17. Nov 1995
BOVESPA ELCI34 BDR EA REP 0.5 COM CL 'A' Bolsa de Valores de Sao Paulo BR BRL 17. May 2019
Number of employees
Current staff
Staff numbers
48,000
Estée Lauder Companies employees.
Industry
Personal Products
Household
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/04 04:26
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/02
Last earnings filing: 2020/02/06
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.