Morningstar

L'Oreal SA OR

Morningstar Rating
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Stock XPAR Rating as of
€394.30 +2.70 (0.69%)
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As of Delayed Price Closed

Company Report

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Wide-Moat L'Oreal Poised to Expand With Top Brands and Innovation Across All Beauty Categories

Dan Su

As the largest beauty product maker globally, L’Oreal has built an impressive collection of top-selling beauty brands balanced across core categories (skin care, color cosmetics, hair care, and fragrances) that straddle the premium and mass segments. We believe its strong brand intangibles based on innovation, marketing, and consumer experience, coupled with scale-based cost advantages, should support a durable competitive edge, enabling the firm to deliver excess returns for more than 20 years. As such, we award L’Oreal a wide economic moat rating.

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Price vs Fair Value

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OR is trading at a 658% premium.
Price
€391.60
Fair Value
€464.00
Uncertainty
Medium
1-Star Price
€357.80
5-Star Price
€576.00
Economic Moat
Gqh
Capital Allocation
Ftxsnkrx

Bulls Say, Bears Say

Bulls

L’Oreal is poised to capture structural growth opportunities in the beauty market thanks to its well-balanced category exposure and strong positions across brick-and-mortar and digital channels.

Bears

As the largest beauty company globally, L’Oreal is susceptible to factors such as macroeconomic headwinds and geopolitical tension that could pressure consumers’ desire and purchasing power for beauty products.

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News

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Trading Information

Previous Close Price
€391.60
Day Range
€391.50–399.45
52-Week Range
€364.55–461.85
Bid/Ask
€391.05 / €395.00
Market Cap
€210.44 Bil
Volume/Avg
355,807 / 357,066

Key Statistics

Price/Earnings (Normalized)
29.79
Price/Sales
4.92
Dividend Yield (Trailing)
1.69%
Dividend Yield (Forward)
1.69%
Total Yield
1.93%

Company Profile

Founded in 1909, L’Oreal has grown into the largest beauty company in the world, participating in categories including skincare (40% of sales), makeup (20%), haircare (27%), fragrance (9%), and sanitary products (4%). The firm also has a diversified geographic footprint, generating 32% of sales in its home market of Western Europe, 27% from North America, 26% in North Asia, and the rest from various emerging markets across South Asia, Latin America, and Africa. L’Oreal owns a mix of premium and mass beauty brands sold through a wide range of channels such as mass retail, drugstores, department stores, travel retail, e-commerce, hair salons, and medi-spas. Leading brands include Lancome, Yves Saint Laurent, Maybelline, Kiehl’s, L’Oreal Paris, Kerastase, CeraVe, Garnier, and Armani.
Sector
Consumer Defensive
Industry
Household & Personal Products
Stock Style Box
Large Growth
Total Number of Employees
94,605
Website
https://www.loreal.com

Competitors

Valuation

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Metric
OR
PG
EL
Price/Earnings (Normalized)
 29.7926.3637.35
Price/Book Value
 7.078.076.56
Price/Sales
 4.925.062.25
Price/Cash Flow
 25.8320.9520.27
Price/Earnings
OR
PG
EL

Financial Strength

Metric
OR
PG
EL
Quick Ratio
 0.570.460.90
Current Ratio
 1.010.731.39
Interest Coverage
 25.9120.772.60
Quick Ratio
OR
PG
EL

Profitability

Metric
OR
PG
EL
Return on Assets (Normalized)
 12.72%13.43%6.08%
Return on Equity (Normalized)
 22.90%33.48%24.96%
Return on Invested Capital (Normalized)
 16.77%20.04%9.54%
Return on Assets
OR
PG
EL

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