The Estee Lauder Companies Inc. [NYSE:EL]: Analyst Rating and Earnings
Equities traders oftentimes stay updated on what leading stock market analysts say about a potential stock purchase. When it comes to The Estee Lauder Companies Inc. [EL], the most recently available average analyst rating is from the quarter that ends in June. On average, stock market experts give EL an Outperform rating. Its stock price has been found in the range of 121.47 to 166.92. This is compared to its latest closing price of $166.52.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The Estee Lauder Companies Inc. [EL] is sitting at 1.92. This is compared to 1 month ago, when its average rating was 2.00.
For the quarter ending in Dec-18 The Estee Lauder Companies Inc. [EL] generated $4.01 billion in sales. That’s 2.06% higher than the average estimate of $3.92 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep looking out for the next-scheduled quarterly financial results that this company is expected to put out, which is slated to occur on Wed 1 May (In 19 Days).
Fundamental Analysis of The Estee Lauder Companies Inc. [EL]
Now let’s turn to look at profitability: with a current Operating Margin for The Estee Lauder Companies Inc. [EL] sitting at +17.47 and its Gross Margin at +79.38, this company’s Net Margin is now 11.50%. These measurements indicate that The Estee Lauder Companies Inc. [EL] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 29.46, and its Return on Invested Capital has reached 19.60%. Its Return on Equity is 24.43, and its Return on Assets is 9.18. These metrics all suggest that The Estee Lauder Companies Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, The Estee Lauder Companies Inc. [EL] has generated a Total Debt to Total Equity ratio of 75.60. Similarly, its Total Debt to Total Capital is 43.05, while its Total Debt to Total Assets stands at 28.20. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 71.69, and its Long-Term Debt to Total Capital is 40.83. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 20.75 and its Total Debt to EBITDA Value is 1.21. The Enterprise Value to Sales for this firm is now 4.27, and its Total Debt to Enterprise Value stands at 0.07. The Estee Lauder Companies Inc. [EL] has a Price to Book Ratio of 11.17, a Price to Cash Flow Ratio of 20.84 and P/E Ratio of 38.45. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, The Estee Lauder Companies Inc. [EL] earns $297,457 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 9.50 and its Total Asset Turnover is 1.13. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.37 and its Current Ratio is 1.86. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
The Estee Lauder Companies Inc. [EL] has 360.21M shares outstanding, amounting to a total market cap of $60.53B. Its stock price has been found in the range of 121.47 to 166.92. At its current price, it has moved by 0.67% from its 52-week high, and it has moved 38.34% from its 52-week low.
This stock’s Beta value is currently 0.71, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 68.03. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is The Estee Lauder Companies Inc. [EL] a Reliable Buy?
Shares of The Estee Lauder Companies Inc. [EL], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.