# The Estee Lauder Companies Inc. Class A (EL) — Stock CV

The Estee Lauder Companies Inc. is a $35.5B consumer staples company. Revenue grew 5.0% over the last year, and it keeps 1¢ of every dollar of sales as profit. It trades at 195.2× earnings.

> Estée Lauder is a leader in the global prestige beauty market, participating across skin care (49% of fiscal 2025 sales), makeup (29%), fragrance (17%), and hair care and others (5%). Top-selling brands include Estée Lauder, Clinique, M.A.C, La Mer, Jo Malone London, Aveda, Bobbi Brown, and Origins.

## Identity

- **Ticker**: EL
- **Sector**: Consumer Defensive
- **Industry**: Household & Personal Products
- **Headquarters**: NEW YORK, NY
- **Employees**: 55 000
- **Website**: https://www.elcompanies.com
- **Market cap**: $35.5B
- **Last price**: $97.88
- **Financial profile**: Solid

## Vitals (TTM)

- **Revenue**: $15.0B
- **Net income**: $182M
- **Free cash flow**: $1.32B
- **P/E**: 195.2
- **Revenue growth (YoY)**: 5.0%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 44 |
| Growth | 25 |
| Profitability | 16 |
| Health | 47 |
| Quality | 60 |
| Moat | 70 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [x] Revenue growing — +5.0% YoY
- [x] Profitable — $182M TTM
- [ ] Profit growing — -43.6% YoY
- [x] Generates cash — $1.32B TTM
- [x] Debt under control — current ratio 1.22
- [x] Established company — $35.5B market cap
- [x] Not printing shares — -0.9% shares over ~5y
- [x] Proven track record — 10/11 profitable years
- [x] Financially stable — Altman Z 3.3 — safe
- [x] Pays a dividend — yield 1.43%
- [ ] Valuation not extreme — P/E 195.2

## Experience (career milestones)

- **2024** — Estée Lauder completed the acquisition of DECIEM Beauty Group
- **FY2021** — Best year on record: $2.87B net income
- **FY2020** — Became debt-free: cash now exceeds total debt
- **2016** — The company made its largest acquisition to date by acquiring California-based cosmetics company…
- **FY2016** — First recorded profitable year: $1.11B net income
- **FY2016** — Revenue already above $10B: $11.3B in first reported year
- **FY2016** — Positive free cash flow every year since: 11-year streak
- **2013** — The first Tory Burch fragrance products were introduced in 2013
- **Jul 1, 2010** — The company acquired Smashbox Beauty Cosmetics, Inc., a brand created in Smashbox Studios in Culver…
- **2006** — Acquisitions and licensing continued in the 2000s as the Estée Lauder Companies bought a majority interest in the…
- **1999** — The fragrance house Jo Malone London was acquired in 1999
- **Nov 16, 1995** — The Estée Lauder Companies went public on the New York Stock Exchange at ($6.50 on a…
- **1995** — Bobbi Brown Cosmetics, designed by the celebrated makeup artist, was acquired in 1995
- **1994** — Brand acquisitions began with an investment in the Toronto-based MAC Cosmetics in 1994
- **1976** — Estée Lauder's Clinique brand became the first women's cosmetic company to introduce a second line for men when, in…

## Strengths

- High gross margin (75.5%)
- Altman Z-Score 3.27 — low bankruptcy-risk zone

## Watch-outs

- Loss-making in 1 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2022 | $17.7B | $2.39B | $2.00B |
| FY2023 | $15.9B | $1.01B | $728M |
| FY2024 | $15.6B | $390M | $1.44B |
| FY2025 | $14.3B | -$1.13B | $670M |
| FY2026 | $15.0B | $182M | $1.32B |

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Source: https://stockcv.com/EL — derived from company filings; may be delayed or incomplete. Information, not investment advice.