📊 EL Key Takeaways
Is EL a Good Investment? Thesis Analysis
Estée Lauder faces significant fundamental headwinds with revenue declining 8.2% YoY while profitability compressed severely, evidenced by EPS collapsing 391.7% despite flat net income. The company's leverage position is concerning with a 1.82x debt-to-equity ratio and weak 1.5x interest coverage, limiting financial flexibility during a challenging period.
Why Buy EL? Key Strengths
- Strong gross margin of 75.1% demonstrates brand pricing power and product mix quality
- Solid free cash flow generation of $581M provides liquidity for debt servicing and investments
- Substantial cash position of $3.1B offers a buffer against operational challenges
EL Investment Risks to Consider
- Severe revenue decline of 8.2% YoY indicates loss of market share or weakening demand in core categories
- Profitability compression with operating margin at only 7.4% and net margin at 2.7% suggests cost structure misalignment
- High leverage with 1.82x debt-to-equity ratio and thin 1.5x interest coverage creates refinancing risk in uncertain environment
- Dramatically diluted EPS (-391.7% YoY) signals substantial share count increases or one-time charges
Key Metrics to Watch
- Revenue stabilization and return to year-over-year growth
- Operating margin recovery and cost structure optimization
- Debt-to-equity ratio reduction and interest coverage improvement
EL Financial Metrics
💡 AI Analyst Insight
ESTEE LAUDER COMPANIES INC presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
EL Profitability Ratios
EL vs Energy Sector
How ESTEE LAUDER COMPANIES INC compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EL Overvalued or Undervalued?
Based on fundamental analysis, ESTEE LAUDER COMPANIES INC shows some fundamental concerns relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
EL Balance Sheet & Liquidity
EL 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: ESTEE LAUDER COMPANIES INC's revenue has remained relatively flat over the 5-year period, with a 2% decline. The most recent EPS of $2.79 reflects profitable operations.
EL Growth Metrics (YoY)
EL Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $4.0B | $162.0M | $0.44 |
| Q1 2026 | $3.4B | $47.0M | $0.13 |
| Q3 2025 | $3.6B | N/A | $0.44 |
| Q2 2025 | $4.0B | N/A | $0.87 |
| Q1 2025 | $3.4B | N/A | $0.09 |
| Q3 2024 | $3.8B | N/A | $0.43 |
| Q2 2024 | $3.8B | N/A | $0.87 |
| Q1 2024 | $3.5B | N/A | $0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
EL Capital Allocation
EL SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for ESTEE LAUDER COMPANIES INC (CIK: 0001001250)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773780147.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773780120.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773780112.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773780102.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773780094.xml | View → |
❓ Frequently Asked Questions about EL
What is the AI rating for EL?
ESTEE LAUDER COMPANIES INC (EL) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are EL's key strengths?
Claude: Strong gross margin of 75.1% demonstrates brand pricing power and product mix quality. Solid free cash flow generation of $581M provides liquidity for debt servicing and investments.
What are the risks of investing in EL?
Claude: Severe revenue decline of 8.2% YoY indicates loss of market share or weakening demand in core categories. Profitability compression with operating margin at only 7.4% and net margin at 2.7% suggests cost structure misalignment.
What is EL's revenue and growth?
ESTEE LAUDER COMPANIES INC reported revenue of $7.7B.
Does EL pay dividends?
ESTEE LAUDER COMPANIES INC pays dividends, with $255.0M distributed to shareholders in the trailing twelve months.
Where can I find EL SEC filings?
Official SEC filings for ESTEE LAUDER COMPANIES INC (CIK: 0001001250) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EL's EPS?
ESTEE LAUDER COMPANIES INC has a diluted EPS of $0.57.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EL a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, ESTEE LAUDER COMPANIES INC has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is EL stock overvalued or undervalued?
Valuation metrics for EL: ROE of 5.2% (sector avg: 14%), net margin of 2.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy EL stock in 2026?
Our dual AI analysis gives ESTEE LAUDER COMPANIES INC a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EL's free cash flow?
ESTEE LAUDER COMPANIES INC's operating cash flow is $785.0M, with capital expenditures of $204.0M. FCF margin is 7.5%.
How does EL compare to other Energy stocks?
Vs Energy sector averages: Net margin 2.7% (avg: 12%), ROE 5.2% (avg: 14%), current ratio 1.36 (avg: 1.3).