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US Equities · Finance research note

EL — Estée Lauder Companies (The)

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 14.92%
Profit Margins -1.67%
Return on Equity -5.95%
Return on Assets 4.87%
Free Float 0.25B
Dividend Yield 1.74%
Short Int % Utilisation 3.45%

2.2 Growth

Metric Value
Revenue Growth 4.6%
Free Cash Flow 1.81B
EBITDA 15.77 (Ratio)
Enterprise Value 37.07B
EV/Revenue 2.5
EV/EBITDA 15.77

Revenue growth of 4.6% suggests mature or challenged top-line momentum.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 6.90%
Risk / Std Dev (Ann.)* 45.82%
1-Year Price Return* -3.97%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $86.10
52-Week Range $66.22 – $121.64
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2026 FY2025
Revenue Reported revenue $15.05B $14.33B
Net income Reported net income $182.00M $-1.13B
Total assets Year-end reported balance $19.76B $19.89B
Shareholders’ equity Year-end reported balance $3.81B $3.87B
Net margin Net income ÷ revenue 1.21% -7.91%
Asset turnover Revenue ÷ total assets 0.7615x 0.7202x
Equity multiplier Total assets ÷ shareholders’ equity 5.1923x 5.1467x
ROE Net margin × asset turnover × equity multiplier 4.78% -29.31%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

FCFF DCF exception: Reported operating inputs do not support a stable FCFF DCF. This post deliberately does not publish a mechanical enterprise value or implied per-share value on an unsuitable basis.

Available valuation input Value
Last market price $84.04
Market capitalisation $30.41B
Revenue $14.33B
EBIT -$683.00M
Reported free cash flow $670.00M
FCF yield 2.20%
Net debt / EBITDA 44.84x

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks not rated — FCFF DCF suitability or data-integrity condition not met
Lynch-inspired balance-and-growth checks not rated — FCFF DCF suitability or data-integrity condition not met

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:31:32.741520 UTC; latest reported fiscal period: 2025-06-30 00:00:00. Financial institutions and REITs require sector-specific methods rather than a mechanical FCFF DCF. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -27.45% -21.87%
Adjusted R² 0.17 0.17
Annualised residual volatility 43.33% 43.16%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 1.27 (4.96) 1.43 (4.90)
Size (SMB) 0.81 (2.35) 0.75 (2.01)
Value (HML) -0.07 (-0.24) -0.32 (-0.89)
Profitability (RMW) NM 0.20 (0.65)
Investment (CMA) NM 0.51 (0.96)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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