# Estee Lauder Companies (EL.US)

Canonical: https://gigainvestors.com/s/EL

Analysis as of: 2026-10-16T07:28:14.115Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $107.19 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 0.37×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.14×

- FY2018: 0.15×

- FY2019: 0.16×

- FY2020: 0.04×

- FY2021: 0.16×

- FY2022: 0.18×

- FY2023: 0.09×

- FY2024: 0.06×

- FY2025: 0.08×

- FY2026: 0.11×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 22.7%

- ROIC, second-lowest year: 6.6%

- Typical minus recent gross margin: 1.6 pp

- Typical gross margin (annual median): 75.6%

- Recent gross margin (lower of latest and 3-year median): 74.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.5%

- ROIC including acquisitions, ten-year median: 13.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 30.8%

- FY2018: 37.2%

- FY2019: 61.1%

- FY2020: 6.4%

- FY2021: 34.3%

- FY2022: 37.2%

- FY2023: 11.8%

- FY2024: 6.6%

- FY2025: 10.9%

- FY2026: 14.6%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.27×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $772M

- Net income, five-year total: $2.8B

- Return on incremental invested capital: -2.5%

- Working capital / revenue, annual change: -0.2 pp

- Working capital / revenue, change between three-year averages: -1.2 pp

- Working capital / revenue, final three-year average: 14.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: -1.52×

- FY2024: 0.76×

- FY2025: 0.80×

- FY2026: 2.86×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 37.2% vs 10.9%

- Per-share earnings: 2.96 to 0.50 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.3%

- Ordinary dilution, 5-year annual growth: -0.2%

- Market cap gain: -$7.0B

- Cumulative retained earnings: $2.9B

- Diluted shares, 10-year annual growth: -0.3%

- Diluted shares, 5-year annual growth: -0.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -20.0%

- Per-share value change: -$2.46

- Per-share value, starting three-year median: $2.96

- Per-share value, ending three-year median: $0.50

- Buybacks concentrated in cheaper years (correlation): 0.66

- Average buyback yield: 1.0%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $7.5B

- Cumulative net income, 10 years: $11B

- ROIC, first three-year median: 37.2%

- ROIC, last three-year median: 10.9%

Chart: Earnings per share; fiscal year observations.

- FY2017: $3.35

- FY2018: $2.95

- FY2019: $4.82

- FY2020: $1.86

- FY2021: $7.79

- FY2022: $6.55

- FY2023: $2.79

- FY2024: $1.08

- FY2025: -$3.15

- FY2026: $0.50

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -8.1%

- Receivables to sales index (DSRI): 0.94×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 17.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 9.74×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.49×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -4.7%

- FY2018: -11.6%

- FY2019: -5.6%

- FY2020: -9.0%

- FY2021: -3.5%

- FY2022: -3.1%

- FY2023: -3.1%

- FY2024: -9.1%

- FY2025: -12.1%

- FY2026: -8.1%

## Holders

- [Mark Hillman](https://gigainvestors.com/HCM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Nick Train](https://gigainvestors.com/LT): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 71% since Dec 2021 · "Estee Lauder falls sharply after cutting profit outlook on weak demand, tariffs" (finance.yahoo.com, Aug 2025) · sales +5%

Story as of 2026-10-16T09:58:41.187Z; price observation 2026-10-15.

- 2025-05-01: Estee Lauder expects bigger-than-expected drop in annual sales on slowing demand ([finance.yahoo.com](https://finance.yahoo.com/news/estee-lauder-expects-bigger-expected-100952012.html))

- 2025-09-17: Estée Lauder (EL): Assessing Valuation After Weak Sales, Cautious Profit Outlook, and Tariff Concerns ([finance.yahoo.com](https://finance.yahoo.com/news/est-e-lauder-el-assessing-114742453.html))

- 2025-10-30: Estee Lauder Swings to Profit, Backs Fiscal 2026 Revenue Growth View ([finance.yahoo.com](https://finance.yahoo.com/m/d1af797c-ce7e-3ec5-bb10-928760c59615/estee-lauder-swings-to.html))

- 2026-02-05: Estee Lauder shares slide despite raised earnings outlook on tariff headwinds ([finance.yahoo.com](https://finance.yahoo.com/news/estee-lauder-shares-slide-despite-154300203.html))

- 2026-05-01: Estee Lauder surges on earnings beat and raised guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/estee-lauder-surges-earnings-beat-104926996.html))

- 2026-08-19: Estee Lauder beats top-line and bottom-line estimates; updates FY26 outlook ([seekingalpha.com](https://seekingalpha.com/news/4634796-estee-lauder-beats-top-line-and-bottom-line-estimates-updates-fy26-outlook?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales +5%; source https://www.sec.gov/Archives/edgar/data/1001250/000100125026000041/el-20260630.htm; observed 2026-08-19.

- FY2017: $12B 

- FY2018: $14B 

- FY2019: $15B 

- FY2020: $14B 

- FY2021: $16B 

- FY2022: $18B 

- FY2023: $16B 

- FY2024: $16B 

- FY2025: $14B 

- FY2026: $15B 

### Gross margin · FY2026

gross margin 75.5%; source https://www.sec.gov/Archives/edgar/data/1001250/000100125026000041/el-20260630.htm; observed 2026-08-19.

- FY2017: 79.4% 

- FY2018: 79.2% 

- FY2019: 77.2% 

- FY2020: 75.2% 

- FY2021: 76.4% 

- FY2022: 75.7% 

- FY2023: 71.3% 

- FY2024: 71.7% 

- FY2025: 74.0% 

- FY2026: 75.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in household & personal products; annual sales are USD 15 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1001250/000100125026000041/el-20260630.htm (filed 2026-08-19); FY2026: revenue 15049000000; grossProfit 11362000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EL.US: The Estée Lauder Companies Inc. manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. The company provides skin care products, including moisturizers, serums, cleansers, toners, eye care, body care, exfoliators, acne care and oil correctors, facial masks, and sun care products; and makeup products, such as foundations, powders, concealers and setting sprays, lipsticks, lip liners and lip glosses, mascaras, and eyeshadows and eyeliners, as well as compacts, brushes, and other makeup tools. It also offers fragrance products in various forms comprising parfum, eau de parfum, eau de toilette, eau de cologne, and body spray, as well as lotions, creams, powders, candles and soaps; and hair care products, including shampoos, conditioners, styling products, treatment, finishing sprays, and hair color products, as well as sells ancillary products and services. The company provides its products under the La Mer, Jo Malone London, TOM FORD, AERIN Beauty, Le Labo, Editions de Parfums Frédéric Malle, KILIAN PARIS, BALMAIN Beauty, Estée Lauder, Clinique, M·A·C, The Ordinary, Aveda, Bobbi Brown Cosmetics, Too Faced, Dr.Jart+, Bumble and bumble, Smashbox, Darphin Paris, Lab Series, Avestan, Loopha, Origins, NIOD, Aramis, and GLAMGLOW brands. It sells its products through department stores, duty-free retailers, specialty multi retailers, online pure players, upscale perfumeries and pharmacies, and top-tier salons and spas, as well as direct-to-consumer businesses across freestanding stores, and brand websites and third-party online platforms. The Estée Lauder Companies Inc. was founded in 1946 and is based in New York, New York.

### Why customers stay

Margins ranged from 71.7% to 75.5% during 2024–26; it earns 22.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-19); FY2024: grossProfit / revenue = 71.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-19); FY2025: grossProfit / revenue = 74%.

- Source: https://www.sec.gov/Archives/edgar/data/1001250/000100125026000041/el-20260630.htm (filed 2026-08-19); FY2026: grossProfit / revenue = 75.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-19); 10-year return on capital observations [[2017,0.3078802034040794],[2018,0.3719715956558062],[2019,0.6111674480937553],[2020,0.06399421257908317],[2021,0.34330093052374583],[2022,0.3721003329782631],[2023,0.1180835062966016],[2024,0.065663403457613],[2025,0.10891614306428227],[2026,0.14637437894454142]]; median 0.2271272911743104. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 70 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-19); FY2017: growth capex 40000000; upkeep 464000000; owner earnings 1249000000. Growth capex / owner earnings = 0.032025620496397116.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-19); FY2018: growth capex 98000000; upkeep 531000000; owner earnings 1108000000. Growth capex / owner earnings = 0.08844765342960288.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-19); FY2019: growth capex 163431799.63183725; upkeep 580568200.3681628; owner earnings 1761431799.6318374. Growth capex / owner earnings = 0.09278349560056579.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-19); FY2020: growth capex 0; upkeep 623000000; owner earnings 672000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-19); FY2021: growth capex 0; upkeep 637000000; owner earnings 2884000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-19); FY2022: growth capex 313000000; upkeep 727000000; owner earnings 2390000000. Growth capex / owner earnings = 0.1309623430962343.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-19); FY2024: growth capex 0; upkeep 919000000; owner earnings 296000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1001250/000100125026000041/el-20260630.htm (filed 2026-08-19); FY2026: growth capex 0; upkeep 457000000; owner earnings 521000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-19); Dividend observations: [[2017,486000000],[2018,546000000],[2019,609000000],[2020,503000000],[2021,753000000],[2022,840000000],[2023,925000000],[2024,947000000],[2025,618000000],[2026,508000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1001250/000100125026000041/el-20260630.htm (filed 2026-08-19); FY2026: cash repurchases 70000000 USD.

### Are managers owners

Insiders own 0.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EL.US SharesStats.PercentInsiders = 0.293 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/1001250/000100125026000041/el-20260630.htm (filed 2026-08-19); stic markets and travel retail locations in the region. Net sales from locations impacted by the conflict in the Middle East accounted for approximately 2% of consolidated net sales in fiscal 2025. We continue to monitor and assess the impact that these areas of volatility and uncertainty may have on net sales and profitability, including impacts to our effective tax rate from changes to our geographical mix of earnings.

We are continuing to monitor and assess the potential effects of changing tariff conditions in the United States as well as in other markets in which we operate. These tariffs have led to significant volatility and uncertainty in global markets and difficulty in forecasting demand. We have implemented and are continuing to implement and consider additional mitigation measures. Our strategy remains optimizing our global supply chain network, by sourcing and manufacturing in the geography of sale where feasible. We also continue to leverage trade programs where available and monitor for additional opportunities as countries continue to update their trade programs. We anticipate tariffs to have an adverse effect on fiscal 2027 profitability and cash flows, and depending on actual rates and countries imposing tariffs such adverse impacts could be material.

On February 20, 2026, the U.S. Supreme Court ruled that the U.S. tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) on goods imported into the U.S. were unauthorized. The ruling did not address potential refunds, however on March 4, 2026, the U.S. Court of International Trade ordered U.S. Customs and Border Protection to begin refunding all tariffs imposed under IEEPA. During the fiscal 2026 fourth quarter, we submitted claims for a portion of our eligible IEEPA tariffs paid, and have begun to receive refunds. For refunds received during the period, we have recorded these as an offset to cost of sales. As of June 30, 2026, the remaining amount of potential IEEPA tariff refunds not yet submitted or for which refunds have not been received are not considered material to the consolidated financial statements.

We continue to believe that the best way to increase long-term stockholder value is to provide superior products and services in the most efficient and effective manner while recognizing shifts in consumers’ behaviors and shopping practices. Accordingly, our long-term strategy has numerous initiatives across product categories, brands, geographic regions, channels of distribution and functions designed to grow our sales, provide cost efficiencies, leverage our strengths, such as our history of outstanding creativity and innovation, high quality products and services, and engaging communications, and make us more productive and profitable. Following the

### What the price says

The price is 2.6 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-19); Closing price 107.19 USD; reporting-to-trading FX 1; FY2026 annual sales per share 41.25274122807018; price multiple 2.598372782244667. FY2026 cash earnings/share 1.4281798245614035. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $87.13 per share

- 2016-11: $77.70 per share

- 2016-12: $76.49 per share

- 2017-01: $81.21 per share

- 2017-02: $82.85 per share

- 2017-03: $84.79 per share

- 2017-04: $87.14 per share

- 2017-05: $94.14 per share

- 2017-06: $95.98 per share

- 2017-07: $98.99 per share

- 2017-08: $106.99 per share

- 2017-09: $107.84 per share

- 2017-10: $111.81 per share

- 2017-11: $124.83 per share

- 2017-12: $127.24 per share

- 2018-01: $134.96 per share

- 2018-02: $138.44 per share

- 2018-03: $149.72 per share

- 2018-04: $148.09 per share

- 2018-05: $149.44 per share

- 2018-06: $142.69 per share

- 2018-07: $134.94 per share

- 2018-08: $140.12 per share

- 2018-09: $145.32 per share

- 2018-10: $137.44 per share

- 2018-11: $142.66 per share

- 2018-12: $130.10 per share

- 2019-01: $136.42 per share

- 2019-02: $156.94 per share

- 2019-03: $165.55 per share

- 2019-04: $171.81 per share

- 2019-05: $161.03 per share

- 2019-06: $183.11 per share

- 2019-07: $184.19 per share

- 2019-08: $197.99 per share

- 2019-09: $198.95 per share

- 2019-10: $186.27 per share

- 2019-11: $195.47 per share

- 2019-12: $206.54 per share

- 2020-01: $195.16 per share

- 2020-02: $183.60 per share

- 2020-03: $159.34 per share

- 2020-04: $176.40 per share

- 2020-05: $197.47 per share

- 2020-06: $188.68 per share

- 2020-07: $197.54 per share

- 2020-08: $221.72 per share

- 2020-09: $218.25 per share

- 2020-10: $219.66 per share

- 2020-11: $245.32 per share

- 2020-12: $266.19 per share

- 2021-01: $236.65 per share

- 2021-02: $285.86 per share

- 2021-03: $290.85 per share

- 2021-04: $313.80 per share

- 2021-05: $306.52 per share

- 2021-06: $318.08 per share

- 2021-07: $333.83 per share

- 2021-08: $340.49 per share

- 2021-09: $299.93 per share

- 2021-10: $324.33 per share

- 2021-11: $332.07 per share

- 2021-12: $370.20 per share

- 2022-01: $311.79 per share

- 2022-02: $296.33 per share

- 2022-03: $272.32 per share

- 2022-04: $264.06 per share

- 2022-05: $254.65 per share

- 2022-06: $254.67 per share

- 2022-07: $273.10 per share

- 2022-08: $254.38 per share

- 2022-09: $215.90 per share

- 2022-10: $200.49 per share

- 2022-11: $235.79 per share

- 2022-12: $248.11 per share

- 2023-01: $277.08 per share

- 2023-02: $243.05 per share

- 2023-03: $246.46 per share

- 2023-04: $246.72 per share

- 2023-05: $184.03 per share

- 2023-06: $196.38 per share

- 2023-07: $180.00 per share

- 2023-08: $160.53 per share

- 2023-09: $144.55 per share

- 2023-10: $128.87 per share

- 2023-11: $127.69 per share

- 2023-12: $146.25 per share

- 2024-01: $131.99 per share

- 2024-02: $148.58 per share

- 2024-03: $154.15 per share

- 2024-04: $146.71 per share

- 2024-05: $123.36 per share

- 2024-06: $106.40 per share

- 2024-07: $99.61 per share

- 2024-08: $91.66 per share

- 2024-09: $99.69 per share

- 2024-10: $68.94 per share

- 2024-11: $72.12 per share

- 2024-12: $74.98 per share

- 2025-01: $83.43 per share

- 2025-02: $71.91 per share

- 2025-03: $66.00 per share

- 2025-04: $59.96 per share

- 2025-05: $66.94 per share

- 2025-06: $80.80 per share

- 2025-07: $93.34 per share

- 2025-08: $91.73 per share

- 2025-09: $88.12 per share

- 2025-10: $96.69 per share

- 2025-11: $94.07 per share

- 2025-12: $104.72 per share

- 2026-01: $115.28 per share

- 2026-02: $109.47 per share

- 2026-03: $71.77 per share

- 2026-04: $76.71 per share

- 2026-05: $88.95 per share

- 2026-06: $78.95 per share

- 2026-07: $83.90 per share

- 2026-08: $102.30 per share

- 2026-09: $92.77 per share

- 2026-10: $99.73 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1001250/000100125026000041/el-20260630.htm); period 2026-06-30, filed 2026-08-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.