Fundamental Analysis
We are the global leader in prestige beauty — delighting consumers with transformative products and experiences, inspiring them to express their individual beauty. We are the only company focused solely on prestige makeup, skin care, fragrance and hair care with a diverse portfolio of 25+ brands sold in 150 countries. Infused throughout our organization is a passion for creativity and innovation — a desire to push the boundaries and invent the unexpected — as we continue the bold work of our founder Estée Lauder.
Reasons to buy – ESTEE LAUDER
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see ESTEE LAUDER makes a margin of 15% on Operating Level and about 11% on Net level. This means that out of $1 that it makes $0.11 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see net revenue growth of 18% in the revenue and the net profit figures grew by 25%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see ESTEE LAUDER makes a Return on Assets of 12% and Return of Equity of 31% which is pretty good.
Skin care, Makeup, Fragrance, and Hair care products – That’t what they sell and they run it profitably.
All the brands that they sell can be found below. If you buy any of these products, please include the stock before you buy their products.
https://www.elcompanies.com/our-brands
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by ESTEE LAUDER to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
