Rankings Food, drinks & restaurants L'Oréal
L'Oréal
74
15070100
A view of the same findings, not a new score. How it works
A strong score: the model found few serious problems, but analysts see limited upside from here.
Biggest deductions
- Absolute price level−4
- Peers−3
- Slowing growth in H2−3
Strengths
- Record margin and broad growth+2
- Future segment+1
- Buybacks+1
How the score is built
From 100 to 74, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 434.25 EUR
- Median analyst target
- 447.50 EUR
- Upside to median
- +3.1%
- Analysts
- 24
- Target range
- 360.00 – 500.00 EUR
- 52-week change
- +20%
- P/E (trailing)
- 36.9
- Forward P/E
- 29.4
- PEG
- 2.90
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 2 findings−4 of −30
- −2Quality of growthReported EPS has stood still: 11.52 EUR in 2023, 11.95 in 2024, 11.44 in 2025 and 11.78 TTM; in 2025 revenue grew only 1.3% with Luxe flat (15.59 → 15.60 bn). Adjusted EPS rose only 4.8% in H1 2026 vs 6.8% organic sales growth.
- −2ROIC and capital allocationROIC has fallen to 14.3% from 17.9–19.8% in 2021–2024 after large acquisitions (Aesop in 2023, 5.7 bn EUR in acquisitions TTM incl. Kering Beauté for 4.0 bn – Creed was bought by Kering for about 3.5 bn in 2023), and the Gucci licence only starts in July 2027.
Price
Today's multiples against the company's own history and its peers. · 3 findings−9 of −35
- −2Multiples vs own historyForward P/E 27.0 vs 26.3–44.3 in 2021–2025 and EV/EBITDA 20.1 vs 19.6–33.2 – at the bottom of its own history, but not cheap, and in line with 2024–2025.
- −3PeersForward P/E 27.0 vs 20.1 for Beiersdorf and 16.3 for Unilever – a premium of 35–65% with an operating margin (20–21%) in line with Unilever.
- −4Absolute price levelTrailing P/E 32.7 on reported earnings, P/FCF 27.2 and FCF yield 3.7% (3.5% after leasing); dividend yield 1.9%. Analysts' average price target is only 9.7% above the price.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 2 findings−4 of −35
- −3Slowing growth in H2Deutsche Bank downgraded to Sell (price target EUR 340): the ERP changeover has filled dealers' inventories and pulled sales forward to H1, H2 faces tougher comparisons and the expiry of favourable currency hedges, and Chinese beauty brands are gaining ground in the US.
- −1Debt and integrationNet debt has risen from EUR 2.1bn at year-end to 12.7bn in June 2026 (net debt/EBITDA 1.2 vs 0.2–0.5 previously) after the Kering Beauté purchase, which now has to be integrated.
Plus
Only documented strengths. · 3 findings+4 of +15
- +2Record margin and broad growthThe operating margin reached a record 21.3% in H1 2026 (up from 19.1% in 2021), and all divisions and regions grew; net income before one-offs +4.7%.
- +1Future segmentDermatological beauty (La Roche-Posay, CeraVe) grew 10.6% adjusted in H1 and has grown from EUR 3.9bn to 7.6bn since 2021; professional products +11.6%.
- +1BuybacksBuybacks of about EUR 0.5bn and dividend of 4.0bn (TTM) are below FCF of 7.5bn (7.1bn after leasing).
Caveats
What the score does not capture, or where the data is weak.
Cosmetics do not fit the industrial list: placed under 'Consumer: food, beverages & restaurants' as the nearest consumer-goods category (like Beiersdorf). Adjusted EPS (EUR 12.71 in 2025, 7.40 in H1 2026 excl. one-offs) is clearly above reported EPS (11.44 in 2025); forward P/E 27.0 is based on adjusted figures, trailing P/E 32.7 on reported. H1 growth was affected by the IT/ERP changeover (adjusted +6.5% vs +6.8% like-for-like). Kering Beauté (Creed etc.) is consolidated from April 2026, so reported growth in H2 gets help from acquisitions. The Bettencourt family (about 34%) and Nestlé (about 20%) are major shareholders – mentioned, no points; any Nestlé sale of its stake has not been examined. Insider trades have not been examined. Q3 revenue about 20 Oct 2026.
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