Recent News
On October 28–30, 2025 the company announced a strategic partnership with Shopify to modernize its digital commerce platform and accelerate direct-to-consumer omnichannel experiences; the firm also opened a global Fragrance Atelier in Paris and expanded specialty-multi distribution with M·A·C planned for select U.S. Sephora locations and Sephora at Kohl’s in fiscal 2026. The company held its virtual Annual Meeting on November 13, 2025, and several owned brands announced marketing and ambassador initiatives in late October.
Technical Analysis
Directional indicators present a mixed near-term signal. ADX at 23.82 denotes an emerging trend in strength without clear direction; DI+ at 18.56 shows a peak & reversal (bearish), while DI- at 33.84 shows a peak & reversal (bullish). These conflicting directional moves weaken technical confirmation for any decisive breakout and complicate near-term validation of a premium valuation.
MACD at -1.59, decreasing and below its signal line (-0.72), signals bearish momentum. That negative, declining MACD undermines short-term upside until momentum stabilizes or the MACD crosses back above its signal line.
MRO at -17.28 sits negative but its dip & reversal signals bullish potential—negative MRO indicates the price sits below the oscillator target and implies room for upward mean reversion. RSI at 47.99, decreasing, points to softening momentum and leaves headroom before the stock reaches overbought levels.
Price structure favors longer-term support but short-term resistance dominates. The last close at $86.61 sits below the 12‑day EMA ($89.10), the 20‑day average ($89.29) and the 50‑day average ($91.53), while remaining above the 200‑day average ($78.12). Price trades just above the Bollinger lower 1× band ($86.54), creating a near-term technical support zone; Ichimoku Tenkan/Kijun and cloud (Senkou A/B ~ $89.81) lie above the price, adding short-term resistance. Elevated 42‑day beta (1.45) and below-average recent volume suggest higher sensitivity to market moves with limited conviction behind current flows.
Fundamental Analysis
Profitability: EBIT reached $195,000,000 with an EBIT margin of 5.60%. That margin sits above the industry peer mean (-1.06%) and above the industry peer median (-8.37%), indicating relative operational profitability despite recent compression. EBIT margin fell about 1.53 percentage points QoQ and fell about 3.14 percentage points YoY; operating margin stands at 7.41% with a QoQ increase of 0.79 percentage points but a YoY decline of 3.83 percentage points, reflecting mixed near-term margin dynamics.
Top-line and efficiency: Total revenue of $3,481,000,000 shows modest revenue growth of 2.05% overall; revenue contracted about 1.52% QoQ and about 1.16% YoY. Asset turnover at 0.1775 sits slightly below the industry peer mean (0.2238) and asset turnover rose 3.50% QoQ and 13.53% YoY, indicating incremental progress in using assets to generate sales.
Cash flow and liquidity: Operating cash flow came in at -$303,000,000 and free cash flow at -$436,000,000, with a free cash flow yield of -1.33%, below the industry peer mean (1.22%). Cash and short‑term investments total $2,219,000,000, and the cash ratio equals 0.44. The current ratio of 1.32 sits below the industry peer mean (3.01) but above the peer low (1.13), reflecting adequate near‑term liquidity while highlighting lower working-capital cover versus peers.
Balance sheet and leverage: Total debt equals $9,422,000,000 and net debt equals $5,104,000,000. Debt to equity at 242.21% sits well above the industry peer mean (34.55%) and above the industry peer high (116.52%), indicating significantly higher leverage than peers. Debt to EBITDA ~23.85 signals heavy leverage relative to operating earnings; interest coverage at 2.27 remains positive and above the industry peer mean (1.29) but provides limited cushion.
Valuation and market metrics: P/B at 8.41 stands above the industry peer high (6.62), and P/E at 283.78 sits above the industry peer mean and median; forward P/E of 127.13 also sits above the industry peer high (114.67). Gross margin remains strong at 73.37%, slightly above the industry peer mean (70.35%) and near the industry peer median (73.28%). Dividend payout ratio at 270.21% and a dividend yield of 0.39% reflect a payout that materially exceeds current EPS, consistent with the company’s ongoing restructuring and cash-flow profile. The current valuation as determined by WMDST: over‑valued.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-30 |
| NEXT REPORT DATE: | 2026-01-29 |
| CASH FLOW | Begin Period Cash Flow | $ 2.9 B |
| Operating Cash Flow | $ -303.00 M | |
| Capital Expenditures | $ -96.00 M | |
| Change In Working Capital | $ -635.00 M | |
| Dividends Paid | $ -127.00 M | |
| Cash Flow Delta | $ -702.00 M | |
| End Period Cash Flow | $ 2.2 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 3.5 B | |
| Forward Revenue | $ 4.5 B | |
| COSTS | ||
| Cost Of Revenue | $ 927.0 M | |
| Depreciation | $ 200.0 M | |
| Depreciation and Amortization | $ 200.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 3.2 B | |
| PROFITABILITY | ||
| Gross Profit | $ 2.6 B | |
| EBITDA | $ 395.0 M | |
| EBIT | $ 195.0 M | |
| Operating Income | $ 258.0 M | |
| Interest Income | $ 30.0 M | |
| Interest Expense | $ 86.0 M | |
| Net Interest Income | $ -56.00 M | |
| Income Before Tax | $ 109.0 M | |
| Tax Provision | $ 62.0 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ 47.0 M | |
| Net Income From Continuing Operations | $ 47.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.18 | |
| EPS Actual | $ 0.32 | |
| EPS Difference | $ 0.14 | |
| EPS Surprise | 77.778 % | |
| Forward EPS | $ 0.68 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 19.3 B | |
| Intangible Assets | $ 5.8 B | |
| Net Tangible Assets | $ -1.94 B | |
| Total Current Assets | $ 6.7 B | |
| Cash and Short-Term Investments | $ 2.2 B | |
| Cash | $ 2.2 B | |
| Net Receivables | $ 1.9 B | |
| Inventory | $ 2.1 B | |
| Long-Term Investments | $ 1.8 B | |
| LIABILITIES | ||
| Accounts Payable | $ 1.3 B | |
| Short-Term Debt | $ 3.0 M | |
| Total Current Liabilities | $ 5.1 B | |
| Net Debt | $ 5.1 B | |
| Total Debt | $ 9.4 B | |
| Total Liabilities | $ 15.4 B | |
| EQUITY | ||
| Total Equity | $ 3.9 B | |
| Retained Earnings | $ 11.6 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 10.79 | |
| Shares Outstanding | 360.357 M | |
| Revenue Per-Share | $ 9.66 | |
| VALUATION | Market Capitalization | $ 32.7 B |
| Enterprise Value | $ 39.9 B | |
| Enterprise Multiple | 101.081 | |
| Enterprise Multiple QoQ | -141.746 % | |
| Enterprise Multiple YoY | -61.57 % | |
| Enterprise Multiple IPRWA | high: 139.602 EL: 101.081 mean: -99.578 low: -169.878 median: -169.878 |
|
| EV/R | 11.47 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 4.969 | |
| Asset To Liability | 1.252 | |
| Debt To Capital | 0.708 | |
| Debt To Assets | 0.487 | |
| Debt To Assets QoQ | 2.423 % | |
| Debt To Assets YoY | 1961.971 % | |
| Debt To Assets IPRWA | EL: 0.487 high: 0.396 mean: 0.18 median: 0.064 low: 0.045 |
|
| Debt To Equity | 2.422 | |
| Debt To Equity QoQ | -1.115 % | |
| Debt To Equity YoY | 2343.367 % | |
| Debt To Equity IPRWA | EL: 2.422 high: 1.165 mean: 0.345 median: 0.089 low: 0.06 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 8.412 | |
| Price To Book QoQ | 6.6 % | |
| Price To Book YoY | 28.015 % | |
| Price To Book IPRWA | EL: 8.412 high: 6.625 median: 4.988 mean: 4.588 low: 0.271 |
|
| Price To Earnings (P/E) | 283.779 | |
| Price To Earnings QoQ | -69.22 % | |
| Price To Earnings YoY | -57.311 % | |
| Price To Earnings IPRWA | high: 386.073 EL: 283.779 mean: 112.503 median: 75.527 low: -183.891 |
|
| PE/G Ratio | 1.11 | |
| Price To Sales (P/S) | 9.401 | |
| Price To Sales QoQ | 5.132 % | |
| Price To Sales YoY | -5.427 % | |
| Price To Sales IPRWA | high: 21.939 median: 15.079 mean: 14.431 EL: 9.401 low: 0.495 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 127.134 | |
| Forward PE/G | 0.497 | |
| Forward P/S | 7.266 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -74.905 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.178 | |
| Asset Turnover Ratio QoQ | 3.504 % | |
| Asset Turnover Ratio YoY | 13.534 % | |
| Asset Turnover Ratio IPRWA | high: 0.874 median: 0.248 mean: 0.224 EL: 0.178 low: 0.08 |
|
| Receivables Turnover | 2.039 | |
| Receivables Turnover Ratio QoQ | -0.698 % | |
| Receivables Turnover Ratio YoY | 12.368 % | |
| Receivables Turnover Ratio IPRWA | high: 16.633 median: 3.983 mean: 3.103 EL: 2.039 low: 1.302 |
|
| Inventory Turnover | 0.448 | |
| Inventory Turnover Ratio QoQ | -5.349 % | |
| Inventory Turnover Ratio YoY | 6.994 % | |
| Inventory Turnover Ratio IPRWA | high: 1.201 mean: 0.527 median: 0.5 EL: 0.448 low: 0.385 |
|
| Days Sales Outstanding (DSO) | 44.747 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 109.243 | |
| Cash Conversion Cycle Days QoQ | -2.707 % | |
| Cash Conversion Cycle Days YoY | -14.463 % | |
| Cash Conversion Cycle Days IPRWA | high: 178.175 mean: 127.715 median: 113.561 EL: 109.243 low: 70.78 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.134 | |
| CapEx To Revenue | -0.028 | |
| CapEx To Depreciation | -0.48 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 11.2 B | |
| Net Invested Capital | $ 11.2 B | |
| Invested Capital | $ 11.2 B | |
| Net Tangible Assets | $ -1.94 B | |
| Net Working Capital | $ 1.6 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.437 | |
| Current Ratio | 1.321 | |
| Current Ratio QoQ | 1.555 % | |
| Current Ratio YoY | 0.433 % | |
| Current Ratio IPRWA | high: 4.817 median: 3.064 mean: 3.006 EL: 1.321 low: 1.132 |
|
| Quick Ratio | 0.915 | |
| Quick Ratio QoQ | -0.417 % | |
| Quick Ratio YoY | 1.227 % | |
| Quick Ratio IPRWA | high: 2.726 median: 2.443 mean: 2.151 EL: 0.915 low: 0.562 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 23.853 | |
| Cost Of Debt | 0.719 % | |
| Interest Coverage Ratio | 2.267 | |
| Interest Coverage Ratio QoQ | -154.968 % | |
| Interest Coverage Ratio YoY | -337.051 % | |
| Interest Coverage Ratio IPRWA | high: 47.664 EL: 2.267 mean: 1.289 median: -2.595 low: -11.208 |
|
| Operating Cash Flow Ratio | -0.06 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 133.101 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 0.37 | |
| Dividend Payout Ratio | 2.702 | |
| Dividend Rate | $ 0.35 | |
| Dividend Yield | 0.004 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -2.83 % | |
| Revenue Growth | 2.052 % | |
| Revenue Growth QoQ | -152.414 % | |
| Revenue Growth YoY | -115.575 % | |
| Revenue Growth IPRWA | high: 28.641 % EL: 2.052 % mean: -1.219 % median: -8.127 % low: -20.223 % |
|
| Earnings Growth | 255.556 % | |
| Earnings Growth QoQ | -396.627 % | |
| Earnings Growth YoY | -427.112 % | |
| Earnings Growth IPRWA | EL: 255.556 % high: 107.071 % mean: -7.32 % median: -23.596 % low: -171.739 % |
|
| MARGINS | ||
| Gross Margin | 73.37 % | |
| Gross Margin QoQ | 1.9 % | |
| Gross Margin YoY | 1.355 % | |
| Gross Margin IPRWA | high: 79.511 % EL: 73.37 % median: 73.282 % mean: 70.352 % low: 11.654 % |
|
| EBIT Margin | 5.602 % | |
| EBIT Margin QoQ | -152.64 % | |
| EBIT Margin YoY | -313.98 % | |
| EBIT Margin IPRWA | high: 25.575 % EL: 5.602 % mean: -1.062 % low: -8.37 % median: -8.37 % |
|
| Return On Sales (ROS) | 7.412 % | |
| Return On Sales QoQ | 79.294 % | |
| Return On Sales YoY | -383.117 % | |
| Return On Sales IPRWA | high: 25.27 % EL: 7.412 % mean: -0.477 % low: -8.37 % median: -8.37 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -436.00 M | |
| Free Cash Flow Yield | -1.332 % | |
| Free Cash Flow Yield QoQ | -203.096 % | |
| Free Cash Flow Yield YoY | -45.14 % | |
| Free Cash Flow Yield IPRWA | high: 10.755 % mean: 1.221 % median: 0.22 % EL: -1.332 % low: -2.1 % |
|
| Free Cash Growth | -210.66 % | |
| Free Cash Growth QoQ | -247.099 % | |
| Free Cash Growth YoY | -4.543 % | |
| Free Cash Growth IPRWA | high: 461.572 % median: -17.738 % mean: -24.741 % EL: -210.66 % low: -428.623 % |
|
| Free Cash To Net Income | -9.277 | |
| Cash Flow Margin | -8.704 % | |
| Cash Flow To Earnings | -6.447 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.24 % | |
| Return On Assets QoQ | -108.743 % | |
| Return On Assets YoY | -133.058 % | |
| Return On Assets IPRWA | high: 5.769 % EL: 0.24 % mean: -0.156 % median: -0.811 % low: -1.636 % |
|
| Return On Capital Employed (ROCE) | 1.369 % | |
| Return On Equity (ROE) | 0.012 | |
| Return On Equity QoQ | -108.551 % | |
| Return On Equity YoY | -139.374 % | |
| Return On Equity IPRWA | high: 0.076 EL: 0.012 mean: 0.001 median: -0.02 low: -0.022 |
|
| DuPont ROE | 1.212 % | |
| Return On Invested Capital (ROIC) | 1.374 % | |
| Return On Invested Capital QoQ | -153.567 % | |
| Return On Invested Capital YoY | -66.755 % | |
| Return On Invested Capital IPRWA | high: 7.897 % EL: 1.374 % mean: -0.198 % median: -1.023 % low: -2.757 % |
|