Recent News
Dec. 10, 2025 — RBC flagged Estée Lauder among its top sector picks for 2026, noting progress on the company’s profit‑recovery program. Dec. 16, 2025 — Evercore ISI maintained an Outperform rating and raised its price target to $125. Feb. 3, 2026 — a standard lock‑up on certain restricted shares expired, freeing some previously restricted supply. Feb. 5, 2026 — the company reported fiscal second‑quarter results, upgraded its fiscal‑year outlook while warning of about a $100 million tariff profitability headwind and highlighting ongoing restructuring and inventory actions.
Technical Analysis
ADX at 23.34 indicates an emerging trend in price action; trend strength sits above the “no‑trend” band but short of strong trending territory.
DI+ shows a dip‑and‑reversal pattern (DI+ = 21.65, described as dip & reversal), which reads as a bullish directional signal; however DI‑ sits higher and is increasing (DI‑ = 34.68, increasing), representing dominant downside pressure from sellers.
MACD at -3.59 and declining, with a signal line at -1.81, reflects bearish momentum with the MACD below its signal line and falling.
MRO equals -27.56 and is decreasing; the negative oscillator indicates price sits below the model target, implying mean‑reversion upside pressure as the gap narrows, though the trend toward a deeper negative reading increases that mechanical upside signal.
RSI 48.18 and falling signals weakening short‑term momentum and room for further downside before oversold thresholds attract technical buyers.
Price trades below the 20‑day ($104.44) and 50‑day ($109.16) averages while sitting roughly at the 200‑day average ($93.88); the 12‑day EMA ($100.32) trends down, and Ichimoku short‑term lines (Tenkan/Kijun at $102.87/$104.91) remain above price, all of which bias near‑term action to the downside unless short‑term momentum reverses.
Bollinger context: price close $94.27 sits just below the 1x lower band (~$94.50), leaving limited immediate room before the 2x lower band (~$84.56) catches late‑cycle volatility.
Fundamental Analysis
Revenue: total revenue $3,481,000,000 with revenue growth near 2.05% on the latest reporting line; gross margin strong at 73.37% and improved modestly year‑over‑year, supporting premium pricing power.
Profitability: EBIT $195,000,000 and EBIT margin 5.602%, which sits above the industry peer mean (about 2.9%) and above the industry peer median (about 1.50%). QoQ change in EBIT margin reported at -152.64% and YoY change at -313.98% (reported values), reflecting volatility tied to restructuring charges and prior impairments recorded in the comparable periods.
Earnings: reported EPS $0.89 versus an estimate $0.83, an EPS surprise of approximately 7.23% in the most recent period; the company highlighted operating improvement while flagging tariff and investment headwinds in its Feb. 5, 2026 release.
Cash flow & leverage: operating cash flow negative at $-340,000,000 and free cash flow $-436,000,000; net debt $5,104,000,000 against market capitalization $32,723,807,798 and total debt $9,422,000,000. Debt‑to‑EBITDA reads roughly 23.85x and debt‑to‑equity about 2.42x, together signaling high financial leverage and limited free‑cash flexibility while restructuring executes.
Valuation signals: P/E near 283.8x and P/B about 8.41x, with forward P/E ~127.1x; WMDST values the stock as over‑valued on its current inputs. Those elevated multiples, combined with negative free cash flow and high leverage, argue that fundamental upside requires materially sustained margin recovery and cash‑flow improvement to justify current market prices.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2026-02-05 |
| NEXT REPORT DATE: | 2026-05-07 |
| CASH FLOW | Begin Period Cash Flow | $ 2.9 B |
| Operating Cash Flow | $ -340.00 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 | $ 4.9 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 | $ 0.83 | |
| EPS Actual | $ 0.89 | |
| EPS Difference | $ 0.06 | |
| EPS Surprise | 7.229 % | |
| Forward EPS | $ 0.74 | |
| 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 median: 30.591 mean: 23.359 low: -141.69 |
|
| 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 | high: 0.82 EL: 0.487 mean: 0.213 median: 0.147 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: 1.18 mean: 0.431 median: 0.264 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: 7.407 median: 4.988 mean: 4.113 low: -1.474 |
|
| Price To Earnings (P/E) | 283.779 | |
| Price To Earnings QoQ | -69.22 % | |
| Price To Earnings YoY | -57.311 % | |
| Price To Earnings IPRWA | EL: 283.779 high: 186.713 mean: 93.572 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: 12.859 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: 0.221 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 mean: 3.288 median: 2.461 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: 0.892 mean: 0.545 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: 128.274 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: 2.728 EL: 1.321 low: 0.854 |
|
| Quick Ratio | 0.915 | |
| Quick Ratio QoQ | -0.417 % | |
| Quick Ratio YoY | 1.227 % | |
| Quick Ratio IPRWA | high: 2.726 median: 2.443 mean: 1.944 EL: 0.915 low: 0.536 |
|
| 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: 1.487 median: 0.564 low: -53.827 |
|
| 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: 1.441 % median: -2.771 % 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 % median: -23.596 % mean: -48.122 % low: -240.0 % |
|
| MARGINS | ||
| Gross Margin | 73.37 % | |
| Gross Margin QoQ | 1.9 % | |
| Gross Margin YoY | 1.355 % | |
| Gross Margin IPRWA | high: 79.511 % EL: 73.37 % mean: 69.931 % median: 69.448 % low: 11.654 % |
|
| EBIT Margin | 5.602 % | |
| EBIT Margin QoQ | -152.64 % | |
| EBIT Margin YoY | -313.98 % | |
| EBIT Margin IPRWA | high: 28.882 % EL: 5.602 % mean: 2.9 % median: 1.501 % low: -14.528 % |
|
| 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 % median: 2.243 % mean: 1.152 % low: -14.528 % |
|
| 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: 13.081 % mean: 1.558 % median: 0.301 % EL: -1.332 % low: -2.837 % |
|
| 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: -24.455 % mean: -29.335 % 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 % median: 0.165 % mean: -0.04 % 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 median: 0.003 mean: 0.001 low: -0.094 |
|
| 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 % median: 0.205 % mean: 0.15 % low: -2.757 % |
|