Recent News
March 23–24, 2026: Multiple outlets report that Estée Lauder confirmed talks with Spanish perfumery Puig, triggering heavy market attention around a potential combination and strategic scale implications.
Early April 2026: Reports indicate elevated restructuring costs tied to the company’s turnaround program, with the charge increasing through March and execution expected over fiscal 2026–2027.
March 2026: Bank of America named Estée Lauder a top beauty pick for 2026, citing confidence in the turnaround plan and improving industry conditions; commentary emphasized execution of the “Beauty Reimagined” strategy.
March 2026: Analysis from market intelligence highlighted an expected return to sales growth in fiscal 2026, while noting investor caution amid negotiations and execution risk.
Technical Analysis
Directional indicators show a strong market structure: ADX at 38.77 signals a strong directional regime; DI+ at 15.81 exhibits a dip-and-reverse pattern (bullish), while DI- at 42.27 shows a peak-and-reversal pattern (bullish as DI- decreases). Together these imply bullish directional pressure, but the magnitude gap leaves price sensitive to downside momentum shifts.
MACD sits negative at -8.33 with a signal line at -7.50; the MACD trend shows a dip-and-reversal (bullish momentum emerging) but MACD remains below the signal line, so bullish momentum requires the MACD to cross above the signal to confirm accelerating upside.
MRO reads -35.69 (negative), indicating price trades below the model target and thus presents upside potential toward fair-value targets implied by the model. The MRO trend is decreasing, so potential reversion depends on a halt to the MRO decline.
RSI at 38.57 and trending down signals below-neutral momentum and room for mean-reversion. The falling 12-day EMA and price below the 200-day average ($94.81) keep the longer-term technical bias cautious despite shorter-term directional signals.
Price sits near $69.12, under the 20-day average ($76.83) and well under the 50- and 200-day averages ($98.23 and $94.81). Bollinger band context shows the 1σ band roughly $67–$86, placing current price near the lower band and implying elevated short-term volatility within a wider distribution.
Fundamental Analysis
Profitability: EBIT equals $195,000,000, producing an EBIT margin of 5.60%, which measures above the industry peer mean of 2.90% and the industry peer median of 1.50%, and sits well within the peer high of 28.882%. Gross margin stands at 73.37% and exceeds the industry peer mean of 69.931%.
Earnings and guidance context: Reported EPS of $0.89 beat the $0.83 estimate, yielding an EPS surprise of 7.23%, and forward EPS sits near $0.74 (forward PE ~127.13). Trailing PE equals 283.78, substantially above the industry peer mean (93.57) and median (75.53) and above the peer high (186.71), consistent with the WMDST valuation of over-valued.
Revenue and cash flow: Total revenue equals $3,481,000,000 with revenue growth year‑over‑year of 2.05% and QoQ change modestly negative. Operating cash flow reads negative at -$340,000,000 and free cash flow equals -$436,000,000, producing a negative free cash flow yield of -1.33%, signaling pressure on cash conversion despite positive gross margins.
Balance-sheet and leverage: Total debt equals $9,422,000,000 against total equity of $3,890,000,000, producing a debt-to-equity ratio of 242.21% and debt-to-assets of 48.75%; both metrics exceed the industry peer mean (debt-to-equity mean 43.12%) and indicate materially higher leverage than peers. Interest coverage at 2.27x sits above the industry peer mean of 1.487x but shows decline year-over-year.
Operational efficiency and returns: Asset turnover registers 0.1775 and lies below the industry peer mean of 0.2205; return on equity equals 1.21% and return on assets equals 0.24%, both modest and under pressure relative to historical norms. Working capital dynamics show a cash conversion cycle of 109.24 days, slightly below the industry peer mean of 128.27 days, reflecting inventory and receivable management that partially offsets cash strain.
Valuation note: WMDST values the stock as over-valued, driven by a steep trailing P/E, negative free cash flow, and elevated leverage that outweigh margin strength and modest top-line growth.
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 % |
|