The Estee Lauder Companies Inc. (NYSE:EL) has a beta of 0.94, a 12-month trailing P/E ratio of 79.40, and a growth ratio of 2.92. The stock’s Relative Strength Index (RSI) is 44.66, with weekly volatility at 1.20% and ATR at 5.60. The EL stock’s 52-week price range has touched low of $183.22 and a $318.34 high. Its shares traded lower over the last trading session, losing -0.73% on 06/09/21. The shares fell to a low of $297.60 before closing at $297.84. Intraday shares traded counted 0.9 million, which was 31.59% higher than its 30-day average trading volume of 1.31M. EL’s previous close was $300.02 while the outstanding shares total 363.60M.
Investors have identified the Household & Personal Products company The Estee Lauder Companies Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $107.80 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
The Estee Lauder Companies Inc. (EL) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For EL, the company has in raw cash 6.4 billion on their books with 471.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 11.0 billion total, with 5.2 billion as their total liabilities.
EL were able to record 2.39 billion as free cash flow during the 08/19/2021 quarter of the year, this saw their quarterly net cash flow reduce by 1.38 billion. In cash movements, the company had a total of 2.78 billion as operating cash flow.
Potential earnings growth for The Estee Lauder Companies Inc. (EL)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/19/2021 quarter of the year, The Estee Lauder Companies Inc. recorded a total of 3.86 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 13.43% coming in sequential stages and their sales for the 08/19/2021 quarter reducing by -25.6%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 939.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 2.92 billion. This allows shareholders to hold on to 363.60M with the recently reported earning now reading 1.26 cents per share. This is a figure that compared to analystâ€™s prediction for their 08/19/2021 (1.62 cents a share).
Having a look at the companyâ€™s valuation, the company is expected to record 7.14 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on EL sounds very interesting.
Is the stock of EL attractive?
In related news, 10% Owner, ZINTERHOFER AERIN LAUDER TRUST sold 170,000 shares of the companyâ€™s stock in a transaction that recorded on Jun 08. The sale was performed at an average price of 301.46, for a total value of 51,248,554. As the sale deal closes, the Director, Hockaday Irvine O Jr now sold 2,740 shares of the companyâ€™s stock, valued at 828,110. Also, President and CEO, Freda Fabrizio sold 32,209 shares of the companyâ€™s stock in a deal that was recorded on Jun 01. The shares were price at an average price of 308.00 per share, with a total market value of 9,920,372. Following this completion of acquisition, the Director, BRAVO ROSE MARIE now holds 4,234 shares of the companyâ€™s stock, valued at 1,288,110. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
16 out of 24 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on The Estee Lauder Companies Inc.. 0 analysts has assigned a Sell rating on the EL stock. The 12-month mean consensus price target for the companyâ€™s shares has been set at $333.90.