NYSE:EL
$56.41
(2/9 1:31PM)
+1.3%
| Open | $56.12 |
Mkt Cap | $6.6 Billion |
| High | $56.62 |
52Wk High | $56.98 |
| Low | $55.56 |
52Wk Low | $19.81 |
| Volume | 1.8 Million |
Avg Vol 10D | 2.6 Million |
Ockham's Rating/Recommendation Summary
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EL Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, EL the high and low end of the Price to Sales per share ratios are 1.67x and 1.06x respectively.
Notice that EL's current Price to Sales per share ratio is 1.20x, which is slightly under its historical average. This level of Price to Sales gives us a fairly neutral position on the EL shares. We would like to see a drop in the Price to Sales ratio just a little bit more (given current sales figures) before we would become more positive on a Price to Sales basis. Such a drop would increase the attractiveness of the stock but, as always, would need to be considered in the context of all other valuation factors.
EL Cash Earnings
Looking at EL specifically in their Cash Earnings capabilities, Ockham views EL as below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for EL to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 20.38 and a 12.64 low over the same period.
With a historical average Cash Earnings ratio of 16.51, the current Cash Earnings ratio of 16.49 is a positive opportunity for value in the Ockham view. Naturally, we would love to see a deeper value opportunity for EL, but to get there one of two things must occur (or both). Either the stock price must decline further to increase the long term buying opportunity, or the management at EL needs to earn more cash. If either, or both, of these occur, then we could see a significant gap emerge between what investors were willing to pay for in the past, and where EL is trading currently (latest close price of $55.40).
EL Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from EL against the historic high and low levels over an available data range. Because EL has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In EL’s case, the estimated annual dividend is $0.55 producing a current dividend yield of 0.99%. The highest dividend yield from EL in recent history was 2.78% while the lowest dividend yield was 0.40%. It is never a good sign for a company to pay significantly lower dividends, in this case 37.74% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
EL's Earnings Were Talked About on Closing Bell
Earnings are one of the most important fundamental factors we track, so we are always interested in the latest profit reports and news.
After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on EL. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, EL has been less covered in the news compared to the rest of our universe of stocks. The crowd at The Motley Fool does not like EL and believes that it will Underperform. Check the news on this stock because there is a catalyst that has allowed this stock to advance 5.04% today.
“… Look at ESTEE LAUDER. Folks, it just closed at a 52-week high, ESTEE LAUDER. Tiffany's has been holding up. You've got to be able to move, get great numbers now, to move these ... …”
Power Lunch: What is Happening with The Estee Lauder Companies, Incorporated - Shares A Now?
The Estee Lauder Companies, Incorporated - Shares A is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Power Lunch.
The crowd at The Motley Fool does not like EL and believes that it will Underperform. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, EL has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on EL.
“… from printers to printing, since the fall of 2008 it includes ESTEE LAUDER up $1. 42 on the day. We're back in a moment. Was it a thrashing or a whooping? . …”
Squawk On The Street Discusses Higher Prices and The Estee Lauder Companies, Incorporated - Shares A
Stick with it or dump it? Squawk On The Street discusses what an abnormally high price means for EL's investors. Take note of Ockham's valaution on the stock as well.
The Ockham valuation currently has a Fairly Valued stance on EL because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, The Estee Lauder Companies, Incorporated - Shares A has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see The Estee Lauder Companies, Incorporated - Shares A underperforming.
“… Hitting new 52-week highs this morning with ESTEE LAUDER. > > > you are looking at a live picture of capitol hill where treasury secretary timothy geithner is a couple of ... …”
The Estee Lauder Companies, Incorporated - Shares A EPS: A Hot Topic on Seeking Alpha Wall St Breakfast
Whenever a reliable source like Seeking Alpha Wall St Breakfast talks about earnings or news on earnings, we think it warrants bringing attention to it.
The crowd at The Motley Fool does not like EL and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on EL. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, EL has been less covered in the news compared to the rest of our universe of stocks.
“… (PR) ESTEE LAUDER (EL): FQ2 EPS of $1. 28 beats by $0. 07. Revenue of $2. 2B (+11%) in-line. (PR) Lockheed Martin (LMT): Q4 EPS of $2. 17 beats by $0. 18. Revenue of $12. …”
Power Lunch Discusses Higher Prices and The Estee Lauder Companies, Incorporated - Shares A
An abnormally high price is obviously a joyous occasion for investors in that stock. See what Power Lunch was talking about for EL below.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, EL has been less covered in the news compared to the rest of our universe of stocks. The crowd at The Motley Fool does not like EL and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on EL.
“… For three companies in the s&p 500 today, the words not fear, it's cheer, intuitive, surgical, carefusion and ESTEE LAUDER hitting 52-week highs today. > > > …”
EL's Back in the News After More than a Month on Closing Bell
After a month of relative quiet from EL, they have appeared back in the news.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, The Estee Lauder Companies, Incorporated - Shares A has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on EL because it trades within the price range that we would expect given current market conditions and fundamentals. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see The Estee Lauder Companies, Incorporated - Shares A underperforming.
“… John dempsey is the president of the ESTEE LAUDER companies. See you soon. Happy holidays. > > > ten minutes before the closing bell sounds. …”
EL Back in the News on Closing Bell
It's been at least a month since we noticed any major news coverage of EL, so the story in Closing Bell may get the ball rolling.
Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see The Estee Lauder Companies, Incorporated - Shares A underperforming. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, The Estee Lauder Companies, Incorporated - Shares A has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on EL because it trades within the price range that we would expect given current market conditions and fundamentals.
“… He was a 60% of ESTEE LAUDER company's revenue coming from just two brands. Clinique and ESTEE LAUDER brand and then you have got other brands like the mac brand, which of ... …”
EL Back in the News on Closing Bell
There has not been much to report from EL in the last few weeks at least, but Closing Bell talked about the stock recently.
The Estee Lauder Companies, Incorporated - Shares A receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; EL has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… ESTEE LAUDER's global brand president will give us some ESTEE LAUDER coming up. > > > and after the bell, jim rogers will be my guest. …”
The Estee Lauder Companies, Incorporated - Shares A (EL) Discussed on Fox Business's Bulls & Bears
The Estee Lauder Companies, Incorporated - Shares A is in the news. Find out how this impacts EL trading on Ockham Research.
Dependent on consumer spending. Retailors, discounters like wal-mart, ESTEE LAUDER beating across the street. Then we have energy. Energy pressured by crude oil prices and earnings that were a right now, it looks like the dow will end the week down 250 back to you.
“… ck to you. …”
The Estee Lauder Companies, Incorporated - Shares A (EL) Discussed on Fox Business's Countdown to the Closing Bell
The Estee Lauder Companies, Incorporated - Shares A is in the news. Find out how this impacts EL trading on Ockham Research.
>> franc homes with u.S. Global investors. We are now five minutes from the let's countdown the seven late movers with robert gray. >> ESTEE LAUDER with higher earnings across all of their businesses. Boosting bore forecasts as well. >> bare essentials up 2%.
“… 2%. …”