L'Oréal S.A. OR.PA
Composite 51/100; the shares have moved about 25% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Valuation ranks 29/100 — a moderate mark against it.
Quality ranks 72/100 — a moderate point in its favour. Income ranks 57/100 — a slight point in its favour. Growth ranks 52/100 — a slight point in its favour.
Valuation ranks 29/100 — a moderate mark against it. Momentum ranks 47/100 — a slight mark against it. Balance-sheet strength ranks 48/100 — a slight mark against it.
What the company does L'Oréal S.A. (OR.PA) is a global leader in cosmetics, operating through four divisions: Professional Products, Consumer Products, Luxe, and Dermatological Beauty. Its portfolio includes brands like L'Oréal Paris, Lancôme, and CeraVe, sold via salons, e-commerce, pharmacies, and travel retail. The company emphasizes innovation and premiumization, with a focus on skincare and luxury segments.
Key financials L'Oréal reports strong profitability with ROE 18%, ROA 9.4%, and ROCE 32.2%. Gross margins stand at 74.3%, operating margins at 19.2%, and net margins at 13.9%. Revenue and EPS growth are modest at 1.0% and 0.4%, respectively, while debt/equity is conservative at 0.34. Dividend yield is 1.9% with a payout ratio of 61.2%.
Stock health The stock shows mixed momentum: up 4.77% over 3 months but down 4.24% from its 52-week high. RSI(14) is neutral at 54.10. Sideravia scores highlight strong quality (71.9) and brand strength (80.0), but valuation is rich (29.8) and growth is weak (32.3).
Price vs fair value The stock trades at a **PREMIUM of 45.20%** to our fair-value estimate of 210.04 and a **discount of 7.44%** to the analyst 12-month target of 412.04. - Record H1 2026 operating margin and accelerated growth (GuruFocus.com) - Q2 2026 results beat expectations, driving a share price jump (Investing.com) - H1 2026 sales up 6.8% (Retail Insight Network) - CEO strategy updates and Q2 beat cited as catalysts (WWD)
Looking forward Forward P/E of 27.32 and PEG of 1.22 suggest valuation is stretched but improving. Analysts remain bullish on margin expansion and innovation, though growth remains a concern. The stock’s premium reflects strong execution but limits near-term upside.
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Data as of 2026-09-04, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.