Consumer Defensive / Household & Personal Products

The Estée Lauder Companies Inc. (EL)

$83.41
-2.54%
$32.2B
Market Cap
P/E Ratio
1.21
Beta
1.57%
Dividend Yield
Piotroski 4/9Altman Z 2.5 Gray ZoneBeneish M -3.22 CleanROIC−WACC -14.4%

Quantitative Summary

Deterministic

Financial health is average: Piotroski 4/9, Altman Z 2.5. DCF fair value of $3 implies 96% downside based on model assumptions.

Generated deterministically from quant metrics and financial statements. Not a recommendation.

Algorithmic Teardown

AI-Generated

The fundamental economics of The Estée Lauder Companies Inc. currently reflect severe value destruction, characterized by a negative ROIC-WACC spread of -14.0% that indicates capital allocation is eroding shareholder value rather than creating it. This deterioration is rooted in the DuPont decomposition, where an operating net margin contraction to -7.9% drives a total return on equity of -29.3%, despite robust gross margins at 74.0% and moderate leverage at 5.15x times. While the Beneish M-Score of -3.22 suggests low earnings manipulation risk, the Altman Z-Score of 2.7 places the firm in the grey zone regarding bankruptcy probability, exacerbated by a significant revenue decline of 8.2% year-over-year and a Piotroski F-Score of only 4/9, signaling multiple fundamental weaknesses simultaneously.

Valuation metrics present a stark divergence between historical norms and current cash flow realities, with shares trading at approximately nine times the sector average P/E of 34.4x while the DCF model implies a fair value significantly below current levels. The implied ten-year free cash flow growth rate of 24.8% appears disconnected from the realized negative earnings trajectory, resulting in a calculated downside to intrinsic value exceeding 90%. This discrepancy suggests the market pricing may be anchored on legacy brand power rather than near-term operational execution, creating a scenario where traditional multiple compression could further depress equity prices absent an immediate turnaround in profitability.

Risk-adjusted performance indicators reveal a complex picture; although the stock has generated substantial positive Fama-French alpha of 25.60% annually relative to its factor exposures, this momentum is not supported by current earnings quality or insider activity, which remains neutral with zero net flow over ninety days. The value and profitability factors show neutrality, indicating that standard anomaly strategies do not currently offer a clear directional signal given the conflicting data on margin expansion versus revenue contraction. Investors must weigh whether the historical alpha reflects structural advantages or transient market dislocation in light of the deteriorating DuPont components and negative capital efficiency metrics.

Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.

DCF Sandbox

Interactive
Market Price
$83.41
Fair Value
$3
Implied Upside
-96.4%
$3IMPLIED FAIR VALUEOVERVALUEDOVERUNDER
Growth Rate (Y1–5)-8%
-10%20%50%
Discount Rate (WACC)10.7%
5%12.5%20%

5-year two-stage DCF. Terminal growth 3%. Default sliders match the pre-computed base case. Drag to explore scenarios. Not investment advice.

Reverse DCFMarket-Implied
26.4%annual FCF growth priced in at $83.41

The growth rate the market implicitly expects over the next 10 years to justify today's price. Compare with historical growth of -8% YoY revenue.

Sensitivity Matrix

TG ↓ / WACC →8.6%10.6%12.6%
2%$5$2$1
3%$7$3$1
4%$9$4$2

Center = base case. Green = >10% upside, Red = >10% downside vs $83.41.

Pre-computed DCF: WACC=10.7%, terminal growth 3%. Fair value $3 (-95.5%). Not investment advice.

Price Chart with Moving Averages

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SMA 50 SMA 200

Technical Setup

AI Generated

The current trading price of $76.14 for The Estée Lauder Companies Inc. establishes a specific point on the chart, yet without access to historical moving averages or relative strength index data in this prompt, a definitive assessment regarding momentum direction cannot be calculated. Typically, when price action sustains above key moving averages such as the 50-day or 200-day lines, it signals an uptrend where bullish sentiment may dominate short-term trading ranges. Conversely, positioning below these benchmarks often indicates bearish pressure and potential downside risk. In the absence of specific RSI readings here, one cannot determine if the stock is experiencing overbought conditions that might trigger a pullback or oversold states suggesting a possible rebound; such metrics are essential to gauge whether short-term momentum is accelerating or decelerating relative to recent volatility. Given the sector classification as Consumer Defensive, market participants often monitor these equities for stability during economic fluctuations, but technical confirmation requires more than just the current dollar value. A complete technical synthesis would need to correlate the $76.14 level against immediate support and resistance zones derived from prior session closes and volume profiles. Until those specific comparative data points are available, any conclusion regarding whether the asset is in a strengthening or weakening phase remains speculative. Readers must evaluate how this price point interacts with longer-term trends and oscillator values to form their own view on potential future movements within the Consumer Defensive landscape.

RSI (14)
SMA 50
SMA 200

Quant Health Deep Dive

4/9
Piotroski F-Score
Average — mixed operational signals
2.5
Altman Z-Score
Grey Zone — between 1.8 and 3.0 thresholds. Thresholds: >3 safe, 1.8–3 grey, <1.8 distress.
-3.22
Beneish M-Score
Below threshold — no statistical earnings quality concern per Beneish model. Threshold: <-2.22 = below threshold.

Profitability & Value Creation

74.0%
Gross Margin
-7.9%
Net Margin
-3.7%
ROIC
10.7%
WACC
ROIC − WACC Spread: -14.4%— Negative spread.
-8.2%
Revenue Growth (YoY)
-390.5%
Earnings Growth (YoY)
670.0M
Free Cash Flow
92%
FCF Payout Ratio

⚠️ Dividend consumes >80% of FCF — sustainability risk.

DuPont Analysis — ROE Decomposition

Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.

-7.9%
Net Profit Margin
NI ÷ Revenue
×
0.72x
Asset Turnover
Revenue ÷ Assets
×
5.15x
Equity Multiplier
Assets ÷ Equity
=
-29.3%
Return on Equity
⚠️ High equity multiplier — ROE is being amplified by leverage, not operational excellence.

Balance Sheet Health

4.15x
Debt / Equity
1.30x
Current Ratio
-1.9x
Interest Coverage
30.1x
Net Debt / EBITDA
2.18%
FCF Yield
146.0M
EBITDA

Earnings Surprise History

Q4
✓ Beat
Est: $0.31
Act: $0.65
+108.8%
Q3
✓ Beat
Est: $0.09
Act: $0.09
+1.1%
Q2
✓ Beat
Est: $0.18
Act: $0.32
+81.9%
Q1
✓ Beat
Est: $0.83
Act: $0.89
+6.6%

EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.

Dividend History

$0.3500
Latest Dividend
$1.40
2025 Total
-39.9%
YoY Growth
Annual Dividends per Share
$0.94
2016
$1.40
2017
$1.57
2018
$1.77
2019
$1.49
2020
$2.19
2021
$2.46
2022
$2.64
2023
$2.33
2024
$1.40
2025
$0.70
2026
DateAmountChange
2026-05-29$0.35000.0%
2026-02-27$0.35000.0%
2025-11-28$0.35000.0%
2025-09-02$0.35000.0%
2025-05-30$0.35000.0%
2025-02-28$0.35000.0%
2024-11-29$0.3500-47.0%
2024-08-30$0.66000.0%
2024-05-31$0.66000.0%
2024-02-28$0.66000.0%
2023-11-29$0.66000.0%
2023-08-30$0.66000.0%
Stock Splits
2012-01-23: 2:11999-06-03: 2:1

Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.

Risk Profile

50.4%
Annual Volatility
0.78
Sharpe (1Y)
-44.0%
Max Drawdown (5Y)

Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.

Underwater (Drawdown from Peak)

How far below the all-time high the price has been over time. Deeper = more pain for holders.

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Rolling 60-Day Beta vs S&P 500 (VOO)

How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.

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Rolling Beta Market (β = 1.0)

Fama-French 5-Factor Exposure

Academic factor model decomposition — what's really driving this stock's returns.

1.50
Market β
Mkt-RF
+0.953
Size (SMB)
Small-cap tilt
-0.014
Value (HML)
Neutral
+0.012
Profit (RMW)
Neutral
+0.794
Invest (CMA)
Conservative
Alpha (annual): +25.60%
R²: 44.4%of variance explained by 5 factors

Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.

Fundamentals

28.0
Forward P/E
1.42
PEG Ratio
8.06
Price/Book
5M
Avg Volume
$121.64
52W High
$64.83
52W Low
33%
52W Range Position

Passive Flow Attribution

ETF Draft Effect
$5.2B
Tracked Passive Exposure
8
ETFs Holding EL
0.07%
Avg Weight in ETFs
$7.4T
Total ETF AUM

When investors buy or sell ETFs like MOAT or XLP, the fund manager is mechanically forced to buy or sell EL shares regardless of The Estée Lauder Companies Inc.'s individual fundamentals. We estimate $5.2B of passive capital is structurally linked to EL through 8 tracked ETFs. This substantial passive exposure means that ETF inflows and outflows — not company fundamentals — can dominate daily volume on this stock.

Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.

ETF Contagion Visualizer

Simulate a price drop in The Estée Lauder Companies Inc. to visualize passive redemption contagion across ETFs and collateral stocks.

EL Shock
-0%
Est. Passive Redemption
$0
Systemic Risk
STABLE
ELEpicenterVTIETFVOOETFIVVETFWMTLow RiskCOSTLow RiskWMTLow RiskCOSTLow RiskPGLow Risk
EL Price Drop (%)0

If The Estée Lauder Companies Inc. (EL) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies Walmart Inc. (WMT) as the most exposed collateral stock, sharing 1 ETFs with EL. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.

Contagion model based on shared ETF exposure and constituent weights across 38 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.

EL Ownership Dynamics

Passive funds hold 1 in every 5 EL shares, reducing daily market volatility.

Ticker
EL
Total Shares
247M
ETF Lock-Up
20.4%
Display Mode
Total Float Impact
20.4%Locked Float

The Estée Lauder Companies Inc. (EL) exerts notable gravity on the passive index market, currently representing 2.7% of the MOAT (MOAT) and 1.3% of the State Street Consumer Staples Select Sector SPDR ETF (XLP). Across 38 tracked ETFs, approximately 50M shares (20.4% of float) are held by passive funds and rarely trade on the open market. This high passive lock-up reduces the effective active float, which can amplify daily price volatility and momentum signals.

Float lock-up computed from 38 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).

EL Institutional Volume Profile

252-day volume distribution by price level. The Point of Control (POC) marks the price where the most institutional volume transacted — an implicit support/resistance floor.

TICKER
EL
PRICE
$83.41
FLOOR (POC)
$88.41
STRENGTH
High
$66$68$71$74$777%$80$83$83.41$8612%$88POC 16%$9111%$94$97$100$103$106$108$111$114$117$120
Focus Zone
Point of Control (POC) Support (below price) Resistance (above price) Current Price

The highest-volume price zone for The Estée Lauder Companies Inc. over the past year sits near $88.41 (16% of 252-day volume). The current price of $83.41 sits 5.7% below the POC — suggesting potential mean-reversion upside if institutional demand reasserts at this level. The highly concentrated volume profile (16% at POC) indicates strong consensus on fair value — institutional participants have repeatedly transacted near this price.

Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.

EL Capital Efficiency

How efficiently does The Estée Lauder Companies Inc. convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.

Free Cash Flow
$670M
EBITDA
$146M
FCF Conversion
459%
Reinvestment Rate
-359%
459% of EBITDA → Free Cash
0% (cash burn)25% (low)50% (efficient)100% (pure cash)
ROIC
-3.7%
ROIC − WACC Spread
-14.4%

The Estée Lauder Companies Inc. converts 459% of its EBITDA into free cash flow, an exceptional conversion rate indicating an asset-light business model with minimal capital reinvestment drag. However, the ROIC-WACC spread is negative (-14.4%), suggesting reinvested capital is destroying shareholder value.

Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.

Fails-to-Deliver (FTD) History

SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.

DateFailed SharesClose PriceNotional Value
2026-05-14441$82.13$36,219.33
2026-05-11200$86.20$17,240
2026-05-0747$86.67$4,073.49
2026-05-051,082$81.33$87,999.06
2026-05-04189,182$79.30$15.0M
2026-05-01875$76.71$67,121.25
2026-04-2923,000$77.10$1.8M
2026-04-248$76.40$611.2
2026-04-153$76.42$229.26
2026-04-13147$72.67$10,682.49
2026-04-08137,296$69.17$9.5M
2026-04-0127,579$71.77$2.0M
2026-03-3013$67.23$873.99
2026-03-2524$71.48$1,715.52
2026-03-23645$85.92$55,418.4
2026-03-20440$85.60$37,664
2026-03-0432,558$98.71$3.2M
2026-03-02582$109.47$63,711.54
2026-02-27400$111.90$44,760
2026-02-2611,737$112.92$1.3M
2026-02-23300$114.23$34,269
2026-02-20700$111.74$78,218
2026-02-1266,053$105.39$7.0M
2026-02-1156,262$101.31$5.7M
2026-02-029,187$115.28$1.1M
2026-01-263,119$117.69$367,075.11
2026-01-1461$115.37$7,037.57
2026-01-061,000$108.16$108,160
2026-01-0562$106.76$6,619.12
2026-01-029,805$104.72$1.0M

Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.

Price Correlations

Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.

Peer252-Day (1Y)126-Day (6M)Direction
WTGXXNaNNaN
NDSN0.4870.420Moderate
CMI0.4630.460Moderate
MAS0.4540.391Moderate
DD0.4510.376Moderate
SWK0.4490.342Moderate
BLDR0.4370.394Moderate
BLD0.4330.386Moderate
NXPI0.4320.412Moderate
NL00095387840.4320.412Moderate

Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.

Compare EL to Peers

Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.

SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.