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The Estée Lauder Companies Inc. Quality Score

EL

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Quality34

Weak across most dimensions. This doesn't mean avoid, but the burden of proof is on the bull case.

Broad-market heuristics · Not a buy/sell signal

Valuation and growth

Earnings Multiple
40/100
110.9x

Above 30x, priced for sustained outperformance

Cash Flow Multiple
60/100
27.0x

25–30x, paying up for cash generation

Revenue Growth
0/100
-1.0%

Below 2%, essentially flat

Cash Flow Growth
100/100
20.1%

Above 10% CAGR, strong compounder

Business Quality & Capital Allocation

Share Dilution
60/100
1.4%

Mild dilution under 2%

Margin Trend
0/100
-2.8pp

Contracted >2pp, margin pressure

Capital Structure
0/100
$5.50B

Net debt/FCF of 3.6x, high leverage

2023
$4.03B
$11.2B
2024
$3.40B
$9.86B
2025
$2.92B
$9.50B
2026
$3.50B
$9.27B
TTM
$3.20B
$8.70B
CashDebt
Return on Capital
0/100
4.9%

Below 8%, may not cover cost of capital

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Estée Lauder Companies (EL) quality: score, margins and returns

Estée Lauder Companies (EL) scores 34/100 on Intrinsiqq's quality score (a lower-quality business), a weighted blend of 8 metrics each scored 0 to 100, on 6.7% operating margins and 4.9% ROIC. Every metric is computed from SEC filings; this is analysis, not investment advice.

Frequently asked

Is Estée Lauder Companies (EL) a high-quality business?+

Estée Lauder Companies scores 34 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which rates it a lower-quality business on these measures. Recent figures include a 6.7% operating margin and a 4.9% return on invested capital. Quality and price are separate questions: even a great business can be a poor investment if you overpay, so read this score alongside the valuation. The metric-by-metric breakdown is on this scorecard.

What does Estée Lauder Companies's quality score measure?+

Intrinsiqq's quality score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, change in share count, and balance-sheet strength, each computed from EL's SEC filings rather than opinion or sentiment. A higher score means a more durable, capital-efficient business; it is not a buy or sell signal. Open each metric on this page to see exactly where Estée Lauder Companies scores well and where it falls behind.

What is Estée Lauder Companies's return on invested capital (ROIC)?+

Estée Lauder Companies earns about 4.9% on its invested capital, which is weak. ROIC measures how much profit a company generates per dollar put to work; sustained ROIC above its cost of capital is one of the clearest signs of a real competitive moat. Compare it to EL's margins and growth on this scorecard to judge durability.

How profitable is Estée Lauder Companies?+

Estée Lauder Companies runs an operating margin of about 6.7% and a net margin of about 2.4%. Revenue has grown at roughly -1.5% a year recently. High, stable margins usually point to pricing power and operating discipline. Margins are most telling next to growth and returns on capital, all of which feed this quality score. This is analysis from SEC filings, not investment advice.

How the market compares: US profitability statistics

SourceQuality score computed from the 10-Q filed 2 Nov 2026, covering the period ending 30 Sept 2026, as reported to the SEC. Data last refreshed 3 Nov 2026. How this is calculated.

Fiscal year ends Jun. Sector medians are approximate S&P 500 benchmarks and update periodically. Checks use broad-market heuristics, so sector norms may differ, and the valuation checks are more cyclical than the quality checks.

Peers

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Held by ETFs

EL is in 232 US ETFs. The largest of them, with EL's weight in each:

Spot a number that looks wrong? Check it in EL's SEC filings or

Download this analysis as a PDF (Pro)

Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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