Estee Story

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EL -- USA Stock  

USD 214.78  0.97  0.45%

Estee Lauder Companies is scheduled to announce its earnings today. The next earnings report is expected on the 29th of October 2020. The stock continues to experience an active downward rally. Estee Lauder Receivables Turnover is relatively stable at the moment as compared to the past year. The company's current value of Receivables Turnover is estimated at 10.78. Inventory Turnover is expected to hike to 2.23 this year, although the value of Revenue Per Employee will most likely fall to nearly 257.8 K. While some baby boomers are getting worried about consumer defensive space, it is reasonable to summarize Estee Lauder Companies as an investment alternative.
Published over a month ago
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Will Estee (NYSE:EL) continue to grow in September?
Estee Lauder reports 8.86 B of total liabilities with total debt to equity ratio (D/E) of 2.03, which may imply that Estee Lauder Companies relies heavily on debt financing. On a scale of 0 to 100, Estee Lauder holds a performance score of 12. The firm shows a Beta (market volatility) of -0.115, which means not very significant fluctuations relative to the market. Let's try to break down what Estee's beta means in this case. As returns on the market increase, returns on owning Estee Lauder are expected to decrease at a much lower rate. During the bear market, Estee Lauder is likely to outperform the market. Although it is vital to follow Estee Lauder Companies historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By reviewing Estee Lauder Companies technical indicators, you can presently evaluate if the expected return of 0.29% will be sustainable into the future. Please utilizes Estee Lauder Companies semi variance, and the relationship between the maximum drawdown and daily balance of power to make a quick decision on whether Estee Lauder price patterns will revert.
Estee Lauder financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Estee Lauder, including all of Estee Lauder's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Estee Lauder assets, the company is considered highly leveraged. Understanding the composition and structure of overall Estee Lauder debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Estee Total Liabilities

Estee Lauder Companies liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Estee Lauder Companies has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Estee Lauder balance sheet include debt obligations and money owed to different Estee Lauder vendors, workers, and loan providers. Below is the chart of Estee short long-term liabilities accounts currently reported on its balance sheet.
You can use Estee Lauder Companies financial leverage analysis tool to get a better grip on understanding its financial position

How important is Estee Lauder's Liquidity

Estee Lauder financial leverage refers to using borrowed capital as a funding source to finance Estee Lauder Companies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Estee Lauder financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Estee Lauder's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Estee Lauder, but it might be worth checking our own buy vs. sell analysis

What is driving Estee Lauder Investor Appetite?

This firm generated the yearly revenue of 15.45 B. Reported Net Income was 1.3 B with gross profit of 11.5 B.

Asset Breakdown

B
Assets Non Current
2.9 B
Goodwill
7.1 B
Current Assets
Total Assets13.06 Billion
Current Assets7.06 Billion
Assets Non Current6 Billion
Goodwill2.88 Billion

Anything left for Estee Lauder after the pull down?

The expected short fall is down to -1.35 as of today. Estee Lauder Companies has relatively low volatility with skewness of -0.37 and kurtosis of 2.07. However, we advise all investors to independently investigate Estee Lauder Companies to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

The Current Takeaway on Estee Lauder Investment

While some companies in the household & personal products industry are either recovering or due for a correction, Estee Lauder may not be performing as strong as the other in terms of long-term growth potentials. To sum up, as of the 20th of August 2020, we believe that Estee Lauder is currently undervalued with very low chance of bankruptcy in the next two years. Our final 30 days buy-sell recommendation on the company is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Estee Lauder Companies. Please refer to our Terms of Use for any information regarding our disclosure principles.

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